AUB News

Name of the Resolution/document

No.

Date of acceptance

Essence

Purpose/impact on BSU

About the approval of the Rules for compliance with the Special Standard of Data Distribution

428-rsh

02.12.2023

A new version of the Rules has been approved. In this regard, the Resolution of the Board of the NBU dated July 21, 2004 No. 341 "On Approval of the Rules for Compliance with the Special Standard for the Distribution of IMF Data" and its amendments

Improving work on the preparation and distribution of indicators of the financial and external sectors of the economy of Ukraine in accordance with the Special IMF Data Dissemination Standard

On amending the decision of the Board of the National Bank of Ukraine dated November 23, 2017 No. 752-rsh

432-rsh

05.12.2023

The National Bank of Ukraine is expanding the list of benchmark bonds of the domestic state loan, at the expense of which banks are able to cover part of the volume of required reserves. Thus, from December 11, 2023, the OVDP with the identification number (ISIN) UA4000229116, the first placement of which was carried out by the Ministry of Finance on November 7, 2023, will be added to the corresponding list.

Increased activity at auctions of the Ministry of Finance for the placement of OVDP bonds, which is important to avoid direct financing of the NBU budget deficit

On approval of the Amendments to the Regulation on registration of payment systems, payment system participants and technological operators of payment services

156

05.12.2023

The National Bank of Ukraine has updated the procedure for registering and entering information about payment systems and their entities into the Register of Payment Infrastructure (hereinafter referred to as the Register). In particular, the regulator has settled issues regarding:

1)  the right of the NBU to refuse registration of international payment systems created by non-residents, as well as to cancel their registration in case of: 

• availability of information about cooperation or implementation of payment transactions involving payment systems, banks, non-banking institutions, to which (or to the operators, owners, managers of which) sanctions have been applied by foreign states (except the state carrying out armed aggression against Ukraine), interstate associations, international organizations and/or Ukraine (the requirement applies during the period of validity of sanctions and three years after the cancellation of sanctions);
• functioning on the territory of the state carrying out armed aggression against Ukraine; 

2) registration and entering information into the Register about indirect participants and settlement banks of payment systems, namely:

• a direct participant has the right not to submit to the National Bank for the registration of an indirect participant a notification from the operator of the payment system on granting the right to such a direct participant to attract indirect participants, if such a notification was submitted earlier and under the condition of its relevance;
• the operator of an international payment system created by a non-resident is not obliged to submit an updated information certificate and coordinate it with the National Bank in the event of concluding an agreement with a new/additional settlement bank. To enter information about a new / additional settlement bank, the operator of the international payment system just needs to send the appropriate notification to the regulator;

3) the NBU has the right to cancel the registration of an international payment system created by a non-resident, if within 180 calendar days the number of direct participants of such a payment system in Ukraine does not meet the requirements of Ukrainian legislation (i.e. is less than three).

4)  entry into the Register of information about technological operators, which will be separately involved by the participants of the payment system, provided that such a right is provided for by documents agreed with the National Bank, which determine the conditions and procedure for the operation of the payment system.

Improving the procedure for registration of payment systems, participants of payment systems and technological operators of payment services

On the approval of the Regulation on the procedure for the implementation of the oversite of entities that perform the functions of the central depository of securities, the central counterparty, the trade repository and securities settlement systems in Ukraine

157

08.12.2023

From January 1, 2024, the NBU will carry out an oversight of entities that perform the functions of a central securities depository, a central counterparty, a trade repository and a securities settlement system (hereinafter referred to as capital markets infrastructure oversight objects), which is provided for by the Laws of Ukraine "About the National Bank of Ukraine" and "About capital markets and organized commodity markets".

In this regard, the NBU  determined the main organizational principles and the procedure for the implementation of the capital market infrastructure oversight, based on the Principles for the financial market infrastructure, adopted by the Bank for International Settlements and the International Organization of Securities Commissions.

Yes, the regulator determined:

 1) the purpose, procedure and periodicity of monitoring the activities of capital markets infrastructure oversite facilities based on the following parameters: 

• efficiency and effectiveness of activity;
• reliability and continuity of activity; 

2) the procedure and periodicity of assessment of capital markets infrastructure oversite objects for compliance with international oversite standards. In particular, it is established: 

• types of assessment (complex and thematic);
• stages of evaluation;
• sources of information for assessment;
• the order of drawing up a report based on the evaluation results; 

3) the procedure for providing recommendations based on the results of the assessment and the periodicity of the analysis of the status of their implementation by the object of the capital markets infrastructure oversight;

  4) the procedure for exchanging information with the National Commission for Securities and the Stock Market during the implementation of an oversight of objects of the infrastructure of the capital markets.

Regulation of capital markets infrastructure oversight

About the approval of changes to the Procedure for opening and closing accounts of election funds and all-Ukrainian referendum funds

158

08.12.2023

The changes concerned references to the changed legislative acts, as well as the addition of electronic innovations to the Procedure: the possibility of using an electronic seal and  right of client representative  present to an authorized bank employee an e-passport/e-passport for traveling abroad/data on the registration number of the taxpayer's account card using the mobile application of the Unified State Web Portal of Electronic Services.";

Also  Appendix 1 to the Procedure (Instructions for filling out details) was changed, and Appendix 2 and 3 were canceled

Improving the procedure for opening and closing accounts of election funds and all-Ukrainian referendum funds

On Amendments to the Rules of Storage, Protection, Use and Disclosure of Payment Service Provider Secrets

