Within the framework of currency liberalization and for further improvement of the business climate, the National Bank of Ukraine abolished a number of administrative restrictions that created discomfort for Ukrainian companies, foreign investors and diplomatic missions, reports the press-center of the NBU.
I. Given the numerous appeals of the business that carries out foreign economic activity, the limit for funding its own foreign representations and other separate units has been canceled. Previously, the transfer of funds to foreign affiliates was limited to a general limit for legal entities for investing abroad of 2 million euros per year. From now on, transactions for transferring funds directly to foreign units' accounts are deduced from the limit of the action and will not be limited in scope.
In order to minimize the risks of an unproductive outflow of capital, the National Bank also set additional requirements for currency oversight of such transactions. In particular, banks are obliged to receive from Ukrainian companies that intend to finance their own overseas departments, detailed estimates and other documents that justify the need for such a transaction.
In addition, the aforementioned mitigation will not apply to money transfer operations to aggressor / occupier countries, offshore zones and countries that fail or fail to comply with FATF recommendations.
II. It simplifies the reinvestment of foreign investors' income from operations with Ukrainian securities. Non-residents are allowed to transfer funds, received from securities, registered with a foreign depositary bank from the correspondent account of this institution, to their own account in Ukraine. This will avoid situations where investors will lose on the additional conversion of currencies because of the impossibility of directly transferring income in UAH immediately to the individual Hryvnia account.
III. The ban on payments in cash in foreign currency is cancelnd for payment by legal entities and individuals for consular fees, for the legalization of shipping documents at diplomatic missions or consular offices of countries that have not acceded to the Hague Convention of October 5, 1961. These countries include Algeria, Afghanistan, Viet Nam, Egypt, Indonesia, Jordan, Iraq, Iran, Cameroon, Canada, Qatar, Kuwait, Lebanon, UAE, Saudi Arabia, Syria, Sudan, Thailand, Uruguay.
IV. The list of transactions allowed in foreign currency on the territory of Ukraine is supplemented by transactions between the financial institution and the Cabinet of Ministers of Ukraine in the framework of international agreements on loans, grants and loans. This will reduce the currency risks of the state when performing such operations. V. Risk-oriented supervision of banks has been improved in the part of inspections of foreign counterparty banks, which are transferred by Ukrainian companies. From now on, banks themselves, on the basis of information from public sources, will determine the degree of risk of foreign counterparty banks for a currency transactions. Previously, they used the list provided by the National Bank on the basis of information from the State Financial Monitoring Service.
The said amendments were approved by the Resolution of the Board of the National Bank No. 86 dated June 27, 2019, "On Amending Certain Legislative Acts of the National Bank of Ukraine". It will take effect on July 2.
(c) National Bank of Ukraine