Legislation Overview

• LEGISLATION MONITORING: Update On Banking Legislation; July 25, 2011
• LEGISLATION MONITORING: Financial Services Consumers Protection - Tax Isuses; May 20, 2011
• LEGISLATION MONITORING: Financial Services Consumers Protection; April 7, 2011
• LEGISLATION MONITORING: NBU Wins Appeal Regarding The Court's Decision On Banks' Recap Requirements; March 16, 2011
• LEGISLATION MONITORING: Consumer Protection – Related Matters Excluded from Arbitral Tribunals’ Jurisdiction; February 7, 2011
• LEGISLATION MONITORING: Bankruptcy; December 29, 2010
• LEGISLATION MONITORING: Financial Services Consumers Protection; November 19, 2010

Legislation

• International Standards

1. Core Principles for Effective Banking Supervision; Basel Committee on Banking Supervision, October 2006	Standards for prudential regulation and surveillance for the purpose of quality assessment of the surveillance and prudential regulation systems
2. Core Principles Methodology; Basel Committee on Banking Supervision, October 2006

• Basic legislation

3. Law of Ukraine On Banks and Banking Activities of 7 December 2000	Structure of the banking system, economic, organizational and legal grounds for creation, operations, restructuring and liquidation of banks
4. Law of Ukraine On the National Bank of Ukraine of 20 May 1999	Legal status and functions of the National Bank of Ukraine
5. Law of Ukraine On Payment Systems and Money Transfer in Ukraine of 5 April 2001	General fundamentals for operations of payment systems in Ukraine, definition of and general procedure for money transfer in Ukraine. The responsibility of money transfer bodies shall be defined hereby
6. Law of Ukraine On Financial Services and State Regulation of Financial Services Markets of 12 July 2001	Bodies performing state regulation of banking and non-banking financial services markets
7. Law of Ukraine On Auditing of 22 April 1993	Legal regulation of banks auditing
8. Law of Ukraine on Prevention of Money Laundering and Counteraction of Terrorism Financing of 28 November 2002	Determining the legal mechanism of preventing of money laundering and counteraction of terrorism financing and ensuring forming of state multi-source analytical records which enables the law enforcement agencies of Ukraine and foreign states to identify, check and investigate anti-money laundering crimes
9. Decree of the Cabinet of Ministers of Ukraine On the System of Currency Regulation and Control of 19 February 1993	Regulation of currency operations on the territory of Ukraine, general principles of currency regulation, powers of state bodies and functions of banks and other financial institutions of Ukraine regarding regulation of currency operations, rights and duties of currency entities, the procedure for exercising currency control, responsibility for violation of the currency legislation