159

12.12.2023

Changes were made to section III and they mainly related to the addition of the list of cases in which bank secrecy is disclosed, in particular, to meet the requirements of the FATCA agreement

Bringing the order of storage, protection, use and disclosure of the payment service provider's secrets into compliance with the requirements of the legislation of Ukraine 

On amendments to the Regulation on the procedure for the analysis and verification of documents (information) on currency transactions by authorized institutions< /p>

160

14.12.2023

The NBU expanded the list of signs of suspicious currency transactions. Changes were made to NBU Resolution No. 8 dated January 2, 2019. Currency transactions for the purpose of settlement (advance payment) associated with existing risks of non-fulfillment of obligations by the non-resident counterparty regarding the supply of goods under the foreign trade agreement will be subject to additional analysis and verification in the presence of one or more of the following signs:

• availability of information on the exceeding of the limit terms of settlements for operations on the export and import of goods, established by the NBU, or terms extended in accordance with the conclusion of the central body of executive power, which ensures the formation and implementation of state policy in the field of economic development, according to foreign economic agreements concluded by clients of the bank with this non-resident counterparty;
• the presence of a resident - the subject of a foreign exchange operation, exceeding the limit terms of settlements for operations on the export and/or import of goods for a total amount equal to or exceeding 20 times the amount (equivalent to the official exchange rate of the hryvnia to foreign currencies established by the National by the bank on the date of the transaction), provided for  Article 20 of the Law on Financial Monitoring  ( i.e. in the amount of UAH 8 million);
• availability of the resident - the subject of the foreign exchange operation of changes/additional agreements to foreign economic contracts, which provide for an increase in the terms of delivery of goods by a non-resident counterparty;
• presence during the previous 365 calendar days of repeated cases of return by a non-resident counterparty in favor of bank clients of funds (advance payment) in an amount exceeding 50% of the amount of the initial payment, for operations on the import of goods;
• creating confusing and/or artificial payment conditions;
• the presence of legal restrictions on the import of goods into the territory of Ukraine.

Improving the procedure for analysis and verification of documents (information) on currency transactions by authorized institutions

On making changes to some normative legal acts of the National Bank of Ukraine and declaring as invalid the resolutions of the Board of the National Bank of Ukraine No. 10 dated January 2, 2019

161

14.12.2023

Changes  was included in a number of documents regulating operations  on the foreign exchange market. Yes, NBU Resolution No. 10 of January 2, 2019 was canceled. "On the approval of the Rules for the operation of the System of confirmation of transactions on the foreign exchange market of Ukraine" and, accordingly, the items regarding the confirmation of transactions were excluded from the Regulation on the implementation of currency interventions of the National Bank of Ukraine on the foreign exchange market of Ukraine, approved by the resolution of the Board of the NBU dated 31.01.2019  No. 26 and from the "Regulations on the structure of the foreign exchange market of Ukraine" (NBU Resolution No. 1 dated January 2, 2019)

Update of NBU regulations

On the approval of the Regulation on the implementation of on-site supervision of the activity of providing financial and accompanying services

162

14.12.2023

The National Bank of Ukraine has updated the procedure for on-site supervision of non-banking financial services markets in accordance with the requirements of the new laws of Ukraine "On financial services and financial companies", "On insurance" and "On credit unions", which will come into effect on January 1, 2024.  

The new Regulation on the implementation of on-site supervision of the activity of providing financial and accompanying services provides for the expansion of the list of persons covered by supervisory activities. Starting from January 1, 2024, such persons will include:

 insurers, credit unions, financial companies, pawnshops and their separate divisions; 

• non-banking financial groups and their members;
• providers of accompanying services and their separate subdivisions (except for collection companies, credit bureaus and legal entities licensed to carry out cash transactions);
• owners of significant participation, key participants in the ownership structure, affiliated and related persons of financial service providers;
• foreign participants in the financial services market, who are engaged in the provision of financial and/or accompanying services in Ukraine;
• persons who provide outsourcing services to financial service providers in accordance with the procedure established by current legislation.

The provision also provides:

1) tools of both on-site prudential supervision and supervision of market behavior (except for matters of supervision of compliance with the rights of consumers of financial services, which are regulated  by a separate legal act ); 

2) application of a risk-oriented approach to supervision, taking into account:  

features of the type of activity of providers of financial / supporting services; 

• nature and scope of services provided;
• systemic importance / significance of the provider;
• existing risks during the implementation of financial / accompanying services or as a result of participation in a financial group; 

3) expansion of the list of possible actions based on the results of on-site supervision: 
in addition to influence measures, the National Bank will be able, in particular, to apply corrective measures and early intervention measures.

Bringing normative legal acts of the NBU into compliance with the current legislation

On approval of the Regulation on the confidentiality of financial services

163

15.12.2023

The provision was developed in accordance with the Laws of Ukraine "On the National Bank of Ukraine", "On electronic trust services", "On electronic documents and electronic document management", the Law of Ukraine "On financial services and financial companies" and defines the requirements for the order of processing, storage , protection, use, transmission, disclosure, destruction and publication of information constituting the secret of a financial service, including the procedure for use by the NBU during the supervision of a financial service provider or intermediary of information constituting the secret of a financial service obtained by him in the process of supervising other providers of financial or accompanying services.

