Much has been done recently to facilitate the policy of currency control in Ukraine

“Think globally, act locally” – this popular moto becomes more relevant these days. The world of trade including both services and goods is now transforming global economy, shaping the relationships between the countries in a brand-new way. A growing number of countries are integrating their national economies into a global economic system. Ukraine is not an exception. Determined to be integrated into European trade system, since 2016 the government of Ukraine has been facilitating the existed restrictions. Finally, the Law of Ukraine on “Currencies and Currency Operations” (the Law) was adopted. From the perspective of a gradual transition to the free floating of the capital, National Bank of Ukraine (the NBU) granted non-resident legal entities, including investment funds and the asset management companies which act in the name of such funds, the right to open accounts in the Ukrainian financial institutions.

Consequently, according to the Law all the rights presently provided to residents in terms of currency operations are now guaranteed to non-residents as well.

The NBU has revised the Instruction On the Procedure for Opening and Closing Bank Accounts and Correspondent Bank Accounts - Residents and Non-residents. The new wording of Instruction was approved by the Decision No 56 of the NBU “On Introduction of Changes to Certain Legislative Acts of the National Bank of Ukraine” dated 1 April 2019. The amended Instruction has come into legal force since 4 April 2019. The document regulates the procedure of opening/closing by the banks the following:

  • Current accounts of the clients – both residents and non-residents of Ukraine (individuals and legal entities);

  • Correspondent bank accounts of residents and non-residents;

  • Accounts of international financial institutions and trustees under the trust agreement.

The simplified procedure for opening the bank accounts would have a positive impact on the business activities in Ukraine and can be summarised as follows: the bank accounts are now managed according to the list of entitled persons, without notary certification. At this, no card with the specimen of signatures is required during the account opening. Another volte-face concerns the closing of current accounts: changing the name of legal entity now does not require the closing of its current accounts. No client account regimes were provided for; that is, no restrictions on the account transactions have been imposed. At this, the document only regulates certain peculiarities of transactions under the accounts of individual clients.

The new amendments vividly demonstrate one of the main priorities of the NBU on the path to removing the obstacles hindering the foreign economic activities and restraining new foreign investments in Ukraine.

In view of the rapidly evolving legislation of Ukraine, tracing the latest amendments and adjustments is becoming even more essential to date. Want to be up to speed on the current situation? Know the score with us!  Learn more how Moore team can become a helping hand for you via the following link: .