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 : : Legal Framework
2009-01-01 00:00:00  Print Version



APPROVED

by the Order of State Committee

for Financial Monitoring of Ukraine

dated December 6, 2006 under 248

 

 

MODAL RULES FOR EXECUTING INTERNAL FINANCIAL MONITORING BY BANK EMPLOYEES

 

1. General Provisions

1.1. The Rules for executing internal financial monitoring by Bank employees (further - Rules) were developed for preventing using Bank for the legalization of the proceeds from crime and terrorist financing.

1.2. Rules were developed under the Laws of Ukraine On prevention and counteraction to the legalization (laundering) of the proceeds from crime, On banks and banking, Order of SCFM of Ukraine from April 24, 2003 under 40 Requirements for organization financial monitoring by initial financial monitoring entities in the sphere of prevention and counteraction to the legalization of the proceeds from crime and terrorist financing, Order of SCFM of Ukraine from May 12, 2003 under 46 Requirements for qualification of the compliance officer of initial financial monitoring entity in the sphere of prevention and counteraction to the legalization of the proceeds from crime and terrorist financing, Resolutions of Board of Directors of National Bank of Ukraine from May 14, 2003 under 189 Statute on executing financial monitoring by banks.

1.3. Rules shall establish the structure of bank internal system for counteraction to the legalization of the proceeds from crime, establish the procedure of identification and studying customer (legal or natural person) and customer reputation while establishing contract relations with such customer and opening account in Bank, revealing by employees of Bank financial transactions subject to obligatory financial monitoring, suspicious transactions and persons who executes such transactions, or persons related to terrorist activity, and procedure of submitting information on such transactions to the compliance officer of Bank.

1.4. Main principle of Rules is providing participating employees of Bank (within their competence) in revealing financial transactions related to the legalization (laundering) of the proceeds from crime or terrorist financing.

1.5. Bank internal system for counteraction to the legalization of the proceeds from crime shall lead the compliance officer of Bank, who is independent in his activity and accountable only to the head of Bank. Internal subdivision of bank for executing financial monitoring and compliance officers of subsidiaries (territorial divisions, separate subdivisions) shall be subordinated to the compliance officer of Bank. In case of temporary absence of the compliance officer of Bank (separate subdivision) another employee of Bank (separate subdivision) shall execute his obligations. Person who temporary executes obligations of the compliance officer of Bank (separate subdivision) shall have all rights, responsibilities and requirements prescribed by these Rules.

1.6. Subsidiaries (territorial divisions, separate subdivisions) authorized to record keeping of financial transactions subject to financial monitoring can autonomously submit information on financial transactions subject to financial monitoring to SCFM of Ukraine under the decision of the compliance officer of Bank with agreement of head of Bank.

1.7. The compliance officer of Bank shall have the following rights:

To involve any employees of Bank to provide measures on prevention to the legalization (laundering) of the proceeds from crime and revisions on these issues;

To receive documents from Bank subdivisions and Bank employees, including documents containing bank and commercial secrecy, in case if these documents are necessary for executing financial monitoring;

To access to all premises and means of telecommunication;

To execute revisions of any Bank separate subdivision activity and it employees activity on complying the Rules and Program for internal financial monitoring;

To receive the explanations from employees of Bank (separate subdivision) independently of positions on executing internal financial monitoring issues;

To submit into consideration of Board of Directors of Bank proposals on providing complying by Bank the requirements of the legislation of Ukraine in the sphere of prevention to the legalization of the proceeds from crime.

1.8. The compliance officer of Bank shall have the following responsibilities:

Submitting information on financial transactions subject to financial monitoring to SCFM of Ukraine;

Taking decision on informing SCFM of Ukraine and law enforcement authorities about financial transactions suspected to be intended for legalization (laundering) of the proceeds from crime or related to, connected to or intended for terrorist financing;

Taking decision on submitting information on financial monitoring issues under requests of SCFM of Ukraine and relevant law enforcement authorities;

Supervising over opportuneness of recording and submitting to SCFM of Ukraine information on financial transactions subject to financial monitoring;

Supervising over complying by Bank employees requirements of legislation and normative legal documents on financial monitoring issues;

Every month reporting to head of Bank about condition and results of activity of Bank internal system for counteraction to legalization of the proceeds from crime and terrorist financing;

Immediate informing head of Bank on revealed schedules for laundering of the proceeds from crime and terrorist financing, and measures necessary to provide as regards revealed financial transactions;

Assistance to authorized representatives of National Bank of Ukraine in providing revisions of Bank activity on complying the legislation of Ukraine in the sphere of prevention to the legalization (laundering) of the proceeds from crime;

Developing and submitting for approval as well as organizing execution by Bank employees the Rules and programs for executing internal financial monitoring;

Developing and submitting for approval other internal Bank documents on financial monitoring issues;

Organization and holding training of Bank employees on financial monitoring issues, developing and realizing relevant educational program;

Providing consultations for Bank employees and informational providing Bank activity on financial monitoring issues.

1.9. The compliance officer of separate subdivision shall have the following rights:

To involve any employees of Bank separate subdivision to providing measures on prevention to the legalization (laundering) of the proceeds from crime and providing revisions on these issues;

To receive documents from employees of Bank separate subdivision including documents containing bank and commercial secrecy in case if such documents necessary for executing financial monitoring;

To access to all premises and means of telecommunications of Bank separate subdivision;

To provide revisions of Bank separate subdivision activity and it employees on complying these Rules and programs for executing internal financial monitoring.

