The National Bank of Ukraine has standardized certain issues of ensuring that nonbank financial institutions properly apply the risk-based approach to customers who are politically exposed persons (РЕРs).
Institutions should stay away from a formal approach to establishing a risk level for PEPs and are accountable for improper application of a risk-based approach to customers who are PEPs. In each case when an institution establishes any level of PEPs risk, it should be properly grounded.
This approach will help prevent institutions from setting an unreasonable level of risk and ungroundedly refusing to provide services to a customer.
The NBU has also eased some requirements for institutions regarding the measures they take to establish the source of wealth and the source of funds of PEPs relating to their financial transactions. Specifically, the limits on volumes of financial transactions carried out by a PEP via the institution was increased from UAH 200,000 per quarter to UAH 400,000 per month, which is one of the preconditions for not taking measures to establish the PEPs source of wealth.
Such changes were introduced by NBU Board Resolution No. 108 On Amending the Regulation On Conducting Financial Monitoring by Institutions and Declaring NBU Resolution No. 145 Dated 17 December 2021 Invalid dated 5 September 2023. The Resolution comes into force on 7 September 2023.