Determining the procedure for working with information that constitutes the secret of a financial service

On making changes to some normative legal acts of the National Bank of Ukraine

164

16.12.2023

In  documents related to the calculation of economic standards, the phrase "economic standards" was replaced by "prudential standards"

Bringing regulations of the National Bank of Ukraine into compliance with the requirements of Ukrainian legislation 

About the approval of the Amendments to the Regulation on the procedure for approval by the National Bank of Ukraine of the specifications of derivative money market contracts

165

16.12.2023

The changes related to the mechanism of submission of documents in electronic form (instead of paper)

Transition to electronic document management

On approval of the Regulation on the secrecy of insurance

166

19.12.2023

The provision was developed in accordance with the Laws of Ukraine  "About the National Bank of Ukraine" ,  "On financial services and financial companies" ,  "About electronic documents and electronic document circulation" ,  Law of Ukraine  "On Insurance" and  determines the requirements for processing, protection, storage, use, transmission and disclosure of information that constitutes the secret of insurance.

Regulation of issues related to work with information that is a secret of insurance

On the approval of the Regulation on the organization and conduct of inspections on the markets of non-banking financial services

167

12/20/2023

The National Bank of Ukraine has updated the procedure for organizing, conducting and registering the results of inspection checks on the markets of non-banking financial services in accordance with the requirements of the new laws of Ukraine "On financial services and financial companies", "On insurance" and "On credit unions", which are put into effect from January 1, 2024.  

The new Regulation regulates the procedure for conducting inspections of persons who will be covered by the supervisory activities of the National Bank from January 1, 2024, namely: 

• providers of financial and supporting services and their separate divisions;
• non-banking financial groups and their participants;
• owners of significant participation;
• key participants in the ownership structure;
• affiliated and related persons of financial service providers; 
• foreign providers of financial and/or accompanying services in Ukraine; 
• persons who, in accordance with the procedure established by law, provide outsourcing services to financial service providers.

The regulation, in particular, defines the organizational principles of conducting inspections, additional grounds for conducting an unscheduled inspection inspection, the procedure for implementing recommendations given as a result of an inspection inspection, and the specifics of drawing up a report on the absence of an inspection object by location.

The regulation also expands the list of rights of the object of inspection during the inspection inspection and possible actions based on the results of the inspection inspection: in addition to influence measures, the National Bank will be able, in particular, to apply corrective measures and early intervention measures.  

Regulation of inspection checks

About the approval of the Regulation on the procedure and conditions for concluding a third-party liability insurance contract of the subject of audit activity

168

12/20/2023

The provision was developed in accordance with the Laws of Ukraine "On the National Bank of Ukraine", "On Financial Services and Financial Companies", the Law of Ukraine "On the Audit of Financial Statements and Auditor Activities, Law of Ukraine dated November 18, 2021 No. 1909-IX " About insurance" 

 The regulation establishes the procedure for concluding a contract of liability insurance of the subject of audit activity, which conducts a mandatory audit of financial statements, before third parties and the conditions on which the contract of insurance of the auditor's liability is concluded.

The requirements of this Regulation apply to insurers who have received a license to carry out insurance activities, insurance intermediaries and subjects of audit activity

Approaching the domestic insurance market to EU standards

On approval of the Amendments to the Regulations on Bank Licensing

169

12/20/2023

Changes were made mainly to the chapter  27  of Chapter IV regarding cases in which it is necessary  notify  NBU on starting a new type of activity or providing a new type of financial services

Bringing the bank licensing procedure to the requirements of Ukrainian legislation

On the regulations of the electronic payment system of the National Bank of Ukraine and the procedure of the banking system of Ukraine during the reporting year end< /p>

170

12/20/2023

The document defined the work regulations for the period from  12/29/2023 to 01/01/2024 inclusive

Regulation of work within the framework of the end of the reporting year

On amendments to the Regulation on conducting interest rate swap operations by the National Bank of Ukraine on the interbank market

171

12/20/2023

Changes were made to the Regulations approved by Resolution of the NBU Board No. 67 dated May 28, 2020 . Amendments were made to clause 61 and they related to the NBU's rights in case of   assigning the bank to the category of insolvent .

In this case, the NBU has the right to unilaterally terminate the General Agreement on conducting interest rate swap operations and take the following measures:

1) prematurely terminate all current interest rate swap operations, if the bank has not made the payment under the interest rate swap operation within three working days from the date of payment and/or the National Bank's requirement to replenish the guarantee fund within three working days from the date of receipt of such a requirement ;

2) return the assets (property) forming the guarantee fund to the bank and pay the amount of the fair value of the current interest rate swap operations, if this amount is negative (negative) from the position of the National Bank."

Improvement of the normative legal act of the National Bank of Ukraine on conducting interest rate swap operations on the interbank market

On approval of the Regulation on the use of electronic signature and electronic seal

172

12/20/2023

The National Bank of Ukraine has defined a single procedure for using an electronic signature and electronic seal: 

• in the banking system of Ukraine, 
• on the markets of non-banking financial services, state regulation and supervision of activities in which the National Bank of Ukraine carries out;
• during the provision of payment services. 

Now the norms regarding the creation, processing and storage of electronic documents that apply in the banking system of Ukraine and during the provision of payment services will also apply to non-bank financial services market participants and their clients. 

In particular, the National Bank: 

• regulated the procedure for the application of all types of electronic signature and electronic seal in the markets of financial and payment services in one document; 

• provided new types of electronic signature and electronic seal: improved electronic signature with a qualified certificate, improved electronic seal with a qualified certificate, digital handwritten signature;
• updated the requirements for creating and storing electronic documents, ensuring information security during the processing of electronic documents in the information systems of financial institutions.

Promoting the further development of paperless technologies during the provision of financial and payment services, as well as the development of remote contract signing methods.