• Banking Regulation and Supervision over their Activities

10. Instruction on the procedure of banking regulation in Ukraine, approved by the NBU Board Resolution No.368 of 28 August 2001	The procedure for determining the regulatory capital and mandatory economic normatives of banks was established
11. Regulation on the NBU application of enforcement measures for violation of banking legislation approved by the NBU Board Resolution No.369 of 28 August 2001	The reasons and the procedure for the NBU application of enforcement measures against banks, affiliated offices of foreign banks and substantial participation holders for violation of banking legislation
12. Regulation on the procedure for banks registration and licensing, opening of stand-alone offices, approved by the NBU Board Resolution No.306 of 8 September 2011	Procedure for registration and licensing of banks, approval of acquisition / increase of essential participation in a bank, approval of appointment of bank management, opening of stand-alone offices, branches and representative offices of banks.
13. Regulation on the procedure for filing information on ownership structure, approved by the NBU Board Resolution No.306 of 8 September 2011	Procedure for filing with the NBU and a bank of information on ownership structure, associated persons and all persons through which indirect ownership and / or control of essential participation in a bank is exercised; requirements to placement of information on the owners of essential participation in a bank on the bank's website.
14. Regulation on making mandatory provisions for the banks of Ukraine approved by the NBU Board Resolution No.91 of 16 March 2006	The procedure for making mandatory provisions by banks of Ukraine
15. Regulation on making and using the provision for reimbursement of possible losses under banks’ credit operations approved by the NBU Board Resolution No.279 of 6 July 2000	The procedure for making and using the provisions for reimbursement of possible losses under banks’ credit operations
16. The procedure of bad debt reimbursement by banks of Ukraine from provision approved by the NBU Board Resolution No.172 of 1 June 2011	The procedure of bad debt reimbursement by banks from provision
17. Regulation on the procedure of making provisions for securities operations of Ukrainian banks approved by the NBU Board Resolution No.31 of 2 February 2007	The procedure for calculating and making the provisions for securities operations of the Ukrainian banks
18. Regulation on the procedure of making and using the provisions for reimbursement of possible losses by banks from banks’ accounts receivables approved by the NBU Board Resolution No.505 of 13 December 2002	The procedure for determining by banks of Ukraine the estimated amount of provision for possible losses from accounts receivables and the procedure for the use of provision
19. Regulation of the Ukrainian banks’ liquidity by the NBU approved by the NBU Board Resolution No.259 of 30 April 2009	The regulation of liquidity of the Ukrainian banks by the NBU using the refinancing operations, repo operations, own debt obligations operations, governmental bonds operations of Ukraine
20. Instruction on interbanking UAH money transfer in Ukraine approved by the NBU Board Resolution No.320 of 16 August 2006	General requirements for the operations of the NBU electronic payments system in Ukraine and the procedure for performing UAH interbank fund transfer via correspondent accounts of banks-residents
21. Rules for certification of the entities empowered to perform provisional administration or liquidation of banks approved by the NBU Board Resolution No.342 of 16 July 2010	Rules for certification of the entities empowered to perform temporary administration or liquidation of banks
22. Regulation on maintenance of the NBU register of bank auditors approved by the NBU Board Resolution No.251 of 9 July 2007	The terms and procedure for maintenance of the NBU register of auditors empowered to perform bank audit
23. Guidance on organization and operations of risk management systems in the banks of Ukraine approved by the NBU Board Resolution No.361 of 2 August 2004	Guidance on organization and operations of risk management systems in the banks of Ukraine for ensuring their integrity and reliability

• Transparency and Reporting

24. Instruction on the procedure for preparation of financial reports by the Ukrainian banks and making them public approved by the NBU Board Resolution No.373 of 24 October 2011	The procedure for preparation of financial reports of Ukrainian banks and making them public. The Resolution shall become effective from January 1, 2012, and obligatory starting with the reporting for the first quarter 2012
25. Instruction on the procedure for preparation of financial reports by the Ukrainian banks and making them public approved by the NBU Board Resolution No.480 of 27 December 2007	The procedure for preparation of financial reports of Ukrainian banks and making them public
26. Rules for arranging of statistical reports filed with the NBU under the conditions of a special period approved by the NBU Board Resolution No.177 of 21 April 2004	List, templates of statistical reports and the procedure for their completion, regularity of their preparation, timeline and methods of data filing with the NBU under the conditions of a special period
27. Regulation on the procedure of banks’ filing of audit reports with the NBU based on the results of annual checking of financial statements approved by the NBU Board Resolution No.389 of 9 September 2003	The procedure for the banks’ filing of auditor’s reports with the NBU based on the results of annual audit of the financial statements and consolidated financial statements of the banks conducted by an auditor (an auditing firm)

• Foreign Investments and Currency Regulation

28. Regulation on performing foreign investments to Ukraine approved by the NBU Board Resolution No.280 of 10 August 2005	The procedure for performing foreign cash investments to Ukraine
29. NBU Resolution on Setting Interest rates on External Debts of Resident Companies No.363 of 3 August 2004	Interest rate caps on external debts of resident companies
30. Regulation on the procedure for foreign currency credits, loans to residents from non-residents and issuance of foreign currency loans to non-residents approved by the NBU Board Resolution No.270 of 17 June 2004	The procedure for regulation of foreign currency credits, loans to residents from non-residents and issuance of foreign currency loans to non-residents by residents
31. Regulation on the procedure for the NBU issuance of individual licenses for using foreign currency in the territory of Ukraine as a means of payment approved by the NBU Board Resolution No.483 of 14 October 2004	The procedure and the terms of the NBU issuance of individual licenses for using non-cash foreign currency to residents and non-residents in the territory of Ukraine as a means of payment
32. Regulation on opening of accounts of correspondent banks in foreign currency and UAH in the authorized banks of Ukraine and their functioning approved by the NBU Board Resolution No.118 of 26 March 1998	Regulation on the procedure for opening of correspondent bank accounts of resident banks and foreign currency accounts of non-residents and UAH correspondent bank accounts of non-resident banks and their functioning
33. Regulation on currency control approved by the NBU Board Resolution No.49 of 8 February 2000	Key fundamentals of the NBU operations as a major currency control agency
34. Regulation on procedure and terms of FX trade approved by the NBU Board Resolution No.281 of 10 August 2005	Procedures and terms of FX trade on the Interbank currency market of Ukraine and international currency markets

