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President
of Ukraine
Verkhovna
rada of Ukraine
Government
portal
 : : Legal Framework
2009-01-01 00:00:00  Print Version



APPROVED
by the Order of State Committee
for Financial Monitoring of Ukraine 
dated October 31, 2006 under 217
 
 
 
 
 
MODAL RULES 
FOR EXECUTING INTERNAL FINANCIAL MONITORING
BY NON-BANKING INSTITUTIONS
 
 
 
1. GENERAL PROVISIONS
 
These Modal Rules for executing financial monitoring by non-banking institutions developed for methodological assistance in composing rules for executing internal financial monitoring by initial financial monitoring entities – non-banking institutions.
The Modal Rules for Executing Internal Financial Monitoring by non-banking institution (further – the Rules) was developed under the requirements of the Article 5 of the Law of Ukraine „On prevention and counteraction to the legalization (laundering) of the proceeds from crime” (further – the Law) and considering the requirements of other legislative acts on prevention and counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing issues.
The Rules shall represent internal system of financial monitoring of non-banking institution, establish procedure and conditions for providing measures and mechanisms of it realization to prevent using non-banking institution with purpose of legalization of the proceeds from crime and terrorist financing.
The procedure and regime of accessing the employees of non-banking institution to these Rules shall be established by the compliance officer of non-banking institution depending of their functioning obligations and shall be approved by the Head of non-banking institution.
The Rules shall include the followings:
Ø       The description of organization of system of internal financial monitoring of non-banking institution (separate subdivision);
Ø       The general provisions of non-banking institution and its separate subdivisions activity on executing financial monitoring issues;
Ø       The requirements to qualification of the compliance officer of non-banking institution (separate subdivisions);
Ø       The rights and obligations of the compliance officer of non-banking institution (separate subdivision) as well as other employees of non-banking institution (separate subdivision) involved to executing financial monitoring;
Ø       The procedure of identification of persons executing financial transactions subject to financial monitoring according to the Law;
Ø       The procedure of taking measures for determining the nature and purpose of financial transactions;
Ø       The procedure of revealing financial transactions subject to financial monitoring and could be related, connected or intended for terrorist financing;
Ø       The procedure of recording financial transactions subject to financial monitoring according to the Law;
Ø       The procedure of suspending executing financial transaction if its participant or beneficiary is person included to the List of persons related to terrorist activity;
Ø       The procedure of refusal of providing executing financial transaction if financial transaction subject to financial monitoring according to the Law;
Ø       The procedure of preparing and submitting to the compliance officer of non-banking institution the information necessary for him to take the decision on informing the SCFM of Ukraine and law enforcement authorities according to the legislation;
Ø       The procedure of storing documents on identification of the persons executing financial transactions and documents on executed financial transactions subject to financial monitoring and/or could be related, connected or intended for terrorist financing;
Ø       The requirements to providing privacy of information about financial transactions subject to financial monitoring and/or could be related, connected or intended for terrorist financing;
Ø       The procedure of acquaintance the employees with internal documents of non-banking institution (separate subdivision) on internal financial monitoring issues;
Ø        The procedure of organization and executing educational and practical measures for non-banking institution (separate subdivision) employees;
Ø        The procedure of informing the head of non-banking institution on revealed financial transactions subject to financial monitoring and measures could be used for realization the norms of the legislation in the sphere of prevention and counteraction to the legalization (laundering) of the proceeds from crime.
The main principles of developing this Rules is followings:
·          Direct participating of each employee of non-banking institution (separate subdivision) within their competence in revealing financial transactions that could be related to the legalization (laundering) of the proceeds from crime or terrorist financing;
·          Unprejudice in executing financial monitoring;
·          Privacy of information submitting to the SCFM of Ukraine (including about the fact of submitting the information on financial transaction), and other information on financial monitoring issues;
·          Prevention of involving employees of non-banking institution (separate subdivision) to the legalization (laundering) of the proceeds from crime.
 