On making changes to some normative legal acts of the National Bank of Ukraine

173

12/20/2023

Amendments were made to   Resolution of the National Bank of Ukraine dated February 25, 2022  No. 23  "On some issues of the activities of Ukrainian banks and banking groups" . The changes concern the distribution of capital and the payment of dividends to shareholders.  The distribution of capital in any form is prohibited, except for the purpose of profit to increase the authorized capital, the formation of general reserves and funds of the bank, which are included in the fixed capital, covering the losses of previous years. The payment of dividends is allowed only for preferred shares and dividends, which are sent to the State Budget of Ukraine.

P unit 9 -2  The resolutions were presented in the following editions:

“9-2. Until April 29, 2024, banks will continue to include in the calculation of capital adequacy standards the minimum amount of operational risk, calculated as of January 1, 2021, based on the data of the annual financial statements for 2020, verified and confirmed by the auditor.

Banks, starting with reporting as of May 1, 2024, should include in the calculation of capital adequacy standards the minimum amount of operational risk, calculated in accordance with the requirements  Regulations on the procedure for determining the minimum amount of operational risk by banks of Ukraine, approved by the resolution of the Board of the National Bank of Ukraine dated December 24, 2019 No. 156. 

In addition, a number of changes were made to the  Rules of operation of banks in connection with the introduction of martial law in Ukraine, approved by the resolution of the NBU Board dated February 25, 2022 No. 23  THESE changes mainly concern the review of loans during martial law when calculating credit  risk.

Promoting the stability of the banking system of Ukraine 

On approval of the Regulation on disclosure of information and posting of an information document about a standard insurance product on the websites of insurers and insurance intermediaries< /p>

174

12/20/2023

The NBU determined the requirements for the minimum amount of information provided to the consumer about the insurer and the insurance product, including the information document about the standard insurance product on the insurers' and insurance intermediaries' own websites, as well as the form and procedure for disclosing such information

Insurers and insurance intermediaries will disclose on their own websites (on separate web pages with information about the insurance product) the key information necessary for the consumer to familiarize himself with the terms of the insurance product, namely:

 information about the object of insurance, insurance risks and insurance cases;

• sizes of the sum insured (including liability limits), premiums and deductibles;
• the territory of the agreement;
• conditions for making insurance payments (including exceptions to insured events and grounds for refusing to make insurance payments).
• the procedure for taxation of insurance payments and the application of tax benefits and conditions for reducing the amount of insurance sums (by life insurance classes). 

In addition, insurers and insurance intermediaries must post on such web pages an information document about the standard insurance product, which briefly outlines the most important terms of the insurance product. This will allow the consumer to familiarize himself with the features of the insurance product in more detail before concluding the insurance contract and compare it with similar insurance products of other insurers.

Also, insurers will disclose information on their own websites about the sequence of satisfaction of claims that may arise from consumers in the event of the insurer's bankruptcy, namely, the sequence of insurance payments under insurance contracts and the return of part of the paid insurance premium.

Establishing the minimum amount of information that must be provided to the consumer before concluding an insurance contract

On approval of the Regulation on the peculiarities of concluding insurance contracts with consumers

175

12/20/2023

The NBU established requirements for the form and content of insurance contracts between consumers and insurers and insurance intermediaries

Insurance contracts provide for provisions necessary to pay the insurance premium, receive insurance compensation, and submit appeals. An insurance contract concluded in the form of an electronic document must contain electronic  signatures of the consumer and the authorized person of the insurer or insurance intermediary.

 Requirements for the form and content of insurance contracts are also established, namely:

·         the list of provisions that cannot be contained in the insurance contract; 

• it is required to use the terminology defined by the legislation of Ukraine in the insurance contract and to set out the terms of the insurance contract in its relevant sections; 
• regulates the procedure for providing the consumer with an insurance contract (including a contract concluded in the form of an electronic document).

In the insurance contract, the presence of:

• exceptions from insured events and grounds for refusing insurance compensation that duplicate or repeat insured risks or insured events;
• insurance restrictions that are already in effect at the time of concluding the insurance contract.

Arranging  requirements for concluding insurance contracts

On approval of the Regulation on the interaction of financial companies and credit unions with the National Bank of Ukraine regarding the Credit Register of the National Bank of Ukraine< /p>

176

12/23/2023

The document regulates  the process of submitting information to the credit register and the process  obtaining information from the credit register.

  Regulation of the interaction of financial companies and credit unions with the NBU regarding the Credit Register 

About the approval of the Amendments to the Public Offer of the National Bank of Ukraine for the conclusion of the Unified Agreement for banking services and provision of other services by the National Bank of Ukraine< /a>

No. 480-rsh

12/23/2023

The changes concern cashier services

Improving the conditions for using services provided by the NBU

About the approval of the Amendments to the Regulation on certification of persons for the right to carry out temporary administration of a non-banking financial institution

177

12/23/2023

The changes determine the procedure and conditions for obtaining a National Bank certificate for the right to perform temporary administration of a non-banking financial institution and establish qualification requirements for persons who may be appointed to perform these functions. In particular, the requirements for the impeccable business reputation of the applicant, the conditions for recognition by the National Bank of the applicant's reputation as impeccable, and the procedure for appealing such a decision are determined.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions"

On approval of the Regulation on the procedure for the appointment, implementation and termination of the temporary administration of the insurer, credit union

178

12/23/2023

The Regulation defines:

