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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of May 19, 2020 No. 65

About approval of the Regulations on implementation of financial monitoring by banks

(as amended on 12-01-2021)

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", for the purpose of ensuring implementation of requirements 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" of December 6, 2019 the No. 361-IX Board of the National Bank of Ukraine decides:

1. Approve Regulations on implementation of financial monitoring by banks (further - the Provision) which are applied.

2. Determine that banks:

1) is accepted to clients with whom business relations are established from the effective date 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" of December 6, 2019 No. 361-IX (further - the Law), by necessary measures according to requirements of the Law;

2) is accepted to clients with whom business relations are established before entry into force of the Law (further - the available clients), by measures for proper check, identification of the facts of belonging of clients (their final beneficial owners) to politically significant persons, members of their families and/or faces tied with politically significant persons, revaluations of risk of business relations with clients according to requirements of the Provision during implementation of procedures of planned updating / refining by databank about such clients in the terms established by bank in internal documents according to the legislation concerning financial monitoring before entry into force of the Law.

Rather available clients who do not maintain business relations with bank (except those, the risk of business relations with which is high), the specified measures can be performed also over fixed terms during the appeal of such client to bank, but before carrying out the financial transactions initiated by the client;

3) report to specially authorized body of rather threshold financial transactions of politically significant persons, members of their families and/or faces tied with politically significant persons who had no such status according to 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" of October 14, 2014 No. 1702-VII since date of identification by bank of the fact of belonging of the corresponding client to politically significant persons, members of his family and/or to the faces tied with politically significant person;

4) provide setup and automation of necessary processes of bank according to requirements of the Provision no later than June 30, 2021.

3. Recognize invalid:

1) the resolution of Board of the National Bank of Ukraine of June 26, 2015 No. 417 "About approval of the Regulations on implementation of financial monitoring by banks";

2) the resolution of Board of the National Bank of Ukraine of October 15, 2015 No. 699 "About modification of the Regulations on implementation of financial monitoring by banks";

3) the resolution of Board of the National Bank of Ukraine of May 25, 2017 No. 42 "About approval of Changes in Regulations on implementation of financial monitoring by banks";

4) the 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";

5) the resolution of Board of the National Bank of Ukraine of October 3, 2017 No. 99 "About modification of the Regulations on implementation of financial monitoring by banks";

6) the resolution of Board of the National Bank of Ukraine of March 1, 2018 No. 20 "About modification of the Regulations on implementation of financial monitoring by banks";

7) the resolution of Board of the National Bank of Ukraine of November 1, 2018 No. 116 "About approval of Changes in Regulations on implementation of financial monitoring by banks";

8) the resolution of Board of the National Bank of Ukraine of April 2, 2019 No. 58 "About approval of Changes in Regulations on implementation of financial monitoring by banks".

4. To department of financial monitoring (Igor Bereza) after official publication to inform banks information on adoption of this resolution.

5. To impose control over the implementation of this resolution on the First Deputy Chairman of the National Bank of Ukraine Ekaterina Rozhkova.

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

Chairman

Ya. Smoly

Approved by the Resolution of Board of the National Bank of Ukraine of May 19, 2020 No. 65

Regulations on implementation of financial monitoring by banks

I. General provisions

1. This Provision is developed according to the laws of Ukraine "About the National Bank of Ukraine", "About banks and banking activity", "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" for the purpose of prevention of use of bank system for legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction.

2. This Provision establishes general requirements of the National Bank of Ukraine (further - National Bank) concerning accomplishment of the legislation of Ukraine by banks concerning financial monitoring.

3. Requirements of this Provision extend to banks, separate divisions of banks, branches of foreign banks (further - banks).