1.10. The compliance officer of separate subdivision shall have the following responsibilities:

To submit information about financial transactions subject to financial monitoring to SCFM of Ukraine, to take decision on informing SCFM of Ukraine and law enforcement authorities on financial transactions suspected to be executed for the legalization (laundering) of the proceeds from crime or to be related to, connected to or intended for terrorist financing, and to take decision on submitting information on financial monitoring issues under requests of SCFM of Ukraine and relevant law enforcement authorities in condition of receiving relevant permissions of the compliance officer of Bank;

To supervise over complying by employees of Bank separate subdivision the requirements of the legislation and normative legal documents on financial monitoring issues;

To inform immediately the head of Bank separate subdivision and the compliance officer of Bank about revealed schedules for laundering of the proceeds from crime and terrorist financing, and measures necessary to provide as regards revealed financial transactions;

To assist to authorized representatives of National Bank of Ukraine in providing revisions of Bank separate subdivision activity on complying the legislation of Ukraine in the sphere of prevention to the legalization (laundering) of the proceeds from crime;

To organize executing these Rules and programs for executing internal financial monitoring by employees of Bank separate subdivision;

To provide consultations for employees of Bank separate subdivision and to execute informational providing on financial monitoring issues.

1.11. Employees of Bank shall be prohibited to disclose information on financial monitoring about customers financial transactions, fact of submitting information on such transactions to SCFM of Ukraine, contents of Rules and programs for executing internal financial monitoring and other documents on financial monitoring issues to customers and other persons who are not related to executing financial monitoring in Bank. In addition, employees of Bank shall be prohibited to provide consultations on methods of providing financial transactions if such consultations are necessary for avoiding financial monitoring procedures.

 

2. Program for Identification and Studying Bank Customers

2.1. Program for identification Bank customers shall be aimed at determining requirements and establishing procedures for identification legal persons and natural persons entrepreneurs, who concludes contract relations with Bank or opens account in Bank.

2.2. In this Program the following terms shall have the meaning:

2.2.1. Essential participating direct or indirect, autonomous or with other persons ownership of 10 and more percents of statutory fund or voting right under purchased shares of legal person or independent from formal ownership opportunity of decisive influence on leadership or activity of legal person;

2.2.2. Control direct or indirect ownership of part in legal person, autonomous or with other persons, that represent equivalent of 50 or more percent of statutory fund or votes of legal person, or opportunity of decisive influence on administration or activity of legal person under agreement or in any other way;

2.2.3. Natural persons founders:

Natural persons owners of legal persons;

Natural persons who has direct or indirect influence on it and receives economic profit from it activity;

Natural persons who essential participates in legal person;

2.3. Employees of Bank who provides services to customers shall be authorized persons of Bank for identification customers legal and natural persons. Authorized employees shall be responsible for complying regulations of this Program.

2.4. Authorized persons of Bank shall identify the followings:

Customers while opening accounts;

Customers who executes transactions subject to financial monitoring;

Customers who executes transactions with cash in amount that exceeds UAH 50 000 or it equivalent in currency;

Persons authorized to act in name of customer. Such persons shall include persons who have relevant power of attorney on performing certain actions or receiving values in name of customer; officials of legal person who has the right of first and second signature and acts in it name.

2.5. Identification of natural persons founders shall be performed for the following legal persons:

Economic entities (joint stock companies, limited liability companies, additional liability companies, general partnerships);

subsidiaries;

private enterprises;

affiliates and representative companies of legal persons;

nonresidents investors.

2.6. Identification of natural persons founders shall not be provided for the following Bank customers:

Persons who are not legal persons (natural persons; natural persons entrepreneurs; agreements on joint venture);

Legal persons who have no founders legal persons (sate authorities; utilities; enterprises founder or owner of which is state or separate state authorities);

2.7. Founders of all levels shall be identified according to the following procedure:

2.7.1. In case if founders of legal person are only natural persons, all natural persons owned 10% and more of statutory fund shall be identified.

2.7.2. In case if founder of legal person is another legal person that own 10% of statutory fund or several such persons, natural persons who owns 50% and more of statutory funds of such persons shall be identified.

2.7.3. In case if founder of legal person is another legal person that own 10% of statutory fund (according to internal procedures) founders of first level, and in founders of this legal person present legal persons that own 50% of statutory fund of fist level founders founders of second level, all natural persons founders of third level who owns 50% of statutory funds of legal persons second level founders shall be identified.

2.8. Identification of customer shall be provided before opening account or providing service. In case of non-submitting by customer information and documents necessary for identification, customer shall be refused of providing service or opening account, and settlement or cash documents shall be returned without execution with inscription on back side: Refused in executing transaction under the Part 5 of the Article 64 of the Law of Ukraine On bank and banking. Inscription shall be certified by authorized person of Bank and signet of Bank. In case of receiving settlement document, the inscription shall also contain reference on the Clause 2.16 of the Guidance on clearing operations in Ukraine in national currency approved by the Resolution of the Board of Directors of National Bank of Ukraine from January 21, 2004 under 22.

2.9. For identification and studying customers of Bank authorized persons of Bank shall clarify, first of all, the following information:

2.9.1. For residents natural persons:

Surname, name, patronymic;

Birth date;

Series and number of passport or other identifying document, issuing date and authority;

Location;

Identification number under State Register of natural persons tax payers, or inscription on passport on refusal of receiving identification number.

2.9.2. For residents legal persons:

Name;

Legal address;

Identification number under Unified State Register of enterprises and organizations of Ukraine;

Date and number of state registration certificate or other document about registration of organization;

Information about officials (leadership) of legal person and their responsibilities;

Information from statutory documents;

Requisites of bank in which current accounts are opened and numbers of such accounts;

Information about persons authorized to act in name of this legal person;

Information about natural persons - founders.

2.9.3. For nonresidents natural persons:

Surname, name, patronymic (if available);

Birth date;

Series and number of passport (or other identification document), issuing date and authority;

Citizenship;

Location or temporary staying.

2.9.4. For nonresidents legal persons:

Full name;

Location;

Requisites of banks in which current accounts are opened and numbers of such accounts;

Information on registration of this legal person under copy of extract from trading, banking or judicial register or properly certified copy of registration certificate of foreign authorized authority about such registration.

2.10. The following documents shall be ground for identification of natural person:

2.10.1. For citizens of Ukraine who:

Constantly live in Ukraine passport of citizen of Ukraine or temporary identifying document, for persons under 16 years birth certificate;

Leaving abroad for constant living foreign passport of citizen of Ukraine with mark about leaving for constant living abroad;

Constantly live abroad foreign passport of citizen of Ukraine.

