Every service comes with a set of conditions. First of all, find out what those are. If it's a loan, its conditions include the full cost of taking it out, the full interest rate, all additional fees and charges, late payment penalties, the loan repayment schedule, and more.

Second, read the agreement carefully. Of course, any agreement is a legal document that may be hard to understand. But if you are planning to make a deposit, take out a loan, or use another service, read all the terms and conditions carefully. By signing this document, you take responsibility to adhere to it, after all.

Typical signs of being in breach of financial services consumers' rights:

• The service provider makes a demand on the consumer to repay another person's loan when in fact the consumer is not a guarantor, heir, or representative of the debtor.
• The service provider resorts to harsh methods of debt collection (e.g., obscene language, moral pressure on the consumer, threats).
• The service provider makes persistent solicitations to compel the consumer to buy its credit products (credit cards or limits) when the bank reissues the consumer's payment card.
• The loan provider charges interest for a period that is longer than the time the consumer has been using the loan.
• The insurer does not make an insurance payment in full, fails to make an insurance payment, or intentionally refuses to make an insurance payment.

Before anything else, contact the financial institution directly. You can call their "hotline," but it is better to send a written complaint to their management. Sometimes consumers manage to quickly resolve the situation or have their questions answered at this level.

If the issue could not be resolved, the consumer can contact the NBU. The best way to do it is:

• by filling out the online form on the NBU's website
• by writing to [email protected]:
• by calling the NBU Contact Center at 0 800 505 240
• by chatting with nbu_contact_bot in Viber or Telegram.

In the appeal, it is important to describe the nature of the issue, indicate the institution to which the appeal relates, your full name, place of residence, and e-mail.

The NBU has 30 calendar days to consider your appeal. However, we try to respond as promptly as possible, especially to urgent appeals.

If you have a complaint about the work of your bank, we recommend that you first file a written complaint directly with the bank's management. If your complaint is ignored, forward it to the NBU.

Statements and complaints from individuals do not constitute grounds for an unscheduled inspection of a bank by the NBU. However, if such appeals reveal to the NBU that consumer rights are consistently violated, there may be grounds for an inspection.

Complaints about the work of bank employees should be filed, in writing, with the bank's management.

A consumer loan ad must specify the loan's real annual interest rate, maximum amount, and maturity. Similarly, financial institutions must post on their websites information on the total cost of the loan with all fees and payments, the real annual interest rate, terms and amounts, conditions of early repayment, fines in case of violation of lending conditions, and more. In some cases, however, the cost of the loan may differ from the expected or advertised cost because the financial institution indicates in its advertising materials only an interest rate that is attractive to the consumer, like 1%–2% per day. This is an outright violation that can be misleading as to the actual total cost of such a loan. Please report such violations to the NBU!

If the bank claims that it cannot issue a salary or pension card without first issuing a credit card, it misleads the client and imposes its services on the client. Ukrainian legislation prohibits such actions (Article 55 of the Law of Ukraine On Banks and Banking). The customer has every right to refuse a credit card that is being imposed on them.

Ukrainian banks adhere to the basic principles of lending. In particular, they check whether the borrower is able to repay the funds together with interest on the loan. The bank is therefore within its rights to refuse a loan based on a risk assessment.

If you have not taken out a loan and have not signed anything, you have the right to refuse to interact with a loan collector.

If the calls continue after you have banned them:

• Ask for the name of the financial institution on behalf of which the call is being made and find out the reason for the call.
• Record the violation of your rights (take screenshots of messages and call logs, make an audio recording of phone conversations, etc.).
• Send a complaint to the address of the company whose representatives are bothering you. If there is no response, report the violation to the NBU, with evidence attached.

You have the right to refuse the loan, without explaining the reason, within 14 calendar days. This standard is stipulated by the Law of Ukraine On Consumer Lending. But the loan agreement must have such a clause as well.

To cancel a loan, you need to contact the bank in writing. The principal and interest specified in the terms of the loan must be returned to the bank within 7 days from the day of refusal.

In some cases, when applying for a home or car loan, you really need to get additional services. Those may include property valuation, insurance registration, or notary support.

But you have the right to enter into an agreement for additional services with a company of your choice that meets the creditor's requirements. If the bank includes in the services package mandatory insurance, appraisal, or notary services that are provided by a specific company, against your wish, this is a sign that your rights are being violated.

The mortgage is terminated when the client has met their main commitments or when the mortgage agreement expires. If the notary refuses to register the termination of the encumbrance on real estate, you should go to court.

The financial institution is within its right to debit funds from the account to repay the loan, but only if you have given your consent and only if such debiting is stipulated in the agreement. Otherwise, the financial institution is violating your rights. We therefore emphasize that it is very important to study all the terms of an agreement before signing it.

Important clarification for the period of martial law: while under martial law and within 30 days from the day of its termination, the consumer is free from the obligation to pay a penalty (fine) or other late-payment fees that are stipulated in the consumer loan agreement. A penalty accrued after 24 February 2022 is subject to write-off.

Financial institutions must not charge military personnel interest on loans. Nor should financial institutions charge late-payment fines or penalties while the borrower serves in the military. This is in accordance with the Law of Ukraine On Social and Legal Protection of Military Personnel and Members of Their Families. This rule applies not only to banks, but also to NBFIs. If the institution still charges interest, fines, or penalties, you should submit to its management your proof of completion of military service. The Ministry of Defense provides clarification on which documents constitute such proof. If the financial institution continues to charge interest or penalties, file a written complaint with its management.

Important clarification for the period of martial law: while under martial law and within 30 days from the day of its termination, the consumer is free from the obligation to pay a penalty (fine) or other late-payment fees that are stipulated in the consumer loan agreement. A penalty accrued after 24 February 2022 is subject to write-off.

The decision to seize funds on the client's account is made by a state or private executor in accordance with the legislation of Ukraine. If a decision to seize funds has been made, the bank is obliged to block the client's debit transactions. To resolve the situation, the client must contact the bank or financial institution where he has an overdue debt and pay off the entire amount of the debt or agree to a restructuring plan.

If the customer has an overdue debt, the financial institution has the right to contact a public or private executor and seize the customer's funds. At the same time, the financial institution is obliged to implement the executor's decision. However, the client has the right to ask the public or private executor to unfreeze an account to which the funds are credited exclusively for the purpose of disbursing a salary, pension, or stipend.

Any installment-based payment is a loan. Banks can use the term installment to conceal the real cost of the loan. At the same time, banks use so-called "mixed agreements," which can make it difficult to understand the conditions for receiving the service. When acquiring such services from a bank, you will also have to pay commissions and interest for using loaned money, even if the purchase was made with your own funds. We recommend that consumers of financial services carefully read the agreement and find out the interest and commissions it stipulates. If you find yourself in a situation where a financial institution charges interest or penalties that were not stipulated in the agreement, make a written request to the bank's management. If the bank does not respond, contact the NBU.

The consumer signs an online loan agreement with an electronic signature in accordance with the Laws of Ukraine On Electronic Commerce and On Electronic Trust Services. A loan agreement executed in this manner takes the same legal effect as an agreement made in writing with a handwritten signature. You need to remember your financial commitments and comply with the terms of online loan agreements.

Financial commitments must be met. If for some reason you are unable to repay the debt, contact the financial institution and request a restructuring. Otherwise, the financial institution can engage debt collectors to settle the arrears or the debt itself as it sees fit. Financial institutions and debt collection firms must meet ethical behavior requirements when interacting with debtors and other persons. Specifically, debt collectors, original creditors, and new creditors are prohibited from notifying third parties about the debt without the debtor's consent. They are forbidden to threaten, blackmail, or exert psychological and physical pressure on the debtor, to call the debtor between 8 p.m. and 9 a.m. and on weekends, holidays, and nonbusiness days, and to communicate with the debtor's friends and relatives in the absence of their consent, etc. If you have been subjected to illegal actions by debt collectors, original creditors, or new creditors, take the following steps:

1. Contact the financial institution and the debt collector dealing with the settlement of your debt with a written complaint about the actions of their employees or the actions of the debt collector.
2. If your complaint is ignored, collect information confirming the violations committed (record calls, take screenshots of messages), and submit these materials to the NBU along with a complaint against the financial institution or the debt collector.
3. If you have been threatened or subjected to psychological or physical violence, contact the National Police of Ukraine.

While under martial law and for three months after its termination, banks, NBFIs, and debt collection firms must comply with additional requirements for ethical conduct in the settlement of overdue debts. In particular, they may not interact on their own initiative with a consumer who has protected status. Nor can they interact with such a customer's relatives. However, to prove protected status, it is necessary to:

•notify the original creditor, the new creditor, and the debt collection agency, that the debtor is protected

•provide to said parties copies of documents that prove protected status.

Read more here.

Automatic extension of the term of the deposit is possible only if the client has agreed to it: the client has signed an agreement that has such a clause or ticked the respective field in the mobile app.

We recommend that banks explain to clients all the conditions for receiving the service, including what will happen after the deposit expires. We also recommend acting in advance: inform the client in advance about the expiration of the deposit and offer the client a number of options for further actions.

The consumer is entitled to make an early withdrawal of a term deposit and accrued interest, but only if this is provided for in the agreement with the bank. This is in accordance with the Law of Ukraine On Amendments to Certain Laws of Ukraine Regarding the Conditions for Withdrawal of Term Deposits. If the agreement has no clause that would allow early withdrawals, the deposit and interest will be returned, but only after the deposit matures.

The NBU does not have the power to recover savings that were made in soviet times in the USSR Savings Bank. The procedure for compensation of such funds, in particular for making transfers planned in the State Budget of Ukraine to Oschadbank and the former Ukrderzhstrakh, is determined by the Cabinet of Ministers of Ukraine.

The bank must warn its customers about fee changes at least 30 days prior to making them. This is a requirement of the Law of Ukraine On Payment Systems and Money Transfers. Banks can use any communication channels (chat messages, mobile app notifications, phone calls, etc.) or post relevant information on its website.

 The NBU has neither the need nor the power to request payment card and account information from individuals. The card number and the PIN code constitute the client's confidential information. Banks do not request such information either. If you receive such a call, contact the police and report the phone number from which the call or message came. If you have accidentally given your card details to fraudsters, call your bank and block your accounts. Then contact the police.

The NBU does not keep a register of individuals' accounts in banks or other institutions. Information about your open accounts can be obtained directly from Ukrainian banks.

