The National Bank of Ukraine (NBU) has simplified the procedure for obtaining licences to carry out currency operations for non-bank financial institutions and pawnshops that provide loans in the national currency to non-resident individuals, according to the NBU.
“The adopted changes simplify the procedure for obtaining licences for non-bank financial institutions and create conditions for them to acquire the status of agents of currency supervision in accordance with the requirements of Ukraine’s currency legislation,” the statement said.
Ability to obtain licences simultaneously
The NBU has allowed the issuance of a licence to carry out certain currency operations at the same time as issuing a licence to operate for a financial company or pawnshop, or when expanding the scope of such a licence. In that case, the National Bank will consider the documents for obtaining both licences within one administrative proceeding.
To obtain a licence to conduct currency operations involving the provision of credit in the national currency to non-resident individuals, it is sufficient, in addition to the package of documents required for the activity licence, to submit only an application. Other documents envisaged by the general procedure for licensing currency operations do not need to be submitted.
Deadlines for submitting applications and the transitional simplified procedure
An application for obtaining such a licence may be submitted within 15 working days from the date the resolution approving the changes comes into force. If the application is submitted alongside a previously lodged package of documents, it will be considered within the same proceeding.
The resolution also provides a transitional simplified procedure for financial companies and pawnshops that are already operating in the market. Existing institutions whose licence allows them to provide funds on credit will have the right, within six months from the date the resolution comes into force, to submit to the NBU an application for the relevant currency licence.
Obligation to hold a licence and liability for its absence
The provision of funds on credit in the national currency to non-resident individuals is a currency operation under the Law of Ukraine “On Currency and Currency Operations”. Carrying out such activities requires obtaining a licence from the National Bank of Ukraine to carry out currency operations.
Conducting currency operations without the appropriate licence is a breach of the requirements of currency legislation and may be grounds for holding the institution liable in accordance with the procedure established by law.
In the coming days attention should be paid to the date the resolution comes into force, the deadlines for submitting applications — 15 working days, the transitional period for existing institutions — six months, and to whether institutions that provide loans in the national currency to non-resident individuals hold the appropriate licence.
