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

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" according to Articles 7, of 55, 56 Laws of Ukraine "About the National Bank of Ukraine", article 63 of the Law of Ukraine "About banks and banking activity" the Board of the National Bank of Ukraine decides:

1. Approve Regulations on implementation of financial monitoring by banks which are applied.

2. Declare invalid the resolution of Board of the National Bank of Ukraine of May 14, 2003 No. 189 "About approval of the Regulations on implementation of financial monitoring by banks", registered in the Ministry of Justice of Ukraine on May 20, 2003 at No. 381/7702 (in edition of the resolution of Board of the National Bank of Ukraine of January 31, 2011 No. 22), with changes.

3. To banks to bring into accord with requirements of the legislation of Ukraine identification and to elicit the fact of belonging to public figures, to persons, relatives or connected with public figures, the available clients/representatives of clients on whom are established high risk level, - within three months from the date of entry into force of this resolution, on other clients / representatives of clients - within six months from the date of entry into force of this resolution. Reduction in compliance with requirements of the legislation of Ukraine of identification and identifications of the facts of belonging to public figures, to persons, relatives or clients/representatives of clients connected with public figures, available who do not maintain the business (contractual) relations with bank (except clients of high risk) can be performed also over fixed terms in case of the appeal of such client to bank, initiation of carrying out financial transactions by it.

4. To department of financial monitoring (I.V. Birch) bring contents of this resolution to the attention of banks of Ukraine.

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

6. 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 June 26, 2015 No. 417

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" (further - the Law on banks), "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), 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.

Requirements of this Provision extend to banks, separate divisions of banks, payment institutes and members/members of the payment service providers which are banks, branches of foreign banks (further - banks).

2. In this Provision terms and concepts are used in the following values:

1) No. 42 Is excluded according to Postan ovleniye of Board of the National Bank of Ukraine of 25.05.2017;

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 implementation of financial monitoring which carrying out allows to find out essence and the purpose of financial transactions, to draw conclusion on compliance/discrepancy of financial transactions to financial condition of the client and/or content of its activities, regularity of implementation of financial transactions and it is directed to identification of the financial transactions which are subject to financial monitoring;

3) studying of financial activities of the client - carrying out comparative information analysis, the client received when implementing the analysis of financial transactions, information obtained in case of installation of the business (contractual) relations (including in the course of refining of information on questions of identification, content of activities, financial condition), and information obtained for holding time for previous period for the purpose of revaluation of risk level of the client;

4) high risk level of the client is the risk level received by results of risk assessment of the client who is determined by bank by analysis results of set of the criteria of risk of carrying out financial transactions by the client determined by bank on legalization of the criminal income / financings of terrorism and demonstrates high probability of use by the client of services of bank for legalization of the criminal income / financings of terrorism;

4-1) remote establishment of the business relations / remote opening of the account are establishment of the business relations / opening of the account with use of the BankID system of the National Bank of Ukraine (further - the BankID System);

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

6) internal documents of bank concerning financial monitoring - rules, programs, techniques, other documents concerning financial monitoring approved by bank according to requirements of the legislation of Ukraine, including this provision;

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

8) preventive measures - determined by internal documents of bank concerning financial monitoring (taking into account the Law and this provision) and other documents of bank of measure [including by refusal of establishment (maintenance) of the business (contractual) relations (in particular by termination of the business (contractual) relations), suspension/refusal of carrying out financial transactions] for the prevention, restriction and/or decrease to the acceptable level of risks of legalization of the criminal income / financings of terrorism;

9) the summary register of financial transactions - the document in electronic form which is created and kept by bank - the legal entity according to the procedure, established by Rules of financial monitoring of bank, in case of maintaining separate registers by separate divisions of bank;

10) the considerable amount - the amount of means on which financial transaction which is equal is performed or exceeds 150000 hryvnias or equals or exceeds foreign currency amount, bank metals, other assets, equivalent on the official rate of hryvnia to foreign currencies and bank metals of 150000 hryvnias (for subjects of managing which carry out lotteries or carry out and give opportunity of access to gamblings to casino, any other gamblings, including electronic (virtual) casino - 30000 hryvnias);

10-1) company cover - legal nonresident person who does not perform the actual economic activity in country of incorporation (there are no sufficient assets and/or workers for implementation of the corresponding type of economic activity) and/or structure of property of which do not allow to establish real final beneficial owners (controllers);