The passport will be considered invalid in such a case. With an invalid passport, you cannot conduct banking transactions, issue powers of attorney, conclude agreements, etc. Once you paste the updated photo into your passport*, it will become valid again. Notify your bank of the update in order to restore access to accounts and transactions.

You cannot use an electronic means of payment (bank card) through a power of attorney. However, you and the cardholder can issue an additional means of payment specifically for you. This is in accordance with the Regulation On the Procedure for Issuing Electronic Means of Payment and Carrying Out Transactions with Their Use, and the Law of Ukraine On Payment Systems and Money Transfers in Ukraine.

Individuals can open accounts regardless of the type of currency. However, if you wish to open an account denominated in a currency other than euros or U.S. dollars, we recommend contacting the banks directly and finding out about such a possibility.

If there is a note in your passport about your refusal to have a taxpayer card registration number, the bank has no right to refuse to open an account for you. However, if you have not officially relinquished your tax identification number, you must provide it to the bank.

Send a written request to the bank and indicate all the details. Wait for the bank to review the totality of the circumstances. If the bank does not return the funds, contact the NBU. In some cases, to return funds that were sent using incorrect details due to the bank's fault, it will be necessary to go to court.

Banks can independently set interest rates and commissions for their services. Therefore, before opening a bank account, you need to carefully familiarize yourself with all commissions and fees.

A bank is within its right to stop a transaction if it is suspicious. The bank is also obliged to stop a transaction if the bank suspects that the transaction has the attributes of a criminal offense. A special authorized body can make a decision to halt all debit transactions for up to seven business days.

Yes, provided that 55% of the total area of the banknote is undamaged. It is possible to exchange such bills in branches of all Ukrainian banks. In some cases, a study of such hryvnias may be required, which the NBU conducts free of charge.

If you have foreign banknotes that contain inscriptions, dirt, tears, or cuts, you can hand them in for collection. It is necessary to contact any Ukrainian bank that carries out transactions with the respective foreign currency. Banks accept damaged and worn banknotes, transfer them to the country of origin, and exchange them for usable ones.

You should check the website of the central bank of the country whose currency you want to exchange, and see whether the banknote has lost its legal tender power. In some cases, such currency can be exchanged at any exchange office. For instance, EUR 500 bills, and U.S. dollar bills printed after 1914, remain legal tender. However, in other cases, the currency can be exchanged only at the central banks of the issuing countries.

You can perform a reverse currency exchange transaction within 15 minutes from when the initial exchange took place. But only if you have a receipt or other proof of the initial transaction. This is provided for by NBU Board Resolution No. 2 On Approval of the Regulation On Transactions with Currency Valuables.

Effective from the end of 2016, Ukrainian banks do not exchange FX-denominated registered checks for cash. You should contact the issuer of the check or a nonresident bank that will agree to give you funds in exchange for a registered check under the conditions specified by this bank.

Collector coins can be purchased from distributor banks: UKRGASBANK JSB, RADABANK JSB, TASCOMBANK JSC, and CB PRIVATBANK JSC.

Under the Law of Ukraine On Insurance, the terms of an insurance agreement may provide grounds for refusing to make insurance payments, if this does not contradict the law. Such refusals are legitimate, for example, if force majeure circumstances materialize.

With regard to the situation that arose in connection with russia's military aggression against Ukraine and the imposition of martial law throughout Ukraine, the Chamber of Commerce and Industry of Ukraine has, by letter No. 2024/02.0-7.1 dated 28 February 2022, certified the fact that starting 24 February 2022, force- force majeure circumstances have indeed occurred.

As a result of the above, there have been rare cases where, starting 24 February 2022, insurers have not fulfilled their obligations under concluded insurance agreements or have refused to make insurance payments or pay insurance indemnities or redemption amounts, referring to said force majeure circumstances.

However, according to Article 141 of the Law of Ukraine On Chambers of Commerce and Industry in Ukraine, force majeure circumstances are extraordinary and unavoidable circumstances that objectively make it impossible to meet commitments stipulated in the terms of agreements (contracts, etc.) or to fulfill obligations in accordance with laws and regulations. Therefore, the occurrence of force majeure circumstances does not release the insurer from the obligation, as a party to an agreement, to fulfill the insurer's commitments. When said force majeure circumstances occur, the insurer must prove not only that such circumstances exist in and of themselves, but also that said circumstances have made it impossible for the insurer to meet specific obligations.

Thus, insurers do not have the right to deny the consumer an insurance payment or the payout of insurance compensation or redemption amount simply by referring to the fact of force majeure per se. Insurers are not free, in this case, from responsibility for breach of obligations stipulated in the insurance agreement. Force majeure circumstances can be grounds for refusing to make an insurance payment/payment of insurance compensation only where such circumstances are expressly defined by the insurance agreement as a limitation of insurance and/or a reason for refusing to make an insurance payment/payment of insurance compensation and/or are included in the list of exclusions (exceptions) from insured events, and have a cause-and-effect relationship stipulated by the insurance agreement with an event that has the characteristics of an insured event, and can also be grounds for releasing the insurer from liability for breach of obligations only in the case that it has been proved that the violation occurred as a result of such circumstances.

The first thing is to comply with the requirements of the legislation of Ukraine, and the regulations of the NBU, on the protection of the rights of consumers of financial services. Banks, NBFIs, and debt collectors take responsibility to prevent the inclusion of unfair clauses in agreements concluded with consumers, avoid deceptive practices when advertising services, comply with requirements for ethical behavior during the settlement of overdue debts, and more.

Banks, NBFIs, and debt collectors are also obliged to be proactive in working with clients by explaining all the conditions for purchasing the service, informing clients in a timely manner about changes in fees for using cards in a way that is convenient for the consumer, and reminding clients, in advance, that the end of the term of validity of their deposits is approaching. In other words, banks, NBFIs, and debt collectors must take actions that prevent conflict situations with the consumer and ward off the occurrence of debt due to a misunderstanding of the terms of a specific service.

The advertising requirements for financial services are defined in Article 24 of the Law of Ukraine On Advertising, Article 11 of the Law of Ukraine On Financial Services and State Regulation of Financial Services Markets, and Article 7 of the Law of Ukraine On Consumer Lending. In addition, advertising in financial services is governed by NBU regulations: NBU Board Resolution No. 141 On Approval of the Regulation On Information Support for the Clients by Banks as Regards Banking and Other Financial Services (as amended), dated 28 November 2019; and NBU Board Resolution No. 100 On Approval of the Regulation On Provision of Information by Financial Institutions to Consumers Regarding the Provision of Consumer Lending Services (as amended), dated 5 October 2021.

All financial institutions must disclose complete, accurate, and reliable information in their advertising. At the same time, the method of advertising should not complicate the visual perception of information about the service.

Banks must post on their own websites complete information about consumer loan services, deposit services, in standardized format, with a list of essential characteristics of such services, as well as calculators for comparing total costs of or revenues from said services, taking into account the accompanying services of the bank, credit intermediaries, and third parties, including taxes and fees, in accordance with the legislation of Ukraine.

NBFIs engaged in consumer lending must meet similar requirements when placing, on their websites, calculators and information about consumer loan services.

For violation of Ukrainian legislation on the protection of the rights of consumers of financial services, including requirements for ethical behavior, and for breach of requirements for advertising in financial services markets, the NBU applies the following corrective actions to the entity that committed said violations: issues written warnings, obliges the entity to eliminate the violation. If said violations were perpetrated by an NBFI that made the original loan or by an NBFI that is a new creditor, the NBU suspends or revokes the NBFI's license to provide financial services and applies fines in the cases provided for in Article 411 of the Law of Ukraine On Financial Services and State Regulation of Financial Services Market. Penalties range from 300 to 8,000 tax-free minimum incomes of citizens. The NBU can also impose fines for failure to submit, or untimely submission of, information, or submission of purposefully inaccurate information. Such fines can be anywhere between 100 and 2,000 tax-free minimum incomes of citizens. The central bank also charges administrative fines on officials of financial institutions. In addition, for breach by debt collection companies of ethical conduct requirements, the regulator applies corrective actions in the form of a temporary ban on the debt collection company's activities to settle overdue debts, and excludes information about this debt collection agency from the register of debt collectors.

Respective supervision is carried out in accordance with NBU Board Resolution No. 198 dated 2 September 2022, the application of influence measures is carried out in accordance with NBU Board Resolution No. 346 dated 17 August 2012 (as amended) (corrective actions for banks), NBU Board Resolution No. 12 dated 1 February  (as amended) (corrective actions for NBFIs), and NBU Board Resolution No. 78 dated 9 July 2021 (as amended) (corrective actions for debt collectors).

A consumer appeal does not constitute grounds for an unscheduled inspection. However, such an inspection is possible if the NBU has detected systemic violations, and if the financial institution has not eliminated them.

Since the NBU received the power to regulate and supervise the activities of the nonbank financial sector, complaints about NBFIs have been dominating the total number of appeals to the regulator. Most of such complaints are concerned with microfinance companies.

Work is underway to regulate the activities of this segment of the market. These efforts have been reflected in a positive trend whereby the number of appeals and the percentage of violations recorded in the work of microfinance companies are gradually declining.

The financial services advertisement requirements that are defined by NBU regulations apply to the advertising of financial services for individuals. These requirements do not apply to the advertising of financial services for businesses and sole proprietors.

At the same time, the financial services advertisement requirements that are stipulated by Ukrainian legislation are mandatory for all financial market participants and apply to all types of advertising by financial institutions.

Financial institutions' mobile apps, terminals, and ATMs are remote electronic service channels that do not qualify as advertising channels. Therefore, they are not subject to the NBU's requirements for the advertising of financial services.

The NBU's requirements for the advertising of financial services do apply to said platforms. At the same time, technical limitations of certain advertising channels are not an excuse for a financial institution to provide information about its activity or service that is insufficient in scope or completeness and that misleads or may mislead the client when making a decision to purchase a financial service.

The NBU's requirements for the advertising of financial services do not apply to category-based advertising (when information is disseminated about the possibility of purchasing a separate service without specifying the terms of such a service) and image advertising (when information is disseminated directly about the institution and/or its trademark) of financial institutions.

Information published on a financial institution's website does not constitute advertising. The NBU's requirements for the advertising of financial services do not apply to press releases published on a financial institution's website.