2.10.2. For foreign citizens who:

Constantly live in Ukraine passport document with mark on constant living permission;

Temporary staying in Ukraine passport document.

2.10.3. For persons without citizenship who:

Constantly live in Ukraine card on location;

Temporary staying in Ukraine passport document.

2.10.4. For refugees certificate of refugee.

2.10.5. Passport document of foreign citizen and person without citizenship shall be the document that approve citizenship of foreign citizen or person without citizenship, issued by authorized authority of foreign country or statutory UN organization, and give the right to leave abroad, recognized by Ukraine, and provide grounds for staying in Ukraine.

2.10.6. If documents mentioned in the Clause 2.10 give no opportunity to authorized employees of Bank to clarify location or temporary staying of natural person, bank shall have the right to request another document from customer with contain such information, in particular: reference from state authority that registering at location, contract on dwelling leasing, other enforcement documents for dwelling etc.

2.10.7. Natural persons residents, except passport or other identification document, shall additionally submit document issued by State Tax Service authority that approved receiving identification number of tax payer, and if such document is unavailable mark in passport about the right to provide any payments without identification number.

2.10.8. Identification of customers natural persons shall be provided only on the grounds of originals of identification documents, and if other documents are available on the grounds of originals of such documents, or copies notary certified or certified by issuing authority. In case of necessity customer identification can be provided on the grounds of information received from state power authorities, banks, other legal persons and under results of measures for collecting information about customer from other sources.

2.10.9. Authorized person of Bank who executes identification shall make copies of identification documents in the presence of customer natural person. Copies shall be certified by the signatures of person who executes identification and customer.

2.11. Ground for identification legal person shall be document which such legal person submits for opening account according to the Procedure of opening, using and closing accounts in national ad foreign currencies, approved by the Resolution of Board of Directors of National Bank of Ukraine from November 12, 2003 under 492 and internal Bank instruction on opening accounts. Identification f persons who have the right of first and second signatures and act in name of legal person shall be provided in the presence of these persons on the grounds of documents prescribed in the Clause 2.10 of this Program. Identification of natural persons founders of legal person can be provided on the grounds of documents and data received from legal person (e.g., letter with list of all necessary information about natural persons founders or statute with similar list of information).

2.12. All documents submitted by customer shall be valid and contain true information for the moment of their submitting to Bank.

2.13. In case of non-submitting necessary information (documents) by customer or intentional submitting untruthful information necessary for identification, employee of Bank shall refuse servicing or opening account to customer according to the procedure prescribed in the Clause 2.8 of this Program. If there is suspicious that person act not in the own name, employees of Bank shall be prohibited to conclude contract relations with such customer. This requirement shall not concern persons who provide official representation including acting on the ground of power of attorney.

2.14. Authorized person of Bank shall have the right to request other documents and information from customer necessary for identifying his person and clarifying nature of his activity and financial condition.

2.15. If customer acts as representative of other person or other person is beneficiary, employee of Bank shall be obliged to identify person represented by customer or beneficiary.

2.16. Identification of persons shall be not obliged in case if this person was previously identified according to the requirements of the Clause 2.9 of this Program.

2.17. Authorized person of Bank shall fill in customer card while concluding relations with customer and identifying him.

2.17.1. Customer card can be left unfilled in the following cases:

One-time executing financial transaction the procedure executing of which prescribes opening account with further closing it after executing transaction;

Opening accounts for receiving salary, pension, scholarship etc. (including servicing with payment cards if such card account wont be refilled from other sources).

2.18. Composing customer card authorized person of Bank shall be responsible for the following:

Fullness of filled data in card;

Assessment ML risk of customer according to criteria established by the Resolution of Board of Directors of National Bank of Ukraine from May 14, 2003 under 189;

Providing measures on examining information submitted by customer assessed as high-risked. Relevant mark in customer card shall be signed under results of provided work.

2.19. Customer card shall be internal document of Bank and shall be filled in exceptionally by Bank employee.

2.20. Concluding relations with customer and receiving information for filling customer card of legal person, Bank employee shall pay special attention to the following:

execution of statutory documents (considering all recorded changes) and documents approving state registration;

types of activity and transactions executing by customer;

financial condition of customer and history of his activity;

complement of legal person founders and related persons;

structure of administration bodies and their responsibilities;

amount of registered and paid statutory fund (if available).

2.21. Employees of Bank who provide services to customers shall provide quarter-of-year-analyses of customers transactions on compliance to financial condition and nature of activity, which include all customer accounts opened in Bank subdivisions. Under results of analyses part 4 of customer card shall be renewed.

2.22. All documents and/or copies received from customer and customer card shall be added to formed case on legal execution of account.

2.23. Servicing customer account employees of Bank shall constantly provide measures on additional studying customer considering the following requirements:

2.23.1. Employees of Bank shall specify information on identification and studying customer once per year at least if ML risk is assessed as high. Term of specifying information for other customers shall not exceed 3 years.

2.23.2. Obligatory specifying information on identification and studying customer shall be provided by Bank in the following cases:

Changing location of account owner;

Changing owner of essential participating;

Amending statutory documents;

Termination term of validity of submitted identification documents.

2.23.3. Employees of Bank shall be obliged to amend customer card the day reference on relevant changes was received. Approving mentioned changes documents including written customer references shall be added to the case on legal execution of account.

2.23.4. For confirming identification and providing measures on examining information about customer legal person, employees of Bank can request information prescribed by the legislation which concern identification of this persons and it leadership from state power authorities supervising such legal person activity, banks, other legal persons as well as providing measures on collecting such information from other sources.

2.24. Documents on identification persons, which were provided during opening account, shall be stored for 5 years after closing this account.

2.25. Documents on identification persons who participate in executing financial transaction subject to financial monitoring shall be stored for 5 years after executing this transaction.

