Certain issues regarding financial monitoring of clients - politically significant persons have been regulated

The National Bank of Ukraine has regulated the issue of ensuring that non-banking financial institutions properly apply a risk-oriented approach to clients who are politically significant persons (Politically Exposed Persons, РЕРs).

According to NBU Board Resolution No. 108 of September 5, 2023, which entered into force on September 7, 2023, financial monitoring institutions should move away from the formal approach to establishing the risk level for PEPs and bear responsibility for the improper application of a risk-oriented approach. Each case of assigning a risk level to PEPs must be properly justified.

In addition, the National Bank has mitigated certain norms regarding the institutions' measures on the sources of PEPs' wealth and sources of funds related to their financial operations. This includes increasing the limits on the volume of financial transactions that can be carried out by PEP through the institution, from 200,000 hryvnias per quarter to 400,000 hryvnias per month. This is one of the conditions for not taking measures to establish the sources of PEPs' wealth.

These changes are aimed at improving the regulation of financial monitoring and ensuring the effective application of a risk-oriented approach in the context of servicing PEPs in Ukraine.