Dear customers!
Resolution of the Board of the National Bank of Ukraine No26 of March 16, 20231 obliges banks to collect information on the connections of clients and their counterparties with a state that carries out armed aggression2 against Ukraine (to date, such states are the Russian Federation and the Republic of Belarus), and citizens/residents of such a state.
The relevant regulation defines the categories of clients, in respect of which the bank is obliged to reveal and document such information, and the amount of relevant information for each category. According to the NBU's expectations, the collection and documentation of the specified information will contribute to increasing transparency regarding the clients of banks that have ties with the aggressor state, and to reveal the hidden presence of the aggressor state on the Ukrainian market, which in turn is a critically important process in the conditions of a full-scale invasion.
Clients that need to be identified are divided into 15 categories:
- citizens of a state that carries out armed aggression against Ukraine;
- legal entities created and registered in accordance with the legislation of the state carrying out armed aggression against Ukraine;
- participant (shareholder) of which is a state carrying out armed aggression against Ukraine;
- the ultimate beneficial owner of which is a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose place of permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine;
- Participant (shareholder) of which is a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose 2nd place of permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine, and/or a legal entity created and registered in accordance with the legislation of the state carrying out armed aggression against Ukraine;
- participants (shareholders) of a legal entity created and registered in accordance with the legislation of the state carrying out armed aggression against Ukraine;
- participants (shareholders) of legal entities jointly with a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose place of permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine, and/or a legal a person created and registered in accordance with the legislation of the state that carries out armed aggression against Ukraine;
- legal entities with management structure and/or manager is a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine;legal entities whose management structure and/or manager is a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine;
- who have business relations with a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose permanent residence (residence, registration) is a state that carries out armed aggression against Ukraine;
- who have business relations with a legal entity created and registered in accordance with the legislation of the state carrying out armed aggression against Ukraine;
- who have business relations with a legal entity, a participant (shareholder) that has a share in the authorized capital of 10 percent or more, which is a state that carries out armed aggression against Ukraine, and/or a citizen of a state that carries out armed aggression against Ukraine, and/or a person whose place of permanent residence/registration) is a state carrying out armed aggression against Ukraine, and/or a legal entity created and registered in accordance with the legislation of a state carrying out armed aggression against Ukraine;
- legal entities that have subsidiary companies, branches, representative offices and/or other separate units on the territory of the state that carries out armed aggression against Ukraine;
- own securities (except for shares) of legal entities created and registered in accordance with the legislation of the state carrying out armed aggression against Ukraine and/or such state itself;
- regarding which during the monitoring of financial operations using a risk-oriented approach, based on the results of the verification of the source of funds, it was established that the source of funds related to the financial operation of such a client originates from a state that carries out armed aggression against Ukraine;
- who directly and/or indirectly transfer (receive) assets to (from) Ukraine, using depository institutions, banks, other financial institutions and non-bank payment service providers, whose place of residence and/or registration is a state that carries out armed aggression against Ukraine.
From July 1, 2023, relevant questions have been added to customer questionnaires.
We also draw your attention to the fact that according to the terms of clause 3.19 of the RULES OF SERVICE FOR INDIVIDUALS AT PRAVEX BANK JSC and RULES OF SERVICE FOR LEGAL AND SELF-EMPLOYED PERSONS AT PRAVEX BANK JSC, the client is obliged to notify the Bank of all changes in documents and information (no later than 3 calendar days after the occurrence of changes) provided by the Client during the conclusion of the Comprehensive Service Agreement or during its term of validity.
If you have any doubts about whether you belong to one of the above categories of clients, please contact the client manager for additional, comprehensive clarifications.
Thank you for your cooperation!
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[1] https://bank.gov.ua/ua/legislation/Resolution_16032023_26
[2] Armed aggression against Ukraine is considered any of the following actions:
invasion or attack by the armed forces of another state or group of states on the territory of Ukraine, as well as occupation or annexation of part of the territory of Ukraine;
blockade of ports, coastline or airspace, violation of Ukraine's communications by the armed forces of another state or group of states;
an attack by the armed forces of another state or group of states on the military land, sea or air forces or civilian sea or air fleets of Ukraine;
the sending by another state or on its behalf of armed groups of regular or irregular forces, which commit acts of use of armed force against Ukraine, which are of such a serious nature that it is equivalent to the actions listed in paragraphs five to seven of this article, including the significant participation of the third states in such actions;
the actions of another state (states), which allows its territory, which it has placed at the disposal of a third state, to be used by this third state (states) to carry out the actions specified in paragraphs five to eight of this article;
the use of units of the armed forces of another state or group of states, which are on the territory of Ukraine in accordance with international treaties concluded with Ukraine, against a third state or group of states, other violations of the conditions stipulated by such treaties, or the continuation of the stay of these units on the territory of Ukraine after the termination of the specified contracts;
