Eternity Law International News Open an account for a non-resident in Ukraine

Open an account for a non-resident in Ukraine

April 5, 2019

In order for Ukraine to make the transition to the free movement of capital investment, the NBU allowed each entity to open an account in the Ukrainian financial market. Subjects include:

  1. non-resident legal entity;
  2. foreign funds specializing in investment;
  3. a company that manages assets acting on behalf of a foreign investment fund.

Client account opening procedure

The rights to open accounts in a Ukrainian banking institution, to perform foreign exchange transactions by legal entities are provided for by the Law of Ukraine “On currencies and foreign exchange transactions”.

The Law of Ukraine “On Amendments to Certain Laws Regarding the Promotion of Attraction of Foreign Contribution” and the Association Agreement between the countries of the European Union and Ukraine.

For the same purpose, the National Bank updated the instruction on the procedure for opening and closing client and correspondent accounts in the bank. We are talking about residents and non-residents. This instruction plays the role of regulating the order of opening and closing by a particular bank:

  1. client account of both an individual and a legal entity;
  2. correspondent bank account, resident and non-resident;
  3. accounts of an international financial organization, including managers by agreement of the management of the enterprise.

In addition, thanks to the simplified procedure for opening bank client accounts provided for in the instructions, a positive impact is created on the conditions for doing Ukrainian business. This is due to such innovations as:

  1. bank customers during the opening of bank accounts must not present a card with a sample signature. Now the management of accounts is carried out on the basis of the list of individuals and legal entities who have full right to do so, which means there is no need for notarization;
  2. changes in the name of legal entities does not mean that the current accounts of the entity will be closed.

About the regulations and updated instructions

There are no client account modes in the provisions of the documents. This means that there is no limit on the number of transactions on the account, but only a number of features are determined for the performance of transactions on the account of a separate client series.

On April 4, 2019, an updated instruction came into force, which was approved on the basis of the resolution on the NBU Board of April 1, 2019 under number 56 “On amendments to some regulatory legal acts in the National Bank of Ukraine.”

It should be noted that the Law of Ukraine “On Currency and Currency Transactions” declares the principle of freedom to carry out any currency transaction.

This suggests that the NBU refused to restrict the use of funds on client accounts due to the stable functioning of the financial and economic system of Ukraine.

The NBU has the full right to impose restrictions and apply additional security measures, but this is possible only on the basis of the rights specified in this law.

What is the new foreign exchange supervision system

The new system in charge of foreign exchange supervision is based on a risk-based approach, so it introduced a completely new approach. It is based on the principle: “The less risk, the less attention is attracted” and vice versa – “The more risk, the more attention is drawn.”

The expansion of the rights for monetary transactions from a non-resident creates a high risk of using banking systems by a company that may be a participant in fraud aimed at money laundering.

It is worth noting that many steps have been taken by the banking sector to build effective systems that counter money laundering and financing of terrorist groups.

In order to further develop in this direction, one must understand the level of risk and have the skills to counteract them in the framework of a risk-oriented approach.

Purpose of the change

Amendments to the Regulation on the implementation of financial monitoring by the bank, which were carried out by the NBU Board on 04/02/2019, was due to the purpose of preventing the use of banking services in order to launder money obtained in a criminal way, both in Ukraine itself and abroad, for shell company account.

The main goal of this change is to introduce a mechanism for the bank to identify the shell enterprise from non-resident legal entities. This change in the regulation, which entered into force on 04/04/2019, contains the following points:

  1. define the shell company;
  2. the procedure for analyzing the information of documents in order to identify the above companies;
  3. the application of certain actions by a banking institution in the event that the client of this bank turns out to be a shell company, or if he refuses to provide the bank with the requested documents (data), or if the information provided was not enough to carry out an appropriate analysis.

It should be noted that the requirement to analyze data and documentation does not apply to a non-resident legal entity that is a holding company or its corporate enterprise.

But this is possible only if the structure of the own holding company is transparent and makes it possible to determine the beneficial owners (controllers). It is also important that the economic activities of such legal entities make it possible to understand its nature.

For more detailed information, please contact our specialists.

You could be interested

Protection of information

Thanks to secure servers, trained employees, our clients can be absolutely calm for the safety of the information transferred to us. All of our employees who work with personal information of clients have signed NDA agreements and are responsible for maintaining its privacy. The company can not use your data for personal purposes and disclose it to...

Germany’s Cryptocurrency Regulations

Germany is a powerful economic force and a highly developed participant in the European Union with the fourth-largest world GDP. Following crypto regulation in Germany, both physical and juridical persons are allowed to acquire, sell, and keep cryptoassets. So, to be the owner of the licensing company you should know properly the regulation of Crypto...

Features of Legal Opinion for High Risk Business

The concept of a legal opinion A legal opinion is understood as a document that contains the professional opinion and conclusion of a lawyer who has studied a particular legal problem. Through such a document, the parties to the transaction will be able to understand all the nuances of concluding an agreement, explained from a...

Company registration in Czech

Czech takes a leading role in the organization of international trading operations. In addition, this jurisdiction has the status of an advanced state in terms of ease of organizing and managing commercial projects, and obtaining loan funds. That’s why, company registration in Czech is a modernized profitable solution becoming the key for an entrepreneur to...

Company registration Seychelles

Registration cost 1.100 Eur Company renewal cost 950,00 Eur Directors number 1 Corporate tax 0.00 % Registered share capital 0.00 Mandatory reporting requirements No Company documents: Seychelles offshore company nominee service documents Seychelles International Business Companies (IBC) are intended for use outside of Seychelles and cannot conduct business in the Seychelles. They are a popular...

Ready-made company in Malta

Ready-made companies are those already created and registered, and are intended for further sale. Such a variant as purchasing a shelf firm is increasingly gaining popularity for starting a business or expanding it, since entrepreneurs do not need to fiddle with registration documents and other nuances for a long time. To buy a ready-made company,...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7