NBU updates rules for financial monitoring and currency supervision

The National Bank of Ukraine has adopted Regulations on the Procedure for Organizing Implementation of Certain Legislative Requirements in the Field of Financial Monitoring, Currency Supervision, Supervision of Implementation of Special Economic and Other Restrictive Measures (Sanctions) During Martial Law (hereinafter - Regulations).

This need is due to the update of Ukrainian legislation, including legislation on administrative procedure.

The purpose of the Regulation is to increase the efficiency of compliance with the requirements of the legislation in the field of financial monitoring, currency supervision, and supervision of the implementation of sanctions policy during martial law.

The Regulation, in particular, provides for the application by banks and non-bank institutions during martial law of the following

• a simplified mechanism for identification and verification by banks of buyers of domestic government bonds "Military Bonds"
• increased limits for banks to use simplified methods of remote identification and verification of individual clients;
• a special procedure for updating customer data when it is not possible to establish contact with them;
• conditions for acceptance of an expired identification document from an individual, as well as a photo not attached thereto, if the individual reaches the age of 25 or 45;
• the possibility of obtaining a pension certificate from an individual as an additional identification document when a bank conducts video verification.

The Regulation also sets out a special procedure for the NBU to use certain supervisory tools during martial law, in particular

• the possibility for the bank/institution to choose the location address at which the on-site inspection will be conducted;
• determining the person authorized to represent the interests of the bank/institution during the on-site inspection;
• updated the procedure for notifying a bank/institution of a decision to impose enforcement measures for violation of the law / written request of the NBU.

The Regulation on the Procedure for Organizing the Implementation of Certain Legislative Requirements in the Field of Financial Monitoring, Currency Supervision, Supervision in the Field of Implementation of Special Economic and Other Restrictive Measures (Sanctions) during Martial Law was approved by Resolution of the Board of the National Bank of Ukraine No. 153 dated 20 December 2024, which comes into force on 1 January 2025.

This resolution also amended the Regulation on the Procedure for Organizing and Exercising Supervision in the Field of Financial Monitoring, Currency Supervision, Supervision in the Field of Implementation of Special Economic and Other Restrictive Measures (Sanctions), approved by Resolution of the Board of the National Bank of Ukraine No. 90 dated 30.06.2020 (as amended by Resolution of the Board of the National Bank of Ukraine No. 37 dated 04 April 2024), and the Regulation on the Application of Sanctions by the National Bank of Ukraine to Institutions for Violation of Financial Monitoring Legislation, approved by Resolution of the Board of the National Bank of Ukraine No. 37 dated 04 April 2024.

In addition, Resolution of the Board of the National Bank of Ukraine No. 60 dated March 23, 2022 "On Peculiarities of Implementation of Certain Legislative Requirements in the Field of Financial Monitoring, Currency Supervision, Supervision in the Field of Implementation of Special Economic and Other Restrictive Measures (Sanctions) During Martial Law" was declared invalid.