3. Procedure of Revealing Financial Transactions Subject to Financial Monitoring in Providing Bank Services

3.1. All employees of Bank (separate subdivision) who provide services to customers and provide financial transactions and all employees of Bank (separate subdivision) who are compliance officers or employees of structural subdivision of Bank (separate subdivision) for executing financial monitoring shall participate in revealing financial transactions subject to financial monitoring.

3.2. A financial transaction shall be subject to obligatory financial monitoring if its amount equals or exceeds UAH 80,000, or equals or exceeds the sum in foreign currency equivalent to UAH 80,000 if such financial transaction also has one or more indications:

3.2.1. Transfer of funds to anonymous (numbered) account abroad and transfer of funds from anonymous (numbered) account from abroad, as well as transfer of funds to account opened with a financial institution in a country included into the list of offshore zones by the Cabinet of Ministers of Ukraine;

3.2.2. Purchase (sale) of checks, travellers checks or other similar payment facilities for cash;

3.2.3. Placement or transfer of funds, granting or receiving a credit (loan), performing financial transactions with securities when at least one of the parties is a physical or legal entity that is registered, located or resident in a country (territory) that does not take part in international cooperation in the area of prevention and counteraction of the legalization (laundering) of the proceeds from crime and financing of terrorism, or if one of the parties has an account with a bank registered in such country (territory). The list of such countries (territories) shall be fixed in accordance with the procedure established by the Cabinet of Ministers according to lists, approved by the international organizations engaged in counteraction to the legalization (laundering) of the proceeds from crime and financing of terrorism. The said list shall be published;

3.2.4 Transfer of funds in cash abroad with a request to give the recipient the funds in cash;

3.2.5. Placement of funds to an account in cash with their subsequent transfer to another person during the same or the next trading day;

3.2.6. Placement of funds to an account or writing off the funds from an account of the legal entity which period of activity does not exceed three months from the day of registration of such entity, or placement of funds to an account or writing off the funds from an account of the legal entity provided the transactions on such account were not conducted from the date of its opening;

3.2.7. Opening an account with placing the funds to it for the benefit of a third person;

3.2.8. Transfer of funds abroad by a person in cases when no foreign economic contract was concluded;

3.2.9. Exchange of banknotes, particularly of foreign currency, for banknotes of another nominal value;

3.2.10. Carrying out financial transactions with bearer securities not placed in depositaries;

3.2.11. Purchase of securities for cash;

3.2.12. Payment of insurance compensation to a person or receipt of insurance premium;

3.2.13. Payment of lottery, casino or other gambling winnings;

3.2.14. Placement of precious stones, metals and other valuables to a pawnshop.

3.3. Revealing financial transactions subject to financial monitoring employee of Bank (separate subdivision) who revealed such transaction shall prepare reference on financial transaction, and at 12 oclock of next business day at least shall submit to the compliance officer of Bank (separate subdivision). Reference shall be submitted in procedure of submitting by subdivisions to Bank information containing bank secrecy and using transferring means to prevent unsanctioned access.

3.4. After receiving reference on financial transaction subject to financial monitoring the compliance officer of Bank (separate subdivision) shall immediately consider received information and provide the following measures:

3.4.1. Fixing in reference receiving date and time.

3.4.2. In case of informing about transaction with signs for obligatory financial monitoring shall examine their presence and submit directive on recording information to the Register of financial transactions subject to financial monitoring (further - register) and further submitting information to SCFM of Ukraine. If financial transaction doesnt contain signs for obligatory financial monitoring shall make mark on absence of necessity to register information about this financial transaction.

3.5. Employees of structural subdivision of Bank (separate subdivision) for executing financial monitoring who revealed financial transaction subject to obligatory financial monitoring or received reference about revealing of such transaction by employees of Bank with relevant commission of the compliance officer of Bank (separate subdivision) shall record information to the register immediately after revealing transaction or receiving relevant reference.

3.6. The following data shall be recorded to the register:

Sequence number of financial transaction registration in register from beginning of the calendar year;

Unique number of transaction in Bank automation system (if available);

Date of receiving settlement or other documents which are ground for executing transaction;

Amount of transaction in currency of it execution and it equivalent in national currency under official rate established by National Bank of Ukraine on the day of executing transaction;

Surname, name, patronymic of natural person or name legal person who executes transaction and identification number of such person;

Surname, name, patronymic of natural person or name of legal person counteragent (if available);

Type of transaction;

Name, number and date of initial document on ground of which transaction is executing;

Sign (signs) of transaction under which it subject to financial monitoring;

Surname and initials of employee who informed about this transaction;

Surname and initials of employee who recorded information about this transaction to the register.

3.7. The following information shall be included to reference which is submitting to SCFM of Ukraine:

3.7.1. About Bank (separate subdivision) and the compliance officer:

Type of institution;

Name according to registration;

MFO;

Identification number according to Unified State Register of enterprises and organizations of Ukraine;

Bank internal registration code;

Location;

Telephone number;

Position of the compliance officer;

Surname, name, patronymic of the compliance officer;

Telephone number of the compliance officer;

E-mail of the compliance officer.

3.7.2. About financial transaction:

Type of reference;

Unique number of transaction in bank automation system;

Sequence number of financial transaction registration in the register;

Registration date of financial transaction in the register;

Sign of transaction execution;

Transaction execution (refusal of executing or suspending) date and time;

Transaction currency code or banking metal code;

Amount of transaction in currency of it execution and it equivalent in national currency under official rate established by National Bank of Ukraine on the day of executing transaction;

Code (codes) of sign (signs) of financial transaction subject to financial monitoring;

Comment;

Code of transaction type;

Payment destination;

Sign of revealing financial transaction by inspectors of National Bank of Ukraine;

Sign of opportunity to relate financial transaction to financing terrorist activity;

Data on linked transactions;

Data on files - annexes.