Entities engaged in the settlement of overdue debts may not commit unlawful actions, threaten the consumer or his relatives, defame the consumer or his relatives, etc. Ukraine's legislation establishes an exclusive list of lawful methods of interaction with consumers of financial services. Specifically, financial institutions must:

1. Conduct telephone and video conversations and personal meetings with the consumer. Personal meetings are possible only from 9 a.m. to 7 p.m. on business days, provided that the person with whom the interaction is being made does not object to holding a meeting and has previously given consent to a personal meeting during a telephone conversation or a separate consent in writing. The place and time of the meeting must be agreed in advance.
2. Send text, voice, and other messages only during the specified time.
3. Send postal items marked For Personal Delivery to the place of residence (or stay) or to the place of work of an individual.

During the first interaction with the consumer, the original creditor, the new creditor, and the debt collection company are obliged to provide their name, the name of the company they represent, contact information, the legal basis of the interaction, the amount of the debt and late-payment fees that is to be repaid to meet commitments under a consumer loan agreement, etc. In addition, Ukrainian legislation puts a limit on the maximum frequency of such interactions.

The relevant requirements are defined by the Law of Ukraine On Consumer Lending. The requirements for the original creditor, the new creditor, and the debt collection company and their activities when resolving overdue debts are approved by NBU Board Resolution No. 79 dated 9 July 2021 . Additional requirements for ethical conduct are stipulated by NBU Board Resolution No. 170 dated 4 August 2022.

The Civil Code of Ukraine, the Law of Ukraine On Financial Services and State Regulation of Financial Services Markets, and the Laws of Ukraine on certain types of financial services, such as On Consumer Lending, On Insurance, and On Payment Services, establish the essential terms of agreements on the provision of financial services.

As an authority that carries out state regulation of financial services markets, the NBU has the power to establish additional requirements for agreements to provide financial services.

The requirements established by the NBU ensure that full information about the financial service, and the services accompanying it, is specified in the agreement; that disclosure of the rights and obligations of the consumer and the financial institution is performed; that attention is paid to the consequences of failure by the parties to fulfill, or improper fulfillment of, their obligations under the agreement; that agreement do not stipulate unfair terms and conditions that restrain the legal rights of the consumer. Apart from that, the NBU has established additional requirements for agreements concluded in the form of electronic documents, and technical requirements for agreements (that appropriate typeface, black color, pin of at least 11 typographical points be used, and more).

The purpose of these requirements is to present the agreement in such a way that nothing complicates its perception by the consumer, and that the content of the document contributes to a well-informed and reasonable decision to conclude the agreement.

Respective standards are approved by NBU Board Resolution No. 7 dated 22 January 2021 (for banks), and Resolution No. 113 dated 3 November 2021 and Resolution No. 233 dated 25 November 2022 (for NBFIs) .

The BankID system of the National Bank of Ukraine (NBU) was established to ensure for the public a convenient and secure access to public, financial, commercial, and other services that can be provided remotely and require identification.

BankID performs transmission of personal data of users from the subscribed identifier (bank servicing the user’s account) to the subscribed service provider (providing services requiring such data). So, the system performs electronic remote identification of individuals.

BankID is accessible from a PC, laptop, or smartphone with Internet connection to every user with an account opened with BankID member bank.

To view the list of institutions supporting BankID follow the link.

Please note that request and confirmation of consent to transmit data are provided only by the personal data owner.

BankID subscribers are subscribed identifiers (banks) and subscribed service providers.

To become a BankID subscriber, an institution needs:

• to submit the Application of Intent of Accession to the NBU BankID System and respective documents
• to receive the decision of the NBU BankID System Council on approval of the accession to the system
• to enter into the Accession Agreement to the system
• to set communication between subscriber nodes with the central node of BankID
• to enter into and comply with the clearing and settlement services agreement
• to connect to the runtime environment

Please note, subscribed identifiers and subscribed service providers use BankID on commercial terms. Thus, subscribed identifiers (banks) have the option to monetize data transmission to subscribed service providers. Payment for user identification is charged directly to the subscribed service provider.

Yes, BankID identification is safe for users. BankID does not store personal data of users.

All user data is transmitted encrypted by BankID affixing a qualified electronic signature or a qualified electronic seal of the bank.

Only the personal data owner can initiate transmission of this data from the subscribed identifier to the subscribed service provider. Identification data shall not be transmitted to third parties without the user’s (data owner) consent.

Price stability does not imply that prices do not change; it means that prices grow at a moderate pace.

No central bank seeks to achieve zero inflation. Inflation being close to zero poses the risk of deflation that is just as bad for the economy as high inflation.

In the majority of developed countries, price stability is achieved when inflation is low and stable, at a level of 1%–3%. Central banks in developing countries usually set higher medium-term inflation targets, which range between 4% and 8%. In Ukraine, the NBU has set the medium-term inflation target, as measured by the year-on-year CPI growth, at 5% ±1 pp.

Money is a special commodity, but, like all other commodities, it carries value only if limited in quantity. In case a central bank issues (or, as people sometimes say, “prints”) money to cover government spending, it increases the amount of money in circulation greatly. However, the total demand for goods and services grows faster than the economy’s capacity to produce them, which would imminently translate into higher inflation.

That is, using money issue to finance the country’s needs can lead to adverse effects for the economy and public welfare, due to:

• inflationary processes
• depreciation of the domestic currency against foreign currencies
• an adverse long-term impact on economic growth.

For example, take Ukraine’s negative experience of the 1990s, when the NBU financed loans to some economic sectors and the large budget deficit. This made the macroeconomic situation in the country uncontrollable. In 1992–1994, inflation peaked at over 10,000%, and real GDP fell by 9.7% in 1992, 14.8% in 1993, and 22.8% in 1994. This resulted in a drastic decline in the living standards.

The initial issue of money is always conducted in cashless form through banks only (as the NBU operates exclusively via banks). The NBU can issue money using three channels:

• the credit channel, when banks take loans from the NBU providing government securities or foreign currency as collateral; the NBU credits these funds to the banks’ accounts
• the currency channel, when banks sell foreign currency to the NBU, which credits hryvnia funds to their accounts in exchange
• the stock exchange channel, when the NBU buys securities from banks and credits hryvnia funds to their accounts.

Issue of cash always derives from the noncash issue of money. A bank asks the NBU to debit its account and receives cash at the NBU’s cash desk. After that, the bank can distribute cash to its customers by debiting cash funds from their accounts. At the same time, the amount of money in the economy does not change: of cash hryvnia decrease, while hryvnia cash grows by the same amount.

Monetary policy's primary objective is achieving price stability. It relies on the consumer price index to measure its progress. By contrast, macroprudential policy aims at ensuring financial stability, which is a qualitative (unquantifiable) objective and does not have universal indicators to evaluate its performance.

However, a range of indicators helps measure financial stability. These include the nonperforming loans ratio in the economy, debt burden ratios, the loan-to-value (LTV) ratio, and many more. In addition, there are integrated indicators that facilitate assessment of the state of the financial sector (e.g., the financial stress index presented in the NBU’s Financial Stability Report), although they have low predictive power.

While assessing financial stability, central banks also test the system’s resilience under various scenarios (including adverse scenarios), look into financial connections between financial institutions (with their peers and clients), and survey banks and enterprises.

Apparently, in most countries, central banks are the regulators that command necessary knowledge, expertise, and resources (human, organizational, and financial) to promote financial stability. As a result, promoting financial stability has become part of the mandates of many central banks around the globe.

The NBU received its financial stability mandate in 2015. The Law of Ukraine On the National Bank of Ukraine empowers the NBU to promote financial stability (as the second top function after maintaining price stability).

The NBU can deploy a wide range of instruments to ensure financial stability. First, the NBU analyzes the data and warns banks about the risks it has identified. If the warning is not enough, the regulator can use macroprudential instruments such as capital requirements, liquidity requirements, and other (sectoral) measures.

The NBU complies with the recommendations of the European Systemic Risk Board (ESRB) of 2013 to designated authorities on clear public identification of targets and tools for macroprudential policy. In the vast majority of European countries, macroprudential policy targets and tools have been identified and published in macroprudential strategies. In line with the European practice, the NBU has identified the policy's objectives and instruments in its Macroprudential Policy Strategy. Moreover, the NBU regularly informs the public about scheduled regulatory changes through its website and its official social media pages, as well as at meetings with the media, market participants, and experts.

The global recession of 2007–2008 contributed to the spread of policies aimed at identifying and limiting systemic risks in order to achieve financial stability. The recession damaged many financial systems and brought to the fore the vulnerability of the financial sector and the flaws in the work of regulators. One of these deficiencies was the lack of attention to the state of the financial system as a whole.

Macroprudential measures impose certain limitations on financial institutions. These may hold back the pace of development and cause losses not only for banks, but also for the economy as a whole. Macroprudential measures are actively used only when those restrictions help avoid large losses in future crises.

Part 1 paragraph 25 indent 18 of Article 1 of the Law of Ukraine On Preventing and Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction defines domestic politically exposed persons as executives of administrative, management, or supervisory bodies of designated legal entities (director/CEO, chairman of the board, chairman of the supervisory board). The NBU therefore believes that members of executive bodies or supervisory bodies of state-owned enterprises or business entities with over 50 percent of authorized capital owned by the state do not belong to the category of domestic politically exposed persons if they are not chairpersons of said bodies.

The legal grounds for applying and lifting sanctions are defined in the Law of Ukraine On Sanctions.

The procedure for financial institutions to execute personal sanctions, in particular the freezing of the assets of individuals and/or legal entities based on a decision by the NSDC of Ukraine, is stipulated by NBU Board Resolution No.654 dated 1 October 2015.

Any decision on imposing sanctions should contain a timeframe for their implementation excluding the sanctions that carry a suspension of rights or other sanctions that in essence cannot be applied temporarily (pursuant to Article 5 Part 5 of the Law of Ukraine On Sanctions).

The procedure for imposing personal sanctions (in particular, freezing assets) on the individuals and legal entities listed in annexes to decisions by the NSDC is outlined by NBU Board Resolution No.654 dated 1 October 2015.  The actions taken by banks as stipulated by the resolution have to be applied to the entities in the sanctions lists for the entire duration of the sanctions.

The obligations and actions of nonbank financial institutions during the execution of financial transactions involving or in favor of persons included in the sanctions lists are stipulated in paragraphs 2 and 3 of NBU Board Resolution No. 654 dated 1 October 2015.

