National Bank of Ukraine strengthened measures to prevent capital outflow to Russia
The National Bank of Ukraine (NBU) has tightened measures to prevent capital flows to the Russian Federation, according to the central bank's website.
The statement outlined that "from now on, the National Bank has the right to refuse to issue individual licenses for certain foreign exchange transactions, if information in submitted documents reveals that either the participant or the person in whose favor the operation is carried out is a person who resides in a country that is recognized by the Verkhovna Rada (Supreme Council) of Ukraine as an aggressor state or state-occupier.”
The National Bank at the same time recalls that the law "On Ensuring the Rights and Freedoms of Citizens and the Legal regime in the Temporarily Occupied Territory of Ukraine," recognizes the Russian Federation as an aggressor state.
With that in mind, the NBU has made changes to instructions regarding the procedure of issuing individual licenses for investing abroad; the provisions for the procedure of issuing individual licenses for transferring foreign currency outside Ukraine in the form of banking payment and certain foreign currency transactions; and the provisions for the right of the NBU to offer individual licensing of currency values to residents (legal and natural persons) on accounts outside of Ukraine.
These changes have been formalized in Decree №12 of the Board of NBU, "On Amendments to Some Legal Acts of the NBU," dated February 21, 2017. They will go into effect on February 23, 2017.