The National Bank of Ukraine (NBU) intends to introduce a series of measures aimed at narrowing the scope of the use of cash.
In particular, the NBU intends to:
- reduce the maximum amount of cash settlements between business entities and individuals from UAH 50,000 to UAH 15,000 (so that the said amount will not exceed 10% of the amount established for cash financial transactions subject to mandatory financial monitoring) [1]
- impose a limit of up to UAH 15,000 on the amount of cash settlements by individuals who are attorneys of business entities and who receive cash on condition of accountability to perform certain civil and legal actions on behalf and at the expense of such business entities
- obligate business entities withdrawing cash from current accounts for the purpose of making cash settlements with individuals to provide, at the request of a bank (its branches or subsidiaries), supporting documents on the basis of which such cash settlements are being made and other documents requested by the bank (branch, subsidiary) to acquire information about the customer.
To that end, the NBU has prepared and brought up for public discussion the NBU Board Draft Resolution On Approval of Amendments to the Regulation on Cash Operations in Domestic Currency in Ukraine (hereinafter – the Draft Resolution).
The Draft Resolution is intended to:
- narrow the scope of the use of cash
- contribute to the reduction of the shadow economy
- promote further development of the cashless segment
- ensure a stable cash inflow to the banking system.
At the same time, the upper threshold of UAH 50,000 for cash settlements between individuals and business entities will remain unchanged.
In addition, cashless settlements between business entities can be carried out without any restrictions, and banks are required to ensure cashless transfers in full on demand of customers.
The Draft Resolution takes into account the powers of the NBU under Article 1087 part 3 of the Civil Code of Ukraine and the laws of Ukraine On Preventing and Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction and On Banks and Banking.
Furthermore, the project is intended to streamline the Regulation on Cash Transactions in Domestic Currency in Ukraine [2] and to bring its provisions in line with the legislation.
Regulatory impact analysis of this Draft Resolution is enclosed.
Suggestions and comments will be accepted by mail or email before 27 March 2019.
Postal address: Cash Circulation Department, National Bank of Ukraine, 9, Instytutska St., Kyiv, 01601.
Email: 22SPRA@U1H0, [email protected]