Halting of financial transactions under the AML/CFT Law and sanctions such as freezing assets and halting financial transactions under the Law On Sanctions should be differentiated taking into account the difference in their legal nature and application (NBU Letter No. 25-0007/33410 dated 18 June 2018).

The procedure for halting financial transactions under the AML/CFT Law is stipulated by Article 17 thereof.  The procedure for imposing sanctions is stipulated by NBU Board Resolution No. 654 dated 1 October 2015.

Banks are limited to crediting their own correspondent accounts with banks under sanctions pursuant to paragraph 1 subparagraph 7 indent 12 of NBU Board Resolution No. 654 dated 1 October 2015.

However, the laws do not ban correspondent relations with sanctioned banks and do not ban the transfer of balances from accounts open with sanctioned banks to correspondent accounts open in other banks that are not under sanctions, subject to the requirements of paragraph 3 of the abovementioned resolution.

Imposing, lifting, and amending sanctions are stipulated by Article 5 of the Law of Ukraine On Sanctions.  Part 7 of Article 5 stipulates who approves decisions on lifting sanctions.

The bank at its own discretion should conduct a risk-based analysis and decide whether it is ready to take on the risks related to the client’s transactions under sanctions on limiting trade transactions.

The definition of postal services is set out in Article 1 of the Law of Ukraine On Postal Communication. The list of postal services is regulated by the Rules for Provision of Postal Services as approved by CMU Resolution No. 270 dated 5 March 2009.

The services of freight forwarding and transportation are not included in the postal services according to the aforementioned regulatory documents and are regulated by the special legislation, in particular, the Law of Ukraine On Freight Forwarding Activities.

A financial institution will not be able to obtain a license for the provision of cash collection services to banks, as this type of activity, according to the law on financial services, is not a financial service. Any legal entity (that is not a financial institution) may apply to the NBU for a license for the provision of cash collection services to banks.

At the same time, to cover solely its own transportation needs, a financial institution may create an internal cash collection unit with the required level of technical equipment.

First, a legal entity has to obtain a license for the provision of cash collection services. Next, it should apply to the NBU to obtain approval for the cash processing and storage operation (in line with Regulation No. 926).

A legal entity may apply to the NBU to obtain a license for the execution of money transfers without opening an account and a license for currency operations, provided that such legal entity had acquired the status of a nonbank financial institution. For this purpose, a legal entity has to preliminary apply to the National Commission for the State Regulation of Financial Services Markets in order to be recorded in the State Register of Financial Institutions. In addition, a postal service operator may apply to the NBU for a respective license.

Any legal entity (that is not a financial institution) may apply to the NBU for a license for the provision of cash collection services to banks.

A NBFI may apply simultaneously for a license for the execution of money transfers in the national currency without opening an account and a license for trading currency valuables in cash. However, to obtain a license for currency operations (money transfers), a NBFI must execute hryvnia money transfers for a year at least (Regulation No. 297 paragraph 15 subparagraph 1).

Yes, but no earlier than in 90 days after such NBFI receives a copy of the decision on the denial of a license and eliminates the grounds for the denial.

Yes, a top manager form should be submitted for each member of the supervisory board of a NBFI, as the members of a supervisory board of a NBFI are considered to be top managers of such NBFI (paragraph 2 subparagraph 9 of Regulation No. 297).

No. If the financial statements are already included in an auditor's report, a NBFI doesn’t have to submit them as a separate document.

The NBU contributes to the establishment of the most favorable conditions for service members to discharge their liabilities to banks.

The NBU has provided recommendations for banks to review their terms of the repayment (restructuring) of liabilities under the loan agreements with the borrowers liable for military service who have been enrolled. This includes reliefs from penalties and delays in the principal and interest payments under the loans. After having reviewed the recommendations, banks announced that they would apply an individual approach to the restructuring of the debt of each borrower liable for military service.

Meanwhile, the Verkhovna Rada of Ukraine has established by law that no interest on using the loan and no penalty interest for the failure to discharge liabilities to individuals and enterprises, institutions, and organizations of all forms of ownership, including banks, shall be imposed on reservists and persons liable for military service.

We advise the borrowers liable for military service who have been enrolled in the Armed Forces of Ukraine to apply to banks in writing requesting to restructure the debt under favorable conditions.

The NBU takes into account the information given by citizens in their applications (requests, appeals) when exercising the banking supervision.

The applications (requests, appeals) of citizens cannot be deemed as the grounds for the NBU to appoint an unscheduled inspection of a bank.

The inspections of banks are performed in order to identify the level of safety and stability of bank’s operations, reliability of bank’s reporting and bank’s compliance with the Ukrainian laws on banks and banking and the NBU regulations.

If you think that there are signs of a crime in the actions of the Bank`s employees, you are entitled to apply to the court, the prosecutor, the investigator and the agency of inquiry in order to initiate criminal proceedings, apply all measures provided for by law to establish the crime, the perpetrators of the crime, and their punishment.

Detection of fraudulent actions of citizens is not part of the functions of the National Bank of Ukraine.

Forced execution of court decisions in Ukraine is performed by the State Enforcement Service.

Supervision over execution of court decisions by banks of Ukraine goes beyond the powers of the National Bank of Ukraine. The National Bank of Ukraine has no legal grounds to instruct the bank on how to execute a court decision.

Supervision over banks on their compliance with the legislation on the protection of personal data and the conduct of appropriate inspections lies beyond the powers of the National Bank of Ukraine, and is carried out by the State Service of Ukraine for the protection of personal data.

The Register of Borrowers accounts the clients of Ukrainian banks having arrears to banks, preserve the banking information about clients and ensures the access of authorized banks to information about the client.

Banks independently provide the necessary information about their clients to the database of the Bank’s Register of Borrowers and bear the full responsibility for the reliability of the information provided in accordance with the current legislation.

Therefore, in order to resolve this issue, you need to contact the bank directly.

Yes, they can. However, the sum of a transaction based on one international business contract shall not exceed UAH 150,000 per one operational day. 

Justification

Legal entities are prohibited from performing settlements under international business contracts using e-payment means, except for settlements in low-value thresholds (up to UAH 150,000 in the equivalent) based on one international business contract per one business day in accordance with Section X, paragraph 109 of Regulation No. 5.

Yes, it can. The individual can transfer funds in foreign currency to another individual in Ukraine, if this individual is his/her relative.

Justification

An individual (resident or nonresident) can remit foreign currency from his/her own current account to another individual’s account within Ukraine in accordance with Section X, paragraphs 118, 119 of Regulation No. 5. The indicated transactions are allowed exclusively on the conditions that the receipts/transfers of funds to/from accounts are made to/from relatives.

Relatives are considered to be father, mother, stepfather, stepmother, son, daughter, stepson, stepdaughter, grandmother, grandfather, great-grandmother, great-grandfather, grandchildren, great-grandchildren, sibling (by blood and by law), cousins, aunt, uncle, niece, nephew, adopter, adoptee, guardian, person under guardianship or care, or spouse (paragraph 2, subparagraph 10, Regulation No. 5).

No. A resident sole proprietor can sell his/her foreign currency for hryvnias from his/her current account and, after paying taxes and fees, can transfer these funds to his/her personal current account.

Justification

In accordance with paragraph 113, Section X of Regulation No. 5, funds deposited in foreign currency to the current account of a resident sole proprietor, opened for a business entity, and the transferring of such funds from this account shall be done under the terms of the current account in the foreign currency of resident legal entity, as noted in Section X, paragraphs 109 and 110 of Regulation No. 5. 

The transfers of foreign currency from the current account of a resident sole proprietor to his/her personal foreign currency current account shall be prohibited.

Yes, the bank is required sell such funds.

Justification

Pursuant to Section IV, paragraphs 44 and 45 of Regulation No. 5, a resident client shall use foreign currency, which had been bought and accrued on his/her current account for regular repayment of a certain purpose, to a non-resident under a loan/borrowings/reimbursable financial assistance agreement, not later than ten business days after the date of such regular payment.   

In line with Section IV, paragraph 47 of Regulation No. 5, the bank is required to sell the purchased foreign currency within five business days if a resident client violates intentionally the ten-day term for the use of this currency.

Yes, he/she can. NBU regulations do not prohibit legal entities and individual sole proprietors from buying foreign currency in order to make advance payments (pre-payment) for the import of goods under international business contracts.

Justification

Section V, paragraph 54 of Regulation No. 5 defines the peculiarities of conducting only certain foreign currency purchases with the goal of conducting settlements by legal entities and sole proprietor individuals with non-residents for the import of goods supplied to Ukraine.

Yes, he/she can. The bank can remove currency supervision from transactions if the sum of each such transaction does not exceed the small-value threshold.   

Justification

Pursuant to paragraph 3 of NBU Resolution No. 7 dated 2 January 2019, the banks shall exercise currency supervision of residents’ compliance with settlement deadlines in goods export and import transactions not settled before 7 February 2019, as specified in Section II, paragraph 21 of Regulation No. 5, in line with Instruction No. 7.  

The bank shall terminate currency supervision of residents’ compliance with settlement deadlines if the sum of unsettled export and import transactions does not exceed the small-value threshold, as set out in Section III, paragraph 9, subparagraph 1 of Instruction No. 7  

Currently, there are restrictions per one calendar day on the purchase of foreign currency and investment metals by individuals.     However, such restrictions should be divided between cash and non-cash transactions. An individual can purchase online both non-cash foreign currency up to UAH 150,000 in the equivalent and investment metals without physical delivery up to UAH 150,000 in the equivalent, at one bank within one calendar day. On that same day, the individual can purchase foreign currency cash or investment metals with physical delivery up to UAH 150,000 in the equivalent. 

Justification

Banks are prohibited to sell investment metals without physical delivery for non-cash UAH to its individual-clients in excess of the low-value threshold (UAH 150,000 in the equivalent) per one client, at one bank, within one calendar day pursuant to Section IV, paragraph 35, subparagraph 2 of Regulation No. 5.

Bank clients individuals may conduct small-value transactions to purchase non-cash foreign currency without any justification/obligations (one individual within one calendar day at one bank) in accordance with Section V, paragraph 58 of Regulation No. 5.

At the same time, authorized institutions are prohibited to conduct transactions to sell foreign cash or investment metals with physical delivery to one individual within one business day at one bank/financial institution, except for low-value transactions in accordance with Section IV, paragraph 39 of Regulation No. 5.