4. In this Provision the following reducings (abbreviations) are used:

1) VK/FT - legalization (washing) of income gained in the criminal way, financings of terrorism and/or financing of distribution of weapons of mass destruction;

2) DFM - structural division of central office of National Bank which competence questions of supervision in the sphere of prevention and counteraction of VK/FT enter;

3) EPS - electronic means of payment;

4) EGR - The Unified State Register of Legal Entities, physical persons - entrepreneurs and public forming;

5) Law on POD/FT - 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";

6) IKAO Doc 9303 - recommendations of International Civil Aviation Organization (ICAO) of Doc 9303;

7) KBV - the final beneficial owner;

8) The CAP - the qualified digital signature;

9) code on EGRPOU - identification code according to the Unified state register of the companies and organizations of Ukraine;

10) NPK - proper check of the client;

11) POD/FT - 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;

12) UMNP - the strengthened measures of proper check;

13) subsystem of verification of SEI - subsystem of verification of data concerning legal entities and physical persons entrepreneurs of the integrated system of electronic identification;

14) RNOKNP - registration number of accounting card of the taxpayer;

15) SA (system of automation of bank) - the complex integrated system of automation of processes of financial monitoring which can consist of several separate systems or subsystems which provide functioning of proper risk management system of VK/FT of bank;

16) SSU - Security Service of Ukraine;

17) SEI - the integrated system of electronic identification;

18) UMNP - the simplified measures of proper check;

19) the BankID System of the NBU - the BankID system of the National Bank of Ukraine;

20) SPFM - the subject of primary financial monitoring;

21) SUO - specially authorized body;

22) FLP - physical person entrepreneur;

23) FATF - Group on development of financial measures of anti-money laundering;

24) PEP (PEPs in plural) is physical person which is politically significant face, the member of his family or face tied with politically significant person or person whose final beneficial owner is politically significant person, the member of his family or face tied with politically significant person;

25) the prepaid-card - prepaid card of multi-purpose use.

5. Terms and concepts of this Provision are used in such values:

1) the address of mass registration - the address to which more than 50 legal entities, trusts or other legal educations are registered;

2) the analysis of financial transactions - complex risk - the oriented actions which are performed on permanent basis and are established by internal documents of bank concerning POD/FT which carrying out allows bank to reveal financial transactions which are subject to financial monitoring;

3) the affiliate of organization correspondent - any legal entity in whom the corresponding bank has essential participation or which has essential participation in the organization correspondent;

4) payee bank - bank which provides services in money transfer to the receiver;

5) payer bank - bank which provides services in money transfer to the payer (the initiator of the translation);

6) intermediary bank - bank which is intermediary in money transfer in value of the term determined by Item 48 parts one of article 1 of the Law on ChVK/FT;

7) high risk of business relations (financial transaction without establishment of business relations) with the client - result of assessment by bank of risk of business relations (financial transaction without establishment of business relations) with the client based on analysis results of set of criteria, stipulated by the legislation Ukraine and internal documents of bank concerning POD/FT and which demonstrates high probability of use by the client of services of bank for VK/FT;

8) remote establishment of business relations - establishment of business relations with the client without its physical presence;

9) video verification - the procedure of implementation by bank of check of the personality in the video broadcasting mode;

10) the ranking officer of bank - the employee of bank responsible for carrying out financial monitoring in bank;

11) the established correspondence relations - correspondence relations between organization correspondent and the third organizations by means of which the bank can serve financial transactions of clients of the third organizations through the established correspondence relations with organization correspondent;

12) internal documents of bank concerning POD/FT - policy, rules, programs, techniques, other documents developed and approved by bank for the purpose of proper accomplishment of the SPFM functions;

13) derisking - the phenomenon in case of which SPFM refuses establishment (maintenance) of business relations with clients for the purpose of avoidance of risks, but not management of them;

14) the certificate of assignment of RNOKNP - the document issued by the relevant monitoring body, certifying registration of physical person in the State register of physical persons taxpayers;

15) the agreement of access to SEI - the contract of bank with the Ministry of digital transformation of Ukraine concerning access to the integrated system of electronic identification with opportunity to obtain data from subsystem of verification of data concerning legal entities and FLP concerning the head of the legal entity, other persons who can make actions on behalf of the legal entity, FLP, persons who can make actions on behalf of FLP, and also about availability of restrictions concerning the representation of the legal entity and FLP containing in EGR;

16) escalation - informing the corresponding employee of bank and/or collegiate organ on approach of the corresponding event;

17) means of information protection - program technical means which provide protection of electronic documents against unauthorized actions concerning acquaintance with their content, modifications or misstatements;

18) the considerable amount - the amount which equals or exceeds the amount determined by part one of article 20 of the Law on ChVK/FT;