2. ORGANIZATIONAL PROVISION OF FINANCIAL MONITORING SYSTEM
 
Internal financial monitoring is the non-banking institution activity on revealing according to the Law financial transactions subject to financial monitoring and other financial transactions that could be related to the legalization (laundering) of the proceeds or terrorist financing.
The head of the non-banking institution shall be responsible for organization of complying requirements of legislation of Ukraine on the legalization (laundering) of the proceeds from crime issues and organization of internal system of prevention to the legalization (laundering) of the proceeds from crime.
The head of non-banking institution shall assign (retire) by his order the compliance officer of non-banking institution (separate subdivision) as well as approve his job description.
The head of non-banking institution, from the moment of creation or beginning activity of non-banking institution (separate subdivision) but at the moment of executing first financial transaction at least, shall assign the compliance officer of non-banking institution as well as the compliance officer of separate subdivision under presentation of the head of separate subdivision.
The compliance officer of non-banking institution shall inform the SCFM of Ukraine on assignment or retirement the compliance officer of non-banking institution (separate subdivision) during 3 business days.
The form of informing on assignment/retirement the compliance officer (or person temporary executing his obligations) shall be “Card of registration of initial financial monitoring entity (separate subdivision) and compliance officers” (further – Registration Card) – for submitting information on paper approved by the Order of SCFM of Ukraine from May 13, 2003 under 48 „On approving some record keeping forms and submitting information related to executing financial monitoring, and Instruction on its filling”, and for electronically submitting information considering the Order of SCFM of Ukraine from September 28, 2004 under 122 «Procedure of appropriation of identifier to the entities of initial financial monitoring for submitting of information to SCFM of Ukraine and submitting information in electronic form by non-banking entities of initial financial monitoring”.
The sample of Registration Card with information on assignment/retirement the compliance officer of non-banking institution (separate subdivision) (or person temporary executing his obligations) shall be stored with the message on results of its processing (form #3-FM) during 5 years.
If non-banking institution or separate subdivision details mentioned in Registration Card have changed, non-banking institution shall submit to the SCFM of Ukraine information on such changes during 3 business days.
The compliance officer of non-banking institution (separate subdivision) shall be independent in his activity and accountable only to the head of non-banking institution.
The compliance officer of non-banking institution shall coordinate measures on executing financial monitoring and supervise over executing financial monitoring in institution. He shall be the head of Subdivision for Internal Financial Monitoring (if available). Mentioned Subdivision shall act under the Statute on Subdivision for Internal Financial Monitoring approved by the Head of non-banking institution.
If the compliance officer of non-banking institution (separate subdivision) is absent or is impossible to execute his obligations (vacation, illness, business trip etc.) the head of non-banking institution (separate subdivision) shall assign person temporary executing the obligations of the compliance officer. Person temporary executing obligations of the compliance officer of non-banking institution (separate subdivision) shall have the rights and obligations of the compliance officer of non-banking institution (separate subdivision).
The compliance officer of non-banking institution (separate subdivision) shall execute his job responsibilities under the Job description.
If the compliance officer disagrees with guidance of the head of non-banking institution on organization of system of prevention to the legalization (laundering) of the proceeds from crime and other issues of financial monitoring, the compliance officer could inform about it the SCFM of Ukraine and State Commission for Financial Service Market Regulation with his written objections.
 
