Currency restrictions in the insurance sector have been updated

The National Bank of Ukraine has updated currency restrictions in the insurance sector.

In particular, certain provisions of the NBU Board Resolution No. 18 "On the Operation of the Banking System during the Period of Martial Law" dated February 24, 2022 (as amended), which relate to restrictions on foreign exchange transactions in the insurance sector, have been amended.

This was done in order to bring them in line with the Law of Ukraine No. 1909-IX "On Insurance" dated November 18, 2021 (the "Insurance Law") and the Law of Ukraine No. 1953-IX "On Financial Services and Financial Companies" dated December 14, 2021 (the "Financial Services Law"), which came into force on January 1, 2024.

Thus, starting from February 20, 2024:

• clarifications have been made regarding new classes of insurance, new requirements for solvency capital and minimum capital set out in the Regulation on Establishing Requirements for Insurer Solvency and Investment Activities, approved by Resolution No. 201 of the Board of the National Bank of Ukraine dated December 29, 2023. The Law also clarifies the terminology used in the Insurance Law;
• the requirements for an impeccable business reputation for the purposes of being on the List of Insurers were brought in line with the requirements of the Law on Financial Services and the Regulation on Authorization of Financial Service Providers and Conditions for Conducting Financial Services Activities, approved by Resolution of the Board of the National Bank of Ukraine No. 199 dated December 29, 2023.

The above technical amendments were introduced by Resolution of the Board of the National Bank of Ukraine dated February 16, 2024 No. 22 "On Amendments to Resolution of the Board of the National Bank of Ukraine dated February 24, 2022 No. 18", which will come into force on February 20, 2024.