In April 2023, the National Bank of Ukraine applied to three banks for violation of legislation in the field of prevention and countermeasures against legalization (laundering) of criminal proceeds, financing of terrorism and financing of the proliferation of weapons of mass destruction (hereinafter – prevention and countermeasures), as well as the requirements of currency legislation and twenty non-banking financial institutions impact measures.
Impact measures are applied to:
JSC “RVS BANKˮ – a fine in the amount of UAH 100,000.00 for violating the requirements of subparagraph “b” of paragraph 11 of the second part of Article 8 of the Law of Ukraine “On prevention and countermeasures against the legalization (laundering) of proceeds obtained through criminal means, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” (hereinafter – the Law No. 361-IX). The violation consists in the submission by the bank at the request of a specially authorized body of additional information in violation of the established term;
JSC “BANK “CLEARING HOUSEˮ – a fine in the amount of UAH 50,000.00 for violating the requirements of the first and second parts of Article 7 of Law No. 361-IX in terms of improper performance by the bank of the obligation to apply a risk-oriented approach in its activities, taking into account the relevant risk criteria related to its by clients, in the manner determined by the bank’s internal documents on prevention and countermeasures;
JSC “COMINVESTBANKˮ – a written warning for violating the requirements of the first paragraph of the first part of Article 8 of Law No. 361-IX in terms of the bank’s improper fulfillment of the obligation to develop, implement and update internal documents on prevention and countermeasures;
Ltd “FC”FINANCIAL WORLDˮ:
1. Fine in the amount of UAH 51,000.00 for violation of requirements:
- part one of Article 8 of Law No. 361-IX in terms of the institution’s improper fulfillment of the obligation to develop and implement internal documents on prevention and countermeasures;
- the second paragraph of the second part of the second article 7 of the Law No. 361-IX in the part of the institution’s improper performance of the obligation to assess the risks inherent in its activity;
- Clause 73 of Chapter V of the Regulation on Financial Monitoring by Institutions, approved by the Resolution of the Board of the National Bank of Ukraine No. 107 dated July 28, 2020, in terms of non-compliance with the restrictions on the appointment of a responsible employee of the institution;
2. Written warning for violation of the requirements of the Law of Ukraine “On Currency and Foreign Exchange Transactions” (hereinafter – the Law on Currency), namely:
- part two of Article 6 of the Law on Currency, which consists in violating the conditions and procedure for trading foreign currency on the foreign exchange market of Ukraine, which are defined in clause 17 of Chapter IV of the Regulation on the structure of the foreign exchange market of Ukraine, the conditions and procedure for trading foreign currency and bank metals on the foreign exchange market of Ukraine , approved by the Resolution of the Board of the National Bank of Ukraine dated January 2, 2019 No. 1 (hereinafter – Resolution No. 1), namely, in the uncertainty in the internal documents of the institution on the organization and procedure of foreign exchange operations, the procedure for establishing the rates of purchase and sale of foreign currencies, the duration of the operating (working) day of separate subdivisions, currency exchange points of the institution, the procedure for internal control over the conduct of currency exchange transactions;
- part seven of Article 11 of the Law on Currency in terms of violation of the procedure for foreign exchange supervision established by the National Bank in Clause 7 of the Regulation on Currency Supervision, approved by Resolution No. 13 of the Board of the National Bank of Ukraine dated January 3, 2019. The violation consists in not specifying in internal documents (procedures, programs, provisions, processes) of the order of organization of foreign exchange transactions taking into account the risk-oriented approach;
Full company “Lombard Oscarˮ – a fine in the amount of UAH 51,000.00 for violating the requirements of Clause 5 of Section II of the Rules for the Organization of Statistical Reporting submitted to the National Bank of Ukraine under the conditions of a special period, approved by the Resolution of the Board of the National Bank of Ukraine dated December 18, 2018 No. 140 (hereinafter – Rules No. 140), and clauses 12, 13 of the appendix to Rules No. 140. The violation consists in not submitting to the National Bank reporting on issues of prevention and countermeasures within the terms established in Rules No. 140;
Ltd “FC”UFOGˮ – fine in the amount of UAH 51,000.00 for violating the requirements of Clause 5 of Section II of Rules No. 140 and Clause 12 of the Appendix to Rules No. 140 in terms of not submitting to the National Bank reporting on issues of prevention and countermeasures within the time limits established by Rules No. 140;
Friday “LOMBARD-ONLINEˮ, Ltd “SURROUNDING UKRAINEˮ, Ltd FC EUROFACTORˮ – fines in the amount of UAH 1,700.00 for each institution for violating the requirements of paragraph 1 of the second part of Article 8 of Law No. 361-IX, which consists in the institutions’ improper fulfillment of the obligation to register with a specially authorized body as a subject of primary financial monitoring ;
LLC “Manifestoˮ – written warning for violation of requirements:
- the first paragraph of the first part of Article 8 of Law No. 361-IX in terms of improper fulfillment by the institution of the obligation to develop, implement and update internal documents on prevention and countermeasures within the time limits established by the legislation of Ukraine;
