LAW OF UKRAINE

of July 16, 2015 No. 629-VIII

About modification of some legal acts of Ukraine concerning enhancement of system of guaranteeing household deposits and conclusion of insolvent banks from the market

The Verkhovna Rada of Ukraine decides:

I. Make changes to the following legal acts of Ukraine:

1. In the Code of Ukraine about administrative offenses (The sheet of the Supreme Council of USSR, 1984, appendix to No. 51, the Art. 1122):

Paragraph one of part one of Article 166-5 after words of "regulatory legal acts of the National Bank of Ukraine" to add 1) with words "except the violations specified in article 73 of the Law of Ukraine "About banks and banking activity";

Part the second Article 234-3 to add 2) with the words "the heads of structural divisions of the National Bank of Ukraine and their deputies authorized by board of the National Bank of Ukraine who provide accomplishment of functions of the National Bank of Ukraine on supervision (oversight), control".

2. In Article 67 of the Economic Procedure Code of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 1992, No. 6, the Art. 56):

the fifth to state the paragraph to part four in the following edition:

"Perform to public authorities, local government bodies, Fund of guaranteeing household deposits the powers assigned to them according to the legislation";

add after part five with two new parts of the following content:

"Providing the claim for cases in which defendant is the insolvent bank or Fund of guaranteeing household deposits in the way is not allowed:

the property attachments or sums of money belonging to the defendant;

prohibition to the defendant to make certain actions.

The property or sums of money of the client of insolvent bank which by court it is seized about day of reference of bank to category of insolvent can be transferred to the accepting or transitional bank or specialized agency formed by Fund of guaranteeing household deposits in the procedure established by the legislation on system of guaranteeing household deposits with the written notice Fund of guaranteeing household deposits of person for the benefit of which it is seized. At the same time the transferred property or sums of money remain encumbered according to the court order about seizure".

With respect thereto the sixth - the ninth to consider parts respectively parts eight - the eleventh.

3. In the Criminal code of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 2001, Art. No. 25-26, 131):

To add 1) with Articles 220-1 and 220-2 of the following content:

"Article 220-1. Violation of procedure for maintaining the database about investors or procedure for forming of the reporting

1. Entering by the head or other official of bank into the database about investors of obviously false data -

it is punished by penalty from eight hundred to one thousand free minima of the income of citizens.

2. The same action, committed repeatedly or by previous concert group of persons, -

it is punished by penalty from two thousand to three thousand free minima of the income of citizens with deprivation of the right to hold certain positions or to be engaged in certain activities for a period of up to three years.

3. Entering by the head or other official of bank into the reporting provided to Fund of guaranteeing household deposits, obviously false data -

it is punished by penalty from eight hundred to one thousand free minima of the income of citizens.

4. Intentional damage or destruction by the head or other official of bank of the database about investors or making of actions which make impossible identification of the investor according to information which is available in the database about investors or making of actions which consequence illegal increase in expense amount of Fund of guaranteeing the household deposits connected with conclusion of bank from the market is or make impossible the beginning of implementation of payments of means to investors of insolvent bank according to the Law of Ukraine "About system of guaranteeing household deposits", -

are punished by imprisonment for a period of up to four years with restriction of the right to hold certain positions or to be engaged in certain activities for a period of up to ten years.

Article 220-2. Falsification of financial records and reporting of the financial organization, concealment of insolvency of financial institution or bases for withdrawal (cancellation) of the license of financial institution

1. Modification of documents or bookkeeping registers or entering into the reporting of financial institution of obviously incomplete or false information on transactions, obligations, property of the organization including which is in trust management or about the financial condition of organization, or confirmation of such information, provision of such information in the National Bank of Ukraine, publication or disclosure of information according to the procedure determined by the legislation of Ukraine if these actions are made for the purpose of concealment of signs of bankruptcy or steady insolvency or the bases for obligatory response (cancellation) at financial institution of the license or recognition its insolvent, -

are punished by penalty from eight hundred to one thousand free minima of the income of citizens or restriction of freedom for a period of up to four years with deprivation of the right to hold certain positions or to be engaged in certain activities for a period of up to ten years";

2) in Article 365-2 part one:

the paragraph one after the word "appraiser" to add with words "the authorized person or the official of Fund of guaranteeing household deposits";

state paragraph two in the following edition:

"It is punished by restriction of freedom for a period of up to three years with deprivation of the right to hold certain positions or to be engaged in certain activities for a period of up to ten years and with special confiscation".

4. In the Economic code of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 2003, Art. No. No. 18-22, 144):

Part the second Article 80 to add 1) with the words "except the cases determined by the law";

Part the second articles 250 after words "The tax code of Ukraine" to add 2) with words "the Law of Ukraine "On banks and banking activity".

5. In the Civil code of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 2003, Art. No. No. 40-44, 356):

Paragraph one of part two of Article 152 to add 1) with words "(except the cases established by the law)";

Part one of Article 577 to add 2) with the words "except the cases established by the law";

Part one of Article 585 to add 3) with the words "except the cases established by the law";

Article 598 to add 4) with part four of the following content:

"4. Cases when discharge on certain bases is not allowed can be established by the law";

Part one of Article 602 to add 5) with Item 4-1 of the following content:

"4-1) according to obligations which party is the insolvent bank, except the cases established by the law".