11) komplayens-risk of financial monitoring - risk of legal responsibility or risk of application of corrective actions by the National Bank of Ukraine (further - National Bank), emergence of financial losses and reputation losses which the bank in connection with failure to provide of proper level of compliance to all requirements of the laws of Ukraine of regulatory legal acts, rules, internal documents of bank, rules of conduct which can be applied in case of accomplishment of obligations of the subject of primary financial monitoring by bank can incur;

12) 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;

13) monitoring of risks of clients - process of tracking of criteria of risks of clients by results of customer research which is carried out for the purpose of timely identification of changes of risk on geographical arrangement of country of incorporation of the client or organization through which it performs transfer (obtaining) of assets, risk by the form of goods, services, risk as the client, including taking into account implementation by them of the risk financial transactions which are subject to financial monitoring and their regularity, for implementation of revaluation of the preset levels of risks of clients;

14) 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;

15) immediately - the shortest time during the working day in which shall be performed (to occur) the corresponding actions, from the moment of approach of the bases for their implementation;

16) low risk level of the client is the risk level received by results of risk assessment of the client who is determined by bank by analysis results of set of the criteria of risk of carrying out financial transactions by the client determined by bank on legalization of the criminal income / financings of terrorism and demonstrates low probability of use by the client of services of bank for legalization of the criminal income / financings of terrorism;

16-1) assessment of financial condition - generalization and the analysis by banks of information/documents for the purpose of ensuring establishment of sufficiency/insufficiency of real financial opportunities of the client to carry out (to initiate) financial transactions on the corresponding amounts;

17) 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 personal or digital signature or other data allowing to identify person - the initiator of implementation of transaction; name of a consignee of means, number(s) of the account (ov)] and which is the basis for reflection of financial transaction in system of automation of bank;

18) the transfer made without opening of the account - the movement of certain amount of means 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;

18-1) signature are autographic signature / the qualified digital signature which is separate detail of the document which gives to the document legal force and gives the chance to confirm integrity of signed data;

19) procedure - the accurate sequence of actions of certain process with indication of methods, forms, terms (terms) of application by employees of bank of these actions determined in internal documents of bank concerning financial monitoring;

20) the acceptable level of risks of legalization of the criminal income / financings of terrorism - the risk which is managed under control to bank, cannot cause 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;

21) the software of bank concerning financial monitoring (further - the software) - the program module(s) or the interconnected their set which are implemented in activities of bank and are used by bank for accomplishment of functions of the subject of primary financial monitoring;

22) public figures are persons who according to the Law are national, foreign public figures, figures who perform political functions in the international organizations;

23) one-time financial transaction on the considerable amount - carrying out financial transaction with cash (bank metals) on the considerable amount without opening of the account to the client;

24) regularity is quantitative index which is characterized by implementation of three and more times in month of certain actions;

25) the register of financial transactions - the document in electronic form which structure is determined by the ranking officer of bank - legal person / branch of foreign bank and which is created and kept by bank according to requirements of this provision and according to the procedure, established by Rules of financial monitoring of bank;

26) No. 42 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 25.05.2017;

27) No. 42 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 25.05.2017;

28) risk as the client - the available or potential danger (threat, weak spots) of implementation by the client of the financial transactions connected with legalization of the criminal income / terrorism financing;

29) risk on geographical arrangement of the state of registration of the client or organization (further - geographical risk) - the risk connected with financial transactions if the client or organization through which it performs transfer (obtaining) of assets takes residence, the residence, the location, place of registration in the state which is carried to offshore zones, or does not carry out, or in an inadequate way implements recommendations of the international, intergovernmental organizations involved in the sphere of fight against legalization of the criminal income / terrorism financing and/or to which the international sanctions are applied;

30) customer risk is available or potential danger (threat, weak spots) as a result of emergence of risk as the client, risk by the form of goods, services which the client receives from bank, and geographical risk separately or in total;

31) risks of legalization of the criminal income / financings of terrorism - set of risks of clients of bank and risk of use of services of bank for legalization of the criminal income / financings of terrorism;

31-1) risks - the oriented approach are the risk management system of legalization of the criminal income / financings of terrorism and acceptance of adequate measures determined by bank by it by method and amounts which provide effective minimization of these risks depending on their level;

32) risk of service - risk which arises in case of change of economic essence of financial transaction (service) through its possible use for legalization of the criminal income / financings of terrorism, in particular, if as a result of certain actions the directions and/or nature of use of cash flows change;

