The National Bank of Ukraine introduced new requirements for banks for conducting financial monitoring. Innovations will help increase the effectiveness of financial monitoring measures and create conditions for mitigating the risks of money laundering and terrorism financing as well as other illegal activities.
The new requirements:
- Oblige the banks to react when the maximum amount of financial transactions declared by a customer was exceeded. This requirement does not apply to individual customers who conduct regular financial transactions in the amounts and volumes that have a rational justification.
- Supplement the list of suspicious activity indicators regarding financial transactions of a customer. In particular, it regards situations when the maximum amount of financial transactions declared by the customer before the establishment of the business relationship or updated during the services provision was exceeded or unusual activities on the customer’s account were observed.
Additionally, the customer due diligence procedure for banks was clarified for customers who are electronic residents (e-residents) regarding their identification and verification. Procedures for remote establishing of business relationship by e-residents are also regulated.
Said changes are approved by NBU Board Resolution No. 110 On Approval of Amendments to the Regulation On Conducting Financial Monitoring by Banks dated 5 September 2023. The Resolution comes into force on 7 September 2023.
Electronic resident (е-resident) is a foreigner who reached the age of 18 years, is not a tax resident of Ukraine, received respective qualified electronic trust services, and the information about them is registered in the information system Е-resident.