On Amending The Law Of Ukraine "on Banks And Banking Activity"

Original Language Title: Про внесення змін до Закону України "Про банки і банківську діяльність"

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Read the untranslated law here: http://zakon3.rada.gov.ua/laws/show/358-16

                                                          
With a k o n u r as th h s on amendments to the law of Ukraine "on banks and banking activity" (Supreme Council of Ukraine (BD), 2007, N 2, art. 15) {amended according to the law N 4452-VI (4452-17) d.d.23.02.2012, VVR, 2012, N 50, art. 564} the Verkhovna Rada of Ukraine about with t and o in l I is : I. To the law of Ukraine "on banks and banking activity" (2121-14) (Supreme Council of Ukraine, 2001, N 5-6, St. 30. 2003, N 14, art. 104; 2006, N 43, St. 414) are as follows: 1. in article 2: definition of the term "Bank with foreign capital" resident "is greater than" replace the words "the foreign investor, is not less than";
definition of "banking license" after the words "on the basis of which banks" add the words "and branches of foreign banks;
Add to article after the definition of "capital subscription" definition such content: pripisnij "capital-the sum of cash in a freely convertible currency, provided foreign bank branches for accreditation";
definition of "representation" after the words "Division of the Bank," add the words "performs the functions of representation and protection of interests of the Bank.
2. Article 3 of the supplement a new part of the following content: "the provisions of this law and the regulations of the National Bank of Ukraine apply to banks and branches of foreign banks."
In this regard, part of the second and third installments respectively considered the third and fourth.
3. the first part of article 4, after the words "other banks" add the words "as well as branches of foreign banks."
4. Articles 23 and 24 lay in the following wording: article 23. Procedure for opening branch offices and representative offices of banks on the territory of Ukraine, the Bank has the right to open branches and representative offices on the territory of Ukraine in case of its compliance with the requirements concerning the opening of branches and representative offices established by the legislative acts of the National Bank of Ukraine.
Information about branches and representative offices of banks, the National Bank of Ukraine includes the State Register of banks on the basis of written notice to the Bank.
The Bank not later than ten days before the beginning of the implementation branch of bank customer service shall submit the National Bank of Ukraine the message on opening branches, which States: 1) internal funds the registration code of the branch;
2) full name of the branch;
3) the location of the branch;
4) scope and activities (operations) that run a branch.
The message on the opening of branches are attached the following documents: 1) the decision of the authorized body of the Bank about the opening of the branch;
2) regulations on the branch approved by the authorized body of the Bank;
3) written assurance of compliance branch the requirements established by this Act and the regulations of the National Bank of Ukraine, including premises, equipment bank branches and proficiency and business reputation managers.
National Bank of Ukraine has the right to decide on the termination of the implementation of the Bank's branch operations in favour of or on behalf of the client, if the information about the opening of the Bank its affiliates provides false information or activity of the branch do not meet the requirements of the law and regulatory acts of the National Bank of Ukraine.
Bank in two weeks after making him the decision about the opening of a representative office is obliged to submit the National Bank of Ukraine the message on opening the representation.
The message on the opening of the representative office are added the following documents: 1) the decision of the authorized body of the Bank about opening of representative office;
2) provisions on representation, approved by the authorized body of the Bank.
The Bank shall send a copy of the National Bank of Ukraine amendments to the regulations on the branch or representative office in the two-week period after its approval by the authorized body of the Bank.
The Bank is obliged to inform the National Bank of Ukraine on the termination of a branch or a representative office within three days after the adoption of the corresponding decision.
Article 24. Procedure for opening branches and representative offices of foreign banks in the territory of Ukraine, foreign banks have the right to open branches and representative offices on the territory of Ukraine.
A foreign bank has the right to open branches in Ukraine by the following conditions: 1) the State in which the registered foreign bank belongs to the States participating in the international cooperation in the field of prevention and counteraction of legalization (laundering) of the proceeds from crime and financing of terrorism, as well as collaborating with the Group on the development of financial measures to combat money-laundering (FATF);
2) banking supervision in the State in which the registered foreign bank, meets the basic principles of effective banking supervision the Basel Committee on banking supervision;
3) between the National Bank of Ukraine and the State's banking supervisory body, which registered a foreign bank, signed an agreement on cooperation in the field of banking supervision, harmonization of their principles and conditions;
4) minimum size of pripisnogo capital of the branch at the time of its accreditation is not less than 10 million euros;

