The new Law of Ukraine «On currency and currency operations» No. 2473-VIII dated June 21, 2018 (hereinafter – the «Law») entered into force on July 7, 2018, and was put into operation on February 7, 2019. The adoption of the Law is the first attempt to simplify currency regulation in Ukraine, in particular to ensure the free conducting of currency operations on the territory of Ukraine and the free movement of currency funds when carrying out these operations between residents and non-residents.
The main principle on which the provisions of the Law are based is «everything that is not directly prohibited by legislation is permitted».
Brief list of the main changes that have occurred in currency regulation:
for individuals: Individual licenses for carrying out currency operations on transferring funds from Ukraine with the aim of fulfilling one's own obligations to a non-resident under a life insurance contract / placing funds on one's own account outside Ukraine / making an investment abroad have been cancelled; Carrying out currency supervision on transfers abroad in the amount of UAH 150,000 or more; Purchase of foreign currency on the IFEM is carried out without supporting documents/obligations in the amount of UAH 150,000 or more; The receipt of currency under a credit contract with a non-resident and the purchase of currency for the payment of the loan remained – at one bank; Payment to a non-resident of dividends accrued for the period until 2018 inclusive in the amount of no more than EUR 7,000,000 per month; Return of investments to a non-resident in the case of sale of securities, corporate rights, funds received as a result of the reduction of statutory capital of legal entities, withdrawal of foreign investors from business companies in the amount of no more than EUR 5,000,000 per month; The option of purchase-sale of currency through PTKS (payment terminal + ATM); Financial monitoring of payments on currency operations is carried out from UAH 150,000 and more; Purchase of cash foreign currency in the amount of up to UAH 150,000 for one person is carried out during one day at one bank; For individuals, a limit on the transfer of currency abroad is established, including for carrying out currency operations on transferring funds from Ukraine with the aim of fulfilling one's own obligations to a non-resident under a life insurance contract / placing funds on one's own account outside Ukraine / making an investment abroad in the amount of no more than EUR 50,000 per year; Operations within the limit must be agreed by the servicing bank with the NBU before they are carried out; The servicing bank will further have the right to demand from a resident additional documents related to the carrying out of currency supervision on a currency operation. for legal entities: Carrying out currency supervision on transfers abroad in the amount of UAH 150,000 or more; Purchase of foreign currency on the IFEM is carried out without supporting documents/obligations in the amount of UAH 150,000 or more; The limit term of settlements on export and import operations – 365 days; Mandatory sale of currency receipts in currency of the 1st group of the Classifier and Russian rubles in the amount of 50%; The purchase of currency for carrying out settlements under each foreign economic contract at one bank remained (with the option of transferring the contract to another bank, as previously); The receipt of currency under a credit contract with a non-resident and the purchase of currency for the payment of the loan remained – at one bank; The prohibition on the termination of obligations under a foreign economic activity contract and its removal from currency supervision through offset under export contracts remained; Return of investments to a non-resident in the case of sale of securities, corporate rights, funds received as a result of the reduction of statutory capital of legal entities, withdrawal of foreign investors from business companies in the amount of no more than EUR 5,000,000 per month; Financial monitoring of payments on currency operations is carried out from UAH 150,000 and more; For legal entities, a limit on the transfer of funds for certain operations (for example, placement of investments abroad) is established in the amount of no more than EUR 2,000,000 per year. Operations within the limit must be agreed by the servicing bank with the NBU before they are carried out; The servicing bank will further have the right to demand from a resident additional documents related to the carrying out of currency supervision on a currency operation.
The Law has cancelled liability for unlawful opening or use of currency accounts outside Ukraine.
Also, the Law has changed liability for violation of the requirements of currency legislation by establishing the following liability:
For individuals for violation of the rules on currency operations – in the form of a fine in the amount from five hundred to one thousand non-taxable minimums of citizens' incomes with confiscation of currency valuables; For officials of enterprises, institutions, and organizations regardless of the form of ownership or citizens - subjects of entrepreneurial activity for violation of the procedure for carrying out currency operations – in the form of a fine from one thousand to three thousand non-taxable minimums of citizens' incomes; For legal entities – in the form of penalty sanctions in the amount of up to 100 percent of the amount of the operation carried out in violation of currency legislation.