3. REQUIREMENTS TO QUALIFICATION OF THE COMPLIANCE OFFICER
The compliance officer of non-banking institution (separate subdivision) shall have higher education (specialist or master’s degree) and experience of work in the sphere of financial services for one year at least.
The following person can’t be assigned the compliance officer of non-banking institution:
who has previous non-cancelled conviction for deliberate crime;
who doesn’t work for non-banking institution (separate subdivision).
The compliance officer of non-banking institution (separate subdivision) shall know the following:
·          the legislation regulating relations in the sphere of prevention and counteraction to the legalization of the proceeds from crime and terrorist financing, particularly:
Ø       The Law of Ukraine „On prevention and counteraction to the legalization (laundering) of the proceeds from crime”;
Ø       The Law of Ukraine „On financial services and state regulation of financial services markets”;
Ø       Resolution of Cabinet of Ministers of Ukraine from April 26, 2003 under 644 „Procedure of registration of financial transactions by the initial financial monitoring entities”;
Ø       Resolution of Cabinet of Ministers of Ukraine from April 26, 2003 under 645 „Procedure of determining NCCT”;
Ø       Resolution of Cabinet of Ministers of Ukraine from April 26, 2003 under 646 „Procedure of registration by the State Committee for Financial Monitoring financial transactions subject to obligatory financial monitoring”;
Ø       Resolution of Cabinet of Ministers of Ukraine from November 20, 2003 .  1800 „On approving the Procedure of executing internal financial monitoring by the business entities providing economic activity, casinos, other gambling institutions and non-banking institutions”;
Ø       Directive of Cabinet of Ministers of Ukraine from July 17, 2003 under 419-r „On NCCT”;
Ø       Directive of Cabinet of Ministers of Ukraine from February 24, 2003 under  77-r „List of offshore zones”.
·          normative legal acts of SCFM of Ukraine and other state financial monitoring entities that supervise over institution activity according to the legislation;
·          the full list of types of financial transactions executing by non-banking institution (separate subdivision), the procedure of their executing;
·          the job descriptions and functional responsibilities of non-banking institution (separate subdivision) employees participating to providing financial transactions;
·          the rules for executing internal financial monitoring and program of its executing;
·          the legislation norms foreseeing criminal, administrative and civil responsibility for violations of the Law;
·         regulations of other normative legal acts in the sphere of prevention and counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing.
The compliance officer of non-banking institution (separate subdivision) shall know and have skills on implementing the followings in practical activity:
·          procedure of identifying persons executing financial transactions;
·          procedure of storing documents concerning identification of persons executing financial transactions subject to financial monitoring according to the Law and all documents about executed financial transactions;
·          procedure of revealing financial transactions subject to financial monitoring and/or could be related to, connected or intended for terrorist financing;
·          criteria on assessing ML/FT risk of financial transaction executing by customer;
·          signs of financial transactions subject to obligatory financial monitoring;
·          signs of financial transactions subject to internal financial monitoring;
·          procedure of keeping register of financial transactions subject to financial monitoring;
·          procedure of submitting to the SCFM of Ukraine information about financial transactions subject to financial monitoring;
·          procedure of informing the SCFM of Ukraine and law enforcement authorities about financial transactions, suspicious to be related to, connected or intended for financing terrorist activity, terrorist acts or terrorist organizations;
·          procedure of suspending financial transactions participant or beneficiary of which is person included in List of persons related to terrorist activity;
·          requirements on prevention of disclosing information submitting to the SCFM of Ukraine, and other information on financial monitoring issues including the fact of submitting.
 
