In August 2016 the Board of the National Bank of Ukraine has taken a number of decisions, which are quite important.
In particular, significant changes have touched: the procedure for the exchange of currency, lending practices by non-residents and residents of the order of transfer of funds, both in national and in foreign currency to non-residents.
Next, we will focus in more detail on each of the following changes.
An important and fundamental change, published 03.08.2015, the Instruction on the organization of currency exchange operations in the territory of Ukraine is the abolition of the requirement of a resident of documents confirming identity in carrying out various operations on the exchange or conversion rates.
However, I would like to clarify that the changes do not cancel, and allow banking institutions not to require proof of identity of the resident in the commission of the following operations:
- Sale of foreign currency in the amount not exceeding the equivalent of 150 000 (one hundred and fifty thousand) hryvnia;
- The purchase of foreign currency in the amount not exceeding the equivalent of 150 000 (one hundred and fifty thousand) hryvnia;
- Conversion of one foreign currency into another foreign currency in the amount not exceeding the equivalent of 150 000 (one hundred and fifty thousand) hryvnia.
Thus, it can be concluded that the financial institution reserves the right to require or not require documents confirming the identity of the resident during the above operations, and in the case of failure to submit these documents on demand – to refuse to perform an operation.
Lending to residents by non-residents
The main change in the procedure for obtaining loans residents in foreign currency loans from non-residents have become innovations in the order of registration of contracts and registration of changes to them on these transactions.
In accordance with the amendments to the contract registration (registration of changes in the contract) the resident borrower must submit a bank that serves it, the notice of the contract (notification of changes in the contract). This notice may be filed in paper form and in electronic form on the prescribed form. In addition, the notification shall be accompanied by the original or a copy of the contract together with all additional agreements (if any), as well as documents on the implementation of the agreement and implementation of foreign exchange transactions. Copies of such documents may be submitted in hard copy and electronic form. Documents in a foreign language, to be translated into the Ukrainian language, which shall be signed by the translator (the authenticity of the translator’s signature certified by a notary) or a notary public. Documents drawn up in Russian or the text of which is set out at the same time foreign and Ukrainian / Russian languages, the translation is not required.
Transfer of funds to non-residents
Resolution of the Board of the National Bank “On the Repeal of certain legal acts of the National Bank of Ukraine”, by removing the requirement that the act provides for the price of examination of the State Information and Analytical Center for the import payment services residents. These changes, according to NBU, due to the fact that the pre-existing requirement lost its effectiveness as an effective tool to combat the outflow of capital.
Prior to the adoption of the aforementioned decree, acted requirement that the resident to pay for services, as well as work and intellectual property rights, acquired from a non-resident (if the total value of these services is more than 50 000 euro), was supposed to get an act of the State Information and pricing expertise analytical monitoring center outside commodity markets. This act was a declaration of conformity in the contract prices for the services of market conditions.
As reported by the National Bank, this requirement is abolished under the progressive liberalization policy.