The National Bank of Ukraine takes vigorous steps to remove red-tape obstacles facing FX market participants. These measures are part of the policy of gradual liberalization of currency regulation and currency control, which is currently being designed by the Working Group in consultation with domestic and foreign experts.
This resolution streamlines the rules governing the issuance of permits for FX operations.
First, from now on, authorized bank customers intending to perform a FX transaction are no longer required to submit documents that can be accessed by the public, such as an extract from the Single National Register of Legal Entities and Sole Proprietors and a copy of a certificate of the licensed appraiser issued by the State Property Fund of Ukraine.
Second, authorized bank customers are not required to translate SWIFT messages and documents that are available in a foreign language, Ukrainian (or Russian) languages.
Third, upon proposals from the EBRD, the NBU streamlined FX operations under loan agreements entered into between residents and international financial institutions. Henceforth, authorized banks shall not perform additional verification in order to identify characteristics of financial transactions that might lead an authorized bank to perform risky activities that pose a threat to the interests of depositors or other bank’s creditors.
Also, the NBU streamlines the rules governing the return of foreign investment. In the past, foreign investors intending to retrieve an investment deposit were required submit to an authorized bank a statement issued by the bank confirming the arrival of foreign currency in Ukraine, or documents confirming the creation of an investment deposit using reinvestment. This requirement has been repealed by NBU Board Resolution No.331.
“The move to streamline the rules governing the return of foreign investment is aimed at making it investment projects implemented in Ukraine more attractive,” said Director of the NBU Open Market Operations Department Mr Serhii Ponomarenko.
The resolution amends the following regulations:
- The Regulation on the Procedure of Obtainment by Residents of FX Credits/Loans from Non-residents and Disbursement of FX Loans to Non-residents approved by NBU Board Resolution No. 270, dated 17 June 2004
- The Regulation Governing the Issuance of Individual Licenses for Transferring Foreign Exchange Abroad to Pay for Bank Metals and Perform Certain FX Transactions, approved by NBU Board No.266, dated 17 June 2004 and
- The Regulation On Procedure and Conditions of Foreign Exchange Trade approved by NBU Board Resolution No. 281, dated 10 August 2005.
The amendments shall take effect from 25 May 2016.