RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of April 28, 2015 No. 282

About approval of Changes to Regulations on application of corrective actions by the National Bank of Ukraine for violation of the bank law

According to Articles 7, of 15, of 55, 56 Laws of Ukraine "About the National Bank of Ukraine", article 67 of the Law of Ukraine "About banks and banking activity", for the purpose of increase in efficiency and ensuring stable activities of banks of Ukraine the Board of the National Bank of Ukraine decides:

1. Approve Changes in Regulations on application of corrective actions by the National Bank of Ukraine for the violation of the bank law approved by the resolution of Board of the National Bank of Ukraine of August 17, 2012 No. 346, registered in the Ministry of Justice of Ukraine on September 17, 2012 for No. 1590/21902, with changes (further - No. Provision 346) which are applied.

2. The bank, branch of foreign bank which before entry into force of the Law of Ukraine of October 14, 2014 No. 1702-VII "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" (further - the Law on prevention of legalization) committed violation of the law of Ukraine of November 28, 2002 No. 249-IV "About prevention and counteraction of legalization (washing) of income gained in the criminal way or to terrorism financing" (further - the Law) and/or the regulatory legal acts of the National Bank of Ukraine regulating activities in the field of prevention and counteraction of legalization (washing) of income gained in the criminal way (further - the legislation concerning financial monitoring) are subject to responsibility based on the law existing during making of such violation (except cases, when the Law about prevention of legalization mitigates or cancels responsibility for violation of requirements of the legislation concerning the financial monitoring operating at the time of violation making).

The decision on application of corrective actions (sanctions) for  the violations of the law made by banks, branches of foreign banks till February 5, 2015 (inclusive) concerning financial monitoring are accepted according to the procedure, No. determined by the Provision 346, and shall be adequate to violations which were allowed by banks, branches of foreign banks.

Penalties for the violations of the law made by banks, branches of foreign banks till February 5, 2015 (inclusive) concerning financial monitoring are imposed in the sizes which are not exceeding the sizes, the stipulated in Article 23 Laws.

3. To department of methodology (Ivanenko N. V.) to bring contents of this resolution to the attention of territorial administrations of the National Bank of Ukraine and banks of Ukraine for use in work.

4. To impose control over the implementation of this resolution on the First Deputy Chairman of the National Bank of Ukraine Pisaruk A. V.

5. The resolution becomes effective from the date of its official publication.

 

Approved by the Resolution of Board of the National Bank of Ukraine of April 28, 2015 No. 282

Changes to Regulations on application of corrective actions by the National Bank of Ukraine for violation of the bank law

1. In the Section I:

1) in Chapter 1:

" (further - the Law on banks)" to add Item 1.1 after words with the words "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" (further - the Law on prevention of legalization)";

state Item 1.2 in the following edition:

"1.2. This Provision determines the bases and procedure for introduction by National Bank of specific mode of control of activities of banks and branches of foreign banks, application of corrective actions, financial sanctions for violation by banks, branches of foreign banks and other persons who are covered by supervising activities of National Bank, the bank law, regulatory legal acts of National Bank, the legislation in the field of prevention and counteraction of legalization (washing) of income gained in the criminal way or to terrorism financing, namely: The law on prevention of legalization, the Law on banks regarding 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, the regulatory legal acts of National Bank regulating activities of banks in the field of 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 (further - the legislation concerning financial monitoring), or implementation of risk activities which threaten interests of investors or other creditors of bank, and also in case of application with foreign states or interstate associations or the international organizations of sanctions against banks or owners of essential participation in banks, which pose threat to interests of investors or other creditors of bank and/or banking system stability (further - application of foreign sanctions)";

in paragraph seven of Item 1.3 of the word of "territorial administration of National Bank" to exclude;

Paragraph two of Item 2.3 of Chapter 2 after words of "bank law" to add 2) with words of "the legislation concerning financial monitoring";

3) in Chapter 3:

in Item 3.1:

the paragraph one to state in the following edition:

"3.1. The National Bank applies corrective actions for violation by banks, their separate divisions, branches of foreign banks, banking groups, responsible persons of banking groups, other members of banking groups or other faces which are object of check of National Bank under the Law on banks (further - banks), the bank law, the legislation concerning financial monitoring or implementation of risk activities which threaten interests of investors or other creditors of bank (further - risk activities), or in case of application of foreign sanctions, based on results (materials):";

third after the words "exit check" to add the paragraph with the words "concerning financial monitoring";

to add the paragraph of the eighth after words of "the violations revealed in their activities" with words "accomplishment of decisions of National Bank on application of corrective actions, accomplishment of the imposed (made) demands, the termination of implementation of risk activities";

add Item with the paragraph of the following content:

"Supervision of observance by banks and other faces which are covered by supervising activities of National Bank, requirements of the bank law and regulatory legal acts of National Bank concerning registration and licensing of banks, acquisition (increase) of essential participation in bank and disclosure of information on structure of property";

to state paragraph two of Item 3.2 in the following edition:

"The choice of the adequate corrective actions applied to banks according to the Law on banks and this Provision shall be performed taking into account:";

in Item 3.3:

in paragraph one of the word "The Commission on Questions of Supervision and Regulation of Activities of Banks under Territorial Administration of National Bank (Further — the Commission of National Bank under Territorial Administration)" to exclude;

in the paragraph the second to exclude the words "threatens interests of investors or other creditors of bank (further-risk activities)";

third to state the paragraph in the following edition:

"The decision of National Bank on application of corrective action shall contain information (name) of the corrective action applied to bank, details of the document in which violations and/or risk activities / or containing information on application of foreign sanctions, the description of violation are fixed (with indication of regulations of the laws of Ukraine, regulatory legal acts of National Bank which are broken) / risk activities / information about application of foreign sanctions and/or committed actions (failure to act) of bank which led to violation and/or implementation of risk activities. The decision of National Bank on application of measure of influence is drawn up in the procedure established by National Bank and is obligatory for execution";

add Item with four new paragraphs of the following content:

"The National Bank applies corrective actions for violation of the bank law, legislation concerning financial monitoring, within six months from the date of violation identification, but not later than through:

three years from the date of making of violation of requirements of the legislation concerning financial monitoring;

one year from the date of making of other violations.

The National Bank has the right to apply corrective actions in connection with application of foreign sanctions during the term of their action since day of official publication (promulgation) of information on application of foreign sanctions";

to add Item 3.5 after the words "judicially" with the words "only for the purpose of establishment of legality of such decisions";

4) in Chapter 4:

to add Item 4.1 after the word of "activities" with words "accomplishment of decisions of National Bank on application of corrective actions, accomplishment of the imposed (made) demands, the termination of implementation of risk activities";

in Item 4.4 of the word "The Commission of National Bank under Territorial Administration" to exclude;

5) in Chapter 5:

add Item 5.1 with the new paragraph of the following content:

"Application of foreign sanctions";

in Item 5.2 of the word "along with appointment of the curator of bank" to exclude;

the fifth Item 5.6 after the words "in the mode" to add the paragraph with the word of "real";

"і" Item 5.7 to state the subitem in the following edition:

"і) to take out out of the limits of bank of the copy of documents testimonial of the facts of violation by bank of the bank law, legislation concerning financial monitoring, including regulatory legal acts of National Bank, implementation of risk activities".

2. In the Section II:

1) in Chapter 1:

to add Item 1.1 after words of "bank law" with words of "the legislation concerning financial monitoring";

in Item 1.3:

the paragraph one after words of "bank law" to add with words of "the legislation concerning financial monitoring";

state the subitem "zh" in the following edition:

"g) violation of requirements of the legislation concerning financial monitoring";

Item 1.6 in paragraph one "shall" replace the word with the word "shall";

2) in Chapter 7:

the sixteenth Item 7.4 to state the paragraph in the following edition:

"Violation of requirements of the legislation concerning financial monitoring";

the paragraph one of Item 7.8 to state in the following edition:

"7.8. The National Bank provides bank of the decision on restriction, suspension or the termination of separate transaction types of bank under the signature of his authorized representative on the second copy of the cover letter with indication of date and time of obtaining (further - the obtaining moment)";

in Item 7.13:

to exclude paragraph two of the subitem "v";

the nineteenth to exclude the paragraph;

paragraphs two, third Item 7.15 to state in the following edition:

"The report containing list of the measures for elimination of violations, termination/non-admission taken by bank further of implementation of risk activities and information on condition of accomplishment of the decision;

the copies of the relevant documents confirming elimination of violations, the termination of implementation of risk activities, taking measures to non-admission of violations/implementation of risk activities (in case of need) which are properly certified by bank";

the paragraph one of Item 7.16 after words of "elimination of violations" to add with words of "the termination of implementation of risk activities";

the paragraph one of Item 7.17 after the words "the violations found in its activities" to add with the words "did not stop implementation of risk activities at the scheduled time or in activities of bank the new fact of making of risk activities according to Item 3.3 of Chapter 3 of the Section I of this provision is determined";

in the subitem "b" of Item 7.18:

to add paragraph two after words of "elimination of violations" with words of "the termination of implementation of risk activities";

third to add the paragraph with words of "the termination of implementation of risk activities for questions of financial monitoring, taking measures to non-admission of violations/implementation of risk activities";

in paragraph one of Item 7.20 of the word of "the new facts of violations in activities of bank" shall be replaced with words "in activities of bank of the new facts of violations and/or implementation of risk activities";