Individual non-residents, who are registered under Ukrainian legislation as sole proprietors, can use the current accounts of resident legal entities (individual sole proprietors) to conduct transactions in foreign currency/hryvnia in their entrepreneurial activity, and they can use the current accounts of non-resident individuals for personal purposes.  

Justification

Pursuant to Article 55 part two, paragraph 2 of the Economic Code of Ukraine, Ukrainian citizens, foreigners and individuals without citizenship – who are engaged in economic activity and registered as sole proprietors under the law – are deemed to be legal entities.  

In particular, residents are individual sole proprietors who are registered in accordance with the laws of Ukraine pursuant to Article 1, part one, paragraph 9, subparagraph 6 of the Law of Ukraine, On Currency and Currency Operations.

The terms, procedures and pecularities of transactions involving the current accounts of bank clients is specified in Section X of Regulation No. 5.

Yes, it can. The bank can cease currency supervision of transactions if the sum of each such transaction does not exceed the small-value threshold.

Justification

Pursuant to paragraph 3 of NBU Resolution No. 7 dated 2 January 2019, the banks shall exercise currency supervision of residents’ compliance with settlement deadlines in goods export and import transactions not settled before 7 February 2019, as specified in Section II, paragraph 21 of Regulation No. 5, in line with Instruction No. 7.

The bank shall terminate currency supervision of residents’ compliance with settlement deadlines if the sum of unsettled export and import transactions does not exceed the small-value threshold, as set out in Section III, paragraph 9, subparagraph 1 of Instruction No. 7.

The bank-factor can complete currency supervision of a resident’s export transaction after the receipt of funds from the non-resident debtor to the account of the bank-factor subject to the availability of all documents related to the export transaction.  

Justification

The bank shall complete the currency supervision of residents’ compliance with settlement deadlines in the event of the lender’s substitution in liability to the goods export transaction – after payments made to the resident’s current account – of the new lender’s funds in the bank received from the non-resident debtor for the goods supplied by the resident-original lender, and subject to the availability of documents on the change of lender in liability to the export transaction pursuant to Instruction No. 7, Section III, paragraph 9, subparagraph 6.

No (except for certain cases).

Justification

If the NBU imposes a safeguard in the form of an obligatory sale of a part of proceeds in foreign currency, the bank shall not have the right to complete currency supervision of compliance by the resident with settlement deadlines in a goods export transaction based on documents of terminating liabilities by offsetting, except for the cases set out in Section III, paragraph 10, subparagraph 5 of Instruction No. 7.

Yes, there are certain peculiarities. The bank should analyze documents for compliance with laws when a resident transfers funds to the account of a foreign broker-intermediary. Specifically, the bank shall check the investor’s source of funds and whether there are any prohibitions for such currency transactions under Ukrainian law.    The bank shall decide independently on the need to submit documents related to the currency transaction by the client. One such document can be the intermediary agreement between the resident and the foreign broker, whose conditions the NBU recommends analyzing.

Justification

Pursuant to Regulation No. 2, the bank shall decide independently on the client’s need to submit certain documents related to such currency transactions. The bank shall analyze the client’s documents/information for the availability/absence of prohibitions for the respective currency transactions, according to the laws of Ukraine, including certain foreign jurisdictions stipulated in Section I, paragraphs 143 and 144 of Regulation No. 5. 

If the intermediary agreement (application for the purchase of foreign currency, payment order) includes information that the investment instrument and/or non-resident seller is registered/located/resides in the countries (territories) noted in Section I, paragraphs 143 and 144 of Regulation No. 5, the bank shall reject such currency transactions. 

The bank shall apply a risk-based approach to intermediary agreements – on the date which, as a rule, the investment instrument and/or non-resident seller are unknown – that involves: 

assessing the risks as to whether the foreign broker under the intermediary agreement has a license for the respective activity in the country of his/her registration/location 

becoming assured that the intermediary agreement does not have obvious signs of a currency transaction that can be tied to the evasion and/or non-compliance with the requirements and restrictions set by the laws of Ukraine.     Otherwise, the bank shall demand additional documents from the resident according to Regulation No. 8 and make a final decision on the transaction based on the results of this analysis.

Yes, he/she can. Such transfers shall be made within the e-limit noted in Regulation No. 5. At present, the limit is EUR 50,000 per year.

Justification

Investments abroad are currency transactions that involve residents investing currency into investment instruments abroad with the goal of gaining profit or achieving social status, according to Section I, paragraph 2, subparagraph 5 of Regulation No. 5. One way a resident makes investments abroad is with the purchase of real estate, particularly an apartment.  Such an operation shall occur in adherence to the e-limit determined in Section IX, paragraph 88 of Regulation No. 5.

Yes, except for cases when such purchases are directly prohibited by NBU regulations.

Justification

In accordance with Section IX, paragraph 87 of Regulation No. 5, residents shall purchase foreign currency/transfer foreign currency/hryvnia abroad/to the current account of a non-resident legal entity opened in Ukraine (except for investment accounts) within the limits stipulated in Section ІХ, paragraphs 88, 89, 91 and 93 hereof.

In accordance with Section IX, paragraph 89 of Regulation No. 5, residents (legal entities/sole proprietors) are allowed to conduct foreign transfers from Ukraine in their economic activity, and transfers to the current accounts of non-residents legal entities opened in Ukraine (except for investment accounts). Such transactions are allowed during a calendar year, within a total amount that cannot exceed EUR 2 million (the equivalent of this amount in another foreign currency/hryvnia based on the official exchange rate of the hryvnia to foreign currencies set by the NBU on the date of the corresponding transaction).

Hence, legal entities/individual sole proprietors can purchase foreign currency to conduct foreign currency transactions within the limit stipulated by Section IX, paragraph 89 of Regulation No. 5, including the restrictions set out in Regulation No. 5.

In particular, banks shall be prohibited from purchasing non-cash foreign currency upon the instruction/application of resident clients for the purpose of depositing funds at a bank and/or in the account opened abroad with a foreign financial institution (Section I, paragraph 141, Regulation No. 5).

The full list of cases, which do not fall under the indicated restriction, is provided in Section I, paragraph 142, Regulation No. 5.   Specifically, this restriction does not cover legal entities/individual sole proprietors purchasing foreign currency in order to deposit the funds into their own accounts abroad in order to maintain their own standalone subunits abroad and/or to fulfil obligations under international business contracts (except for obligations to transfer the amounts of deposits to accounts at foreign financial institutions).

Yes, they are permitted.

Justification

The list of documents, which are the basis for returning foreign investment and proceeds, profit and other funds received from investment instruments in Ukraine, is stipulated in Section VI, paragraph 71 of Regulation No. 5.

Specifically, according to Section VI, paragraph 71, subparagraph 6, indent 2 of Regulation No. 5, the documents confirming foreign investments (foreign investment agreements, agreements on joint investment activity without the establishment of a legal entity, documents confirming the rights of a foreign investor to the investment instrument, statements of resident banks on foreign investors' foreign investments in foreign currency/hryvnia, customs declarations on the import into Ukraine of goods for the purpose of investment and/or other documents confirming foreign investments in accordance with Ukrainian legislation) shall be submitted to the bank.

It is enough to submit documents supporting the rights of foreign investors to an investment instrument to comply with the requirements of Section VI, paragraph 71, subparagraph 6, indent 2 of Regulation No. 5. if the period between the date of the foreign investor acquiring the ownership rights to the investment instrument – and the date of the foreign exchange transaction on repayment to the foreign investor of foreign investment and revenue, profit, and other returns on investment instruments received in Ukraine – exceeds five calendar years. Thus, under such conditions, the documents on making foreign investment shall not be submitted. In this case, confirmation on acquiring the ownership of an investment instrument by a foreign investor shall be sufficient. 

In accordance with the Section VI, paragraph 71, subparagraph 6, indent 4 of Regulation No. 5, the agreement on the transfer of foreign investment instruments between non-residents, which provides for settlements outside Ukraine, with documentary evidence of its execution (filed subject to the acquisition of ownership rights to the investment instrument in the specified manner) shall be submitted to the bank.  In this case, the documents filed in compliance with Section VI, paragraph 71, subparagraph 6, indent 2, of this Regulation shall confirm the previously made foreign investment in Ukraine in the investment instrument by its previous non-resident owner. The bank should also consider the exceptions mentioned above regarding submitting documents provided by Section VI, paragraph 71, subparagraph 6, indent 2 of Regulation No. 5.

In addition, banks should comply with Regulation No. 8 in such transactions.

Yes, he/she can. Such transactions shall be made within the e-limit (EUR 50,000 per calendar year) and in consideration of restrictions to investing in certain foreign countries noted in Resolution No. 5 (offshore jurisdictions, aggressor states/occupiers, states failing to comply with Financial Action Task Force (FATF) recommendations, etc.).   

Justification

NBU regulatory documents do not restrict a resident’s right to choose how he/she is going to invest abroad.   For instance, he/she can transfer funds directly to the account of a seller of a foreign investment instrument, or refer services provided by a professional intermediary, such as a foreign broker, which is standard global practice.     In the prior case, the funds will be transferred to the bank account of the foreign broker.

Such transactions shall be made during the entire calendar year for a total sum not exceeding EUR 50,000 inclusive (Regulation No. 5, Section IX, paragraph 88).

It should be also mentioned that in accordance with Section I, paragraph 144 of Regulation No. 5, foreign investment transactions are prohibited if the investment instrument and/or non-resident seller is registered (located, resides) in the country (on the territory) that:

• is included in the Cabinet of Ministers of Ukraine’s list of offshore zones
• recognized by the Verkhovna Rada of Ukraine as an aggressor state/occupier (e.g. the Russian Federation is such a state)
• does not implement or poorly implements the recommendations of international organizations and intergovernmental organizations that conduct activities in the sphere of fighting against money laundering, terrorist financing (AML/CFT) or the financing of distributing weapons of mass destruction
• has strategical deficiencies in AML/CFT according to the statements of the Financial Action Task Force (FATF). 

Yes, they can.

Justification

The resident and his/her servicing bank shall follow Section IX (that relates to the limits set for the relevant transactions) and Section X (terms, procedure and peculiarities for transactions involving the current accounts of bank clients) of Regulation No. 5 when giving loan/reimbursable financial assistance in foreign currency to non-residents (including purchases of foreign currency).

No. The NBU does not set numerical values for maximum interest rates thst restrict the total value of loans/borrowings received by residents from non-residents.