3.7.3. About transaction participant legal person:

Full name and abbreviate;

Type of participating in transaction;

Status (type) of participant;

Sign of resident;

Identification number according to Unified State Register of enterprises and organizations in Ukraine;

Data about document which is ground for participating in transaction;

Data about state registration certificate;

Legal address;

Address of temporary staying;

Account number of customer which is used for executing transaction and it bank requisites;

Data on corresponding account which is used for executing transaction in foreign currency;

3.7.4. About transaction participant natural person:

Surname, name, patronymic;

Type of participating in transaction;

Status (type) of participant;

Sign of resident;

Identification number of tax payer;

Birth date;

Data on document which is ground for participating in transaction;

Data on state registration certificate (only for natural person - entrepreneur);

Location address;

Address of temporary staying;

Data on identification document;

Account number of customer which is used for executing transaction and it bank requisites;

Data on correspondent account which is used for executing transaction in foreign currency.

3.7.5. List of information including to reference could be lesser than data list prescribed in the Clause 3.7 of this Rules. Requirements on including information to the register and marks on obligatory of including shall be established in Methodical Recommendations on correct representation of financial transactions subject to financial monitoring in Bank.

3.8. Correction of data included to the register shall be prohibited. In case of revealing mistakes in record on financial transaction such record shall be canceled by adding text canceled to this line, and the register shall be amended with new record on this transaction with new number and new registration date. Correction data in references shall be provided under procedure prescribed in the Scheme of Submitting Reference on Financial Transaction and Correcting Mistakes in Reference by Bank.

3.9. In case of registration financial transaction under sign (signs) for obligatory financial monitoring if such transaction is not subject to financial monitoring, the compliance officer shall compose reference in which he shall prove absence of ground for submitting information to SCFM of Ukraine. In particular the reference shall contain consequence number and date of transaction registration in the register, description of financial transaction, proving that financial transaction is not subject to obligatory financial monitoring and signature of the compliance officer. In case of necessity relevant document which confirm proving shall be submitted with the reference. In addition, information line of record about such financial transaction shall be amended by text not subject to obligatory financial monitoring.

3.10. Every month up to 15-th the register which contain all transactions recorded in previous month shall be printed, formed to case (which shall be stringed through), certified by signature of the compliance officer of Bank (separate subdivision) and marked by signet of Bank (separate subdivision).

3.11. Printed register shall contain the following information on separate financial transaction:

Consequence number of financial transaction registration in the register from beginning of the calendar year;

Unique number of transaction in bank automation system (if available);

Data of receiving settlement or other documents which are ground for executing transaction;

Amount of transaction in currency of it execution and it equivalent in national currency under official rate established by National Bank of Ukraine for the day of transaction executing;

Surname, name, patronymic of natural person or name of legal person who execute transaction and identification number of such person;

Surname, name, patronymic of natural person or name of legal person counteragent (if available);

Type of transaction;

Name, number and date of initial document on ground of which financial transaction is executing;

Sign (signs) of transaction under which it subjects to financial monitoring;

Mark about executing or refusal of executing transaction;

Surname and initials of employee who informed about transaction;

Surname and initials of employee who recorded information to the register;

Marks about cancellation of record or about absence of signs for obligatory financial monitoring, or about absence of necessity to inform SCF of Ukraine (all mentioned marks shall be marked if available);

Receiving file reference on financial transaction by which information on such transaction were submitted to SCFN Ukraine (if such information were recorded by SCFM of Ukraine);

Name of file - annex (if available).

3.12. Employee of accounting operational subdivision of Bank (separate subdivision) who provides closing of account shall submit information on closed account to the compliance officer of Bank (separate subdivision) according to the procedure prescribed in the Clause 3.3 of this Rules. Employee shall provide closing of account if decision of authorized state agency about the following was received:

Cancellation of state registration of legal person;

Cancellation of state registration of economic entity natural person;

According to established procedure recognition of legal person fictitious;

Announcing natural person dead;

Recognition natural person disappeared.

3.13. The compliance officer of Bank (separate subdivision) who received reference on closing account on ground of decision of authorized state agency shall fix date and time of receiving such reference and submit the commission on recording information to the register of Bank (separate subdivision). Information shall be recorded to the register according procedure established in the Clauses 3.5 and 3.6 of these Rules.

3.14. Documents related to financial transaction subject to obligatory financial monitoring shall be stored for 5 years after executing transaction.

 

4. Procedure of revealing financial transactions subject to internal financial monitoring while providing services by employees of Bank

4.1. All employees of Bank (separate subdivision) who provide services to customers and provide execution of transactions and all employees of Bank (separate subdivision) who are compliance officers or employees of structural subdivision for executing financial monitoring shall participate in revealing financial transactions subject to internal financial monitoring.

4.2. Financial transaction of customer shall subject to internal financial monitoring in case if it has one or more of the following signs independently from transaction amount:

4.2.1. Nonstandard or excessively complicated financial transaction that has no evident economic sense or obvious legal aim, including:

4.2.1.1. Receipt by an Bank of funds from a person that proposes or agrees to receive the interest on deposit, which is significantly lower than the current interest rate fixed by the bank, or payment of commission (payment for conducting financial transactions with this persons funds) in the amount that is higher than that the one fixed by Bank in terms of similar deposits and financial transactions;

4.2.1.2. Person insists on conducting a transaction according to rules that differ from those established by the laws and internal documents of Bank relating to the essence of such transaction or the terms of carrying out such transaction;

4.2.1.3. Person introduces considerable changes into the previously agreed pattern of financial transaction right before its conduction, especially changes pertaining to the movement of funds or other kinds of property, including repeated changes of bank references of beneficiary after the first order for transfer of funds was issued or payment documents endorsed, as well as issuing order for transfer of funds to beneficiary using two or more bank accounts of other persons;

4.2.1.4. Person submits unverifiable information;

4.2.1.5. Impossibility to identify persons counteragents, acceptance of funds (payment documents for payment of such funds) from a person that transfers the funds to another party of a civil law agreement, which results in return of funds without conducting of a financial transaction due to the failure to locate such other party or due to the refusal of such party to accept the funds;

4.2.1.6. Person's (customer's) refusal to provide the information specified by the laws and internal documents of Bank;

4.2.1.7. Regular conclusion of short-term agreements by a person or the use of other derivative financial instruments, particularly those that do not envisage the provision of basic assets, pertaining to the financial transactions with one or several counteragents resulting in permanent profit or permanent losses of the customer;

4.2.1.8. Acceptance of funds (or payable financial instruments) by Bank from a person who repeatedly exchanges securities for other securities within the same year without receiving or providing cash indemnity related to such exchange.