•   list of functions, powers and rights of the temporary administration of the insurer, credit union;
• the procedure for determining the composition of the temporary administration;
• the procedure for making a decision on early termination of the temporary administrator's powers;
• procedure for terminating the activities of the temporary administration and reporting on the performance of tasks.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions"

About the approval of Amendments to some normative legal acts of the National Bank of Ukraine

179

12/24/2023

Changes were made to :

1) Regulations on the procedure for the implementation by banks of Ukraine of deposit (deposit) operations and operations with savings certificates of the bank, approved by the resolution of the NBU dated 03.12.2003 No. 516

2) Regulations on the procedure for execution by payment service providers of payment instructions in foreign currency and bank metals, approved by the resolution of the NBU dated 28.07. 2008  No. 216

3) Instructions on the procedure for opening and closing client accounts by the National Bank of Ukraine, approved by the resolution of the NBU dated 04.15. 2022 No. 74

4) Instructions on non-cash payments in the national currency of users of payment services, approved by the resolution of the NBU dated 07.29. 2022 No. 163.

5) Instructions on performing interbank payment transactions in Ukraine in the national currency

Implementation of the international standard of automatic exchange of information on financial accounts”

On amendments to the Regulation on the Credit Register of the National Bank of Ukraine

180

12/25/2023

The provision was presented in a new version. The document defines the procedure for the functioning of the Credit Register of the National Bank.

Ensuring NBU performance of regulatory and supervisory functions 

On approval of the Amendments to the Regulation on the transfer of cash reserves for safekeeping to authorized banks and conducting operations with them

181

12/25/2023

A number of changes and additions were made, but a number of them entered into force on 01.01.2024, and a number are now in effect. from 01.03.2024,  and part - after 90 days from the day of termination or cancellation of martial law in Ukraine

Improving the order of storage of cash reserves of the National Bank of Ukraine by authorized banks and conducting operations with them

On approval of the Regulation on the characteristics and classification features of insurance classes, features of insurance activities and conclusion of contracts by insurance classes

182

12/25/2023

The regulation defines  transition from types of insurance to classes and reissuance of valid licenses of insurers, as well as establishes requirements for concluding and executing insurance contracts depending on the group of insurance classes

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies" and "On Insurance"

On the approval of the Regulation on the application by the National Bank of Ukraine of corrective measures, early intervention measures, and influence measures in the sphere of state regulation of activities on non-banking markets financial services

183

12/25/2023

The regulation on the application of influence measures, early intervention measures, and corrective measures in the non-banking financial services markets regulates a number of issues of supervision of the non-banking financial services market, in particular:  

• list of signs of risky activity, in case of which the National Bank will have the right to apply influence measures; 
• list of signs of systematic, repeated and ongoing violation;
• procedure of publicizing information about measures taken by the National Bank;
• procedure of participation in consideration of the issue of application of NBU influence measures to persons in respect of whom a corresponding decision must be made (representatives of such persons);
• requirements for registration and submission of documents to the National Bank within the framework of the procedure for applying measures.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions"

On the approval of the Regulation on the voluntary exit of the insurer from the market and the transfer of the insurance portfolio by the insurer

184

12/25/2023

The regulation defines the conditions and features of the insurer's exit from the market by decision of the owners, the procedures for obtaining the appropriate permission of the National Bank, cancellation of the license and liquidation.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies" and "On Insurance"

On the recognition of some normative legal acts as having lost their validity

185

12/25/2023

Lost  the validity of a number of normative legal acts of the State Commission for the Regulation of Financial Services Markets of Ukraine / the National Commission for State Regulation in the Field of Financial Services Markets.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies" and "On Insurance"

On amendments to some normative legal acts of the National Bank of Ukraine and recognition of some normative legal acts of the National Bank as having lost their validity of Ukraine

186

12/25/2023

The document is recognized as invalid

1) Resolution of the Board of the National Bank of Ukraine of June 25, 2020 No. 84 "On ensuring the exercise of powers and performance of functions of state regulation and supervision in the field of financial services markets on the procedure for disclosure of information and reporting by participants of financial services markets ”;

2) Resolution of the Board of the National Bank of Ukraine dated June 25, 2020 No. 87 "On ensuring the exercise of powers and performance of functions for state regulation and supervision in the field of financial services markets on the application of influence measures";

3) clause 2 of the Resolution of the Board of the National Bank of Ukraine dated November 25, 2021 No. 123 "On approval of the Rules for drawing up and submitting reports to the National Bank of Ukraine by participants in the market of non-banking financial services";

4) Resolution of the Board of the National Bank of Ukraine dated May 23, 2022 No. 103 "On approval of the Regulation on qualification requirements for persons who can engage in actuarial calculations";

5) clause 3 of the Resolution of the Board of the National Bank of Ukraine dated June 30, 2022 No. 135 "On approval of the Regulation on the registration of insurance and reinsurance brokers and the conditions for carrying out intermediary activities in the field of insurance and on the introduction of changes to some regulatory and legal acts of the National Bank of Ukraine".

Bringing normative legal acts of the NBU into compliance with the legislation of Ukraine

On the approval of the Regulation on the authorization of persons who have the right to carry out actuarial activities in the field of insurance, and persons who can perform duties duties of the responsible actuary

187

12/25/2023

Regulations  determines the qualification requirements for actuaries, who are the key persons of the insurer, and the procedure for keeping the register of actuaries by the National Bank.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies" and "On Insurance"

On Amendments to Resolution No. 26 of the Board of the National Bank of Ukraine dated March 16, 2023

188

12/26/2023

Amendments were made to the Resolution of the NBU "On Disclosure of Information Regarding Clients' Relationships with the State Carrying Out Armed Aggression Against Ukraine".

