Draft Law of Ukraine

“On Amendment of Some Laws of Ukraine on Establishment and Operation of Bank Accounts”

This draft was introduced for the purpose of harmonizing Ukrainian laws “On Banks and Banking”, “On Financial Services and State Regulation of Financial Services Markets”, “On Enterprises in Ukraine”, “On Entrepreneurship”, “On the State Register of Natural Persons/Payers of Taxes and Other Mandatory Payments” in accordance with the regulations of the Law of Ukraine “On Taxation System”.

The major goal of the amendments to the Law “On Taxation System”, provided for in this draft, is to make changes in the list of business entities, who, according to the above laws, shall inform state tax service bodies of opening and closing accounts. From now on, pursuant to this draft, only legal entities and natural persons being subjects of entrepreneurial activity will be included into the list.

This draft suggests to solve the issue related to notifications sent by banks on opening or closing of their own correspondent accounts.

It is proposed to adjust the norm of Article 7 of the Law of Ukraine “On Payment Systems and Money Transfer in Ukraine”, which govern the procedure of establishment by banks of own deposit accounts, according to the regulations of Article 47 of the Law of Ukraine “On Banks and Banking”.

Current account is defined as the account opened by a bank on the basis of a contract concluded with a client for the purpose of saving, making settlements and executing cash operations, using payment instruments according to the terms of the contract and requirements of Ukrainian legislation. Correspondent account shall be understood as the account opened by one bank with another bank to make inter-bank transfers.

Adoption of this draft by the Verkhovna Rada of Ukraine will facilitate improvement of the banking legislation, help to resolve problematic matters and eliminate collisions in current legislation.