- paragraph 4 of the second part of Article 8 and parts of the second – fourth Article 11 of Law No. 361-IX, which consists in the institution’s failure to properly verify clients, namely in the part of failure to verify clients in the manner specified by the legislation of Ukraine;
LLC “FC”MASONˮ – written warning for violation of requirements:
- subparagraphs 3, 5, 8 of clause 31 of chapter IV of Regulation No. 1 regarding the absence of information in a structural subdivision of the institution in a place accessible to customers for inspection, namely: notification of the obligation of the cashier to carry out a reversal transaction within 15 minutes after carrying out a currency exchange transaction in in the case of a client’s application to refuse a currency exchange transaction, provided there is a document that is printed by the registrar of settlement operations and used for accounting and registration of currency exchange transactions; notification of signs of wear and tear of foreign currency banknotes accepted by banks, non-banking financial institutions, currency exchange points on the territory of Ukraine; the location of the cash desk of a non-banking institution;
- subparagraph 1 of paragraph 5 of the resolution of the Board of the National Bank of Ukraine dated July 29, 2022 No. 165 “On the peculiarities of regulation and supervision of activities involving trade in currency values in cash during the period of martial law and amendments to the resolution of the Board of the National Bank of Ukraine dated March 6, 2022 of year No. 39ˮ (hereinafter – Resolution No. 165). The violation consists in not providing the equipment of the premises of the structural subdivision of the institution, in which operations on trading currency values in cash form are carried out, with a technological video control system for the customer service process (hereinafter – the technological video control system), which ensures mandatory registration and archiving of the video signal from the workplace area the employee of the structural subdivision of the institution, the customer zone near the workplace of the employee of the structural subdivision of the institution and the entrance/exit of customers to/from the premises of the structural subdivision of the institution for a period of not less than 14 days;
- sub-clause 2 of clause 5 of Resolution No. 165 in terms of non-equipment of the premises of structural subdivisions of the institution with a technological video control system, which should ensure the presence in the video materials of information about the name of the institution/structural subdivision where the video recorder is installed;
LLC “FC”VICTORIAˮ – written warning for violation of requirements:
- subsections 2, 3, 5, 8 of clause 31 of chapter IV of Regulation No. 1 in the part of the lack of information in the structural subdivision of the institution in a place accessible to customers for inspection, namely: the list of currency exchange transactions, transactions with bank metals, which are carried out by the cash desk of a non-banking institution; notice on the obligation of the cashier to cancel the transaction within 15 minutes after the currency exchange transaction has been carried out in the event of a client’s request to refuse the currency exchange transaction, provided that there is a document that is printed by the registrar of settlement operations and is used for accounting and registration of currency exchange transactions ; notification of signs of wear and tear of foreign currency banknotes that are accepted by banks, non-bank financial, currency exchange points on the territory of Ukraine; the location of the cash desk of a non-banking institution;
- sub-clause 1 of clause 5 of Resolution No. 165 in the part of failure to provide mandatory registration and archiving of video signal from the workplace area of an employee of a structural division of the institution, which carries out operations on trading currency values in cash form;
PJSC “UKRAINIAN FINANCIAL GROUPˮ – a written warning for violation of the requirements of subsection 2 of paragraph 5 of Resolution No. 165 in terms of not equipping the premises of the structural divisions of the institution with a technological video control system, which should ensure the availability of information in the video materials about the name of the institution/structural division where the video recorder is installed;
Ltd “BIG FINANCE COMPANYˮ, Ltd “KU “ROLLMANˮ, Ltd “FK “ARTEMˮ, PT “LOMBARD UNIONˮ, Ltd “FK “PLAZA INVESTˮ – written warnings for violations by institutions of the requirements of Clause 5 of Section II of Rules No. 140 and Clauses 12, 13 of the Appendix to Rules No. 140 in terms of failure to submit reporting to the National Bank on issues of prevention and countermeasures within the time limits established by Rules No. 140;
Ltd “ALLIANCE INSURANCEˮ, Ltd “FK “FINGROUP FACTORˮ, PT “Lombard – Karkuzaev and companyˮ, PT “PAWNSHOP “SMILA-CREDIT-CENTERˮ KOSENKO AND COMPANY – written warnings for violations by institutions of the requirements of clause 5 of section II of Rules No. 140 and clauses 12, 13 of the appendix to Rules No. 140 in terms of not submitting reports to the National Bank on issues of prevention and countermeasures;
CREDIT UNION “TRIUMPHˮ – a written warning for the institution’s violation of the requirements of Clause 5 of Section II of Rules No. 140 and Clause 13 of the Annex to Rules No. 140 in terms of not submitting to the National Bank reporting on issues of prevention and countermeasures within the time limits established by Rules No. 140.
