News (#07-08 July-August 2017)

Law Digest

NBU simplified rules for investing abroad

The National Bank of Ukraine has simplified the procedure for legal entities to make investments abroad. The corresponding changes are formalized by NBU Resolution No.51 of 8 June 2017 and came into force on 12 June 2017.

So, businesses have gained an opportunity to invest up to USD 2 million in equivalent funds abroad on the basis of one currency license per one calendar year. Up till now, the limit on the total amount of such transactions was USD 50,000 per one calendar month.

The NBU set various requirements for obtaining licenses, depending on the amount of investments abroad. If the sum of investment is less than USD 50,000, then simplified requirements for the list of documents required for obtaining a license will be applied.

At the same time, for an investment of more than USD 50,000, an expanded list of documents is introduced, which is intended to help the NBU prevent the use of currency licenses for the systemic outflow of capital. In particular, legal entities-residents will have to confirm the economic feasibility of a transaction, availability of transparent sources of funds for making a transaction, and will also have to provide information about the ultimate beneficiaries of parties of an investment transaction.


Requirements for loan intermediaries established

The NBU has established requirements for credit intermediaries and for intermediary contracts. Individuals, individual entrepreneurs and heads of legal entities who are credit intermediaries must meet the following requirements: 1) be residents of Ukraine; 2) have a sufficient level of knowledge in the field of consumer credit; 3) have full civil capacity; 4) have an impeccable business reputation.

Moreover, the mentioned persons need to constantly maintain their level of knowledge and undergo training on consumer credit issues at least once a year.

If a credit intermediary meets the specified requirements, it concludes an intermediary contract with a bank. The bank posts information on the contract’s conclusion on its official website, after which the intermediary can start its activities.

All credit intermediaries will be included in the special list compiled by the National Bank of Ukraine.

In case of credit intermediary non-compliance with the requirements listed above, the bank must terminate the intermediary contract, apply to the NBU to exclude the intermediary from the list and stop issuing consumer credits through it.

Responsibility for violation of the law by the credit intermediary lies with the bank that concluded the intermediary contract with the latter.

The requirements for credit intermediaries and intermediary contracts are established by the Resolution of the National Bank No. 50 of 8 June 2017, which came into force on 10 June.


Exemption from fines for taxpayers affected by cyber attacks

On 26 July the Law On Amendments to Subsection 10 of Section XX of the Tax Code of Ukraine (regarding non-application of punitive sanctions for late registration of tax and excise invoices due to unauthorized interference with the work of taxpayers’ computer networks) came into force.

Thus, according to introduced amendments, a taxpayer who delayed registration of tax invoices and calculation of adjustments (drawn up for the period 1 June 2017 to 30 June 2017) will not be fined if he/she registers such tax invoices no later than 31 July 2017.

The same applies to registration of excise invoices and/or calculations of adjustments to excise invoices. The documents registered prior to this date shall be deemed as registered in a timely manner.


NBU made it easier to verify financial transactions with Russia

The National Bank of Ukrainereduced the list of verifiable and analyzable financial transactions with persons who are located in a country recognized by the Verkhovna Rada as an aggressor state/occupier state. This is stated in the relevant amendments to The Regulation On the Procedure for Banks to Analyze and Verify Documents (information) on Financial Transactions and their Participants approved by the Resolution of the NBU Board No.67 of 24 July.

The document obliges all banks to ensure comprehensive analysis and verification of documents (information) on financial transactions (intentions to conduct financial transactions), as well as information about their participants.

At the same time, this document provided that for a number of financial transactions this requirement, except for transactions with persons located in a country recognized as an aggressor state/occupier state, does not apply.

A new version of the provision excludes reservation on transactions with persons from the aggressor state.

At the same time, transactions to execute agreements between residents and international companies from the list of the 2,000 largest public companies, as well as on return of foreign investors’ funds from sale of securities listed on stock exchanges, where a person from the aggressor state participates, are still subject to compulsory comprehensive analysis and verification.


Energy Efficiency Fund Law

On 20 July Ukrainian President Petro Poroshenko signed the Law On Energy Efficiency Fund. The Law is aimed at supporting implementation of energy efficiency in the country’s multi-storey housing sector, and will also attract EUR 100 million from the European Union for its operations.

The Energy Efficiency Fund was formed to support energy efficiency initiatives, to introduce incentive measures and support the implementation of energy saving and energy efficiency measures (hereinafter — energy efficiency measures), in particular, in the housing sector, taking into account the national plan on energy efficiency and dioxide carbon emissions reduction in order to implement the Paris Agreement, introduction of acquis communautaire of the European Union and the Treaty establishing the Energy Community, ensuring Ukraine’s compliance with international obligations in the field of energy efficiency.

The Fund’s annual budget is formed with funds from the State Budget of Ukraine and resources that the Fund receives as grants or otherwise attracts from any other sources not prohibited by the Law, subject to restrictions established by this Law.


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