Banks are obliged every quarter no later than the 10th working day of the month following the reporting quarter to provide the NBU with information on the presence/absence of the bank's clients who have ties to the Russian Federation and citizens/residents of the Russian Federation

Immediate and effective response to existing and potential threats to the national interests and national security of Ukraine

On Amendments to the Regulations on Bank Remuneration Policy

189

12/27/2023

The National Bank of Ukraine has updated the requirements for the remuneration policy for members of the management bodies and influential persons of the bank.

The provision on the bank's remuneration policy applies to members of the bank's management body (members of the board and board, heads of internal audit, risk management, compliance management, etc.) and influential persons whose professional activities have a significant impact on the institution's risk profile, and also establishes clear criteria for attribution to such persons.

Implementation of the remuneration policy in the bank must take into account the size, peculiarities of the bank's activities, the nature and volume of banking and other financial services, the bank's risk profile, its systemic importance, as well as compliance / implementation of the bank's strategy, business plan, budget and declaration of inclination to risks.

The fixed component of the remuneration of the members of the bank's management body and influential persons of the bank according to the Regulation should reflect the appropriate level of professional experience and organizational responsibility of the employee in accordance with his job duties / terms of the contract. This component does not depend on the results of the bank's activities and cannot be reduced / suspended / canceled.

The variable component of the remuneration should take into account the indicators of the bank's financial condition and the results of its activities and at the same time prevent the negative impact of such payments on the sustainable development of the institution. For this purpose, it is provided:

• limitation of the size of the variable component of 100% of the fixed remuneration;
• application of a non-cash form of payment (bank shares and financial instruments related to own capital instruments, instruments with write-off/  conversion conditions, subordinated debt) to at least 50% of the variable remuneration;
• deferral of payments for a period of 4 years up to at least 40% of the variable remuneration, and in case of payment of a particularly large amount - up to at least 60%.

According to the resolution, banks must bring their internal documents into compliance with the new requirements by April 30, 2024. At the same time, requirements based on indicators of internal capital adequacy (ICAAP) will enter into force on January 1, 2025.

The National Bank will evaluate the bank's remuneration policy taking into account the assessment of its financial condition, business model, associated risks, effectiveness of corporate governance and internal control system during the SREP (Supervisory Review and Evaluation Process) assessment and determination of supervisory actions regarding the institution.

Implementation of European Union standards

On the approval of the Amendments to the Rules for drawing up and submitting reports by participants of the non-banking financial services market to the National Bank of Ukraine

190

12/27/2023

Changes were made to the Rules approved by NBU Resolution   No. 123 of 11/25/2021

Amendments to Rules No. 123:

•  reporting of insurers, credit unions, financial companies, pawnshops has been updated almost completely (except for some files);
• the list of reporting providers was supplemented by collection companies with the establishment of a requirement for them to submit three reporting files;
• the list of explanatory notes and additional reports, which were submitted by sending to the e-mail of the National Bank, has been significantly shortened. Currently, the explanatory note (in the new edition) will be submitted only by insurers;
• it has been determined that the files FR0 "Financial statement data", FR1 "Consolidated financial statement data" and notes to financial, consolidated financial statements will be submitted only by pawnshops and finance companies. 

It is also provided that no impact measures will be applied to reporting providers for untimely submission of files with reporting indicators, electronic documents and/or errors made during the preparation of reports for the I quarter of 2024, provided that files with reporting indicators, electronic documents will be submitted to the National bank in full until July 25, 2024. Requirements for non-application of impact measures do not apply to files FR0, FR1, OS1, OS2, OS3 and notes to financial, consolidated financial statements.

Bringing Rules No. 123 into line with changes in the legislation of Ukraine

On the approval of the Regulation on the regulation of the activities of financial companies that have the right to carry out guarantee activities and amendments to the resolution of the Board of the National of the Bank of Ukraine dated June 25, 2020 No. 85

191

12/27/2023

The regulation on the regulation of the activities of financial companies that have the right to carry out guarantee activities determines:

• prudential requirement for the non-bank guarantor to hold at least 50 percent of the minimum amount of equity in highly liquid assets (cash, government bonds, etc.);
• prudential standards of capital sufficiency (adequacy) (H1), maximum risk per person or group of related persons (H2), liquidity reserve (H3);
• mechanism for the inclusion of subordinated debt in regulatory capital for the purposes of fulfilling standards H1 and H2.

A transitional period until April 1, 2024 will be introduced to fulfill the normative value of H1. From the same date, the prudential requirement to maintain highly liquid assets will apply.

Implementation of the norms of the Law of Ukraine "On Financial Services and Financial Companies"

On approval of the Regulation on prudential requirements for financial companies

192

12/27/2023

The regulation on prudential requirements for financial companies defines: 

• requirements regarding the adequacy of own capital, the minimum amount of which will be determined taking into account the types and number of services of the financial company;
• leverage norm, which will make it possible to balance the use of own and borrowed funds by financial companies and will be calculated as the ratio of the amount of paid-in authorized capital and reserve capital to the financial company's liabilities.

