Aiming to ensure a level playing field for all participants of the non-bank financial market, the National Bank of Ukraine (NBU) has extended the term of the general licenses granted to non-bank financial institutions to transact currency operations that expire within the timeframe from 15 November 2018 to 6 May 2019. Their new expiration date is set to 7 May 2019.
The term has been extended since the Law of Ukraine On Currency and Currency Operation, which provides for the licenses to transact currency operations granted after the law takes effect to be permanent, takes effect on 7 February 2019.
This could have created a situation when the non-bank financial institutions (NBFIs) with the licenses expiring before the Law of Ukraine On Currency and Currency Operation takes effect would have received the fixed-term licenses, and the NBFIs with the licenses expiring after the law takes effect – the permanent ones.
Please be reminded that, as of now, the NBU has issued general licenses to transact currency operations to 90 NBFIs and a national post service operator, whereas 33 licenses were granted to transact foreign exchange operations. At that, 10 NBFIs have the licenses that expire within a period before 7 February 2019, and 7 NBFIs – within three months after the effective date of the law.
In order to remove inconsistencies, the NBU Board has approved Resolution No. 122 On Effect of General Licenses Granted to Non-Bank Financial Institutions to Transact Currency Operations dated 15 November 2018. Under the new resolution, the said non-bank financial institutions will be able to receive permanent licenses to transact currency operations after the Law of Ukraine On Currency and Currency Operations takes effect.
The above resolution shall come into effect on 16 November 2018.