4.2.2. Noncompliance of a financial transaction with the activity of legal entity defined by statutory documents of such entity, including:

4.2.2.1. Sudden increase of the account balance amount not directly connected with the persons activity with further transfer of such amount to another entity of initial financial monitoring or if the balance amount is used for purchase of foreign currency (with transfer in favor of a nonresident) or bearer securities;

4.2.2.2. Absence of clear connection between the nature and kinds of a persons activities with the services for which the customer applies to Bank;

4.2.2.3. Regular presentation of checks issued by a nonresident bank and endorsed by a nonresident, for collection payment provided such practice is inconsistent with the customers activity which is known to an entity of Bank;

4.2.2.4. Placement to a persons account of a large number of payments from natural persons in the amount not exceeding UAH 80000, including those through the cash department of Bank, provided that the person's activity does not involve rendering services to population or collection of compulsory and voluntary payments;

4.2.2.5. Considerable increase of the amount of cash being transferred to account of the person provided the person usually effected cashless settlements;

4.2.2.6. Placement to the account of a considerable amount of cash by a person whose income or activity make it impossible to conduct a financial transaction in such amount;

4.2.2.7. Single-time sale (purchase) by a person of a large block of shares that do not freely circulate at organized market provided the person is not a professional operator at securities market and the securities are not given to the person as compensation for the arrears of a counteragent.

4.2.3. Repeated financial transactions, the nature of which gives grounds to believe that their aim is to evade the procedures of compulsory financial monitoring, including:

4.2.3.1. Regular placement of cash to a persons account (if the person is a legal entity and such placement is not connected with its main activity), with further transfer of the entire sum or its bigger part within one trading day or the next day to a customers account opened at another bank, or in favour of third persons, including non-residents;

4.2.3.2. Person orders to conduct a financial transaction through a representative (intermediary), if such representative (intermediary) fulfils the persons order without direct (personal) contact with Bank.

4.2.4. Internal financial monitoring can also be applied to other financial transactions, when Bank has grounds to believe that a financial transaction is aimed at legalization (laundering) of proceeds, including:

4.2.4.1. Ungrounded refusal in submitting by customer information not prescribed by the legislation but requesting by Bank in connection to banking practice or executing financial monitoring as well as excessive disquietude on keeping privacy about financial transaction;

4.2.4.2. Customer request on methodology of executing financial transaction avoiding financial monitoring procedures;

4.2.4.3. Receiving by Bank from law enforcement authorities requests on financial transaction of person if such request submitted in frameworks of investigation about this person;

4.2.4.4. Executing by person large amount of financial transactions with account of other persons under powers of attorney if account owners dont contact personally with employees of Bank for long period of time or from the moment of opening these accounts;

4.2.4.5. Executing by legal persons or natural person entrepreneur large amount of financial transactions on account or presence of large amount of funds on account if entrepreneur activity of such person doesnt need such amount of funds;

4.2.4.6. Regular receiving by legal person or natural person entrepreneur large amounts of funds on account for sold goods, provided services, executed works with further transferring these funds for purchased goods, received services, works if object of purchase is absolutely unrelated to object of selling (e.g., purchase only building materials with further selling provisions);

4.2.4.7. Executing by legal person or natural person entrepreneur transactions with account on purchase (selling) goods, payment for services or works without providing any other payments from such account including obligatory payments and duties to budget;

4.2.4.8. Withdrawal of large amount of cash from account by person in condition that purpose of using these funds is unknown or differs from usual banking practice.

4.3. Revealing financial transaction subject to internal financial monitoring employee of Bank (separate subdivision) who revealed this transaction shall immediately inform about this transaction the compliance officer of Bank (separate subdivision) in procedure prescribed by the Clause 3.3 of these Rules.

 

4.4. The compliance officer of Bank (separate subdivision) who received reference about transaction with signs for internal financial monitoring shall fix date and time of receiving such reference and under received information shall take decision on submitting information to SCFM of Ukraine or on necessity to additionally clarify the nature and purpose of financial transaction and compose relevant commission.

4.5. Employees of structural subdivision of Bank (separate subdivision) for executing financial monitoring who revealed financial transaction subject to internal financial monitoring or received reference on revealing such transaction by employees of Bank with relevant commission of the compliance officer of Bank (separate subdivision) shall immediately record information to the register and provide measures on clarifying the nature and purpose of such financial transaction as well as customer activity. Other employees of Bank (separate subdivision) can be involved in providing mentioned measures.

4.6. Executing measures on clarifying the nature and purpose of financial transaction and customer activity the following criteria can be used:

4.6.1. Providing clarifying existing of legal person or entrepreneur activity of natural person:

4.6.1.1. Confirming by telephone conversations with employees of legal person or natural person entrepreneur that transaction executes by existing legal or natural person who directly relates to such transaction and knows about it executing.

