In view of the entry into force from 5 January 2017 of the Law of Ukraine On Enforcement Proceedings and the Law of Ukraine On Bodies and Persons Engaged in Enforcement of Judicial Decisions and Decisions of Other Bodies  that provide, inter alia, for the establishment of the institute of private enforcement officers, the National Bank of Ukraine has amended some of its regulations.

In accordance with the aforementioned laws, a private enforcement officer, as well as a public enforcement officer, is authorized to arrest (seize) and carry out forced debiting of funds from the customers’ accounts under the enforcement documents specified by laws.  If a bank receives a payment order for forced debiting of funds from the customers’ accounts from a private enforcement officer based on the court’s ruling, a bank is required to execute it.

Therefore, in pursuance of the Laws of Ukraine On Enforcement Proceedings and On Bodies and Persons Engaged in Enforcement of Judicial Decisions and Decisions of Other Bodies, the NBU Board issued Resolution No.8 of 9 February 2017 On Amendments to Some NBU Regulations (Resolution No. 8) amending some of its regulations.

Resolution No. 8, inter alia, has amended: The Instruction on the Procedure of Opening, Usage and Closing of Accounts in Domestic and Foreign Currencies approved by the NBU Board Resolution No. 492 of 12 March 2003, the Instruction On the Cashless Payments in Ukraine in Domestic Currency approved by the by NBU Board Resolution No.22 of 21 January 2004, the Instruction On the interbank Money Transfer in Ukraine in Domestic Currency, approved by the by NBU Board Resolution No.320 of 16 August 2006 the Regulation on the Procedure of Banks’ Exercising Remittance Documents, Forced Debiting and Arrest of Funds in Foreign Currencies and Precious Metals approved by NBU Board Resolution No. 216 of 28 August 16.08.2006.

Resolution No.8 streamlined the rules governing the operation of banks, including in the event of receipt of a payment order from a private enforcement officer.

Resolution No. 8, inter alia, has addressed the following issues:

• measures to be taken by banks regarding seizure of funds on customers’ accounts upon the decision of a private enforcement officer ordering the seizure of funds
• a bank shall execute payment orders for forced debiting of funds received from the private enforcement officer
• a bank shall inform the private enforcement officer on opening of a new account  for the customer in respect of which the bank holds a public encumbrance on the movable property.

Resolution No. 8 has also allowed banks to open accounts for minors (aged 14-16)upon presenting the passport of the citizen of Ukraine (in pursuance of the Laws of Ukraine On Amendments to Some Laws of Ukraine regarding documents confirming the citizenship of Ukraine, the identity or special status of citizens aimed at the liberalization of the visa regime between Ukraine and the EU). Up until now, customers were required to submit a birth certificate, a certificate with a specimen of signature and documents confirming the place of residence.

Resolution No. 8 comes into effect from 16 February 2017.