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Friday, 08 September 2017 10:20

New rules for money transfer licenses

On 17 August 2017, the National Bank of Ukraine (the “NBU”) adopted resolution No. 80 (the “Resolution”) whereby the rules and procedures for issuance to non-bank financial companies (“Financial Companies”) of licenses for making money transfers in national currency without opening of accounts (“License”) have been significantly amended. The Resolution is effective as of 22 August 2017.

As compared to the previously applicable procedure, the Resolution introduces modifications and new requirements in the following key aspects:

Ownership structure. Financial Companies are now required to disclose information on their ownership structure to the NBU. Such requirement would have to be complied with both (i) when applying for a new License and (ii) on a regular basis.

Financial condition. Financial Companiesare now subject to certain financial condition requirements. In particular, a substantiated 3-year business plan should be elaborated and submitted to the NBU. Further, Financial Companies should have sufficient funds to implement the business plan, no recent history of material defaults and no outstanding tax debts.

Business reputation. The Resolution introduces business reputation requirements which apply not only to top managers of the Financial Company but also to its shareholders/beneficiaries.

List of documents. The list of documents to be submitted for License has been expanded and includes such new documents as a business plan, ownership structure disclosure, confirmation notes from banks, tax authorities and credit bureaus etc. At the same time, the NBU will no longer request submission of internal documents on financial monitoring which may be adopted by a Financial Company after issuance of a License (but, in any case, before commencement by it of money transfer activities).

Timings. The NBU increased the period for consideration of documents submitted for a License up to 60 business days. Such period can further be increased for up to 30 business days at the NBU’s discretion.

Existing Licensees. Financial Companies which already hold a License must:

  1. within 2 months, disclose the ownership structure to the NBU (companies holding a general FX license are exempt from this requirement); and
  2. within 6 months, bring their activities, ownership structure, financial condition and business reputation in compliance with the Resolution and report such compliance to the NBU.

The NBU has, generally, retained broad discretions in requesting any substantiating documents and various matters regarding issuance of a License (including to deny issuance thereof). The aforesaid changes also appear to have generally tightened the rules for obtaining a License in majority of aspects.

About EPAP Ukraine

Egorov Puginsky Afanasiev & Partners Ukraine (EPAP Ukraine) is one of the leading full-service law firm in Ukraine, advising leading global and local businesses in Ukraine, throughout the CIS and worldwide.

Media contacts                  

Liliya Kyriyenko

Tel.: +380 44 492 82 82  

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