At the same time, in determining a loan’s terms with non-residents and conducting currency transactions under these agreements, residents should consider that Ukrainian laws oblige banks to detect questionable currency transactions, particularly when establishing inconsistencies between the value of an external loan based on certain agreements and market conditions.

Justification

Pursuant to paragraph 8 of Regulation No. 8 authorized institution shall additionally analyze documents (information) about currency transactions when setting indicators, as noted in the Annex to Regulation No. 8, in order to confirm or reject a currency transaction as questionable.   

The list of such indicators includes, in particular, Indicator No. 24 relating to currency transactions under a loan/borrowing agreement, concluded by a resident borrower with non-residents, as to which a bank may have doubts based on the non-compliance of the value of a foreign loan with market conditions.  

For more details on assessing the value of external loans secured under a loan agreement in comparison with market conditions, we suggest reviewing the NBU recommendations provided to banks in Letter No. Р/25-0006/2831 dated 17 January 2019.

Yes, it is.

Justification

The resident and his/her servicing bank shall follow Section IX (that relates to the limits set for the relevant transactions) and Section X (terms, procedure and peculiarities for transactions involving the current accounts of bank clients) of Regulation No. 5 when giving loan/reimbursable financial assistance in foreign currency to non-residents (including purchases of foreign currency).

No. This issue is in the sphere of contractual relations between a client and his/her bank.

Justification

NBU regulations, which are the basis for the new system of currency regulations, do not require banks to translate documents related to currency transactions into the Ukrainian language, and do not require certifying such translations with a notary. 

In Ukraine, commissions are paid in hryvnia in accordance with the law. However, not all payments relate to commission payments. The essence of transfers and contractual terms shall be the basis of decisions to qualify such payments as commissions on the territory of Ukraine.    

Justification

Pursuant to Article 5, part two of the Law of Ukraine On Currency and Currency Operations all payments in Ukraine shall be made in hryvnias except for transactions stipulated in subparagraphs 1-6 of part two hereof. 

In accordance with Article 5, part three hereof, the payment of fees and commissions – and other payments related to the transactions specified in part two paragraphs 1-6 of this article – are made solely in hryvnias, apart from the payment of loans or deposit interest, which can be done in foreign currency, investment metals or in hryvnias.

No. The last period that required submitting such declarations was Q4 2018.

Justification

The Cabinet of Ministers Decree No. 15-93 On the System of Currency Regulation and Control dated 19 February 1993, and Presidential Decree No. 319 On Urgent Measures on the Retrieval to Ukraine of Currency Valuables Illegally Held Abroad dated 18 June 1994, have been declared null and void pursuant to Article 16 of the Law of Ukraine On Currency and Currency Operations.    

Residents of Ukraine shall not declare currency valuables and other property belonging to them and located outside Ukraine pursuant to the Law of Ukraine, On Currency and Currency Operations.  

Considering the above mentioned, Ukraine’s sole proprietors are not required to submit declarations of currency valuables, income and property belonging to residents of Ukraine, and that are located outside Ukraine, for reporting periods starting Q1 2019.

The last period requiring such declarations was Q4 2018.

National Bank regulations do not require presenting passports during such transactions. At the same time, the bank shall determine independently its system of monitoring its clients’ transactions and can demand passports being presented in order to adhere to limits on the sale of foreign currency.

Justification

Authorized institutions are not allowed to sell cash in foreign currency or investment metals with the physical delivery to one individual per one business day within the bounds of one bank/financial institution, except for low-value transactions (up to UAH 150,000 in the equivalent) pursuant to Section IV, paragraph 39 of Regulation No. 5.

- In Ukrainian currency (the hryvnia, UAH) or foreign currency (Group 1 and Group 2 of the NBU’s currency Classifier);

- Investment can be made in:

• shares
• bonds
• other securities
• equity rights
• any kind of movable property
• real estate and related property rights, etc.

• To create an enterprise, which is 100% owned by foreign investor, to open a branch or purchase the whole enterprise/company/firm
• To purchase a share of already operating enterprise
• To purchase real estate/movable property – houses, flats, premises, equipment, transport etc. by obtaining it directly or in form of shares, bonds and other securities
• To hold a business (entrepreneurship) activity on product distribution agreements etc.

1. You can transfer funds (foreign currency or UAH) from abroad on your own account with local bank:

• Current account
• Investment account
• Escrow account
• Correspondent account.

The foreign currency on investors’ accounts can be exchanged into UAH without any limits and vice versa, UAH can be freely exchanged to foreign currency and transferred abroad.

2. Funds from abroad can be transferred directly on resident’s account in Ukraine. This resident can be a seller of the investment object, same as intermediary (f. e. securities trader)
3. The payments on the territory of Ukraine can be done in UAH/foreign currency from own accounts with other investors or residents, including nominee (omnibus) accounts in Ukraine
4. Payments also can be done via foreign custodian bank’s correspondent account, which has a securities account at the National Bank of Ukraine  (payments should be done on trading ukrainian government bonds only)
5. The own escrow account also can be used for purchasing ukrainian issuers’ shares by «squeeze-out» procedure
6. Funds can be transferred from one own account to another, opened in a local banks, without any limitations;

The foreign investor can freely hold funds on deposits in UAH/foreign currency in local banks.

1. Funds from investments (sale, reducing share in capital, incomes/dividends) can be obtained on accounts (current/investment/investor’s correspondent accounts), opened in a local banks. These funds can be then transferred to accounts abroad
2. These funds also can be obtained on accounts abroad directly without transition through accounts in local banks.

Payments on such transactions, including cross-border transactions, can be done freely in:

1. UAH
2. Foreign currency (1^st and 2^nd groups of the NBU’s Currency Classifier).

Such transactions can be done without any limitations in volumes and with proper documentation for financial monitoring purposes, provided to servicing bank. For example:

• on dividends repatriation the servicing bank should have documentation, proving foreign investor’s property on corporate rights/investment certificates of ukrainian issuer, which dividends are payed on and issuer’s decision on dividends payment to foreign investor;
• on selling local government bonds by foreign investor, providing an agreement on selling government bonds by foreign investor and an account statement (issued by custodian, which proves investor’s property rights on government bonds on the date of transaction or which holds all information about transaction’s performance) is enough to proceed;

For information:  until recently Ukraine had a temporary set of safeguard measures, which contained limits on dividends and proceeds from selling securities, corporate rights etc. repatriation. As of now, these limits are cancelled completely for foreign investors.

For a nonreplenishable e-purse, the maximum amount of e-money shall not exceed UAH 5,000.
For a replenishable e-purse, the maximum amount of e-money shall be set up to the amount specified in Article 20 of the Law of Ukraine On Prevention and Counteraction to Legalization (Laundering) the Proceeds from Crime, Terrorism Financing, and Financing the Proliferation of Weapons of Mass Destruction (UAH 400,000).
 
A user/consumer can open an e-purse only after due diligence of said user/customer as set in laws on prevention and counteraction to legalization (laundering) of criminal proceeds, terrorist financing and financing of proliferation of weapons of mass destruction.
 
However, an e-money issuer – in case of taking adequate measures for detecting suspicious transactions and in case of no attributes of relatedness of said financial transaction with other transactions – is authorized to skip on the due diligence of an individual customer in cases set out in the Regulation On Issuing and Using E-Money for Transactions approved by NBU Board Resolution No. 210 dated 29 September 2022.

Refer to the issuer and enter into an agreement.
Before entering into an agreement, the issuer is compelled to inform the user about:

• terms and conditions of the agreement
• service fees
• instructions for use.

The agreement should prescribe as follows:

• list of payment and other transactions the user is authorized to execute with the issued payment instrument, rules and maximum performance deadline thereof
• the information about any limits and/or restrictions imposed on transactions and the change procedure
• security procedures followed by the issuer and user when using the payment instrument
• procedure for interaction between the issuer and the user in cases of  erroneous, improper payment transactions and procedure for requesting compensatory damages inflicted on the user as a result of the executed payment transactions
• information on the mechanism for protecting user’s rights and resolving disputes arising from the use of the payment instrument
• the issuer’s and the user’s liabilities.

In the event of blocking or loss of a payment instrument or individual account information, the ATM’s failure to return the payment card or to dispense cash etc., please contact the issuing bank. 

The issuer shall provide the user with free-of-charge service to contact the issuer about the loss of the payment instrument or individual account information and prevent any use of said payment instrument after receiving the notice. The issuer is liable to record the delivery date and time of the user’s notice on the loss of the payment instrument when registering the notice.

This relates to an account-to-account transfer in foreign currency.

Thus, the parties are bank customers that have been identified. The bank already has information on these customers, has studied and understands their usual transactions.

If the bank has suspicions regarding the transfer and has some questions, the purpose of the transaction will need to be explained to the bank.

Yes, holders of e-purses need to be identified and verified.

But this does not apply to purses for payment of mobile services. At present, Ukrainian law does not prescribe mandatory identification of mobile subscribers.

The law applies to customers, who open e-purses for the purpose of different transactions, such as purchasing goods and paying for services.

Regarding such customers, e-money issuers should conduct due diligence as set in laws on prevention and counteraction to legalization (laundering) of criminal proceeds, terrorist financing and financing of proliferation of weapons of mass destruction.   Usually, for this purpose customers need to present their passport and tax ID.

At the same time, the Regulation On Issuing and Using E-Money for Transactions (approved by NBU Board Resolution No. 210 dated 29 September 2022) sets out cases when an e-money issuer – in case of taking adequate measures for detecting suspicious transactions and in case of no attributes of relatedness of said financial transaction with other transactions – is authorized to skip on the due diligence of an individual customer.

In line with Article 47 of the Law of Ukraine On Payment Services, after accepting a payer’s payment order, a payment services provider is required to execute that payment order within one operational day.

The payment services provider of a payee is required to credit the payment transaction amount to the payee’s account or to pay the payment transaction amount in cash on the operational day the amount was credited to the payee’s payment services provider.

The timeframe for executing payment transactions in payment systems shall be established by the rules of payment systems, but may not exceed the terms set out in the Law of Ukraine On Payment Services.

Payment service providers and users have the right to determine in the payment service agreement other timeframes for executing payment transactions and/or terms for available funds in line with the Law of Ukraine On Payment Services.

Operating day stands for the day during which a payer’s payment services provider or payee’s payment services provider executing the payment transaction operates in order to execute payment transactions.