19) the identification document - the passport of the citizen of Ukraine or other document which proves the identity and according to the legislation of Ukraine can be used in the territory of Ukraine for the conclusion of transactions;

20) the cascade account [nested (downstream) account] - type of the account by means of which servicing of the enclosed correspondence relations is performed;

21) the company cover - the legal entity, trust or other similar legal education concerning which, (which) the bank has reasonable suspicions that her (his) activities can be dummy;

22) the partner - person, being the second party of financial transaction (the bank can be the partner), on which between the client and the partner there is transfer of assets;

23) juvenile person - physical person which did not reach fourteen years;

24) mother company of organization correspondent - the legal entity who exercises control over organization correspondent;

25) method of recognition of reality of face (liveness detection method) - method of photofixing of person in real time with use of the algorithms allowing to distinguish the real person from reproduction in any kind of his appearance (for example, digital reproduction, make-up, mask);

26) monitoring of the business relations / monitoring of financial transactions - the analysis of the financial transactions of the client performed in the course of business relations with it, about compliance of such financial transactions who is available for bank of customer information, its activities and risk (including, in case of need, about source of the means connected with financial transactions);

27) reliable sources - the sources specified in this Provision in addition to official sources and official documents, as possible to use by banks during accomplishment of requirements of the legislation of Ukraine by them in the sphere of POD/FT;

28) the end-to-end account (payable-through account) - account type within correspondence relations which implies the direct access to account of organization correspondent of the third parties (clients of organization correspondent) and direct use of such account for making of transactions on its own behalf;

29) instantly - the period which is determined/established from the moment of approach of the bases for implementation of the corresponding actions which are priority and are performed first of all, but no later than the next working day or the established time of the next working day;

30) without delay - in the shortest possible time during the working day in which there shall be corresponding actions from the moment of approach of the bases for their implementation;

31) the minor - physical person aged from fourteen up to eighteen years;

32) low risk of business relations (financial transaction without establishment of business relations) with the client - result of assessment by bank of risk of business relations (financial transaction without establishment of business relations) with the client based on analysis results of set of criteria, stipulated by the legislation Ukraine and internal documents of bank concerning POD/FT and which demonstrates low probability of use by the client of services of bank for VK/FT;

33) online monitoring of money transfers - the procedure of the analysis of money transfers in real time which is performed till the moment:

transfers by payee bank of funds for the account or e-wallet of receiver / payment of means to the receiver in case of lack at it of the account or e-wallet;

transfers of means by intermediary bank to other SPFM-intermediary or SPFM of the receiver;

34) the source document - the document containing obligatory details [the name of person (legal or physical) which constituted the document, the name of the document, date and the place of creation, content and amount of transaction, unit of its measurement, the signature or other data giving the chance to identify person - the initiator of implementation of transaction; name of a consignee of means, number(s) of the account (ov)], is also the basis for reflection of financial transaction in SA;

35) the transfer which is made without opening of the account, - movement of certain amount of means which is initiated in cash form without use of the account, for the purpose of its transfer into the account of the receiver or issue to it in cash form;

36) the list of the states which do not implement the recommendation of FATF - the list of the states (jurisdictions) which do not carry out or inadequate image implement recommendations of the international, intergovernmental organizations involved in the sphere of fight against VK/FT which is created according to the procedure, determined by the Cabinet of Ministers of Ukraine on the basis of the conclusions of the international, intergovernmental organizations involved in the sphere of fight against VK/FT and it will be promulgated on the SUO official website;

37) the list of terrorists - the list of faces tied with implementation of terrorist activities or concerning which the international sanctions which is created according to the procedure, determined by the Cabinet of Ministers of Ukraine are applied and will be promulgated on the SUO official website;

38) counterfeit - creation (fully or partially) the document similar to this/authentic document, for the purpose of its illegal use as this/authentic document;

39) further monitoring of money transfers - the procedure of the analysis of money transfers which is performed after:

means were enlisted by payee bank into the account or e-wallet of the receiver / paid to the receiver, in case of lack at it of the account or e-wallet;

funds were transferred by intermediary bank to other SPFM-intermediary or SPFM of the receiver;

