Legal provision of foreign currency transactions - ban

In order to avoid unproductive outflow of capital abroad Ukraine NBU were established under the ban. So the National Bank of Ukraine has developed an action plan and approved by the NBU Board Resolution "On peculiarities of certain currency transactions" from 23.02.2015 № 124. Thus, this resolution introduced additional measures on banking activities in the field of currency transactions, including the implementation of sub FEA 'the objects of economic activity, namely: 1) prohibited authorized banks to buy foreign currency on behalf of clients at the expense of the hryvnia, attracted these customers in the form of a loan. All responsibility for violation of this requirement relies on authorized banks. 2) the prohibition of authorized banks to advance payments (advance payment) in foreign currency for imports of goods for foreign economic agreement (contract), the total value exceeding $ 50,000 (equivalent in foreign currency at the official exchange rate to foreign currencies set National Bank of Ukraine on the day of the contract) if the National Bank of Ukraine reported on the authorized bank did not confirm the possibility of these payments. The confirmed payments executed until the fourth trading day from the date of authorized bank information on those payments in the registry. 3) obligations of authorized banks established to carry out advance payments (advance payment) in foreign currency for imports of goods for foreign economic agreement (contract), the total value exceeding 500,000 US dollars (equivalent in foreign currency at the official exchange rate to foreign currencies established by the National Bank of Ukraine on the day the contract), with the use of letter of credit payments.

According to the requirements of this decision, if not determining foreign economic agreement (contract) that provides for the import of goods, the total value of the contract requirements of paragraphs 2 and 3 apply if the total amount of transfers (on obligations to non-residents for imports of goods) made from the effective date of this resolution, together with the amount of transfer orders to fulfill the given exceeds $ 50,000 or US $ 500,000, respectively, or the equivalent in another currency at the official exchange rate to foreign currencies on the date of the contract.

If the foreign trade agreement (contract) that provides for the import of goods was concluded before the entry into force of this Decree, the requirements of paragraphs 2 and 3 apply if the total value of goods purchased by a non-resident in accordance with this agreement, which is the date of entry into force of this Resolution is not paid and payable under the terms of the contract exceeds $ 50,000 or US $ 500,000, respectively, or the equivalent in another currency at the official exchange rate to foreign currencies on the date of the contract.

The requirements of paragraphs 2 and 3 of this Resolution shall also apply to the case of a resident of advance payments (prepayment) in foreign currency for imports of goods for foreign economic agreements (contracts) concluded with one and the same non-resident if the total amount of payments under these contracts in one calendar month exceeds $ 50,000 or US $ 500,000, respectively, or the equivalent in another currency at the official rate of the hryvnia to foreign currencies.

Given the above it can be concluded that the exchange control and currency regulation in Ukraine is very important in the process of foreign trade and the violation of applicable provisions of currency regulation and currency control entails both civil, and administrative and criminal liability under the laws of Ukraine , until the financial sanctions and the denial of the right to conduct foreign trade.