NBU changes rules for inspections of banks and financial companies: what awaits business

The National Bank of Ukraine is updating the rules for controlling banks and financial institutions, adapting the inspection system to the conditions of martial law and modern risks. The regulator is strengthening the requirements for internal control, digitalization of processes and transparency of financial transactions.

The new rules provide for both additional obligations for the financial sector and new protection mechanisms for the institutions themselves.

NBU switches to quarterly risk assessment

One of the key innovations will be a regular assessment of the risks of using financial institutions for money laundering.

From now on, the NBU will conduct:

quarterly risk assessments;

unscheduled inspections in the event of significant changes, in particular in the management of the institution.

It is the results of such assessments that will affect:

the frequency of inspections;

the level of control;

the format of further supervision.

For banks and financial companies, this means the need to constantly maintain a high level of internal financial monitoring and compliance.

NBU officially introduces “professional judgment”

The resolution also introduces the institution of NBU professional judgment.

This concerns the regulator’s right to assess transactions not only on formal grounds, but also on their actual substance.

At the same time, financial institutions are given the opportunity to appeal such a decision:

within 15 business days, an application for review can be submitted;

a special committee of the NBU must consider it within 90 days.

The regulator believes that this will allow creating a more flexible mechanism for interaction between business and supervisory authorities.

Banks are converting document flow to digital format

The NBU has paid special attention to digitalization.

The new rules allow the use of:

not only qualified;
but also advanced electronic signatures.

In addition, banks and financial companies must automate the formation of responses to NBU requests using standard forms within six months.

It is expected that this will:

reduce the amount of “manual” work;
will speed up the preparation of reports;
will increase the operational efficiency of institutions.
New rules for exchangers and the foreign exchange market

The NBU also detailed the procedures for control inspections in the field of foreign exchange trading.

In particular:

during an air raid, the inspection must be temporarily suspended;
the inspection must be resumed no later than 30 minutes after the end of the alert.

Exchange offices are also required to provide copies of video archives to NBU inspectors within one hour of the request.

The National Bank emphasizes that the new rules should strengthen the transparency of foreign exchange transactions and discipline in the financial market.