Implementation of the norms of the Law of Ukraine "On Financial Services and Financial Companies"

On approval of the Regulation on the use of influence measures by the National Bank of Ukraine for violations by collection companies of the legislation on the protection of the rights of consumers of financial services

193

12/27/2023

The Regulation on the NBU's Application of Impact Measures for Violation of the Legislation on the Protection of the Rights of Financial Services Consumers by Collection Companies determines the procedure for adoption by the National Bank of a decision on the application of influence measures for violations of the legislation on the settlement of overdue debt, informing about such a decision and organizing the corresponding document flow

Implementation of the norms of the Law of Ukraine "On Financial Services and Financial Companies"

On approval of the Regulation on requirements for the insurer's management system

194

12/27/2023

The regulation defines the features of the construction of the insurer management system and the internal control system according to the model of three lines of protection depending on the importance of the insurer.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies" and "On Insurance"

On Amendments to Resolution No. 18 of the Board of the National Bank of Ukraine dated February 24, 2022

195

12/28/2023

NBU eases a number of restrictions for the population and business,

Yes, from December 29, 2023:  

providers of payment services will be able to pay monetary aid from international humanitarian organizations and other non-governmental institutions to Ukrainians who have suffered as a result of a full-scale war, based on the Certificate of Submission of Documents for the Registration of a Passport of a Citizen of Ukraine. The changes concern cash payments in the national currency of Ukraine (previously, it was possible to receive assistance received by an individual only on the basis of a passport of a citizen of Ukraine or another document certifying identity that can be used to conclude transactions on the territory of Ukraine)

the Ukrainian operator of the electric energy transmission system (NEC Ukrenergo) has been given the opportunity to transfer funds to the European office for the allocation of capacity of interstate crossings "Joint Allocation Office" (JAO) for carrying out a joint coordinated allocation of capacity (the corresponding changes will contribute to the provision of imports electricity in sufficient quantity in the event of damage to the energy infrastructure of Ukraine as a result of attacks by Russia, as well as the export of electricity in the event of its surplus in Ukraine); 

the list of exceptions to the ban on spending transactions on the accounts of residents of the Russian Federation and the Republic of Belarus, who are legally present on the territory of Ukraine, has been supplemented with transactions for the payment of medical services in health care institutions.

Simplifying the receipt of financial aid, increasing opportunities for export and import, ensuring compliance with the rights of foreigners regarding medical care in Ukraine

On approval of the Regulation on the procedure for determining the amount of regulatory capital by banks of Ukraine

196

12/28/2023

The NBU updated the requirements for  capital structure of banks in accordance with the norms of the Federal Law "On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of Issues of Organization of Corporate Governance in Banks and Other Issues of the Functioning of the Banking System.

The new requirements for the RK of banks provide for the introduction of a new three-tier capital structure from August 5, 2024.

Regulations on the procedure for determining the amount of regulatory capital by banks of Ukraine  defined by: 

• the procedure for calculating the basic capital of level I, additional capital of level I, capital of level II, their components and deductions from them;
• requirements for capital components, at the expense of which capital is formed;
• procedure and conditions for the bank to obtain permission / approval of the National Bank regarding the inclusion of individual components in the capital, etc.

A phased introduction of new requirements is foreseen. Yes, 

•  until April 1, 2024, banks must develop internal provisions on determining the amount of regulatory capital; 
• from April 1 to July 1, 2024 – conduct test calculations and report their results to the NBU; 
• from August 5, 2024 - start calculating the regulatory capital in accordance with the new requirements.

Approximation of regulatory legal acts of the NBU in the field of regulation of banking activities to the standards of the European Union.

On amendments to the Regulation on the implementation of special economic and other restrictive measures (sanctions)

197

12/29/2023

Changes were made to the Regulation on the Implementation of Special Economic and Other Restrictive Measures (Sanctions), approved by Resolution No. 65 of the NBU Board dated May 11, 2023.

This Regulation determines the procedure for implementing special economic and other restrictive measures (sanctions). The requirements of this Regulation apply to banks and non-banking financial institutions.

The introduced changes and additions concerned non-bank financial institutions

Ensuring NBU implementation of personal and sectoral special economic and other restrictive measures (sanctions)

On approval of Amendments to some normative legal acts of the National Bank of Ukraine on financial monitoring

198

12/29/2023

The National Bank of Ukraine has updated the regulations on financial monitoring in relation to servicing clients from the category of politically significant persons (PIP).

The regulator introduced the relevant norms to the Regulation on the implementation of financial monitoring by banks and the Regulation on the implementation of financial monitoring by institutions. In particular, if more than twelve months have passed since the termination of the performance of important public functions by the PEP and the subject of primary financial monitoring is convinced that such a person no longer has the risk inherent in the PEP, as well as other risks, he will not use this person, members of his seven and persons connected with it, certain measures provided for by the Law of Ukraine "On prevention and counteraction of legalization (laundering) of proceeds obtained through crime, financing of terrorism and financing of proliferation of weapons of mass destruction".

 In order to make such a decision, the financial institution must carry out an analysis of the financial transactions of the PEP, its family members and persons related to it, from the date of termination of its important public functions.

 In the case of refusal to establish or maintain business relations or conduct a financial transaction to a client who is a PEP, the financial institution is obliged to provide the client with an explanation justifying the reason for the refusal within five working days. The institution must provide such an explanation to the client with a handwritten signature / superimposition of the KEP of the head of the institution. 

The National Bank also clarified the obligation of banks to monitor business relations in case of exceeding the maximum amount of financial transactions declared by the client.

Implementation of the requirements of the Law "On Amendments to the Law of Ukraine "On Prevention and Counteraction of Legalization (Laundering) of Criminal Proceeds, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction" Regarding Politically Significant Persons" (Law No. 3419-IX).