40) the assignment/instrument of assignment - use of information by bank concerning identification, verifications of clients, establishment of their KBV and taking measures to verification of their personality, and also information concerning the purpose and nature of future business relations received from the third party who is SPFM according to requirements of the Law on ChVK/FT or applies similar measures on content which is subject corresponding supervision according to the legislation of country of incorporation of such subject and is effective on its own behalf;

41) procedure - the accurate sequence of actions of certain process with indication of methods, forms, terms (terms) of acceptance by employees of bank of these actions, is determined in internal documents of bank concerning POD/FT;

42) acceptable level is risk VK/FT - risk which is managed, under control to bank which cannot entail increase in legal risk and risk of reputation, and also deterioration in financial results of activities of bank or to cause damage to his creditors and clients;

43) suspension of implementation of financial transaction - temporary suspension of the procedure of carrying out financial transaction in case of detection of information by bank which requires the further analysis regarding need of acceptance by bank of certain actions for the purpose of execution of legislation obligations by it in the sphere of POD/FT and/or internal documents of bank concerning POD/FT, in particular, in case of coincidence of data of the participant of financial transaction to data of person from the list of terrorists;

44) one-time financial transaction on the considerable amount - financial transaction which is performed without establishment of business relations on the amount which equals or exceeds the amount determined by part one of article 20 of the Law on ChVK/FT (irrespective of, such financial operation one-timely is performed or as several financial transactions which can be connected among themselves);

45) the register of refusals - the register of messages of bank on the performed refusals in establishment (maintenance) of business relations with clients;

46) the register of freezings/defrosting - the register of messages of bank on the performed freezings/defrosting of the assets connected with terrorism and its financing, distribution of weapons of mass destruction and its financing;

47) the register of messages on suspicious financial activities - the register of messages of bank on suspicious financial activities;

48) the register of disagreements about KBV - the register of messages of bank about discrepancies between data on KBV which contain in EGR, and information on KBV obtained by bank as a result of implementation of NPK;

49) the register of financial transactions - the register of the financial transactions of bank which are subject to financial monitoring;

50) risk appetite (tendency to risk) of bank in the sphere of POD/FT - the size of risk of VK/FT which is predetermined also within acceptable risk level of VK/FT on which the bank made the decision on feasibility/need of its content for the purpose of achievement of its strategic objectives and accomplishment of the business plan;

51) risk of reputation - the available or potential risk for receipts and the capital which arises owing to adverse perception of image of bank by clients, partners, potential investors or supervision bodies which influences capability of bank to establish the new relations with partners, to provide new services or to maintain the existing relations, and can lead bank (or his heads) to financial losses or reduction of client base, attraction to administrative, civil or criminal liability;

52) legal risk - the available or potential risk for receipts or the capital of bank which arises because of violation or non-compliance with requirements of the laws of Ukraine by bank, regulatory legal acts and can lead bank to financial losses, abuses, involvement of bank and/or its heads to administrative, civil or criminal liability;

53) the impostor - the person issuing himself for other person illegally appropriating someone else's identification data;

54) the sanctions list of National Security and Defense Council of Ukraine - the list of persons to whom special economic and other rationing measures (sanctions) according to article 5 of the Law of Ukraine "About sanctions" are applied;

55) average risk of business relations (financial transaction without establishment of business relations) with the client - result of assessment by bank of risk of business relations (financial transaction without establishment of business relations) with the client based on analysis results of set of criteria, stipulated by the legislation Ukraine and internal documents of bank concerning POD/FT and which demonstrates the increased probability of use by the client of services of bank for VK/FT;

56) scoring risk model - model of risk assessment of business relations (financial transaction without establishment of business relations) with the client which calculates the certain integrated indicator (score) on the basis of specific weight inherent in business relations (to financial transaction without establishment of business relations with the client of criteria of risk which is used further for assignment of appropriate level of risk of business relations (financial transaction without establishment of business relations) with the client;

57) the screening procedure - the procedure of implementation by bank by means of the software modules of data analysis containing in databases of bank for the purpose of identification of the corresponding facts;

58) social engineering - set of methods of use of psychological features of person for the purpose of its motivation to certain actions which it under habitual conditions would not make, introduction of person in delusion;

59) case of the client - all documents / information concerning the client, business relations with it (carrying out one-time financial transaction on the considerable amount), inclusive with results of measures of proper check, the legislations of Ukraine and internal documents of bank collected and documented by bank during fulfillment of requirements concerning POD/FT;

60) the subject of managing - the legal entity - the resident or FLP;

61) organization correspondent - bank or other financial institution with which correspondence relations are established/are established;

62) falsification - change of this/authentic document (its elements, parts) for the purpose of introduction of bank in delusion, in particular, for use of the identification document by person who does not have the right to it;

63) financial phone number - the contact phone number of the client used by bank, in particular, for the purpose of carrying out its authenticity;

64) financial inklyuziya - process of implementation of open, timely and full access to wide range of financial products and services, distribution of their use in society by means of the existing and innovative approaches;

65) the ID card - the identification document into which the contactless electronic medium is implanted;

66) otp-the password (the one-time password) - certain sequence of text symbols and/or figures which is generated by software of bank on a centralized basis and is valid only for this purpose and limited in time which the bank sends to person to its phone number in the form of the text message.

Other terms and concepts used in this Provision are applied in the values determined by the Law on ChVK/FT, the laws of Ukraine "About banks and banking activity" (further - the Law on banks), "About financial services and state regulation of the markets of financial services", "About payment systems and money transfer in Ukraine", regulatory legal acts of National Bank, Cabinet of Ministers of Ukraine and the central executive body which provides forming and realization of state policy in the sphere of POD/FT (further - the Ministry of Finance of Ukraine).

II. Proper organization of intra bank system of POD/FT

6. The bank shall provide the proper organization of intra bank system of POD/FT and carrying out primary financial monitoring. The purpose of the proper organization of intra bank system of POD/FT and carrying out primary financial monitoring are:

1) fulfillment of requirements of the legislation of Ukraine in the sphere of POD/FT;

2) opportunity to properly reveal threshold and suspicious financial transactions (activities) and to report about them to SUO;

3) prevention of use of services and products of bank for carrying out financial transactions by clients for the purpose of VK/FT.

7. The bank for the purpose of the proper organization of intra bank system of POD/FT and carrying out primary financial monitoring takes, in particular, the following measures:

1) appoints the responsible of bank according to requirements of the legislation of Ukraine in the sphere of POD/FT at the level of management of bank;

2) is created by separate structural division on POD/FT which is headed by the ranking officer of bank or which directly submits to the responsible of bank;

3) is provided by functioning of risk management system of VK/FT;

Develops 4) and approves internal documents of bank concerning POD/FT in the amount necessary for effective functioning of intra bank system of POD/FT and understanding as employees of bank of the obligations and powers in the sphere of POD/FT;

5) is provided by functioning on permanent basis of collegiate organ on consideration of problematic and topical issues of functioning of intra bank system of POD/FT;

6) provides sufficient resources for functioning of intra bank system of POD/FT (including separate structural division on POD/FT);

7) the risk profile of bank risks of VK/FT provides sufficient knowledge and awareness of the chairman, members of council and bank boards concerning their obligations in the sphere of POD/FT, and also about inherent;

8) provides informing heads of bank on importance of requirements of the legislation of Ukraine concerning POD/FT for the purpose of ensuring proper risk management system, need of acceptance of effective measures for effective prevention of use of services of bank for the purpose of VK/FT and understanding of consequences to which the bank in case of failure to meet requirements of the legislation of Ukraine concerning POD/FT is exposed;

9) effectively distributes functions concerning POD/FT between three lines of protection, provides due knowledge and accomplishment by employees of bank, inclusive with employees of the business divisions determined by it obligations in the sphere of POD/FT, understanding such workers of the responsibility for failure in duty and/or failure to act;

Develops 10) and constantly enhances internal control concerning POD/FT, including provides timely identification with internal audit of problematic issues and signs of inadequate risk management system of VK/FT;

11) studies new products / services, including new sales channels, uses or developments of new technologies for the existing or new products for the purpose of proper assessment of risks of VK/FT and proper control of risks of VK/FT inherent in them for the available products/services;

