Electronic Payments

29/ 09/ 2014

Following efforts from the EBA Electronic Payments Committee regarding possible restrictions on the registration of payment systems relating to the adoption of the Law “On creation of Free Economic Area “Crimea” and Peculiarities of Economic Activity in Temporarily Occupied Territory of Ukraine” No. 1636-VII, dated 12 August 2014, were not included in the final version.

Background: The respective Draft Law No. 4032a, dated 6 June 2014, envisaged that registration of international payment systems would not be allowed if its payment organization, in particular, has agreements with banks located on and/or operating on temporarily occupied territory, or if its payment organization has established correspondent relations with banks located on and/or operating on the temporarily occupied  territory.

During our appeals to state authorities (both written and voiced during meetings), the EBA Electronic Payments Committee emphasised that the implementation of these provisions would be problematic in terms of the non-possibility to control payments in the free economic area “Crimea”. Also, banks that have branches in the occupied territories (which are currently not Ukrainian banks) are not required to report their operations to payment systems, and the latter, in turn, has no effective control tools to do that.

The EBA is pleased to announce that these problematic provisions were not included in the final version of the Law, which provides that electronic means of payment issued by domestic or international payment systems may be used in the free economic area “Crimea”.

We would like to thank all EBA members who supported and contributed to our efforts focused on solving this issue. At the same time the EBA will continue our lobbying activities aimed at creating a business friendly environment in Ukraine.

Read articles. Share in social networks

Spelling error report

The following text will be sent to our editors: