OREANDA-NEWS. The Board of the National Bank of Ukraine issued Resolutions No. 962, No. 983 and No. 990, setting new requirements for non-bank financial institutions (hereinafter  NFIs) that perform currency exchange operations.

“The NBU tightens requirements for non-bank currency exchange offices. This issue has been repeatedly discussed with market participants. We have explained our position and seen that there is an understanding of this problem on the part of the business community.  Our fight against illegal currency exchange offices cannot be limited to reporting to the Internal Affairs Ministry about their activities. However, we can enhance the transparency of legal currency exchange offices and tighten control over their activities. The aim of this process is to have a transparent currency exchange market that will not undermine the operation of the cash FX market,” said NBU First Deputy Governor Oleksandr Pysaruk.

Under the rules similar to those that apply for banks, non-bank financial institutions are required to submit information about their ownership structure and qualifying shareholders in these institutions.

The NBU has tightened the minimum capital requirements for NFIs performing currency exchange operations. The minimum capital requirements have been increased to UAH 20 million if the number of structural units does not exceed 100 units. Any additional increase in their number equal to 50 units will require a UAH 5 million increase in the capital amount.

Additionally, the following requirements are set out in these resolutions:

- cashier’s offices of financial institutions, their separate structural subdivisions and currency exchange offices  are required to have a document showing the amount of cash advances  in foreign and domestic currencies and maximum amount of cash balances in foreign currency held at the cashier’s office of a financial institution and a currency exchange office;

- NFIs and currency exchange offices are required to have a title deed for the premises in which the financial institution’s separate structural subdivision and  currency exchange office are located or a lease agreement for the premises with a period of validity of at least one year;

- cashier’s offices of financial institutions, their separate structural subdivisions and currency exchange offices are required to be equipped with cash registers;

- NFIs  are required to publish information on exchange rates on their websites;

- a new report form  – Statement of daily cash turnover and cash balances – has been introduced for NFIs;  

- NFIs are required to deploy security guards, install a video surveillance system on the premises, and have a vault to ensure the security of the premises; cashiers’ desks should be cordoned off by protective partitions.

The resolutions have expanded the list of information that should be posted on the notice boards at the cashier's offices and easily accessed by clients. The extended list of information should include the following:

• a respective document that indicates the last name of the cashier authorized to perform currency exchange operations;

• information  about the location of the cashier’s office of a financial institution and its separate structural subdivisions,

• a copy of the general license for foreign exchange operations.

Resolutions No.962 and No.990 enter into force on the day following their official publication.  At the same time, the NFIs that had been granted general licenses before the resolutions came into force are allowed a transition period until 1 July 2016 to comply with new capital and security requirements.

Resolution No.983 comes into effect on 1 January 2016, except for the provision requiring financial institutions, their separate structural subdivisions, and currency exchange offices to equip their cashier’s offices with cash registers, which takes effect six months after the day of the State Fiscal Service of Ukraine’s approval of the register of cash registers. Similarly, the provision requiring a financial institution to have a title deed for the premises in which the separate structural subdivision and the currency exchange office are located or lease agreement for the premises with a period of validity of at least one year comes into effect on 1 July 2016