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Procedure Updated for Some FX Transactions

Procedure Updated for Some FX Transactions

Starting 19 August 2023, the National Bank of Ukraine is making changes to the procedure for executing certain FX transactions.     

First, the list of information has been expanded that must be placed in the cash desks of banks, nonbank financial institutions (hereinafter “NBFIs” or “NBFI”), postal operators, their standalone units, and currency exchange offices. Such information must be made readily available to customers where they can inspect it. What has been added to the list of data:

  1. Information on the legal entity – a bank or an NBFI – indicating the location, telephone number or hotline number (if any), email address, and the link to the website (if available) for submitting customer requests to the bank or the NBFI
  2. The NBU’s contact information indicating the location, the universal hotline phone number, the e-mail address, and the link to the NBU’s website so that the bank’s or the NBFI’s client can file appeals with the NBU.

Said changes will help better inform customers about contacts for making appeals whenever a dispute or conflict arises or for notifying the legal entity’s management, or the NBU, of violations during currency exchange transactions.

Second, nonresident individuals have been given the opportunity to have funds transferred to their hryvnia current accounts whenever such transfers are stipulated by the terms of civil-law agreements. This is pursuant to the relevant changes made to Ukrainian legislation.

The changes outlined above were introduced by NBU Board Resolution No. 102 On Amendments to Certain Regulations of the National Bank of Ukraine dated 17 August 2023 and effective from 19 August 2023.

For reference

Information that must be placed in the cash desks of banks, NBFIs, their standalone units, and currency exchange offices, effective ХХ August:

  • a copy of the order (ordinance) that sets the bid/ask exchange rates for foreign currencies 
  • the list of currency exchange transactions that are carried out by the cash desk or exchange office
  • the notice of obligation by the cashier to make a reversing entry if the client applies to have a currency exchange transaction canceled
  • an extract from the order that sets the commission rate for cash exchange transactions
  • information on the cashier of a cash desk that carries out currency exchange transactions
  • a copy of a bank license or a license/extract from the register of entities that have been issued a license to carry out currency exchange transactions
  • the cash desk’s location
  • (newly added to this list) information about the legal entity – a bank or an NBFI – including the location, phone number or hotline number (if any), email address, and the link to a website (if available)
  • (newly added to this list) the NBU’s contact information indicating the location, the universal hotline phone number, the e-mail address, and the link to the NBU’s website.

The algorithm for what individuals should do when they encounter violations during currency exchange transactions:

  • file a complaint with the management of the bank or the NBFI that has breached the rules for currency exchange, to make them aware of the violations by their subordinates
  • if there is no response from the management of the bank or the NBFI, contact the NBU.

 

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