4. RIGHTS AND RESPONSIBILITIES OF THE COMPLIANCE OFFICER
The job responsibilities of the compliance officer of non-banking institution shall include particularly the followings:
·          Developing and permanent renewal of internal financial monitoring rules and program;
·          Providing complying of the internal financial monitoring rules and program by the employees of non-banking institution (separate subdivision) executing financial transactions;
·          Providing training and consulting personnel of non-banking institution (separate subdivision) on revealing financial transactions subject to financial monitoring through educational and practical measures;
·          Taking decisions on registration and, directly, registration of financial transactions subject to financial monitoring;
·          Taking decisions on what financial transactions shall be the SCFM of Ukraine informed about and relevant informing;
·          Providing submitting information on financial monitoring issues under the requests of the SCFM of Ukraine;
·          Assistance to representatives of the SCFM of Ukraine and the State Commission for Financial Services Market Regulation on analyzing financial transactions subject to financial monitoring issues;
·          Developing criteria of risk assessing ML financial transaction by the customer;
·          Taking decision on suspending/renewal of financial transaction (according to internal procedures of non-banking institution) participant or beneficiary of which is person included to List of persons related to terrorist activity;
·      Executing revisions of any subdivision activity as well as separate subdivisions;
·          Every month, the fifth day of next month at least (another date could be established in Rules for internal financial monitoring by non-banking institution), the compliance officer of non-banking institution shall inform the head of non-banking institution on complying the legislation norms and internal documents of non-banking institution in the sphere of prevention and counteraction to the legalization (laundering) of the proceeds from crime.
The compliance officer of non-banking institution shall have the following rights:
·          Execute revisions non-banking institution (separate subdivision) activity and all employees on complying internal financial monitoring rules and program;
·          Attraction of any non-banking institution (separate subdivision) employees to revisions on internal financial monitoring issues, assignment them commission and instructions obligatory for execution within the competence as well as demand for assistance in executing individual actions;
·          Receive the explanations from non-banking institution (separate subdivision) employees independently of positions on executing internal financial monitoring issues;
·          Submit to the head of non-banking institution under the revision results information on revealed violations of requirements of the legislation in the sphere of counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing by non-banking institution (separate subdivision) employees;
·          Take decision under agreement of the head of non-banking institution on refusal of providing financial transaction and inform SCFM of Ukraine about such transaction;
·          While executing revision, receive access to all premises and documents of non-banking institution (separate subdivision) and information related to executing financial monitoring.
 The compliance officer of non-banking institution shall execute other functions according to the legislation of Ukraine, internal financial monitoring rules, program for executing financial monitoring and other internal documents on counteraction to the legalization of the proceeds from crime and terrorist financing issues.
 The job responsibilities of the compliance officer of separate subdivision of non-banking institution shall include the followings:
·          Submitting to the compliance officer of non-banking institution proposals on developing and renewing of the Rules and Program for executing internal financial monitoring;
·          Providing preparing and education of separate subdivision personnel on revealing financial transactions subject to financial monitoring through educational and practical measures;
·          Providing complying the Rules and Program for executing internal financial monitoring by the employees of separate subdivision;
·          Record keeping of revealed in separate subdivision financial transactions subject to financial monitoring (the compliance officer of non-banking institution shall provide recording);
·          Performing other obligations prescribed by the Law and Job Description of the compliance officer of separate subdivision.
The compliance officer of separate subdivision of non-banking institution shall have the following rights:
·          To execute revisions of separate subdivision and employees activity on complying the Rules and Program for internal financial monitoring;
·          To involve to revisions on financial monitoring issues any employees of separate subdivision independently from positions, to give them the commissions and instructions within their competence obligatory for execution;
·          To access to all premises and documents of separate subdivision as well as to information related to execution of financial monitoring.
The compliance officer of non-banking institution (separate subdivision) shall organize and hold relevant education for providing relevant level of non-banking institution (separate subdivision) personnel training on executing financial monitoring issues.
Education of employees depending on their job responsibilities shall be performed through holding educational and practical training on the following directions:
·          acquaintance of non-banking institution (separate subdivision) employees with international AML/CFT standards, particularly, FATF 40 Recommendations and FATF 9 Special Recommendations;
·          acquaintance of employees with AML/CFT requirements of the legislation of Ukraine;
·          acquaintance of employees with requirements of non-banking institution internal documents on financial monitoring issues.
The compliance officer of non-banking institution (separate subdivision) shall held practical trainings on progressive experience studying on the following directions:
·          Revealing financial transactions that could be related to the legalization (laundering) of the proceeds from crime and terrorist financing;
·          Acquaintance with means and methods of studying customers and examining identification information;
·          Identification of persons executing financial transactions subject to financial monitoring according to the Law;
·          Revealing financial transactions subject to obligatory and internal financial monitoring and that could be related to, connected to or intended for financing terrorist;
·          Taking measures on determining nature and purpose of executing financial transaction subject to financial monitoring;
·          Preparing and submitting to the compliance officer of non-banking institution (separate subdivision) information about financial transaction (in form established by the compliance officer) necessary for him to take decision about registration;
·          Procedure of suspending financial transaction if participant or beneficiary of which is person included to List of persons related to terrorist activity;
·          Storing of documents concerning identification of persons executed financial transaction subject to financial monitoring according to the Law and all documents about executing financial transaction;
·          Providing measures on preventing disclosing information submitting to the SCFM of Ukraine and other information on financial monitoring issues;
·          Explanation and analyses of the most broadened schedules of the legalization (laundering) of the proceeds from crime concerning non-banking institution activity.
Personnel training shall be held under the schedule approved by the Head of non-banking institution. Schedule shall be added to Program for personnel training on financial monitoring issues and shall be it integral part.
 
