Overview of the NBU Resolution No. 86 of June 26, 2019
We would like to inform you that on July 2, 2019, the Resolution of the Ukrainian National Bank Board No. 86 dated June 27, 2019 “On Amendments to Certain Regulatory Acts of the National Bank of Ukraine” was passed, through which the National Bank, in the framework of currency liberalization, removed a number of administrative restrictions that had caused inconvenience to Ukrainian companies, foreign investors and diplomatic missions in order to continue improving the business climate.
First of all, given the numerous appeals of a business involved in foreign economic activity, the limit on financing fully owned foreign representative offices and other separate divisions has been lifted. Now operations to transfer funds directly to the account of foreign divisions will not be limited.
In order to minimize the risks of unproductive capital outflows, the National Bank established additional requirements for currency control over such operations. Specifically, banks are required to receive from Ukrainian companies that intend to finance their own foreign divisions, detailed estimates and other documents that justify the need for such transactions.
In addition, this mitigation will not apply to operations to transfer funds to aggressor / occupier countries, offshore zones and states that do not fulfill or improperly implement the recommendations of the FATF.
Secondly, it is easier to reinvest the income of foreign investors from operations with Ukrainian securities. Non-residents are allowed to transfer interest income from or proceeds from the sale of securities that are recorded in a foreign depositary bank from the correspondent account of this institution to their account in Ukraine.
Thirdly, the prohibition of payments in cash foreign currency for the payment by individuals and legal entities of consular fees for the legalization of shipping documents in diplomatic missions or consular offices of countries that did not join the Hague Convention of October 5, 1961 is lifted. Such countries include Algeria, Afghanistan, Vietnam, Egypt, Indonesia, Jordan, Iraq, Iran, Cameroon, Canada, Qatar, Kuwait, Lebanon, the United Arab Emirates, Saudi Arabia, Syria, Sudan, Thailand, and Uruguay.
For more detailed explanations and advice on the above decree, contact the staff of the regional departments of analysis and control of currency transactions of legal entities on the contact numbers listed below.
Department of analysis and control of currency transactions of legal entities of the Southern region.
Contact phone numbers