Instruction On the Interbank Money Transfers in Ukraine in Domestic Currency approved by NBU Board Resolution No. 16 dated 13 March 2023.

The System of Electronic Payments of the National Bank of Ukraine (SEP) is a systemically important payment system, which was developed by the NBU to enable interbank money transfers in the domestic currency within Ukraine via accounts opened with the NBU.

The general requirements for the preparation, authorization, and submission of reporting to the NBU are prescribed under the Rules of Statistical Reporting approved by NBU Board Resolution No. 120 dated 13 November 2018 (as amended) and NBU Board Resolution No. 84 dated 26 June 2020

Data are submitted to the NBU at different intervals: daily, every tenth day, monthly, quarterly, semi-annually, annually, and upon request.

The data are used to perform regulatory and supervisory functions, including over currency markets, in accordance with Ukrainian law. Based on the information provided, the regulator creates:

• monetary, financial, banking statistics, and financial services market
• balance of payments, international investment position, and external debt statistics.

Public information is released on the Official website of the NBU.

The NBU receives reporting from:

• Ukrainian banks and foreign bank branches operating in Ukraine;
• nonbank financial institutions under government regulation and supervision of National Bank of Ukraine since 01 July 2020 according to Law On Amending Some Laws That Improve State Regulation of Financial Services Markets No. 79-IX dated 12 September 2019
• resident nonbank institutions, resident nonbank financial institutions that are payment system operators or members of payment systems, and payment service providers
• nonbank financial institutions with NBU license for conducting currency transactions or NBU general license for conducting currency transactions (granted before the Law of Ukraine On Currency and Currency Operations came into effect)
• nonbank financial institutions, enterprises, organizations, and sole proprietors that have accounts abroad. Diplomatic, consular, trade, and other Ukrainian official missions abroad are excluded, as are stand-alone units of residents
• postal service providers.

Respondents (reporting providers)  are prepared and submitted to the NBU as files signed electronically by a designated person as set out in the relevant regulations..

The Register of Statistical Reporting Indicators Pursuant to Rules No. 120 and Register of Reporting Indicators for Non-banking Financial Institutions posted on the Official website of the NBU outlines all the required pieces of information, including details on identifiers and names of indicators, metrics, units of measurement, parameters, consolidation levels, unclassified details of indicators, references to legal acts, rules and requirements for estimating indicators, file numbers, submission frequency and deadlines, respondents, and the procedure for verifying data

Respondents submit Reporting Indicators in XML and JSON formats. Text information (explanation) is provided in scanned form.

Reporting indicators are checked for compliance with NBU requirements on three levels:

• primary: technical control, verification of data structure performed by the respondent that submits the information to the NBU;
• secondary: NBU control during acceptance of reporting indicators;
• expert control of data quality, integrity, time synchronization, consistency with data from other sources, compliance with international statistical standards and reporting. This step is conducted by the NBU to determine whether there is a need to amend the files.

The descriptions of the primary and secondary controls for each reporting file are posted on the pages of the Register of Statistical Reporting Indicators Pursuant to Rules No. 120 and Register of Reporting Indicators for Non-banking Financial Institutions.

If the NBU has any concerns regarding the indicators based on the findings of the control process, the respondent must provide the NBU with an explanation.

If the respondent or the NBU find errors in the data, the respondent can submit a replacement file. This can take place before the deadline at the respondent’s discretion or after the deadline by permission of the NBU.

With no limitations, banks are obliged to accept from individuals and legal entities the worn banknotes with no signs of being counterfeited that have the signs of being worn or damaged, such as worn ink, stains, stamps, tears, cuts, holes, and missing pieces or corners.

Cashiers of banking institutions must accept, with no limitations, a banknote with the signs of being significantly worn and no signs of being counterfeited, if:

• some 55% of the banknote’s initial surface area remained undamaged, and

• the banknote is torn (cut) in two pieces that both have the same number and series, given the total area of the pieces is not less than 55% of the banknote’s initial surface area.

Banks are obliged to withdraw the damaged banknotes that were put together of two or more pieces, accept them for examination on the initiative of presenting citizens as the banknotes of doubtful authenticity and/or fitness, and send them for examination to the corresponding NBU regional units. Based on the results of the examination, which the NBU carries out free of charge, the correspondent value of the domestic banknotes and coins that were found authentic and fit is reimbursed to customers.

If the examination finds that the banknotes are counterfeits or have been damaged during the state of emergency, they will be withdrawn from circulation with no reimbursement and duly forwarded to law-enforcement authorities to conduct the investigation.

In order to exchange the banknotes in the domestic currency (hryvnia) that are worn, damaged, or of doubtful authenticity and/or fitness for the banknotes that are fit for circulation, please contact any Ukrainian bank (any branch or office).

Such exchange is performed free of charge and without any limitations.

Banks and financial institutions are obliged to check the attributes of fitness and authenticity of the foreign banknotes with the cash handling equipment used to check the UV, infrared, and magnetic protection and perform the visual inspection against the sunlight or reflected light and with the zoom of at least 10x. A person responsible for the identification of wear degree, authenticity, and fitness of foreign banknotes is a cashier of a bank or a financial institution who conducts the FX transaction. If the foreign banknotes with minor damage correspond to the samples defined by an issuing bank and have preserved the fitness attributes, they are recognized as fit for use and must be accepted by authorized banks.

The foreign banknotes that became significantly worn or have major damage are accepted by cashiers of authorized banks or financial institutions for collection. The banknotes accepted for collection are sent to a foreign correspondent bank under the respective agreement to be exchanged for the new banknotes. In case a bank has doubts about authenticity of foreign banknotes, it must withdraw them and send for examination to the NBU. In addition, a bank has to accept for examination the doubtful foreign banknotes based on the presenter’s written request. The NBU examines the foreign banknotes of doubtful authenticity free of charge. The foreign banknotes that were recognized authentic, regardless of their wear degree, are returned to the person who has requested the examination. The counterfeit banknotes and coins are withdrawn without reimbursement and forwarded to the National Police of Ukraine under the established procedure for further investigation.

In order to exchange the foreign banknotes that are worn, damaged, or of doubtful authenticity and/or fitness for the banknotes that are fit for circulation, please contact any Ukrainian bank (any branch or office) that conducts operations with the corresponding foreign currency.

Може. Відповідно до пункту 21 розділу ІІ Положення про ведення касових операцій у національній валюті в Україні, затвердженого постановою Правління Національного банку України від 29.12.2017 № 148 (зі змінами), суб’єкти господарювання під час здійснення розрахунків із споживачами за готівку зобов’язані приймати у сплату за продукцію (товари, роботи, послуги) без обмежень банкноти і монети (у тому числі розмінні, обігові монети, пам’ятні банкноти та монети, зношені банкноти та монети) усіх номіналів, які випускає Національний банк України в обіг, що є платіжними засобами і не викликають сумніву в їх справжності та платіжності. 

Сумнів касира підприємства (підприємця) стосовно справжності та/або платіжності грошових знаків є суб’єктивним і не є остаточним. 

У разі виникнення сумніву щодо справжності та/або платіжності готівки касир підприємства (підприємець) не приймає таку готівку у сплату за товари (роботи, послуги). Відповідно касова операція не  відбувається. При цьому суб’єкти господарювання мають право запропонувати споживачу сплатити вартість товару іншими банкнотами та/або монетами, а із сумнівними щодо справжності та/або платіжності грошовими знаками звернутися до будь-якого банку (філії, відділення) для їх обміну на придатні до обігу грошові знаки або надсилання їх на дослідження до уповноваженого підрозділу Національного банку.

Yes. According to Section II paragraph 8 of the Rules¹, banks and other legal entities have no right to accept the banknotes that were damaged by fire, water, various liquids and chemicals, etc. with the surface area that may decrease during the acceptance and processing to under 55% of the initial surface area. If the damage of two or more banknotes led to them gluing (sintering) together, a person presenting these banknotes is not advised to violate the integrity of a group of glued banknotes.

The banknotes that have been contaminated with chemicals, radioactive substances, or any toxic organic substances influence or may influence under certain circumstances the person’s health.

The NBU regional units exchange the authentic banknotes that have been contaminated with chemicals, radioactive substances, or any toxic organic substances, only if there is a document on disinfection and/or decontamination granted by an institution (person) that is responsible for carrying out these operations under the legislation of Ukraine. Individuals and legal entities are obliged to contact directly the correspondent NBU regional units to exchange such banknotes. The authorized NBU units take the decision to exchange a banknote in the presence of the banknote’s presenter or accept them for examination upon the presenter’s application, the form of which is given in Annex 2 to the Rules¹.

The NBU regional units exchange the authentic banknotes that have been contaminated with chemicals, radioactive substances, or any toxic organic substances, only if there is a document on disinfection and/or decontamination granted by an institution (person) that is responsible for carrying out these operations under the legislation of Ukraine. Individuals and legal entities are obliged to contact directly the correspondent NBU regional units to exchange such banknotes. The authorized NBU units take the decision to exchange a banknote in the presence of the banknote’s presenter or accept them for examination upon the presenter’s application, the form of which is given in Annex 2 to the Rules¹.

When do the rounding rules come into effect?
The rules come into force on 1 July 2018.

How exactly will check totals be rounded?
The rounding will follow a mathematical principle. If a check total ends in 1, 2, 3, or 4 kopiikas, it will be rounded down to the nearest zero. If a check total ends in 5, 6, 7, 8, or 9 kopiikas, it will be rounded up to the nearest zero.

Will the NBU stop producing small change?
Yes. The central bank will stop manufacturing 1, 2, and 5 kopiika coins, as these coins have lost their purchasing power. It will also no longer produce 25 kopiika coins because, in the absence of 1, 2 and 5 kopiikas, it will be impossible to break 25 kopiikas using only 10 kopiika coins.

Will Ukrainians still be able to use small change to pay for goods and services?
Yes. 1, 2, 5, and 25 kopiikas will remain legal tender indefinitely.

How long can people exchange or surrender their old coins?
1, 2, 5, and 25 kopiikas will remain legal tender indefinitely. There is no need to exchange them, as they will continue to be used for payment.

Where can one exchange small change for larger denomination coins or banknotes?
All coins can be exchange for banknotes or other (larger denomination) coins at bank branches.

Will rounding apply to the price of every item in a check?
Only check totals will be rounded.

Will check totals still be rounded when consumers can pay the exact amount?
If a buyer or a seller have the required coins, they will be able to use them to make a payment or to give change.