3) in Chapter 9:

in Item 9.1:

word in paragraph five" (except the reporting under questions of financial monitoring)" to exclude;

the twentieth to state the paragraph in the following edition:

"Violation of requirements of the legislation concerning financial monitoring";

in Item 9.6:

the paragraph one after words of "conducting check" to add with words "(except questions of financial monitoring)";

the fourth after words "unreliable information" to add the paragraph with words "(except questions of financial monitoring)";

to exclude the paragraph of the sixth of Item 9.7;

to add Item 9.18 after words of "check of bank" with words "(except questions of financial monitoring)";

state Item 9.19 in the following edition:

"9.19. The penalty for violation of requirements of the legislation by banks concerning financial monitoring is imposed on bank for such violations in the amount of percent 0,01 from the amount of the registered authorized capital of bank, namely for:

1) violation of requirements for identification, verification of clients (persons, representatives of clients), to customer research (persons);

2) identification, untimely identification and/or violation of order of registration of financial transactions, according to the legislation are subject to financial monitoring;

3) non-presentation, untimely representation, violation of procedure for representation or representation of unreliable information to specially authorized body in cases, stipulated by the legislation;

4) violation of procedure for suspension financial (financial) transaction (transactions);

5) failure to carry out of obligation by bank to refuse establishment (maintenance) of the business (contractual) relations, servicing, carrying out financial transaction (transfer) in cases, stipulated by the legislation concerning financial monitoring;

6) non-presentation, untimely representation, representation not in full, provision of doubtful information / documents, submission of copies of documents in which it is impossible to read everything the data written to them at the request of National Bank (the written request of National Bank or persons authorized by National Bank on conducting exit check concerning financial monitoring) necessary for accomplishment of functions by National Bank on state regulation and supervision concerning financial monitoring, concealment of accounts (documents, assets, etc.) or loss of documents (including information on accounts, assets, etc.), creation of other obstacles to conducting exit check concerning financial monitoring (further - violation of procedure for representation information/creation of obstacles concerning financial monitoring).

Penalty for not giving / untimely submission / representation of the doubtful statistical reporting under questions of financial monitoring, - in the amount up to 1000 free minima of the income of citizens.

Penalty for violation of other requirements determined by the legislation concerning financial monitoring and not specified in paragraphs the second - the seventh this Item, - in the amount up to 3000 free minima of the income of citizens.

Total amount of the penalty imposed on bank for violation of the law concerning financial monitoring cannot constitute more than one percent from the amount of the registered authorized capital of bank.

Doubtful information / documents concerning financial monitoring is provided by bank information/documents which is not confirmed contradicts (ат) to data of source documents and/or other materials of check concerning observance of requirements of the legislation concerning financial monitoring (exit check concerning financial monitoring, permanent supervision concerning financial monitoring), to official documents / information received from public authorities, banks, other legal entities";

to add Item 9.20 after words of "National Bank" with words "(except questions of financial monitoring)";

to add Item 9.21 after words of "written caution" with words of "the written requirement, the plan of elimination of violations, the report on elimination of violations/accomplishment of the plan of elimination of the violations and/or documents confirming their elimination";

state Item 9.24 in the following edition:

"9.24. Calculation of the amount of penalty is perfromed proceeding from the size of the registered authorized capital of bank on the date of violation making.

In case of making of two or more violations of requirements of the legislation by bank concerning financial monitoring the total amount of penalty shall be no more than one percent from the amount of the registered authorized capital of bank on the date of making of the last of the found violations for which the penalty is imposed.

Day of identification of violation of the law concerning financial monitoring is date of creation:

1) certificates of exit check concerning financial monitoring of bank - the legal entity and separate divisions which activities were object of exit check concerning financial monitoring;

2) certificates of exit check of branch of foreign bank concerning financial monitoring;

3) certificates of exit check of separate division of bank concerning financial monitoring if activities of bank - the legal entity were not object of exit check concerning financial monitoring;

4) the act of results of remote supervision concerning financial monitoring";

state Item 9.25 in the following edition:

"9.25. The decision of the National Bank of Ukraine on application to bank, branch of foreign bank of corrective action in the form of imposing of penalty is the executive document and takes legal effect from the date of its acceptance.

In the Decision of National Bank on application to bank, branch of foreign bank of corrective action in the form of imposing of penalty data, the stipulated in Article 18 Laws of Ukraine "About enforcement proceeding" are also specified.

The decision of the National Bank of Ukraine on application to bank, branch of foreign bank of corrective action in the form of imposing of penalty is reported by National Bank to the authorities of the public executive service for forced execution in case of failure to carry out by bank, branch of foreign bank of such decision in voluntary procedure.

The penalty is charged and paid in currency of Ukraine";

after Item 9.25 to add Chapter with new Item 9.26 of the following content:

"9.26. The bank/owner of essential participation pays the added penalty amount during the term established by National Bank and in writing notifies National Bank on payment of penalty in the procedure established by National Bank".

