In H1 2017, the National Bank of Ukraine exercising its function of control over financial institutions that are engaged in foreign exchange transactions conducted 503 inspections of structurtal units (foreign exchange bureaus) of non-banking financial institutions.
The inspections took place in Kyiv and the following 21 oblasts of Ukraine: Vinnytsia, Volyn, Dnipropetrovsk, Zhytomyr, Zakarpattia, Zaporizhia, Ivano-Frankivsk, Kyiv, Kirovohrad, Lvi, Mykolaiv, Odesa, Poltava, Rivne, Ternopil, Kharkiv, Kherson Khmelnytskyi, Cherkasy, Chernivtsi and Chernihiv oblasts.
During the inspections of legal foreign exchange bureaus the NBU identified 84 foreign exchange bureaus that were operating illegally. In particular, most of these foreign exchange bureaus operated in Ivano-Frankivsk oblast. The NBU unearthed 18 illegal foreign exchange bureaus in Kyiv and Zaporizhia oblast, in Lviv oblast – 8, in Kyiv oblast – 5 and in Kirovohrad – 3.
The NBU passes on information about illegal foreign exchange bureaus to the law enforcement agencies. The NBU cooperates the most efficiently with the law enforcement agencies in Kyiv and Kyiv oblasts that promptly notify the NBU of the measures taken to terminate the operation of such bureaus.
Additionally, information on the illegal foreign exchange bureaus with respective photographs has been published on the official web-site of the National Bank of Ukraine in the section "Illegal foreign exchange bureaus".
The NBU has conducted regular inspections since September 2016. Last year the NBU conducted 362 inspections of structural units (foreign exchange bureaus) of non-banking financial institutions in 14 regions of Ukraine. According to the plan foreign exchange bureaus in all regions of Ukraine are to be inspected by the end of 2017.
As of 1 July 2017, 29 non-banking financial institutions and the national postal operator Ukrposhta have NBU general licenses for foreign exchange operations. Moreover, 3371 separate units of non-banking financial institutions are incorporated in Ukraine today.
Detailed information on general licenses for currency exchange operations issued by the NBU is available at link.
In accordance with Resolution of the NBU Board No. 962 of 1 July 2016, the Register of premises licensed to be used for foreign exchange operations or other financial services with the use of cash in domestic and foreign currencies can be addressed.
Pursuant to the Law of Ukraine On the National Bank of Ukraine (paragraph 14 article 7) the NBU exercises foreign exchange regulation, establishing the procedure for transactions in foreign currency, foreign exchange control over commercial banks and other financial institutions licensed by the NBU to conduct FX transactions.