4.6.1.2. Confirming the presence of real office, real telephone number (not cell phone) by which it is possible to talk with customer or his employees;

4.6.1.3. Visiting revision of enterprise existing, visiting it producing shops, warehouses, shops, other objects with possibility to take photos that evidence activity reality;

4.6.2. Providing revision of documents submitted by person for identification or executing transaction, or revision of documents related to transaction or that were submitted to Bank under separate request:

4.6.2.1. Revision of natural person identification documents. Revision methods are revision of complying passport (other identification document) to other customer documents (driving license, foreign passport etc.) or comparing passport data with data of lost and stolen passports database;

4.6.2.2. Revision of presence in name of customer legal person imitation or full or particular repeating names of well-known companies, state authorities, well-known trade marks unrelated with customer;

4.6.2.3. Determination of existence period of legal person or entrepreneur activity of natural person with further comparing this period with movement of funds on customer accounts. Presence of short existence period of person while executing financial transactions with large amounts of funds shall foresee the high level risk of providing entrepreneur activity. Comparing such risk level to the generally accepted level according bank practice shall allow to draw conclusion about fictitious nature of person activity. Also can testify about fictitious activity sharp activation of entrepreneurial activity with marked in the Clauses 4.2 and 4.6 of these Rules by signs after complete change of founders and/or heads of enterprise which the protracted period of complete inactivity was preceded.

4.6.2.4. Revealing among founders and/or heads of legal person the following persons:

Persons who have too low or too high age for providing active entrepreneur activity (e.g., under 20 years or more than 70 years);

Persons who dont know about their link with this legal person or about existence of such person;

Persons whose documents were lost or stolen but mentioned in identification information;

Dead, mentally sick, incapable, disappeared persons;

Persons who constantly locate abroad, in prisons, wanted persons, persons who have no constant location.

4.6.2.5. Verification of customer documents presence, which confirms executing transaction which differs from usual bank practice (agreements, contracts, licenses) and verification of their maintenance and registration. The following can be signs which can testify fictitious of transaction:

Purchase or selling goods according to given agreement or contract is conducted in sizes which considerably exceed the scales of person activity or typical sizes of contracts in industry;

Purchase or selling goods which quickly deteriorates, in sizes which make it impossible to make it over in time, to realize or to use;

Conclusion of foreign economic contracts on purchase and further sale of commodity in considerable volumes, without actual delivery of it on territory of Ukraine;

Purchase by the person commodity on considerable cost, aim of which doesnt comply persons activity;

Non-complying of separate provisions of purchase (sale) contract or type of commodity or services which is the subject of agreement to contract (for example, presence of guarantee maintenance conditions for commodity at purchase or sale of agricultural produce);

Non-complying of contracts concluding dates and requisites of contract participants to registration data and requisites of persons, who carry out financial transactions under these contracts (e.g., contract was concluded earlier than legal person was registered);

Non-complying of signatures and signet in the agreement to the samples of signatures and signet in the card of samples of customer signatures;

Absence in the agreement of signet in condition of its presence, or presence on the signet of suspicious elements (tracks of imitations, erasures, deviation from a form and concentricity of circle, deviation from parallelness of lines, bend and fractures of lines, spelling errors and error in the number under Unified State Register of enterprises and organizations of Ukraine, mirror writing of letters or numbers, oscillation of font size, in separate words and numbers, difference in writing identical letters or numbers in words with an identical font).

4.6.3. Revision of entrepreneur efficiency or economic activity of customer:

4.6.3.1. Analysis of funds movement on account and comparison of basic directions of activity, determined by payments destinations, with the directions of enterprise activity declared by customer. Brightly expressed non-complying of the declared activity directions and objects of agreements, under which customer receives or transfers funds, can testify fictitious nature of activity;

4.6.3.2. Comparison of funds volumes and their movement on the customer account with balance (form # 1) sheet and report on financial results (form # 2). The considerable funds volumes on the customer account in default of own property or other assets and positive financial results of activity, can testify that customer account opened for the transit transferring of funds;

4.6.3.3. Comparison of enterprise activity scales according to the customer extract (general funds volumes, amount of counteragents, variety of commodities, services, works, presence of obligatory payments to the budget) with the scales of enterprise (amount of personnel, presence of production capacities, storage facilities, presence of motor-car park etc.). For example, the evidence of fictitious nature of activity can be an amount of personnel of enterprise which conducts active foreign economic activity, if the personnel consist of two persons, or other similar non-compliances;

4.6.3.4. Information about activity of this enterprise, received from independent informative sources and mass media with the high degree of trust (for example, presence of advertising, publications about customer in mass medias during long period of time, information about participating of customer in branch exhibitions, etc.) can be positive evidence about reality of enterprise activity.

4.7. Revealing facts or signs which refute or confirm doubtfulness of financial transactions or activity of customer, employees of Bank who carried out verification of nature and purpose of financial transactions, or who revealed noted facts or signs during customer service, shall inform the compliance officer of Bank (separate subdivision).

4.8. The compliance officer of Bank (separate subdivision), considering information on finding out of essence and purpose of customer activity and his financial transactions, shall take decision on necessity refuse in executing financial transactions subject to internal financial monitoring and on necessity of informing SCFM OF Ukraine about such transactions. Order of refuse in executing financial transaction subject to financial monitoring, shall be established in the Section 7 of these Rules.

4.9. Taking decision on inexpediency of submitting information about financial transactions subject to internal financial monitoring to SCFM of Ukraine, the compliance officer of Bank (separate subdivision) shall compose the reference in which grounds this decision. Reference shall contain, in particular, the sequence number of transaction registration in register, date of it composing, results of the used measures on finding out essence and purpose of executing this transaction by customer and signature of the compliance officer of Bank (separate subdivision). In addition, the informative line of record about such financial transaction shall be complemented with the following text: submitting to SCFM of Ukraine is inexpedient.

4.10. Documents related to financial transaction subject to internal financial monitoring and documents related to study of essence and purpose of this financial transaction shall be stored for 5 years after executing such transaction.

 

5. Procedure of submitting information on financial transactions subject to financial monitoring to SCFM of Ukraine

5.1. The compliance officer of Bank (separate subdivision if relevant permission was received) shall submit information to SCFM of Ukraine in terms prescribed by the legislation and other normative legal acts on financial monitoring issues.

5.2. Information shall be submitted to SCFM of Ukraine in form of files references of prescribed structure using relevant software.

5.3. Each structural record of file on separate financial transaction and whole file reference shall be signed by electronic signature of the compliance officer of Bank (separate subdivision if relevant permission was received) who shall be obliged to submit information on this financial transaction to SCFM of Ukraine.