With respect thereto Items 9. 9.27 to consider 26, respectively by Items 9. 27, 9.28;

4) in Chapter 10:

in Item 10.2 of the word" (The commission of National Bank under territorial administration)" to exclude;

in Item 10.4 of the word" (" to exclude territorial administration of National Bank;

5) in Chapter 11:

in Item 11.1:

the paragraph one to state in the following edition:

"11.1. The National Bank has the right temporarily, before violation elimination, to discharge the official of bank of position in the presence of the facts testimonial of actions and/or failure to act of this official which led to making of risk activities and/or violation of requirements of the bank law, legislation concerning financial monitoring, regulatory legal acts of National Bank, including:"

add the subitem "a" with the words "or restructuring plan";

state the subitem "b" in the following edition:

"b) failure to carry out by bank at the scheduled time of the requirements determined by National Bank in the written prevention, the written requirement for elimination of violations of the bank law, the legislation concerning financial monitoring";

"ґ" to exclude the subitem.

With respect thereto to consider subitems of "d"-"z" respectively subitems "ґ"-;

"є" to state the subitem in the following edition:

"є) violations of requirements of the legislation concerning financial monitoring";

in Item 11.6:

add paragraph two with the words "otherwise leaves the address without consideration and notifies on it bank";

third after the words "the decision is made" to add the paragraph with the words "about provision of permission to renewal of the official of bank in position";

6) in Chapter 12:

in Item 12.1-1:

the paragraph one to state in the following edition:

"12.1.-1. Violation of the legislation by bank concerning financial monitoring is system if the intra bank system on prevention and counteraction of legalization (washing) of income gained in the criminal way, does not provide to financing of terrorism and financing of distribution of weapons of mass destruction proper accomplishment of obligations of the subject of primary financial monitoring by bank";

exclude paragraph two;

in Item 12.2:

to add subitem 1 after words of "bank law" with words of "the legislation concerning financial monitoring";

in subitem 2 to replace "can bring" with the word "quoted";

to add the subitem 3 after words of "activities of bank" with the words "and/or provisions by bank doubtful / unreliable informations, documents and/or their copies, written explanations";

state subitem 6 in the following edition:

"6) failure to meet requirements of the legislation of Ukraine on disclosure of information about owners of essential participation in bank in the amount determined by National Bank, representation doubtful or non-presentation / untimely submission of information on structure of property of bank, the faces tied with bank;

add Item with new subitems of the following content:

"12) violation of procedure for suspension of financial transaction(s), including not stop by bank of implementation of financial transaction if her participant or the beneficiary on it is person included in the list of faces tied with implementation of terrorist activities or concerning which the international sanctions are applied (if types and conditions of application of sanctions provide suspension or prohibition of financial transactions);

13) failure to carry out by bank of requirements for information security in the software of system of automation of bank (further - SAB), information system of the Center of certification of keys of bank (further - TsSK of bank), the organizations of access to them that led to unauthorized information access of bank, its destruction and/or misstatement;

14) failure to carry out by bank of requirements for creation, implementation and maintenance of management system information security that led to decrease in level of information security and increase in risks of information security as component of operational risks of bank;

15) factual determination of non-compliance with requirements for system of reservation and recovery of functioning of SAB and information system TsSK of bank which resulted in impossibility of complete recovery of functioning of SAB and information system TsSK of bank, and also lack of backup copies of information of the program complexes necessary for operational recovery of functioning in minimum necessary amount and in full;

16) factual determination of absence of archive of especially important data or violation of its integrity";

in Item 12.3:

third to add the paragraph with words "(if necessary)";

in paragraph four of the word "and also reductions of the activities by bank in compliance with requirements of the bank law" shall be replaced with words "and/or reductions of the activities by bank in compliance with requirements of the legislation";

in Items 12. 12.11, 12.12 word "bank" to exclude 5,;

7) in Chapter 13:

exclude Item 13.1-1;

to add Item 13.3 after the word of "Fund" with the word "providing";

3. In the Section III:

1) in Chapter 1:

state Item 1.1 in the following edition:

"1.1. The National Bank of Ukraine has the right to revoke the banking license on own initiative in the cases provided by part two of article 77 of the Law on banks.

Systematic violation of the legislation by bank concerning financial monitoring is violation of the legislation by bank concerning financial monitoring after application to it at least two corrective actions (sanctions) within year";

in Items 1. 2, 1.3 word "liquidations" to replace with the word "liquidation";

"Archive divisions" to replace 2) in subitems "a", "b" of Item 3.2 of Chapter 3 of the word with the word of "archive".

4. In the text of the Provision of the word "or the Commission of National Bank under territorial administration" in all cases to exclude.

 

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