Currency Restrictions Amended
Tax & Legal Alert
6 May 2016
On 05 May 2016, the Board of the National Bank of Ukraine (hereinafter, the “NBU”) adopted a Decree “On Amendment of Some Regulations of the National Bank of Ukraine” No. 308 (hereinafter, “Decree No. 308”).
Decree No. 308 eases currency restrictions and amends the NBU’s Decrees, as follows:
• Decree “On Regulation of the Situation on the Monetary and Foreign Exchange Markets of Ukraine” No.140 dated 03 March 2016 (hereinafter, “Decree No.140”):
- The list of exceptions related to the mandatory sale of 75% of foreign currency earnings on the Ukrainian interbank currency market also includes foreign currency proceeds from foreign investments in Ukraine.
- Funds for purchase of foreign currency may be transferred from the account 2900 “Accounts payable for foreign exchange, investment and precious metals purchase/sale for bank customers” no sooner than the third banking day after the date when hryvnias are credited to the account.
The amendments to Decree No.140 shall remain in force until 08 June 2016 inclusive.
• Decree of the NBU Board “On Specifics of Some Foreign Currency Transactions” No.124 dated 23 February 2015:
- Payments confirmed by the NBU shall be settled no sooner than the third banking day from the date when an authorized bank provides information on such payments in the register.
• Similarly, the Instruction on Registers Kept by Authorized Banks, as approved by the Decree of the NBU Board No.247 dated 07 April 2016, is also amended and stipulates that confirmed payments shall be included in the register and settled no sooner than the third banking day from the date when an authorized bank provides information on such payments in the register.
Decree No.308 shall take effect on 11 May 2016.