Simplified review process for foreign exchange transactions in Ukraine
Article 1 minute read

Simplified review process for foreign exchange transactions in Ukraine

08 April 2016

Strict currency control rules in Ukraine have been eased to speed up foreign transactions between reputable companies.

Tight controls no longer apply to foreign financial transactions between Ukrainian resident companies and the top 2000 largest public companies in the world, following new rules laid down by the National Bank of Ukraine.

According to Ukrainian currency control requirements, banks are obliged to review and verify supporting documentation and information on all foreign transactions whenever local companies receive funds from abroad or transfer money to non-residents under foreign economic contracts. The new rules mean that operations under the agreements concluded between Ukrainian residents and international companies listed in the Forbes Global 2000 ranking – or their subsidiaries or affiliates – are now exempt from such detailed scrutiny.

This welcome change, effective 29 January 2016, speeds up foreign transactions between reputable companies and somewhat eases the regulatory burden for Ukrainian legal entities that carry out foreign economic activity.

How to comply

In order to comply with the simplified procedure, an agreement concluded between a Ukrainian resident and the affiliate or subsidiary of a Forbes Global 2000 listed company must clearly specify the relation to the listed company. In case the agreement is concluded directly with the listed company, no specific actions are required.

Talk to us

Our experts in Ukraine can assist by preparing or reviewing your foreign economic contracts, supplementing them with the required wording. In addition, we can take charge of all communication with your local servicing bank to process foreign transactions.

Need more information? Get in touch with our experts.

Download our latest Global Benchmark Complexity Index here.

Written by

Anastacia Nechaeva


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