The National Bank has updated the procedure for issuing licenses to legal entities to provide banks with collection services

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Published On - 11.11.2021

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collection services

The National Bank of Ukraine approved changes to the procedure for issuing licenses to legal entities to provide collection services to banks. They clarify certain provisions of the Regulation on the procedure for issuing licenses to legal entities to provide banks with collection services, approved by the Resolution of the Board of the National Bank of Ukraine dated December 24, 2015 No. 926 (as amended) (hereinafter – Regulation No. 926), taking into account the market situation. Also, taking into account the practice of applying the current norms, the amendments improved licensing procedures and requirements for legal entities that intend to provide banks with collection services and expand activities for the implementation of operations for the processing and storage of cash. In particular:

  • the rules according to which the Committee for Supervision and Regulation of the Activities of Markets of Non-banking Financial Services of the National Bank were delegated the authority to make decisions on issues of issuing licenses to legal entities to provide banks with collection services, granting approval for processing and storing cash. These functions were transferred to the Board of the National Bank;
  • it was determined that the applicant legal entity must have a chief accountant and his compliance with the requirements for business reputation and professional suitability;
  • clarified the requirements for the financial condition of a legal entity;
  • the terms and conditions have been determined under which, in the event that a legal entity does not carry out activities to provide banks with collection services or does not carry out operations for processing and storing cash, the National Bank has the right to make a decision to cancel the validity of the relevant license or approval;
  • the requirements for professional suitability and impeccable business reputation of the head of the cash processing and storage unit were determined;
  • clarified the requirements and the list of documents that a legal entity must submit to the National Bank in order to obtain approval for the implementation of operations for the processing and storage of cash;
  • the list of conditions has been expanded, in case of violation of which the National Bank has the right to cancel the decision on approval of operations by a legal entity for processing and storing cash;
  • a new form of extract from the electronic register of licenses for the provision of collection services to banks has been determined in the appendix to Regulation No. 926.

Such changes were approved by the Resolution of the Board of the National Bank of Ukraine dated November 8, 2021 No. 115 “Regulations on the procedure for issuing licenses to legal entities to provide cash collection services to banks” and come into force on November 11, 2021.