5. PROCEDURE OF CUTOMER IDENTIFICATION AND STUDYING
For providing appropriate realization of initial financial monitoring entity functions by non-banking institution, the head of non-banking institution with the compliance officer shall determine the authorized employees responsible for identification and studying customers, and for issuance of customer case.
The authorized employee or the compliance officer shall identify customers according to the internal procedures of non-banking institution.
The compliance officer of non-banking institution (separate subdivision) who direct participates in providing financial transaction shall provide:
·          revealing financial transactions subject to financial monitoring and could be related to, connected to or intended for terrorist financing;
·          preparing and submitting to the compliance officer of non-banking institution (separate subdivision) additional information necessary for taking decision on it recording;
·          clarifying the nature and purpose of financial transaction subject to internal financial monitoring;
·          collecting and storing documents related to identification of persons executing financial transactions and documents on executed financial transactions subject to financial monitoring and could be related to, connected to or intended for terrorist financing;
·          measures on preventing disclosure (including persons about financial transaction of whose are examining) of information submitting to SCFM of Ukraine and other information on financial monitoring issues (including fact of submitting such information).
Procedure of identification of persons executing financial transactions subject to financial monitoring according to the Law shall include the followings:
·          Procedure of initial identification of person;
·          Procedure of taking measures on examining identifying information;
·          Procedure of taking measures on examining and additional studying information about customer and person acting in his name in case if there are doubts on authenticity of such information considering risk of legalization of the proceeds from crime or terrorist financing;
·          Measures on additional identification of person;
·          Measures on executing identification of person in case of changing information necessary for identification or if the validity of identifying documents is over;
·          Procedure of providing documentary fixing of customer information;
·          Criteria developing for classification of persons, description of ML/FT high-risk types of persons.
For identification and studying of customers, authorized employee (the compliance officer) on the ground of submitted originals or certified copies of originals of documents shall identify persons executing financial transactions subject to financial monitoring according to the Law. Such documents shall be valid at the moment of their submitting to non-banking institution (separate subdivision).
Providing initial identification, first of all, shall be clarified if customer includes to List of persons related to terrorist activity.
Authorized employee (the compliance officer) shall be obliged to identify the following person:
·         who opens account/concludes the agreement about financial services;
·         who executes financial transactions subject to financial monitoring according to the Law;
·         who is beneficiary;
·     who acts as representative of other person.
If person acts as representative of other person or authorized employee (the compliance officer) has suspicions that such person acts in the name of other person, or beneficiary is other person, authorized employee (the compliance officer) shall be obliged to identify person in the name of which financial transaction is executing or beneficiary, representative.
Non-banking institution (separate subdivision) shall provide services only after identification of customers according to the following requirements:
Of the Article 6 of the Law of Ukraine „On prevention and counteraction to the legalization (laundering) of the proceeds from crime”;
Of the Article 18 of the Law of Ukraine „On financial services and state regulation of financial services markets”.
The followings shall be determined for identifying residents:
For natural persons – surname, name, patronymic; birth date; series and number of passport (or other identifying document – birth certificate, sailor passport, military card, driving license etc.), issuing date and authority; location; identification number under State Register of natural persons – tax payers.
If natural person refused of receiving identification number under religious motives, the relevant mark of tax authority shall be done in passport of such person.
For legal persons – name, location, documents on approving state registration (including statutory documents – statute, information about officials and their responsibilities etc.), identification number according to Unified State Register of enterprises and organizations of Ukraine, requisites of bank in which account is opened and bank account number.
 The followings shall be determined for identifying nonresidents:
For natural persons – surname, name, patronymic (if available); birth date; series and number of passport (or other identifying document), issuing date and authority; citizenship; location or place of temporary staying.
For legal persons – full name, location and requisites of bank in which account is opened, and bank account number. Extract from trading, banking or judicial register or notary certified certificate of foreign authorized agency on registration of relevant legal person shall be submitted to non-banking institution.
Certified copies of identifying documents of legal or natural persons as well as identifying customer card shall be stored in case for 5 years. Submitted documents shall be valid and contain true information for the time of submitting.
Identification of person shall be not obligatory if person, executes financial transaction, was previously identified by non-banking institution (separate subdivision) according to the actual legislation of Ukraine.
Additional documents and data related to identification shall also be stored in customer case.
Examining statutory documents of legal person and documents approving state registration, attention shall be paid to the followings:
·          execution of statutory documents (considering all recorded changes);
·          complement of legal person founders and related persons;
·          structure of administration bodies and their responsibilities;
·          amount of registered and paid statutory fund;
·          compliance of financial transaction to usual customer activity;