Will check totals be rounded for cashless payments?
No. Rounding will not apply to cashless payments.

Will financial institutions be obliged to accept kopiikas?
Kopiikas remain legal tender in Ukraine. All financial institutions are obliged to accept kopiikas as a means of payment and to credit them to accounts.

Will companies be able to use kopiikas to give change?
Yes. If a company has the required coins, it can use them to give change.

 Will companies be required to comply with the rounding rules?
If the buyer and the seller have no coins of required value, companies will have to round check totals for any cash payments, as set forth by the rounding rules.

Will a company have to round a total when a customer asks for a refund?
If a refund is made in cash and the required coins are not available, companies will round the total in accordance with the rounding rules.

Will companies be required to show check totals before and after rounding? Will companies have to reprogram their cash registers?
Companies will have to show check totals before and after rounding has been applied, in particular, when they use markups/discounts. Reprogramming cash registers will not lead to significant additional costs for companies.

Для обміну значно пошкоджених банкнот гривні, які втратили платіжні ознаки внаслідок пожежі, катастрофи, стихійного лиха чи іншого нещасного випадку, а також побутового пошкодження, необхідно звертатись до регіональних підрозділів грошового обігу Національного банку України. Наразі підрозділи Національного банку є в Дніпропетровській, Одеській, Харківській, Хмельницькій, Львівській областях та м. Києві.

Пред’явнику банкнот не рекомендується самостійно порушувати цілісної групи банкнот, якщо пошкодження двох або більшої кількості банкнот призвело до їх склеювання (спікання).

У разі відсутності в регіоні підрозділу грошового обігу Національного банку України необхідно звертатись до уповноважених банків, яким надано повноваження на зберігання запасів готівки Національного банку. На цей час такі повноваження мають три банки – АТ "Ощадбанк", АТ КБ "ПриватБанк", АТ "Райффайзен Банк Аваль".

Уповноважені банки не обстежують значно пошкоджені банкноти, а пакують їх з максимальним збереженням цілісності та передають як сумнівні для проведення досліджень до Департаменту грошового обігу Національного банку України разом із заявою пред’явника, довідкою про вилучення (прийняття) банкнот для дослідження та іншими документами щодо ситуації, внаслідок якої виникло пошкодження банкнот (довідка про пожежу, катастрофу, виникнення іншої ситуації).

За результатами досліджень, які проводяться Національним банком України безкоштовно, клієнтам відшкодовується відповідна сума грошових знаків національної валюти, визнаних справжніми і платіжними. Неплатіжні банкноти Національний банк не відшкодовує.

Фізичні та юридичні особи в разі сумніву щодо справжності банкнот іноземної валюти можуть звернутись до банків (філій, відділень), що здійснюють валютно-обмінні операції.
Банк (філія, відділення) приймає такі банкноти і разом із заявою пред’явника та довідкою про вилучення (прийняття) банкнот для дослідження передає Національному банку України.
Дослідження сумнівних щодо справжності банкнот іноземної валюти здійснює Департамент грошового обігу Національного банку України безкоштовно.
Банкноти іноземної валюти, які за результатами дослідження визнані справжніми, незалежно від ступеня зношення та пошкодження повертаються ініціатору дослідження (банку).
Підроблені банкноти вилучаються з обігу, не повертаються і не відшкодовуються, а в установленому порядку передаються уповноваженим працівникам національної поліції України.
Про результати дослідження банк зобов’язаний проінформувати клієнта, повернути йому справжні банкноти іноземної валюти або за його бажанням прийняти ці банкноти для здійснення касових операцій.
З актом про дослідження сумнівних банкнот клієнт може ознайомитися під підпис.
Звертаємо увагу, що Національний банк України не проводить касових операцій з банкнотами іноземної валюти, у тому числі не здійснює обмін зношеної та пошкодженої іноземної валюти.
Касові операції зі справжніми зношеними та пошкодженими банкнотами іноземної валюти здійснюють банки (філії, відділення), небанківські фінансові установи, які приймають такі банкноти на інкасо

The introduction of the European approaches to financial market regulation enables to enhance the instruments of consumer rights and interests protection, particularly the guaranteeing mechanisms in the markets of nonbank financial services, in order to improve the stability and reliability of the financial sector. The measures taken by the National Bank of Ukraine also will promote the improvement of financial services quality, as well as the transparency of information disclosed on product terms for financial services consumers.

The EU-Ukraine Association Agreement provides the possibility for the Ukrainian financial market to obtain the status of an EU internal market upon implementation of European regulation requirements in Ukraine.

Such a regime will improve the opportunities for Ukrainian business to work in the territory of the European Union. Ukrainian banks, insurance companies and other financial institutions that are regulated and supervised by the National Bank of Ukraine could provide their services in any EU state under equal conditions with the European market players in this sector.

Even before 2016, when the provisional application of Section IV of the EU-Ukraine Association Agreement started (it regulates the establishment of a free trade zone with the European Union), the National Bank of Ukraine was working on the approximation of domestic banking legislation to European rules and standards.

At present the NBU is also focused on the gradual liberalization of capital flows, updating the framework for payment systems operation, improving the mechanisms for combatting money laundering and terrorism financing, and enhancing consumer rights protection in financial services.

Since 1 July 2020. the NBU has become the regulator of nonbank financial institutions as well. We started the active work on introducing the European rules in this sector, above all in insurance services.

The specific tasks being implemented by the National Bank of Ukraine are defined in the Action Plan on EU-Ukraine Association Agreement implementation as approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1106 dated 25 October 2017.

The main achievements are as follows:

• strengthening the banking system’s solvency and liquidity
• enhancing bank capital requirements
• introducing new liquidity ratios
• enhancing bank capital requirements
• introducing new approaches to credit risk assessment
• Enlarging the list of risks to be covered with capital
• introducing a new system for bank assessment in line with the European Supervisory Review and Evaluation Process (SREP) methodology
• a risk-based approach to conducting bank inspections.

The banking sector has been cleared of toxic and insolvent banks due to new approaches to banking supervision. Information on bank ownership structure was also disclosed, while the monitoring of bank operations with related parties was enhanced.  Updated requirements to the internal control system in  Ukrainian banks and banking groups, as well as an internal process of managing toxic assets management have been introduced.

A new, simple, comprehensible, and transparent regulatory framework of foreign exchange regulation is in place. The NBU eased or even canceled about 40 FX restrictions for businesses, banks, foreign investors, and households.

European Union support is given to the National Bank of Ukraine within the following Technical Assistance Projects:

• Strengthening the Regulation and Supervision of the Nonbank Financial Market (EU-FINREG) project. It is aimed at establishing a potent environment for nonbank financial services and providing assistance to the NBU in its approximation of the regulatory framework and supervisory methods over the nonbank financial market to European and international standards and practices

• Introduction of EU Practices on Accounting, Financial Reporting and Audit in Ukraine (EU-FAAR Project). It provides for assistance in the disclosure of standardized financial reporting in a single electronic format by all business entities, including banks and other financial institutions, according to the Law of Ukraine On Accounting and Financial Reporting in Ukraine

• Twinning Project: Strengthening the institutional and regulatory capacity of the National Bank of Ukraine to implement the EU-Ukraine Association Agreement. It will assist in institutional strengthening of the central bank through enhancing NBU strategic planning and improving the European integration process and international cooperation, as well as in establishing a reliable banking and payment infrastructure for business entities.

The current tariffs for the services of the Unified Banking Service Agreement are available here.

Ні.

Небанківський надавач фінансових платіжних послуг зобов’язаний дотримуватись пруденційних нормативів, встановлених цим Положенням, після отримання ним ліцензії на надання фінансових послуг згідно вимог Закону України "Про платіжні послуги" - після проходження ними процедури авторизації діяльності у порядку, встановленому Положенням про порядок здійснення авторизації діяльності надавачів фінансових платіжних послуг та обмежених платіжних послуг, затвердженого постановою Правління Національного банку України від 07.10.2022 № 217 та внесення Національним банком відомостей щодо них до Реєстру платіжної інфраструктури.

Обґрунтування

Згідно з пунктом 2 постанови Правління Національного банку від 25 серпня 2022 року № 190 "Про затвердження Положення про встановлення пруденційних нормативів, що є обов'язковими для дотримання небанківськими надавачами платіжних послуг, та визначення методики їх розрахунку" вимоги Положення застосовуються до небанківських фінансових установ, операторів поштового зв'язку, які мають ліцензію на переказ коштів у національній валюті без відкриття рахунків, видану Національним банком  до дня введення в дію Закону про платіжні послуги з дати отримання ними ліцензії на надання фінансових платіжних послуг відповідно до Закону про платіжні послуги.

У пункті 4 розділу І Положення визначено, що вимоги цього Положення поширюються на небанківських надавачів фінансових платіжних послуг, які отримали ліцензію на надання фінансових платіжних послуг відповідно до Закону України "Про платіжні послуги".

Ні.

Небанківські надавачі платіжних послуг повинні складати та подавати до Національного банку України статистичну звітність за файлами стосовно пруденційних нормативів (4JX, 4IX, 4LX) з першої звітної дати, що слідує після дати отримання ними ліцензії на надання фінансових платіжних послуг відповідно до Закону України "Про платіжні послуги" - після проходження ними процедури авторизації діяльності у порядку, встановленому Положенням про порядок здійснення авторизації діяльності надавачів фінансових платіжних послуг та обмежених платіжних послуг, затвердженого постановою Правління Національного банку України від 07.10.2022 № 217 та внесення Національним банком відомостей щодо них до Реєстру платіжної інфраструктури.

Ні.

Звітні файли 4IX, 4JX4, 4LX відображатимуться в особистому кабінеті небанківського надавача платіжних послуг на веб-порталі Національного банку з першої звітної дати, станом на яку небанківський надавач платіжних послуг повинен складати та подавати до Національного банку статистичну звітність, а саме з першої звітної дати, що слідує після дати отримання ними ліцензії на надання фінансових платіжних послуг відповідно до Закону України "Про платіжні послуги" - після проходження ними процедури авторизації діяльності у порядку, встановленому Положенням про порядок здійснення авторизації діяльності надавачів фінансових платіжних послуг та обмежених платіжних послуг, затвердженого постановою Правління Національного банку України від 07.10.2022 № 217 та внесення Національним банком відомостей щодо них до Реєстру платіжної інфраструктури.