5) the presence of a written obligation of the foreign bank on the unconditional execution of the obligations that have arisen in connection with the activities of its affiliates on the territory of Ukraine.
Accreditation of branches of foreign banks in Ukraine carries out the National Bank of Ukraine.
Accreditation of the branch of a foreign bank is carried out by making the appropriate entry in the State Register of banks and the issuance of banking licenses.
Accreditation of foreign branches of the Bank are the basis for realization of banking activities.
For accreditation of foreign branches of the Bank are: 1) the petition of a foreign bank on opening branches, indicating its location on the territory of Ukraine;
2) document confirming the State registration of the foreign bank in the country of his origin;
3) decision of the authorized body of the foreign bank of the opening of the branch;
4) regulations on the branch approved by the authorized body of the foreign bank;
5) information about the proficiency and business reputation Manager and Chief Accountant of a branch of a foreign bank;
6) Charter of the foreign bank;
7) confirmed by the independent auditor of the financial statements of the foreign bank for the last three years;
8) written permission to open a branch of a foreign bank in Ukraine, issued by the State or other authorized controlling authority of the State in which the registered foreign bank, or a written assurance of a foreign bank the absence in the legislation of the corresponding State requirements for obtaining such a permit;
9) notification of the authorized body of the foreign State of supervision over the activities of the foreign bank;
10) a written undertaking of the foreign bank on the unconditional execution of the obligations that arise in connection with the activities of its affiliates on the territory of Ukraine;
11) documents confirming the making of funds in the amount of pripisnogo capital of the branch;
12) a copy of the payment document of registration fee for accreditation of the branch of a foreign bank, the National Bank of Ukraine.
The activities of the branch of a foreign bank must meet the requirements established by this law and the regulations of the National Bank of Ukraine. National Bank of Ukraine carries out activities and establishes economic standards for branches of foreign banks in accordance with the legislation of Ukraine.
The National Bank of Ukraine has the right to deny accreditation to a branch of a foreign bank on the following bases: 1) the submitted documents do not meet the requirements of this law and legal acts of the National Bank of Ukraine;
2) premises and equipment of the branch do not meet the requirements of the National Bank of Ukraine;
3) nominees for Director and Chief Accountant of the branch do not meet the requirements of this law and legal acts of the National Bank of Ukraine on conformity of the professional and business reputation;
4) in foreign bank discovered financial or legal problems, pointing to the possibility of negative consequences for clients or potential clients of the Bank as a result of the opening of the branch.
National Bank of Ukraine takes decision on accreditation or denial of accreditation of the branch of a foreign bank within three months after submission of all the required documents. Refusal provided in writing with an indication of the relevant reason.
Activities and taxation branch of the foreign bank is carried out in accordance with the legislation that applies to banks of Ukraine.
The National Bank of Ukraine has the right to enter a temporary administration and initiate the procedure for liquidation of the branch of a foreign bank in the manner prescribed by the legislation of Ukraine.
National Bank of Ukraine carries out accreditation of representative offices of foreign banks in the territory of Ukraine in the manner and on the conditions determined by this law and the regulations of the National Bank of Ukraine.
Accreditation of the representative office of a foreign bank is carried out by making the appropriate entry in the State Register of banks.
For accreditation of the representative office of a foreign bank are the following documents: 1) a petition of a foreign bank on the accreditation of representation signed by the authorized person;
2) document confirming the State registration of the foreign bank;
3) provisions on representation, approved by the competent authority of the foreign bank;
4) power of attorney to the Manager of the representative office of a foreign bank to carry out executive functions;
5) copy of the payment document of registration fee for accreditation of representative offices of the National Bank of Ukraine.
The National Bank of Ukraine may refuse accreditation of the representative office of a foreign bank in the case of violation of the procedure of accreditation, the misfit filed documents with the requirements of this Act or the regulations of the National Bank of Ukraine, nedostovìrnostì information provided or excess of powers concerning the spheres of activity of the representative office.
The decision on accreditation or denial of accreditation of the representative office of a foreign bank, the National Bank of Ukraine takes within one month from the date of submission of all required documents.
Refusal provided in writing with an indication of the relevant reason.
A foreign bank is obliged to inform the National Bank of

On the changes of documents or information referred to in paragraphs 4-6 parts of sixth and paragraphs 3 and 4 of part čotirnadcâtoï of this article. Amendments must be confirmed by relevant documents.
Official documents that are the National Bank of Ukraine, should be legalized in the established order, unless otherwise provided by international agreements, consent to be bound by the Verkhovna Rada of Ukraine, and be accompanied by a notarized translation into Ukrainian.
5. the first part of article 57 lay in the following wording: "deposits of banks and branches of foreign banks are guaranteed in the manner and amount prescribed by the legislation of Ukraine.
II. Final provisions 1. This law shall become effective from the date of accession to the World Trade Organization, in addition to the changes to article 5 of the law of Ukraine "on foreign economic activity" (959-12), to articles 2, 4, 23, part 12-the nineteenth article 24 (in the wording of this Act) of the law of Ukraine "on banks and banking" (2121-14), which take effect from the day of its publication.
2. Make changes to the following legislative acts of Ukraine: 1) in part 1 of article 334 of the commercial code of Ukraine (435-15) (Supreme Council of Ukraine, 2003, NN 18-22, art. 144) the words "(public and private), replace the words" as well as branches of foreign banks;
2) in a paragraph to the first part of the eighteenth article 5 of the law of Ukraine "on foreign economic activity" (959-12) (Supreme Council of USSR, 1991, N 29, art. 377) the second sentence replace the two sentences of the following contents: "accreditation of branches and representative offices of foreign banks and carries out the National Bank of Ukraine in accordance with the law of Ukraine" on banks and banking activity "(2121-14). Registration of representative offices of other foreign entities carries out the central body of the Executive Branch on economic policy within sixty working days from the date of filing of the foreign business for the documents for registration.

{Sub 3 paragraph 2 of section II repealed by law N 4452-VI (4452-17) d.d.23.02.2012}

3. the Cabinet of Ministers of Ukraine: in the three-month period after the enactment of this Act apply to the Parliament proposals on bringing the laws into conformity with this Act;
in the six-month period after the enactment of this Act to bring their regulations into conformity with this Act.
4. the National Bank of Ukraine for one year after the enactment of this Act to bring their regulations into conformity with this Act.

President of Ukraine v.Yushchenko Kyiv, November 16, 2006, N 358-V