5.3.1. Data mentioned in file reference about the compliance officer of Bank (separate subdivision) who submitted information to SCFM of Ukraine shall belong to the compliance officer who signed this file - reference.

5.3.2. Data, mentioned in structural record of file on separate financial transaction, about the compliance officer of Bank (separate subdivision) who recorded information to the register shall belong to the compliance officer of Bank (separate subdivision) who signed this reference.

5.4. In case of receiving from SCFM of Ukraine the file reference on refusal of recording information with codes of mistakes which relate to content of separate financial transaction or it participants, mistakes shall be redeemed in procedure established in the Clause 3.8 of these Rules.

5.5. In case of receiving from SCFM of Ukraine the file reference on refusal of recording information with codes of mistakes which relate to information not recorded to the register but present in reference, the compliance officer shall provide measures on redeeming the mistake without repeated recording information on this transaction and after that shall submit redeemed information to SCFM of Ukraine.

5.6. If employee of Bank clarifies that information on financial transaction recorded by SCFM of Ukraine contain mistakes or need to be specified, the register record containing data on such transaction shall be cancelled and repeatedly recorded under procedure established in the Clause 3.8 of these Rules. Redeemed or specified information on financial transaction shall be submitted in reference with mark additional and reference to number and date of recording financial transaction.

5.7. Copies of files submitted to SCFM of Ukraine shall be stored for 5 years after submitting.

 

6. Procedure of revealing transactions that can be related to, connected to or intended for terrorist financing, or it participant or beneficiary is person included to List of persons related top terrorist activity

6.1. In case if employee of Bank (separate subdivision) has grounded suspicious concerning financial transaction that it can be related to, connected to or intended for financing terrorist activity and concerning persons participated in it execution or receives reference of automation system that participant or beneficiary is person included to List of persons relate to terrorist activity, employee shall immediately inform the compliance officer of Bank (separate subdivision), suspend executing transaction and submit reference about this transaction the same day in procedure prescribed in the Clause 3.3 of these Rules.

6.2. If such financial transaction was revealed by employee of structural subdivision of Bank for executing financial monitoring, he shall immediately inform the compliance officer about this and applies to employee of Bank who provide financial transaction with request to immediate suspend transaction and submit to the compliance officer of Bank the documents related to this transaction and identification of participants or beneficiaries of this transaction.

6.3. The compliance officer of separate subdivision after receiving reference on information established by the Clause 6.1 of these Rules shall immediately inform the head of separate subdivision and the compliance officer of Bank about such financial transaction.

6.4. The compliance officer of Bank after receiving reference about transaction established in the Clause 6.1 of these Rules shall immediately make the following actions:

6.4.1. Fix date and time of receiving reference about such transaction;

6.4.2. Studying information about financial transaction, shall examine the presence of grounds to consider that financial transaction comply the determination according to the Clause 6.1 of these Rules. If such grounds are absent the compliance officer of Bank shall submit the commission on renewal such financial transaction.

6.4.3. If financial transaction complies to the determination according to the Clause 6.1 of these Rules, the compliance officer of Bank shall inform the head of banking institution about the fact of executing such financial transaction, it content and information about participants;

6.4.4. Mention in reference about taken decision on suspending executing this transaction and submit the commission on suspending executing transaction to employee of Bank who provides it execution and accounting operational subdivision of Bank;

6.4.5. Submit the commission on immediate recording this transaction in the register and, after recording, submit information about it to SCFM of Ukraine and law enforcement authorities in prescribed terms.

6.5. If during 2 business days from the day of receiving by Bank documents, on ground of which financial transaction was executed established in the Clause 6.1 of these Rules, Bank havent received file decision from SCFM of Ukraine or received file decision on refusal of further suspending financial transaction, the compliance officer of Bank shall submit to accounting operational subdivision of Bank the commission on renewal financial transaction.

6.6. If during 2 business days from the day of receiving by Bank documents, on ground of which financial transaction was executed established in the Clause 6.1 of these Rules, Bank have received file decision from SCFM of Ukraine on further suspending financial transaction, the compliance officer shall submit to accounting operational subdivision of Bank the commission on further suspending financial transaction for term established in file decision. Total term of suspending financial transaction shall not exceed 7 business days from the moment of receiving by Bank document ground for executing transaction.

 

7. Procedure of refusal of executing financial transaction subject to financial monitoring

7.1. Receiving reference on financial transaction subject to financial monitoring according to the procedure established by the Clause 3.3 of these Rules with mark that financial transaction wasnt executed, the compliance officer of Bank (separate subdivision) shall have the right to take decision on refusal of executing such financial transaction.

7.2. Ground for such decision shall be grounded suspicious that this transaction can be executed with purpose of the legalization (laundering) of the proceeds from crime.

7.3. Taking such decision the compliance officer of Bank (separate subdivision) shall write it in reference on financial transaction or in materials about studying the nature and purpose of financial transaction and immediately submit the following commissions:

7.3.1. To employee of Bank (separate subdivision) to refuse customer in executing financial transaction and return documents on ground of which this transaction had to be executed. Documents shall be returned without execution with mark on back side: Refused in executing transaction on ground of the Part 2 of the Article 7 of the Law of Ukraine On Prevention and Counteraction to the Legalization (Laundering) of the Proceeds from Crime. In case of returning payment order in national currency the inscription shall be amended with reference to the Clause 2.17 of the Guidance on non-cash settlements in Ukraine in national currency approved by the Resolution of Board of Directors of National Bank of Ukraine from January 21, 2004 under 22.

The inscription shall be certified by the signature of Bank employee and signet of Bank.

7.3.2. To employee who record information to the register immediately record information on financial transaction which were refused in execution.

7.4. After it recording the compliance officer of Bank (separate subdivision) shall submit information on such transaction to SCFM of Ukraine in prescribed terms.



List of persons related to terrorist activity or persons to whom international sanctions were applied
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