The initiatives of the National Bank for working with cash have been legalized

Parliament draft law No. 8331-d on improving the functioning of the financial sector in Ukraine, which was adopted on Thursday as a whole, changed the functions and authorities of the NBU in the sphere of monetary policy.

This law, adopted on July 5 for the reform of corporate governance in state-owned banks, deputies legalized the initiatives of the NBU, which it had long been implementing by subordinate legislation, and which have nothing to do with the work of state-owned banks.

This is evidenced by the text of the adopted law, reports FinClub.

This document introduced a number of amendments to the law "On the National Bank of Ukraine".

Firstly, the updated Article 7 now says that the NBU "organizes and collects money and transports currency valuables, in the procedure approved by it, issues licenses to legal entities to provide banks with cash collection services, stops, renews and recalls them." Until now, this article indicated that the NBU "issues licenses for the right to collect and transport banknotes and coins", but it was not specified to whom and how.

This allows the NBU to introduce its initiatives in the legal field to admit not only banks, but also SIT companies (Cash-in-Tranzit companies) to the collection market. He decided to issue licenses to SIT-companies at the end of 2015, but only in December 2016 issued the first license. By the spring of 2018, five licenses had already been issued.

Secondly, the NBU's new law loses the function of "ensuring that the securities and other valuables confiscated (arrested) in favor of the state and / or those recognized as ownerless are recorded and stored, for which it can open securities accounts in depository institutions" . Now in Art. 56 of the Law "On Enforcement Proceedings" states that such assets are transferred to banks for storage, and not to the NBU, in the presence of an agreement between the bank and government executive bodies or private executors. It is known that the confiscated "assets of Yanukovych" were kept in Oschadbank.

The NBU's authority to organize cash circulation changes (Article 33). Now the NBU is "making and storing banknotes and coins." In the new version of the law there is a phrase about "making banknotes and coins", but "stored" they can not only in the NBU.

Banknotes and coins can be stored either in the NBU or "in authorized banks", to which the NBU will be able to make demands. Note that the NBU has already selected three banks that are authorized to store cash to supply them to other banks. These are Oschadbank, PrivatBank and Raiffeisen Bank Aval. Their services were needed by the NBU after the closure of its all-Ukrainian network of territorial offices. NBU was going to leave only the storehouses in Kiev and Lviv.

Separately in Art. 42 it was added that the NBU passes banknotes and coins to banks for the storage and conduct of operations with them. NBU will also be able to audit the availability of money in banks authorized to store them.

Thirdly, Article 33 also changes the requirements for "technical condition and organization of protection of premises of banks". More precisely, these requirements will be applied not only to banks, but also to "non-bank financial institutions and postal service operators who have received a license from the NBU to conduct foreign exchange operations and / or a license to transfer funds without opening an account."

It has long been requested by SIT companies that can carry cash, but they can not collect and store them. Now, the NBU will set technical requirements for their safes.

Source: Financial Club

(translated using Google translator)