Accepted the order for identifying the banks risk operations

National Bank of Ukraine has established an order for identifying the banks risk operations

From the first in September 2016 comes into force, established by the Board of the National Bank of Ukraine №369 from 15.08.2016, the order of the document analysis and verification by banks (information) on financial transactions and their participants (hereafter – the Order). In particular, the list of indicators of risk operations, as well as change some existing ones. Just would like to draw your attention that prior to the adoption of the above order, the identification of risk transactions were settled a few officials of the National Bank of Ukraine letters.

This Procedure adopted in order to prevent the commission of risky activities by banks, threatening the interests of depositors or other creditors of the bank and increase the effectiveness of risk management. It should be noted that the provisions of the Order are binding on all banks in Ukraine, as well as all the branches of foreign banks in Ukraine.

On the basis of the provisions of the Order, any bank is obliged to provide a comprehensive analysis and verification of documents (information) on financial transactions (ongoing and / or that the client intends to implement) the bank’s customers, and information about their parties, which are aimed at such cases as:

1. purchase of foreign currency for the purpose of transfer outside Ukraine;
2. translation of foreign currency outside Ukraine;
3. transfer of funds in UAH to non-residents through the correspondent accounts of non-resident banks opened with the Bank;
4. transfer of funds to non-residents through bank branches opened in other states;
5. granting consent to the contract operations services (including in the case of changes in the contract), which includes a number of residents of the debt owed to non-residents from non-residents attracted loans, loans in foreign currency;
6. crediting of funds in rubles and foreign currency investment accounts that are open to non-residents investing in Ukrainian banks, as the return of foreign investment and profits, revenues and other funds received by a foreign investor from the investment activity in Ukraine, and others.

Analysis of the documents shall be on the basis of which the corresponding financial transaction should be carried out, as well as information about the customer and his business.

Such an analysis of documents may include the following actions on the part of the institution:

1. the study of the nature and purpose of the financial transaction;
2. the establishment of compliance or non-compliance of financial operations essentially maintenance activities of its members;
3. establishing the presence or absence of economic feasibility (sense) of a financial transaction;
4. establishing sufficiency or insufficiency of real financial capacity to carry out (to initiate) the transaction on the relevant amount;
5. the study of information about participants in a financial transaction, of their activities and business reputation;
6. establish the source of funds (assets), which in particular may include: salaries of physical persons, the income received from the sale of products, services rendered, work performed, the sale of the property, of inheritance, the acquisition of the rights to the treasure;
7. establishment of ultimate beneficial owners of the participants of a financial transaction.

Also, it should be noted that the collection of the above information, banking institutions are entitled to use public sources of information, as well as the Internet. In addition, banking institutions have the right to ask for information of interest to other financial institutions.

For each of the tests carried out banking institutions need to make an informed determination on the sufficiency or insufficiency of the suspicion that such an operation could be a potential threat to depositors or creditors or the presence or absence of evidence of the commission of the risk operations of banks.

Detailed with a list of the indicators of risky financial transactions, as well as a list of documents that may be required by banking institutions on the basis of the identified indicators can be found in the annexes to the Order on the official website of the National Bank of Ukraine.