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Vaultex to Share Expertise with the NBU on Converting to the Delegated Cash Circulation Model

Vaultex to Share Expertise with the NBU on Converting to the Delegated Cash Circulation Model

The National Bank of Ukraine (NBU) will cooperate with the UK company, Vaultex, on converting to the delegated cash circulation model. This company is one the four members of the cash circulation model in the United Kingdom.

The respective Memorandum of Understanding Supporting NBU’s Cash Circulation Strategy (hereinafter referred to as the “Memorandum”) was signed on 7 October 2020 by Kyrylo Shevchenko, NBU Governor, and Phil Vaughan, Chief Executive Officer of Vaultex.

The Memorandum sets out principles of cooperation and interaction between the parties.

Considering its longstanding experience in managing cash circulation, Vaultex will support the NBU with the delivery of the elements of the Strategy of Ukrainian Financial Sector Development until 2025 related to further improving the cash circulation system of the country. In particular, expertise will be shared on the following issues:

  • creating uniformity of cash processing standards, rules, systems and frameworks
  • developing and implementing the delegation model of cash circulation considering the UK experience
  • methods, practices and processes which will lead to a significant reduction in the costs associated with the cash management cycle.​

“In 2016, following the UK example, Ukraine chose a delegation model of cash circulation  and already enjoys its benefits. The NBU strives to continue reducing expenses of our country on cash circulation. The regulator is happy to share its expertise and learn from the global community,” noted Kyrylo Shevchenko, NBU Governor, “I am grateful to Vaultex for the opportunity to gain expertise in management solutions for cash circulation and for the company`s intent to share its ideas with the central bank. I am certain that this knowledge will contribute greatly to the NBU’s expertise.”

NBU Governor thanked Melinda Simmons, British Ambassador to Ukraine, for facilitating the signing of this Memorandum. “The NBU highly values the cooperation with the UK partners, including the British Embassy to Ukraine and the Bank of England. We are grateful for the support, creating this opportunity to move forward our cooperation,” said Kyrylo Shevchenko.

Vaultex CEO, Phil Vaughan, thanked NBU Governor Kyrylo Shevchenko for selecting Vaultex to support the development of the cash strategy of Ukraine: “We look forward to building on the existing strong relationships between the cash experts within NBU and Vaultex“.

For reference:

About Vaultex UK Limited

Vaultex UK Limited is one of the largest British cash processing companies

It is one of the four members of the Note Circulation Scheme (NCS), a delegation model of cash circulation adopted by the Bank of England.

Delegation model of cash circulation in Ukraine

In 2016, the NBU launched a gradual transfer from a partially controlled model of cash circulation to the delegation model.

The delegation model of cash circulation implies that the NBU moves its cash stocks to the authorized banks for storing to ensure cash supply in the regions.

The authorized banks and ultimately also third parties (CIT companies) will ensure cash supply throughout the regions of Ukraine in compliance with the rules set by the NBU and under its control.

In view of the global trends, the transformation processes taking place at the NBU, and the implementation of the Cashless Economy project by the NBU, the delegated cash handling model is appropriate for Ukraine.

This model is applied in Brazil, Finland, the Netherlands, Sweden, and the UK.


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