12) is provided by implementation on permanent basis of holding the training actions for bank employees and agents of bank (their employees) for the purpose of understanding with them the obligations assigned to them and operations procedure;

13) provides verification of presence of faultless goodwill at all employees of bank involved in carrying out primary financial monitoring;

Creates 14) and provides functioning of efficient and timely system of escalation of suspicions and problematic issues in the sphere of POD/FT and procedure for their consideration, inclusive with the message of the information/facts concerning cases of violation or possible violation of the law of Ukraine in the sphere of POD/FT, according to the procedure, provided by internal documents of bank;

15) is entered by SA that provides timely and in full accomplishment of obligation of SPFM by bank (in particular, identification of the financial transactions which are subject to financial monitoring, freezing of the assets connected with terrorism and/or its financing / distribution of weapons of mass destruction and/or its financing, impossibility of implementation of transactions by persons from the list of terrorists);

16) is provided by timely identification of the financial transactions which are subject to financial monitoring and due information exchange with SUO;

Develops 17) and performs measures for NPK for the purpose of understanding of essence of activities of the client, the purpose and expected nature of business relations with it that gives the chance to bank to be sure that financial transactions of the client correspond to information on him which is available in bank, its business, risk profile, including, in case of need, sources of origin of its means / states, establishment of KBV for operational identification of unusual behavior and suspicious financial transactions (activities);

18) properly documents actions of employees of bank and fixes the events concerning accomplishment of obligations of SPFM by bank;

19) stores all documents, data, information (including the corresponding reports, orders, files) concerning accomplishment of obligations of SPFM by bank during the terms determined by the legislation of Ukraine;

20) timely and in full provides the necessary documents / information/explanations/arguments which are properly confirming accomplishment of requirements of the legislation of Ukraine by bank concerning POD/FT on requests of National Bank;

21) takes measures for continuous improvement of intra bank system of POD/FT.

8. Responsibility for the inadequate organization of intra bank system of POD/FT and carrying out primary financial monitoring are born by the chairman of the board the bank/head of branch of foreign bank (except the banks referred to category insolvent concerning which the procedure of temporary administration or liquidation is entered), and also the ranking officer of bank.

9. Board the bank/head of branch of foreign bank provides at least once a quarter consideration of such questions in the sphere of POD/FT:

1) results of monitoring of business relations with clients following the results of which suspicious activities of clients, and offers on acceptance of necessary measures concerning such clients for the purpose of risk minimization of VK/FT were found;

2) the questions connected with offers concerning refusal throughout business relations with clients (including in case of establishment to the client of unacceptably high risk level);

3) the problematic issues arising during actions with NPK in bank;

4) changes in the legislation of Ukraine concerning POD/FT and implementation of necessary measures by bank in connection with such changes (in particular, updating of internal documents of bank concerning POD/FT) with indication of terms of acceptance of such measures;

5) results of assessment of new bank products / services and risks of VK/FT inherent in them;

6) problematic issues concerning holding training events for bank employees, agents of bank (their workers);

7) the problematic issues connected with establishment of business relations with PEPs and/or their servicing;

8) other questions concerning accomplishment of requirements of the legislation of Ukraine by bank in the sphere of POD/FT which require consideration.

10. Board the bank/head of branch of foreign bank has the right to delegate consideration of the questions specified in Item 9 of the Section II of this provision, to specially created separate committee or committee which is already effective in bank/branch of foreign bank (further - Committee).

Powers of Committee, procedure for forming and decision making are determined in regulations on Committee.

The questions specified in Item 9 of the Section II of this provision shall be considered on committee meetings at least once a quarter.

The chairman the board/head of branch of foreign bank or the ranking officer of bank can be the chairman of executive committee.

The structure and number of Committee are created and affirm the administrative act of bank. The bank/head of branch of foreign bank, the ranking officer of bank, the secretary of Committee, heads/deputy managers of divisions of front office, back office, legal service, division on risk management shall be part of Committee the chairman of the board the bank/vice chairman of the board. Heads of other divisions of bank if necessary can also be part of Committee.

The chairman and members of the committee have the right to invite to participation in committee meeting of heads and employees of other divisions of bank if the questions considered on committee meeting are within their competence.

