The NBU updated the instruction on the procedures of opening and closing the client and correspondent bank accounts of residents and non-residents, which allowed international companies to open bank accounts in Ukraine. What results should be expected from such amendments?

The NBU approved the Board Resolution of 1 April 2019, No. 56, which came into force on 4 April 2019, and amended Regulation No. 492 beginning with its title. With new amendments, non-residents of Ukraine, namely legal entities, agencies of legal entities, investment funds, and asset management companies acting on behalf of such investment funds, individuals have the right to open current, deposit and escrow accounts in Ukrainian banks. The right to open accounts in Ukraine and for non-resident legal entities to make foreign currency settlements is also provided by the Laws On Currency and Foreign Exchange TransactionsOn Amendments to Certain Laws of Ukraine on Promotion of Foreign Investments, as well as the Association Agreement between Ukraine and the European Union.

Certainly, such legislative changes will interest foreign companies. If a non-resident decides to buy real estate, assets or corporate rights in Ukraine, he will open an account in a Ukrainian bank without any restrictions.

The renovated document significantly streamlines the monetary movement and simplifies business conditions. In addition, the requirements for submission to a bank of the card with authorized signatures and closing of the accounts due to the change of the legal entity’s name are canceled.

Also, non-resident legal entities have the opportunity to realize the pledge right on property rights to the amount of funds that remained in the deposit account. Finally, as Ukrainian banks offer quite high deposit rates, foreign companies have the opportunity to earn additional income by placing currency savings there.

At the same time, the NBU reserves the right to impose restrictions and safeguards. Under such conditions, time will show if the rights for non-residents and residents will be equal in the currency transactions sphere and requirements of the NBU.

Kateryna Breduliak, senior associate, banking and finance, exclusively for The Ukrainian Journal of Business Law