33) the risk of reputation is available or potential risk for receipts and the capital which arises because of 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 available relations and can lead bank (or his heads) to financial losses or reduction of client base, attraction to administrative, civil or criminal liability;

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

35) the average level of customer risk is the risk level received by results of risk assessment of the client who is determined by bank by analysis results of set of the criteria of risk of carrying out financial transactions by the client determined by bank on legalization of the criminal income / financings of terrorism and demonstrates the increased probability of use by the client of services of bank for legalization of the criminal income / financings of terrorism;

36) case of the client - case on legal execution of the account client/case of the client, identification verification of which is performed also in another by the provided law, the Law on banks and this Provision cases, containing provided by the client/representative client/person, from name either according to the order or for the benefit of which financial operation, the copies properly certified / electronic copies of documents, copies of the originals submitted by him / her of official documents and other documents / information, also electronically is performed, the BankID Systems received by means of means which is the basis for verification identification, refining / additional refining of customer information, customer research, assessment of financial condition, examination and confirmation of sources of origin of means and assets, accomplishment of other requirements of the legislation in the sphere of prevention of legalization of the criminal income / to terrorism financing (further - documents on customer research). Case of the client, including the client with whom business relations by the BankID System are remotely established, can be created and be stored in electronic form;

37) No. 99 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 03.10.2017;

38) No. 42 Is excluded according to the Resolution of Board of the National Bank of Ukraine of 25.05.2017.

3. This Provision establishes general requirements of National Bank one after another:

1) accounting of bank in specially authorized body as the subject of primary financial monitoring;

2) identifications and registration by banks of the financial transactions which are subject to financial monitoring or concerning which there are good causes to suspect that they are connected concern or are intended for financing of terrorism or financing of distribution of weapons of mass destruction;

3) developments, approvals, permanent updating of internal documents of bank concerning financial monitoring;

4) identifications, to verification of clients (representatives of clients), customer research, refining / to additional refining of customer information;

5) provisions by banks to specially authorized body of information according to requirements of the legislation of Ukraine concerning prevention of legalization of the criminal income / to terrorism financing;

6) ensuring risk management of legalization of the criminal income / financings of terrorism;

7) suspensions, renewals of financial transactions and accomplishment of decisions (orders) of specially authorized body;

8) coordination of appointment and release of the ranking officer of bank.

4. Responsibility for the inadequate organization of observance of requirements of the legislation of Ukraine in the sphere of prevention of legalization of the criminal income / to financing of terrorism and the inadequate organization of intra bank system of prevention of legalization of the criminal income / to financing of terrorism is born by the head of executive body 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).

The organization of observance of requirements of the legislation of Ukraine in the sphere of prevention of legalization of the criminal income / to financing of terrorism includes complex of actions for ensuring appointment of the ranking officer of bank according to requirements of the legislation of Ukraine in the sphere of prevention of legalization of the criminal income / to financing of terrorism, creation and activities of intra bank system of prevention of legalization of the criminal income / to terrorism financing (including risk management systems of legalization of the criminal income / financings of terrorism), acceptance and permanent updating of internal documents of bank concerning financial monitoring, control of observance of requirements of the legislation in the sphere of prevention of legalization of the criminal income / to terrorism financing (including about availability at the ranking officer of bank - the legal entity of faultless goodwill and compliance to the qualification requirements established by National Bank, updating of the list of faces tied with implementation of terrorist activities which is available in bank or concerning which the international sanctions are applied).

Responsibility for the inadequate organization of observance of requirements of the legislation of Ukraine in the sphere of prevention of legalization of the criminal income / to financing of terrorism and the inadequate organization of intra bank system of prevention of legalization of the criminal income / to financing of terrorism in the banks referred to category insolvent concerning which the procedure of temporary administration or liquidation is entered bears the authorized person of Fund of guaranteeing household deposits.

5. Ranking officers of banks for implementation of financial monitoring, undergo retraining (training) and advanced training according to the procedure, established by the Cabinet of Ministers of Ukraine.

The paragraph two is excluded according to the Resolution of Board of the National Bank of Ukraine of 25.05.2017 No. 42.

6. Bunky legal successors and banks which reorganized the separate divisions shall provide fulfillment of requirements of the legislation of Ukraine concerning storage of information on the financial transactions which are subject to financial monitoring available in reorganization and persons participating in their carrying out and in time to provide to specially authorized body information in the cases provided by the Law.

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