6. In Article 152 of the Code of civil procedure of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 2004, Art. No. No. 40-42, 492):

the first offer of part four to add with the words "on property or money of insolvent bank, and also on property or money of Fund of guaranteeing household deposits";

add with parts eight and the ninth the following content:

"8. Providing the claim by prohibition to the defendant is not allowed to make certain actions in claims of owners or creditors of insolvent bank in such bank or Fund of guaranteeing household deposits.

9. The property or sums of money of the client of insolvent bank which by court it is seized about day of reference of bank to category of insolvent can be transferred to the accepting or transitional bank or specialized agency formed by Fund of guaranteeing household deposits in the procedure established by the legislation on system of guaranteeing household deposits with the written notice Fund of guaranteeing household deposits of person for the benefit of which it is seized. At the same time the transferred property or sums of money remain encumbered according to the court order about seizure".

7. In Article 173 of the Criminal Procedure Code of Ukraine (The sheet of the Verkhovna Rada of Ukraine, 2013, Art. No. No. 9-13, 88):

add part one with the paragraph the second the following content:

"Arrest of properties/means of the bank referred to category insolvent and also properties/fund of guaranteeing household deposits is not allowed";

add with part eight of the following content:

"8. The property or sums of money of the client of insolvent bank which by court it is seized about day of reference of bank to category of insolvent can be transferred to the accepting, transitional bank or specialized agency formed by Fund of guaranteeing household deposits in the procedure established by the legislation on system of guaranteeing household deposits with the written notice Fund of guaranteeing household deposits of person for the benefit of which it is seized. At the same time the transferred property or sums of money remain encumbered according to the court order about seizure".

8. In the Law of Ukraine "About the National Bank of Ukraine" (Sheets of the Verkhovna Rada of Ukraine, 1999, No. 29, Art. 238 with subsequent changes):

Article 7 to add 1) with Item 10-1 of the following content:

"10-1) performs preliminary qualification of persons who can participate in conclusion of insolvent banks from the market, and constitutes the list of such persons";

Shall be replaced with words 2) in part five of Article 68 of the word "about owners of essential participation in banks" "about structure of property in banks and structure of banking groups".

9. In the Law of Ukraine "About banks and banking activity" (Sheets of the Verkhovna Rada of Ukraine, 2001, No. 5-6, of Art. 30 with subsequent changes):

Determination of the term "banking group" to state 1) in article 2 in the following edition:

"Banking group - group of legal entities:

which have the general controller, consisting of parent bank, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity, or

consisting of parent bank which is controller, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity, or

which have the general controller, consisting of two or more Ukrainian financial institutions and/or the companies for which provision of financial services is the prevailing type of activity, their Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is the prevailing type of activity in which banking activity is prevailing, or

consisting of non-bank financial institution or the company for which provision of financial services is the prevailing type of activity, is controller, its one or several Ukrainian and/or foreign subsidiary and/or associated companies which are financial institutions or for which provision of financial services is preferential type of activity in which banking activity is prevailing.

The bank holding company and the company on provision of support services which has the general controller with members of banking group is part of this banking group.

The company is considered such for which provision of financial services is the prevailing type of activity if the share of the income from realization of financial services in results of the previous accounting year constitutes 50 and more percent of total amount of net income (revenue) from sales of products (goods, works, services).

The prevailing activities in group are bank if cumulative arithmetic-mean value of assets of banks (bank) - members (participant) of banking group for the last four reporting quarters makes 50 and more percent of the cumulative extent of arithmetic-mean values of assets of all financial institutions relating to this group for the specified period. Calculation of the prevailing activities of banking group is perfromed annually as of January 1.

After the group was determined bank based on the prevailing activities and the share of total assets of banks (bank) in the cumulative size of assets of the organizations relating to this group decreased and constitutes from 40 to 50 percent, the group continues to be considered bank within three years from the moment of such reduction";

Part the fifth Article 14 to state 2) in the following edition:

"Institutes of joint investment can be founders of bank and owners of essential participation in bank only provided that such institute of joint investment is corporate venture fund, more than 75 percent of shares (investment certificates) of which and more than 75 percent of shares (shares) of the company on which asset management directly and/or indirectly belong to one person or group of associated persons";

3) the second offer of part five of Article 32 to exclude;

Article 48 to add 4) with new parts one and the second the following content:

"Banks are forbidden to perform the risk activities menacing to interests of investors or other creditors of bank.

The list of signs which availability is the basis for the conclusion of the National Bank of Ukraine about carrying out risk activities by bank which threaten interests of investors or other creditors of bank is determined by the regulatory legal act of the National Bank of Ukraine and will be promulgated in the procedure established by the law".

With respect thereto the first - third to consider parts respectively parts three - heel;

5) in Article 67:

in the second offer of part six of the word "what is used, as a rule, along with corrective actions, the stipulated in Clause 73 presents of the Law" to exclude;

after part six to add with two new parts of the following content:

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