11. The ranking officer of bank at least once a year reports to council of the bank relatively:

1) results of assessment risk profile of bank;

2) the problematic issues connected with creation of the proper organization of intra bank system of POD/FT and carrying out primary financial monitoring;

3) the problematic issues connected with ensuring proper risk management system of VK/FT.

12. Ranking officers of bank shall support constantly the level of knowledge of questions POD/FT up to standard, including by training in the sphere of POD/FT, and also advanced training according to the procedure and in the terms established by the Law on POD/FT.

13. Bunky legal successors and banks which reorganized the separate divisions shall provide fulfillment of requirements of the legislation of Ukraine concerning storage of information which is available before reorganization concerning accomplishment of requirements of the legislation of Ukraine by bank in the sphere of POD/FT, including results of NPK, information on financial transactions of the clients and persons participating in their carrying out and in time to provide SUO information in the cases provided by the Law on POD/FT.

14. The separate structural division on POD/FT for the purpose of providing mystery of financial monitoring, and also other confidential information in the sphere of POD/FT shall be had in separate (separate) the room (rooms) and shall function according to regulations on this structural division which affirm according to requirements of internal documents of bank.

15. The division of internal audit of bank on the basis risk - the oriented approach will organize and carries out according to article 8 of the Law on POD/FT internal checks of observance by bank of requirements of the legislation of Ukraine in the sphere of POD/FT (including concerning sufficiency of the measures taken by bank for ensuring functioning of proper risk management system of VK/FT).

The division of internal audit of bank during internal checks shall analyse surely question of the sufficiency and efficiency implemented in SA bank for accomplishment of obligations of SPFM by bank.

The division of internal audit of bank by results of the internal checks which are carried out by him prepares reports, the conclusions and offers and exercises control of elimination of the revealed violations.

The bank shall constitute the actions plan on elimination of the revealed violations of the law of Ukraine and/or shortcomings of the sphere of POD/FT for the purpose of risk minimization of VK/FT and non-admission of violations in the future (further - the plan of reduction of risks) no later than 15 working days from approval date council the bank/head of branch of foreign bank of the audit report.

The bank shall take measures for accomplishment of the plan of reduction of risks in the terms determined in it.

The bank shall provide the electronic version of audit reports, the conclusions and offers with the cover letter, signed KEP of the chairman of the board of the bank/head of branch of foreign bank, to DFM no later than the twentieth working day from the date of their approval with ensuring the guaranteed delivery and confidentiality.

The National Bank has the right to provide offers and notes to the plan of reduction of risks which are obligatory for accounting and accomplishment by bank.

The bank shall submit also upon the demand of National Bank to it the electronic version of the plan of reduction of risks with the cover letter, signed KEP of the chairman of the board of the bank/head of branch of foreign bank.

16. National Bank in case of establishment during check that the division of internal audit of bank does not provide proper implementation of internal control behind observance of requirements of the legislation of Ukraine by bank in the sphere of POD/FT (including concerning sufficiency of the measures taken by bank for ensuring functioning of proper risk management system of VK/FT), considers question of the compliance/discrepancy of goodwill of the division manager of internal audit of bank according to the procedure established by the regulatory legal act of National Bank.

17. The bank taking into account features of the activities (in particular, nature and amounts of activities, types of the provided services, types of clients which are served of use of the latest technologies) and risks of VK/FT inherent in the activities enters SA.

18. SA shall provide:

1) freezing of the assets connected with terrorism and its financing, distribution of weapons of mass destruction and its financing;

2) maintaining questionnaires of clients of bank in electronic form;

3) maintaining the corresponding registers of notifications of bank;

4) maintaining information on accounting of bank as SPFM;

5) timely information exchange with SUO;

6) taking the minutes of work of each user protected from modification. In the protocol the beginning and completion of work of each of users with indication of time to within second shall be displayed;

7) availability of system of information security which conforms to requirements of the legislation of Ukraine in the sphere of information security;

8) availability of system of backup and storage of information;

9) permanent monitoring of financial transactions of clients for the purpose of operational identification of indicators of suspiciousness of financial transactions;

10) permanent monitoring of business relations with clients for the purpose of operational identification of inherent criteria of risk of VK/FT and need of updating by databank about clients;

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