Banking & Financial Services Committee Meeting with Representatives of the National Bank of Ukraine



On May 18, the Chamber Banking & Financial Services Committee held a meeting with participation of leadership of the NBU Payment Systems Department, NBU Department for Banking System Strategy & Reform, and NBU Open Market Operations Department focused on shaping proposals for removing obstacles to international trade and payment services as well as discussing currency control regulations in Ukraine, protection of creditors’ rights and certain issues of licensing. 

The strategic part of the agenda was focused on the following: 

1.  Proposals for removing obstacles to international trade and payment services, presented by Mr. Ihor Olekhov, Committee Co-Chair, Partner of Baker & McKenzie. 

Special guests Ms. Natalia Lapko, Director of the NBU Payment Systems Department and Ms. Olena Makhaeva, Deputy Director of the NBU Payment Systems Department presented the NBU Draft Resolution "On Amendments to the Regulation on Electronic Money in Ukraine" and proposed amendments to Article 9.3 of the Law of Ukraine "On Payment Systems and Money Transfer in Ukraine". According to the NBU experts, these amendments will allow to create fair conditions for operation of domestic and international electronic payment systems in Ukraine, giving the opportunity for such systems to be registers in the official NBU Resister of the payment systems, participants of these payment systems and operators of payment infrastructure services. Respective amendments will also be introduced to the NBU Resolution #43. 

Ms. Yuliia Liakh, Head of Project and Program Management of the NBU Department for Banking System Strategy and Reform presented the PayPal Working Group Conclusions. 

Mr. Andriy Biryukov, Head of the IT-Alliance presented the Draft Law of Ukraine “On Payment Systems” which is under development of the IT-Alliance, while Mr. Ilia Kenigshtein, Managing Partner at the Hybrid Capital and RPR activist retranslated the obstacles preventing PayPal from entering the Ukrainian market: (1) legislative obstacles, (2) high-level of internet and financial fraud in Ukraine, (3) anti-lobbying from financial and payment institutions in Ukraine. In this context, the participants agreed that the Decree on Currency Regulation is a significant obstacle for access and integration of Ukraine with the European single market. 

ACTION: The Chamber will become a platform for uniting different Working Groups and parties for development of the comprehensive and joint legislative vision of electronic payment systems operation in Ukraine. Also, the Chamber will address responsible authorities with the Chamber Position Paper on Access of Ukrainian Residents to Global Payment Platforms and Draft Comparative Table with possible regulatory changes that are needed to be implemented for Paypal/ApplePay/Google Wallet and similar e-money/on-line cross border payment systems to operate in Ukraine. 

2.  Draft Amendments to NBU Regulation #492 “On Opening, Use and Closure of Accounts in National and Foreign Currencies and to the Law of Ukraine "On Payment Systems and Money Transfer in Ukraine" (regarding Creation of the Favorable Business Environment for International Business to Trade in UAH through Ukrainian Banks), presented by Mr. Ihor Olekhov, Committee Co-Chair, Partner of Baker & McKenzie. 

Special guest MrSerhii Chechel, Head of the Section of the Capital Export & Import Regulation, Implementation Monetary Policy Instruments Office, NBU Open Market Operations Department explained the currency control regulations in Ukraine and tough control requirements of the international financial institutions about the capital outflow from Ukraine.  

ACTION: Committee Leadership agreed on the importance of such initiative for creating favorable conditions for foreign investors to conducts payments in national UAH currency and to address the Government with the respective Chamber Position Paper and Comparative Table. 

3.  Chamber Draft Comparative Table to the Draft Law "On Protection of Creditors' Rights", presented by Mr. Ihor Olekhov, Committee Co-Chair, Partner of Baker & McKenzie. 

ACTION: Draft Comparative Table is under development by the Committee Members and need further improvement to be submitted to the Government as addition and alternative to the NABU respective Draft Law. Considering the high importance of the legislation to protect creditor/investors’ rights the Chamber is planning a media campaign on support of such legislation. 

The fire-fighting part was focused on such issues that need to be resolved immediately:  

1.  Conditions to obtain a license to provide financial loans from funds raised by credit institutions, presented by Ms. Zinaida Belyaeva, Deputy Chairman of the Board, Agency for Refinancing Home Loans. 

ACTION: Committee Leadership supported the proposals and agreed to address the Government with a respective Position Paper and Comparative Table. 

2.  Report on Regulatory Impact Analysis and results of the NBU working group on Draft Amendments to the Regulation on the Registration and Licensing of Banks, Opening Affiliates and Regulations on the Procedure of Presenting the Information on the Ownership Structure, presented by Mr. Ihor Olekhov, Committee Co-Chair, Partner of Baker & McKenzie. 

ACTION: Committee Leadership requested the further feedback on these draft documents and agreed to invite Mr. Leonid Antonenko, Head of the NBU Registration & Licensing Department. 

We would like to encourage all interested Chamber Members to provide feedback to abovementioned draft legislation by Monday, May 25, COB.