NBU introducing risk oriented approach to oversight in financial monitoring sphere
The National Bank of Ukraine (NBU) is introducing a risk-oriented approach for planning and conducting inspections related to preventing and combating money laundering, terrorist financing and financing of proliferation of weapons of mass destruction.
The amendments to the rules of organization and conducting inspections related to preventing and combating money laundering, terrorist financing and financing of proliferation of weapons of mass destruction were approved in NBU board resolution No. 66 dated July 24, 2017 and posted on the regulator's website. The amendments took effect on July 27, 2017.
"The bank/institution is obliged to provide in due time, in full amount, the information, materials, documents (copies and/or extracts from them) in electronic form stored on certain media sticking to a certain order, format, structure, form at the request of the inspection team/request. It must be readable. The bank/institution is obliged not to create obstacles to conducting the audit and provide the head and members of the inspection team with the access to all the original documents, materials and information, including those that contain information with limited access, containing a secret protected by law, including banking, commercial, financial monitoring secret, other secrets, and confidential information necessary for verification," the reviewed document says.
As noted in the NBU report, the new approach will help increase the effectiveness of the National Bank's supervision over compliance with the financial monitoring legislation by banks and non-bank financial institutions-residents, payment organizations, members or participants of payment systems.
According to the announcement, the proposals approved by the members of the Independent Association of Ukrainian Banks were taken into account in the approved amendments. In particular, the term, during which the bank/institution can provide explanations, objections to the circumstances, facts of violations, conclusions (if any), is extended from three to seven working days, after receiving the certificate of the on-site inspection or a certificate with the cover letter by the bank/institution.
