The National Bank of Ukraine (NBU) strengthened supervision over cash settlements and cash operations of banks in Ukraine.
Thus, banks should take measures to know their customers – economic entities that receive cash for further cash settlements – in order to refute or confirm suspicions of the customers being involved in fictitious financial transactions. In particular, in accordance with the risk-based approach, banks should require from their customers to provide approval documents used for cash settlements. These documents may include: purchase receipts, purchase orders, tax information returns, loan agreements, delivery agreements, transportation agreements, custodian agreements, other reporting documents.
Strengthening of supervision over cash settlements and cash operations in banks is related to the supervision results in financial monitoring by the NBU and identification of numerous cases of risky operations (schemes) with the use of cash. Additionally, it falls under the Law of Ukraine On the Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorism Financing, and Financing the Proliferation of Weapons of Mass Destruction.
The NBU also standardized the rules for the use of electronic signature and electronic seal in cash operations in the banking sector of Ukraine in accordance with the laws of Ukraine (particularly, the Law On Electronic Trust Services).
Moreover, the NBU upgraded some of the requirements to cash handling in Ukrainian banks, particularly, to banks handling banknotes with doubtful authenticity and fitness for commerce, etc.
Respective amendments were approved by NBU Board Resolution No. 62 On Approval of Amendments to the Instruction On Performance of Cash Operations by Banks in Ukraine, dated 18 April 2019, that amends the Instruction On Performance of Cash Operations by Banks in Ukraine approved by NBU Board Resolution No. 103 (as amended), dated 25 September 2018.
This document comes into effect on 3 June 2019.