·          types of activity and transactions executing by customer.
If customer refuses to submit necessary identifying information, non-banking institution (separate subdivision) shall refuse to provide services and to open account, and if available previously opened accounts – refuse to provide services and/or shall not conclude the agreement on servicing.
The compliance officer of non-banking institution shall develop the ML/FT criteria of customer’s financial transaction which shall be submitted to approval of the head of non-banking institution.
Approximate list of ML risk criteria which non-banking institution can use in it practical activity shall be the following:
1) Foreign counteragents – residents of countries (territories) about which the following is known from reliable sources:
Doesn’t comply international standards on combating with the legalization (laundering) of the proceeds from crime;
Doesn’t foresee disclosure or submitting information on financial transactions;
Doesn’t execute FATF Recommendations;
Are countries (territories) in which war actions are held;
Are offshore zones;
Are countries (territories) that doesn’t participate in international cooperation in the sphere of prevention and counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing;
2) If in financial transaction participates the person who:
Is (was) widely authorized official;
Executes transferring funds, cashing cheques but such person is not financial institution;
Executes foreign economic transactions;
Receives financial help from nonresidents or gives financial help to nonresidents.
If possibility of executing by the person transactions related to the legalization (laundering) of the proceeds from crime or terrorist financing is assessing by non-banking institution (separate subdivision) as high, more attention shall be focused on such transactions and authorized employee (the compliance officer) shall specify information received from identification and studying customer at least once per year. For other customers the term of specifying information shall not exceed 3 years.
Customer classification on ML/FT risk shall be provided by the compliance officer considering their reputation, sphere and period of activity on market.
Obligatory specification of identifying and studying information of the customer shall be performed if there were following changes:
·          In statutory documents;
·          Owners of legal person;
·          Owner of essential part in legal person;
·          Location of legal or natural person;
·          If term of validity of previously submitted documents is over.
Identification of following natural persons – founders shall be provided for studying customers:
Joint-stock companies, limited liability companies, additional liability companies, general partnerships.
Natural and legal persons applied for services to non-banking institution shall be identified. In addition, all levels of founders of legal persons shall be identified according the following scheme:
- in case if founders of legal person are only natural persons, all natural persons owned 10% and more of statutory fund shall be identified (statute of customer – legal person contain necessary information on natural persons - founders);
- 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 (for receiving additional information the reference of free form can be given with mentioning identifying data about founders – natural persons with signatures of officials of customer – legal person and signet of enterprise);
- 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.
The compliance officer who provides identification in the presence of customer – natural person shall make copies of identifying documents. Copies shall be certified by signatures of authorized employee (the compliance officer) and customer. The compliance officer of separate subdivision shall write on document “true copy”.
If there are suspicions that person acts in name of other person, employees of non-banking institution (separate subdivision) shall be prohibited to conclude agreement relations with such person. Such requirement doesn’t apply to persons who act under power of attorney.
Authorized employee (the compliance officer) for additional studying the customer shall have the right to request from customer other documents and information necessary for determining the nature of his activity and financial condition.
Documental fixing of initial identification shall be provided by relevant customer card under established by leasing provider form and such card shall be added to customer case. The authorized employee (the compliance officer) shall compose and sign relevant customer card (given in annexes 2- 5).
Given in annexes 2-5 forms of cards are recommended. According to internal procedures and need of non-banking institution they can be amended with additional sections.
Composing such card, information recorded by compliance officer to register of financial transactions subject to financial monitoring (form #2-FM) shall be considered. Form of register approved by the Order of SCFM of Ukraine from May 13, 2003 under 48.
The customer card shall be internal document of non-banking institution.
In case of necessity to precise information about customer, the compliance officer shall be obliged to record changes in customer information the same day he receive information on such changes. Copies of documents certifying mentioned changes as well as written references, answers on letters – requests shall be added to customer case.
For detail studying of customer, clarifying the nature and purpose of his activity, financial condition, according to internal procedures authorized employee (the compliance officer) shall prepare and submit the letters – requests to the Head of non-banking institution with application:
To customer – submit information prescribed by internal procedures of non-banking institution relating such person and it leadership;
To state power authorities regulating and/or supervising over such legal persons activity – submit relevant information;
To banks and other legal persons – submit relevant information.
Authorized employee (the compliance officer) shall send the letter – request to customer with application to submit additional information. The list of documents necessary for precise additional information shall be mentioned in the letter - request. Procedure of request, the term for answer on the letter – request to customer shall be established according to internal procedures.
Information concerning identification of persons who executed financial transaction subject to financial monitoring according to the Law and all documents shall be stored for 5 years after executing such financial transaction.
 
