Rada at first reading adopts three technical bills on banking legislation, NBU

KYIV. Sept 9 (Interfax-Ukraine) – The Verkhovna Rada has adopted as a basis the technical draft laws on banking legislation and the National Bank of Ukraine (Nos. 5850, 5851 and 5853), which are required to close obligations to the International Monetary Fund (IMF).

Bill No. 5850 on amendments to certain laws of Ukraine on certain issues of the National Bank of Ukraine was supported by 283 deputies, and bill No. 5851 on amendments to Article 11 of the law on currency and currency transactions on the performance by banks of the functions of agents of foreign exchange supervision – 286 deputies.

Draft law No. 5853 on amendments to Article 33 of the Budget Code of Ukraine regarding the clarification of the information provided by the National Bank for drawing up the Budget Declaration was supported by 255 deputies.

As indicated in an explanatory note, draft law No. 5850 proposes to remove the requirement for a candidate for the post of a member of the NBU Council to reside permanently on the territory of Ukraine, as well as the requirement for a candidate for the post of NBU head to have no criminal record.

In addition, the draft law proposes to regulate the issue of the regulator’s inspecting banks on the issues of cash circulation, in particular in connection with the recent change in approaches to bank inspections – taking into account the SREP methodology. It is proposed to provide the NBU with the right to conduct inspections in the following areas: the organization of cash management, collection of funds and transportation of currency values, the organization of the protection of premises and ensuring the safety of valuables.

According to the information on the Rada’s website, bill No. 5851 proposes to oblige banks to exchange information on the belonging of their clients’ accounts to bank accounts opened by non-residents in order to exercise foreign exchange supervision over foreign exchange transactions carried out by their clients through these financial institutions. In addition, it is proposed to grant the NBU the right to create and maintain information systems (registers, databases) to perform the functions of foreign exchange regulation and foreign exchange supervision.

Draft law No. 5853 proposes to oblige the NBU annually before March 1 to submit to the Cabinet of Ministers, the president and the parliament information on an approximate forecast of part of the profit for distribution, which will be subject to transfer to the state budget in the order of information.