The Law of Ukraine “On Currency and Foreign Exchange Transactions” dated June 21, 2018, No. 2473-VIII (hereinafter – the Law) substantially changed the life of both legal and individuals in the part concerning the currency transactions. In addition, the National Bank has approved a significant number of normative acts that are either directly envisaged or directly related to the Law. Let’s consider some changes.
Accounts
Residents have the right to open accounts in foreign financial institutions and carry out foreign currency transactions through such accounts, while non-residents – accounts with Ukrainian financial institutions. In addition, residents have the right to acquire foreign currency values abroad, carry out their cross-border transfer and cross-border movement. Although, they may do this in view of the limitations set forth by the Law and other laws of Ukraine. No individual licenses are required for this, in general any mention of them disappeared from the Law.
Previously, for the population there was a ban on having foreign currency accounts in foreign banks without an individual currency license of the National Bank of Ukraine (hereinafter – NBU). In recent years, it has weakened, and it has become possible to open accounts abroad, in particular, for wages, scholarships, etc. Legal entities for opening accounts abroad also needed an individual license from the NBU.
Movement
Transboundary movement of individuals by currency values in an amount equal to or greater than the equivalent of 10 thousand euros at the official exchange rate established by the NBU on the day of movement across the customs border of Ukraine should be subject to written declaration to the central executive body, which implements the state tax and customs policy.
It should be recalled, according to the Law, the transboundary movement of currency values is the import, transfer to the customs territory of Ukraine, export, transfer from the customs territory of Ukraine or transit through the customs territory of Ukraine of bank metals, cash currency. Regulation on the transboundary movement of currency values approved by the decision of the NBU Board of 02.02.2019, No. 3.
Transfers
An important document that will directly affect the activities of the company, is the Regulations on the implementation of transactions with currency values, approved by the decision of the NBU Board of 02.01.2019, No. 2. The document, in particular, defines the procedure for the purchase, sale, exchange of cashless foreign currency, the order conducting settlements for currency transactions and the procedure for trading currency valuables in cash. It should be noted that in accordance with para. 33 of the said Regulation, transfers of foreign currency without opening an account within Ukraine for payment in cash without being credited to the current account of an individual in a foreign currency is prohibited.