• Ensuring the Stability of Banking System under Crisis Conditions

35. Law of Ukraine on amending certain legal acts of Ukraine on specifics of financial rehabilitation of banks of 24 July 2009	Changes in some legal acts defining the specifics of financial rehabilitation of banks
36. Law of Ukraine on High Priority Measures for Preventing Negative Consequences of the Financial Crisis and Amending Certain Legal Acts of 31 October 2008	Key measures on preventing negative consequences of the financial crisis and changes in some legal acts of Ukraine aimed at ensuring performance of these measures
37. Decree of the President of Ukraine on Actions aimed at Restoring Stability of the Banking System No.813/2009 of 8 October 2009	Measures on renewal of banks’ liquidity, ensured protection of rights and interests of bank clients, including bank’s individual depositors
38. Resolution of the Cabinet of Ministers of Ukraine Some Issues of Bank Bailout and Use of Bailout Funds No.1066 of 20 October 2011	The Procedure for bank bailout (except for government participation in bank capitalization) and use of bailout funds is approved
39. Ordinance of the Cabinet of Ministers of Ukraine On Creation of Sanitation Bank No.880-r of 14 September 2011	The decision on creation of a sanitation bank on the basis of Rodovid bank, PJSC was made
40. Special procedure for taking measures on financial rehabilitation of banks approved by the NBU Board Resolution No.405 of 1 December 2008	Measures aimed at financial rehabilitation of banks via involvement of the bank’s shareholders, investors, government in generating and increasing the bank’s statutory capital (capitalization) or via bank’s restructuring
41. Regulation on NBU issuance of stabilization loans to Ukrainian banks approved by the NBU Board Resolution No.327 of 13 July 2010	The procedure for issuance of a stabilization loan by the NBU, the procedure for making changes in the terms of loan agreement entered into with the NBU
42. Technical procedure for issuance of stabilization loans to the Ukrainian banks approved by the NBU Board Resolution No.445 of 30 September 2010	The procedure for cooperation of the NBU units and the Ukrainian banks while issuance of stabilization loans, changes in the loan agreement terms, control after the bank’s performance of loan agreement and pledge agreement
43. Regulation on procedure for sanitation bank registration, licensing, regulation and supervision approved by the NBU Board Resolution No.471 of 23 December 2011	The procedure for registration, licensing, regulation and supervision of sanitation bank created on the basis of Rodovid bank, PJSC

• Capitalization of Banking Sector

44. Decree of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine On Cooperation of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine on Government Participation in Capitalization of Banks No.421 of 2 April 2009	The procedure for cooperation between the Cabinet of Ministers of Ukraine and the NBU on government participation in capitalization of banks
45. Decree of the Cabinet of Ministers of Ukraine On Certain Issues of Government Participation in Capitalization of Banks No.148 of 18 February 2009	The regulation on the Expert and analytical council on government participation in capitalization of banks, which is set up by the present Decree
46. Decree of the Cabinet of Ministers of Ukraine On Approval of the Procedure for Government Engagement in Capitalization of Banks No.960 of 4 November 2008	The Procedure of government participation in capitalization of banks is approved

• Draft Laws and Regulations

47. Draft Law of Ukraine On Individual Deposits Guaranteeing System registered with the Verkhovna Rada of Ukraine on October 25, 2011, No.9342

Legal, financial, and organizational basis of the operation of the mandatory deposit guarantee system, the competence of the Deposit Guarantee Fund, a procedure for making deposit payouts