RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of September 12, 2017 No. 90

About approval of Changes in Regulations on implementation of financial monitoring by banks

According to Articles 7, of 15, of 55, 56 Laws of Ukraine "About the National Bank of Ukraine", article 63 of the Law of Ukraine "About banks and banking activity", and article 14 of the Law of Ukraine "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction" to Item 5 of the Section IV of the Law of Ukraine "About consumer crediting" the Board of the National Bank of Ukraine decides parts five of Article 9:

1. Approve Changes in the Regulations on implementation of financial monitoring by banks approved by the resolution of Board of the National Bank of Ukraine of June 26, 2015 No. 417 (with changes) which are applied.

2. To department of financial monitoring (I.V. Birch) after official publication to bring contents of this resolution to the attention of banks of Ukraine for use in work.

3. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Rozhkova K. V.

4. The resolution becomes effective from the date of, its official publication following behind day.

Approved by the Resolution of Board of the National Bank of Ukraine of September 12, 2017 No. 90

Changes in Regulations on implementation of financial monitoring by banks

1. In the Section II:

Item 23 to add 1) with two new subitems of the following content:

"8) procedure of identification and verification of clients of bank - physical persons on contractual basis legal entities, physical persons entrepreneurs and physical persons (further - agents);

9) procedure for storage by agents, transfers by agents of information/documents/copies of the documents certified according to requirements of the legislation of Ukraine concerning identification and verification of clients of bank - physical persons, including in case of early termination of the relations with the agent (with termination of the agreement of the order signed with the agent).";

Item 24 to add 2) with the new subitem of the following content:

"6) procedure of control of observance by agents of the established procedure of implementation of identification and verification of clients of bank - physical persons according to requirements of the Program of identification, verification and customer research of bank, other internal documents of bank concerning financial monitoring, including by conducting the corresponding checks.";

Item 26 to add 3) with the new subitem of the following content:

"3) actions for the organization of training of agents for ensuring proper level of their preparation concerning prevention of legalization of the criminal income / financings of terrorism regarding implementation of identification and verification of clients of bank - physical persons according to requirements of the Program of identification, verification and customer research of bank, and other internal documents of bank concerning financial monitoring.".

2. To add the Section V after Item 72 with four new Items 72-1 - 72-4 following of content:

"72-1. The bank has the right to charge to perform to legal resident persons, physical entrepreneurs-resident persons and physical resident persons (agents) on contractual basis identification and verification of clients of bank - physical persons.

The decision on establishment of contractual relations with agents is made taking into account results of assessment of goodwill of such persons which is carried out by bank according to requirements of Item 11 of the Section III of Provisions on establishment of requirements to credit intermediaries of banks and their activities in the field of the consumer crediting approved by the resolution of Board of the National Bank of Ukraine of June 8, 2017 No. 50 (further - No. Provision 50).

Responsibility for inadequate implementation by agents of identification and verification of clients of bank - physical persons according to requirements of the legislation in the field of prevention of legalization of the criminal income / financings of terrorism is assigned to bank.

72-2. Identification and verification of clients of bank - physical persons agents is performed from name and for the benefit of bank.

72-3. Identification and verification of clients of bank - physical persons agents is performed under following conditions:

The bank shall receive 1), and agents shall provide immediate provision to bank of information/documents/copies of the documents certified according to requirements of the legislation of Ukraine concerning identification and verification of clients of bank - physical persons;

2) agents shall provide information security with limited access, including bank secrecy, personal data of clients and bear responsibility for their disclosure according to the legislation of Ukraine;

3) agents shall provide technical capability of implementation by them of identification and verification of clients of bank - physical persons up to standard (availability of the computer equipment, the corresponding software, communication means, securities of electronic systems, etc.);

4) the bank shall take measures for the organization of training of agents for ensuring proper level of their preparation concerning prevention of legalization of the criminal income / financings of terrorism regarding implementation of identification and verification of clients of bank - physical persons according to requirements of the Program of identification, verification and customer research of bank and other internal documents of bank concerning financial monitoring;

5) the bank shall inform agents of requirements of internal documents of bank concerning financial monitoring regarding implementation of identification and verification of clients of bank - physical persons in case:

approvals, modification of internal documents of bank concerning financial monitoring - instantly from the moment of approval/modification;

establishments of contractual relations with the agent - prior to accomplishment of the obligations by it;

6) relations between bank and the agent on implementation of identification and verification of clients of bank - physical persons, procedure for the termination of powers of the agent on implementation of identification and verification of clients of bank - physical persons, shall be settled by the conclusion of the agreement of the order;

7) agents shall:

provide fulfillment of requirements of the legislation concerning prevention of legalization of the criminal income / financings of terrorism regarding implementation of identification and verification of clients of bank - physical persons according to requirements of the Program of identification, verification and customer research of bank, and other internal documents of bank concerning financial monitoring;

provide the commitment letter on ensuring information security with limited access, personal data of clients, including bank secrecy and/or other information with limited access which will become it known in process of agreement performance of the order concerning implementation by them of identification and verification of clients of bank - physical persons;

8) the bank shall provide control of observance by agents of the established procedure of implementation of identification and verification of the client, including by conducting the corresponding checks;

9) decisions on establishment of business relations with the client, the conclusions of agreements, opening of the account, carrying out financial transactions without opening of the account, and also about refusal in establishment of the business (contractual) relations [including about termination of the business (contractual) relations], carrying out financial transactions according to article 10 of the Law and article 64 of the Law on banks is accepted by bank.

72-4. The bank shall stop ahead of schedule the relations with the agent (with termination of the agreement of the order signed with the agent):

1) in cases, stipulated in Item the 7th the Section II of Provisions No. 50;

2) in case of violation by the agent of requirements for implementation of identification and verification of clients of bank - the physical persons identified by the Program of identification, verification and customer research of bank and other internal documents of bank concerning financial monitoring.".

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