The National Bank of Ukraine (NBU) issues licenses to participants of the nonbank financial services market and registers participants of the payment market in order to protect consumer rights in financial services and thus foster financial stability in Ukraine.
The NBU issues licenses to:
Nonbank financial institutions for the following financial services:
lending (including lending on interest)
Nonbank financial institutions and postal service operators for:
Legal entities for:
The NBU registers participants of the payment market:
participants of payment systems
payment service providers.
The NBU constantly improves the legal framework on licensing in order to bring it in line with the international standards.
On the NBU’s Regulation of the Nonbank Financial Services Market ("Split")
Starting 1 July 2020, the NBU became the regulator of the market for nonbank financial services of the financial sector, which comprises insurance companies, leasing companies, factoring companies, credit unions, pawnshops, and other financial institutions.
Can a financial institution obtain a license for the provision of cash collection services?
A financial institution will not be able to obtain a license for the provision of cash collection services to banks, as this type of activity, according to the law on financial services, is not a financial service. Any legal entity (that is not a financial institution) may apply to the NBU for a license for the provision of cash collection services to banks.
At the same time, to cover solely its own transportation needs, a financial institution may create an internal cash collection unit with the required level of technical equipment.
Is a NBFI that is licensed to carry out money transfers in the national currency without opening an account allowed to provide money transfer services to legal entities?
The list of possible services and customers of a NBFI is established by the rules of a payment system where such NBFI is a participant.
In particular, a NBFI may service money transfers in the national currency – initiated by legal entities – without opening an account, including in favor of other legal entities, if such transfers are stipulated in the rules of a payment system that executes a transfer.
May a newly-established legal entity apply to the NBU for a license?
A legal entity may apply to the NBU to obtain a license for the execution of money transfers without opening an account and a license for currency operations, provided that such legal entity had acquired the status of a nonbank financial institution. For this purpose, a legal entity has to preliminary apply to the National Commission for the State Regulation of Financial Services Markets in order to be recorded in the State Register of Financial Institutions. In addition, a postal service operator may apply to the NBU for a respective license.
Any legal entity (that is not a financial institution) may apply to the NBU for a license for the provision of cash collection services to banks.
What is an international system of online settlements and what is the procedure for approving its operation in Ukraine?
This is an international payment system that ensures online payments and settlements using the payment instruments of the international payment systems, the details of which are recorded to the Register of Payment Systems, and with the electronic money of such international system of online settlements, provided that funds are charged/credited from/to the system solely through bank accounts.
To obtain an approval of the terms and procedure of operation in Ukraine, an international system of online settlements should submit to the NBU the following documents:
1) an application for the approval of the terms and procedure of operation in Ukraine of an international system of online settlements
2) a copy of one of the following documents issued by a foreign authority:
an abstract from a banking, commercial, or judicial register or other official document confirming the registration of an international system of online settlements
a permit, license, or other document authorizing an international system of online settlements to conduct activity in the area of international money transfers
3) an information note that should include the description of the following:
types of money transfer services to be provided by the international system of online settlements, indicating the initiators and recipients of money transfers (legal entities and/or individuals), types of currency transfers, etc.
a general scheme of transfer execution, including the movement of information messages and the movement of funds since the initiation of a transfer by a user until the completion of mutual settlements under such transfer in the international system of online settlements (including a schematic representation), indicating full names and addresses of the legal entities concerned (settlement banks, processing centers, service organizations, etc.).
An operator, a representation office, or a Ukraine-based settlement bank of an international system of online settlements, or an authorized nonresident institution, may apply to the NBU to obtain approval of the terms and procedure of operation in Ukraine of an international system of online settlements.