The National Bank updated the procedure for the implementation of special economic and other restrictive measures (sanctions).
The new Regulation on the implementation of special economic and other restrictive measures (sanctions) regulates the current issues of the implementation of sanctions, in particular:
- takes into account the provisions of the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Increasing the Effectiveness of Sanctions Related to the Assets of Individuals”;
- establishes the specifics of the implementation of each sanction, in particular the “blocking of assets” sanction in the new edition;
- clarifies the requirements for the implementation of sanctions during operations using payment instruments, including electronic means of payment, establishes requirements for acquiring institutions;
- determines the course of action of the subject of the implementation of sanctions in case of identification of the coincidence of individual data of the client and/or other participant in the financial transaction with the data of the sanctioned person and the absence of sufficient information in the sanction lists or details of payment instructions, etc.;
- determines the procedure for the implementation of sectoral sanctions.
In addition, the National Bank regulated at the level of a regulatory act the procedure for the implementation of sanctions by non-banking institutions, which before the approval of this Regulation were guided by the requirements of the relevant regulatory act of the National Commission, which carries out state regulation in the field of financial services markets.
According to the new procedure, non-banking institutions must provide the National Bank with information on the presence among sanctioned persons:
- non-banking institution,
- final beneficial owners/owners of significant participation, managers, clients of a non-banking institution.
Requirements for the subjects of sanctions implementation have also been established to approve internal documents on the implementation of sanctions within three months and to set up internal monitoring systems in such a way as to ensure verification of financial transactions according to the sanctions lists before they are carried out.
The new Regulation on the implementation of special economic and other restrictive measures (sanctions), approved by the resolution of the Board of the National Bank of Ukraine dated May 11, 2023 No. 65 “On approval of the Regulation on the implementation of special economic and other restrictive measures (sanctions)” (hereinafter – Resolution No. 65)
Resolution No. 65 enters into force on May 13, 2023. As of this day, the following shall cease to be valid:
- Resolution of the Board of the National Bank of Ukraine dated October 1, 2015 No. 654 “On ensuring the implementation and monitoring of the effectiveness of personal special economic and other restrictive measures (sanctions)” (as amended);
- Order of the National Commission for State Regulation in the Field of Financial Services Markets dated December 22, 2015 No. 3378 “On Ensuring the Implementation of Personal Special Economic and Other Restrictive Measures (Sanctions)” (as amended).