On the approval of the Regulations on the authorization of financial service providers and the conditions for their activities in the provision of financial services

199

12/29/2023

The National Bank of Ukraine updated the authorization procedure for financial service providers and  supervision of non-banking financial groups on a consolidated basis.

The regulation applies to all providers of financial services, except for banks and payment market operators, and regulates, in particular:

• the procedure for issuing or changing the scope / type of license for the type of activity;
• procedure for approval / notification of the acquisition or increase of a significant participation;
• requirements for business reputation and the procedure for its assessment;
• requirements for the financial status of legal entities and the property status of individuals;
• procedure for termination of financial services activities.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions".

On approval of the Regulation on general requirements for documents and the procedure for their submission to the National Bank of Ukraine within separate procedures and amendments to some regulations of the National Bank of Ukraine

200

12/29/2023

The Regulation unifies the general requirements  for documents submitted to the National Bank for the implementation of procedures: 

• licensing, registration, authorization of financial services market participants and payment market participants (except for payment systems, payment system participants, technological operators of payment services and commercial agents of providers of financial payment services);
• voluntary exit of the insurer, credit union from the market;
• identification, recognition of non-banking financial groups.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions".

On approval of the Regulation on establishing requirements for ensuring the solvency and investment activity of the insurer

201

12/29/2023

The regulation defines the procedure for calculating the regulatory capital and its components, which are acceptable for fulfilling the requirements for solvency capital and minimum capital, as well as requirements for acceptable assets of the insurer, in particular for covering technical reserves.

A transition period is provided for insurers to bring their activities into compliance with these requirements until June 30, 2024.

Bringing the regulatory framework of the NBU into compliance with the Law "On Insurance", the requirements of which  are based on the principles of Directive 2009/138/EU (Solvency II) and IFRS 17 "Insurance Contracts".

On approval of the Regulation on the procedure for supervision of non-banking financial groups on a consolidated basis

202

12/29/2023

The requirements of the Regulations apply to controllers and participants of non-banking financial groups, as well as to persons who intend to become controllers of such groups, providers of non-banking financial services (except credit unions).

 The regulation defines: 

• the procedure for identification, recognition and termination of recognition by the National Bank of a non-banking financial group;
• requirements for the responsible person of the group and the procedure for its approval by the National Bank;
• requirements for the group's ownership structure and systems of corporate governance, internal control, including risk management;
• requirements regarding compliance with prudential requirements, preparation and submission of reports and necessary information to the National Bank for the implementation of consolidated supervision.

Implementation of the requirements of the Laws of Ukraine "On Financial Services and Financial Companies", "On Insurance" and "On Credit Unions".

On approval of the Regulation on the procedure for formation of technical reserves by insurers

203

12/29/2023

The regulation establishes requirements for the quality of data used by the insurer to calculate technical reserves, rules for aggregating contracts, the list and methods of forming technical reserves, verification by the insurer of the adequacy of the formed technical reserves and the adequacy of loss reserves. A transition period is provided for insurers to bring their activities into compliance with these requirements until June 30, 2024.

Bringing the regulatory framework of the NBU into compliance with the Law "On Insurance", the requirements of which  are based on the principles of Directive 2009/138/EU (Solvency II) and IFRS 17 "Insurance Contracts".

On approval of the Regulation on the procedure for accounting by the insurer of contracts related to the implementation of insurance activities and requirements for the protection of the insurer's information< /a>

204

12/29/2023

The regulation defines uniform requirements for keeping records of insurance contracts (reinsurance) and other insurance operations in electronic form in information systems, as well as approaches to protecting information in such systems. A transition period is provided for insurers to bring their activities into compliance with these requirements until June 30, 2024.

Bringing the regulatory framework of the NBU into compliance with the Law "On Insurance", the requirements of which  are based on the principles of Directive 2009/138/EU (Solvency II) and IFRS 17 "Insurance Contracts".

About the approval of the model charter of the credit union

205

12/29/2023

Model charter of a credit union  contains recommended provisions regulating the legal status, rights, obligations and relations related to the creation, management and conduct of business activities of the credit union. Credit unions will be able to carry out activities on the basis of their own version of the charter or model charter.

Implementation of the Law of Ukraine "On Credit Unions".

About the approval of the Regulation on the peculiarities of the activities of united credit unions

206

12/29/2023

Regulations on the specifics of the activities of united credit unions  regulates the issue of practical realization of opportunities by united credit unions to strengthen financial stability, defined by the new legislation, in particular through:

• introduction of the liquidity support system for members of the United Credit Union on the market;
• establishment of a stabilization fund to support the solvency of members of united credit unions;
• implementation of additional control of credit unions by united credit unions, etc.

For united credit unions, a six-month transition period has been established to develop and bring internal documents and activities into compliance with the new requirements of the Regulation.

Implementation of the Law of Ukraine "On Credit Unions".

Notification "On providing recommendations"

No. 25-0005/97009 

12/30/2023

In this document, the NBU provided non-bank financial institutions with recommendations on the need to comply with the principles of financial monitoring and proper analysis of borrowers' creditworthiness  when providing microcredits.   Recommendations were given based on the results of the analysis  information received by the NBU  according to contracts concluded during the first half of 2023.  As part of the on-site supervision of the NBU, borrowers with atypical behavior were identified, which may indicate the use of non-banking institutions for money laundering. One of the signs of atypical behavior is the conclusion by borrowers of short-term credit  contracts (for 1-3 days) in several banks for a significant total amount.

Ensuring compliance with financial monitoring requirements