On the Procedure of Imposing the Fines by the National Bank of Ukraine for Infringing by Banks the Requirements of Law of Ukraine “On Prevention and Counteraction of Legalization (Laundering) of the Proceeds from Crime”

Resolution of the Board of the National Bank of Ukraine of 17.03.2004, # 108
Registered in
the Ministry of Justice of Ukraine
April 5, 2004, under # 422/9021
In pursuance of Article 17 of the Law of Ukraine “On Prevention and Counteraction of Legalization (Laundering) of the Proceeds from Crime” and in compliance with Article 56 of the Law of Ukraine “On the National Bank of Ukraine” the Board of the National Bank of Ukraine

DECREES:

  • For non-fulfillment (improper fulfillment) of the requirements of Articles 5, 6, 7 and 8 of the Law of Ukraine “On Prevention and Counteraction of Legalization (Laundering) of the Proceeds from Crime” (hereinafter referred to as the Law) by a bank the National Bank of Ukraine (hereinafter referred to as the National Bank) may impose on the bank a fine commensurately with the infringement in the amount of up to one thousand tax-exempt minimum natural person’s incomes.
    A fine for any infringement in the activity of a bank’s branch shall be imposed directly on the bank’s main branch (as a legal entity).

  • The National Bank shall impose a fine on a bank on the basis of results of scheduled and casual inspections of the activities of banks or their branches.
    If the inspection data also contain facts of an infringement of the banking laws and/ or regulations of the National Bank by the bank in question, the decision to impose a fine on the bank for infringing the requirements of the Law shall be taken simultaneously with application of enforcement measures for infringing the banking laws and/ or regulations of the National Bank.
    The decision to impose a fine on the bank commensurately with the infringement shall be taken by the Commission of the National Bank of Ukraine on Banking Supervision and Regulation (hereinafter referred to as the Commission of the National Bank of Ukraine) or by the respective Commission of the National Bank at the Regional Branch Office (hereinafter referred to as the Commission of the National Bank at the Regional Office).
    The decision of the Commission of the National Bank (the Commission of the National Bank at the Regional Office) to impose a fine on a bank shall include the list of the revealed infringements with references to the provisions of the Law.
    The decision of the Commission of the National Bank to impose a fine on a bank shall be sent to the respective regional branch of the National Bank not later than the next working day after the day it is taken.

  • If the Commission of the National Bank (the Commission of the National Bank at the Regional Office) considers the matter with regard to imposing a fine on a specific bank, the chairman of the board (board of directors) or the chairman of the supervisory council of the bank may be invited to present explanations. A written (or e-mail) invitation shall be sent at least three days prior to the meeting day. The meeting results shall be registered in the protocol with enclosed written explanations of the invited person and his/ her signature therein.
  • Within five working days after receiving (taking) the decision of the Commission of the National Bank (the Commission of the National Bank at the Regional Office) on imposing a fine, the regional branch of the National Bank (a banking supervision unit of the main branch which directly oversees the bank in question) shall send this decision with a covering letter containing a proposal to the infringing bank to voluntarily pay the fine within three working days starting from the day following the receipt of this decision by the bank.
    If within three working days after receiving the decision of the Commission of the National Bank (the Commission of the National Bank at the Regional Office) on imposing the fine the bank fails to pay it, the National Bank (a respective regional branch of the National Bank) shall apply to the court with a claim for collecting the fine from the infringing bank.

  • Amounts of the fines withheld shall be reflected within class 7 of the Chart of Accounts for Ukrainian Banks approved by the NBU Board Resolution of November 21, 1997, No. 388, under account 7397.
  • In case of repeated infringements of the Law requirements by a bank, the National Bank (a respective regional branch of the National Bank) shall apply to the court with a claim for restriction, suspension or withdrawal of the license (permit) to carry out banking activity or certain operations by the infringing bank.
  • The Resolution shall come into force 10 days after its registration by the Ministry of Justice of Ukraine.
    After the state registration by the Ministry of Justice of Ukraine the Office of Methodological, Normative and Organizational Support of Financial Monitoring (O.M. Berezhnyi) shall inform the regional branches of the National bank and the banks of Ukraine of this Resolution contents in order to use it as guidance in their work.

  • The control over this Resolution fulfillment shall be imposed on the Deputy Governor O.V. Shlapak, the General Department of Banking Supervision (V.V. Pushkariov), the Office of Methodological, Normative and Organizational Support of Financial Monitoring (O.M. Berezhnyi) and the heads of regional branches of the National Bank.


S.L. Tigipko
Governor