6. PROCEDURE OF REVEALING AND RECORDING FINANCIAL TRANSACTIONS SUBJECT TO FINANCIAL MONITORING
Employees of non-banking institution (separate subdivision), before executing, when concluding the agreement as well as while servicing customer, shall analyze financial transactions for revealing transactions subject to financial monitoring according to the legislation in the sphere of prevention to the legalization of the proceeds from crime.
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:
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;
purchase (sale) of checks, traveller’s checks or other similar payment facilities for cash;
placement or transfer of funds, granting or receiving a credit (loan) when at least one of the parties is a natural person 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 terrorist financing, 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 terrorist financing;
transfer of funds in cash abroad with a request to give the recipient the funds in cash;
placement of funds to an account in cash with their subsequent transfer to another person during the same or the next trading day;
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;
opening an account with placing the funds to it for the benefit of a third person;
transfer of funds abroad by a person in cases when no foreign economic contract was concluded;
exchange of banknotes, particularly of foreign currency, for banknotes of another nominal value;
carrying out financial transactions with bearer securities not placed in depositaries;
purchase of securities for cash;
payment of insurance compensation to a person or receipt of insurance premium;
payment of lottery, casino or other gambling winnings;
placement of precious stones, metals and other valuables to a pawn shop.  
A financial transaction shall be subject to internal financial monitoring provided it has one or more indications:
1) Nonstandard or excessively complicated financial transaction that has no evident economic sense or obvious legal aim, including:
) receipt by an entity of initial financial monitoring 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 person’s funds) in the amount that is higher than that the one fixed by the entity of initial financial monitoring in terms of similar deposits and financial transactions;
b) a person insists on conducting a transaction according to rules that differ from those established by the laws and internal documents of the entity of initial monitoring relating to the essence of such transaction or the terms of carrying out such transaction;
c) a 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;
d) a person submits unverifiable information;
e) impossibility to identify person’s 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;
f) person's (customer's) refusal to provide the information specified by the laws and internal documents of an entity of initial financial monitoring;
g) 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;
h) acceptance of funds (or payable financial instruments) by an entity of initial financial monitoring from a person who repeatedly exchanges securities for other securities within the same year without receiving or providing cash indemnity related to such exchange;
 i) emergence of insured accident within a short period of time established by the specially authorized executive body that regulates the financial services markets, after conclusion of an insurance contract;
 2) Noncompliance of a financial transaction with the activity of legal entity defined by statutory documents of such entity, including:
 a) sudden increase of the account balance amount not directly connected with the person’s 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;
 b) absence of clear connection between the nature and kinds of a person’s activities with the services for which the customer applies to an entity of initial financial monitoring;
 c) regular presentation of checks issued by a nonresident bank and endorsed by a nonresident, for collection payment provided such practice is inconsistent with the customer’s activity which is known to an entity of initial financial monitoring;
 d) placement to a person’s account of a large number of payments from natural persons in the amount not exceeding the sum indicated in Article 11 of this Law, including those through the cash department of an entity of initial monitoring, provided that the person's activity does not involve rendering services to population or collection of compulsory and voluntary payments.
 e) considerable increase of the amount of cash being transferred to account of the person provided the person usually effected cashless settlements.
 f) 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;
 g) 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;
3) Repeated financial transactions, the nature of which gives grounds to believe that their aim is to evade the procedures of compulsory financial monitoring established by this Law, including:
 a) regular placement of cash to a person’s 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 customer’s account opened at another entity of initial financial monitoring, or in favour of third persons, including non-residents;
 b) a person orders to conduct a financial transaction through a representative (intermediary), if such representative (intermediary) fulfils the person’s order without direct (personal) contact with an entity of initial financial monitoring.
Internal financial monitoring can also be applied to other financial transactions, when the compliance officer of non-banking institution (separate subdivision) has grounds to believe that a financial transaction is aimed at legalization (laundering) of proceeds.
For determining signs of financial transactions subject to internal financial monitoring, non-banking institution (separate subdivision) can use signs prescribed in annex 1.
 Before executing the financial transaction but the next business day at least the employee of non-banking institution, who provides financial transaction or the compliance officer, shall clarify the opportunity to consider this financial transaction subject to financial monitoring according to the Law.
If such transaction was revealed, employee of non-banking institution shall inform in written form the compliance officer of non-banking institution the same day, and the employee of separate subdivision shall inform the compliance officer of separate subdivision who shall inform the compliance officer of non-banking institution.  
The compliance officer of non-banking institution after examining and confirming received information shall record such transaction the same day. Procedure of submitting information on revealed financial transaction from employee of non-banking institution to the compliance officer of non-banking institution as well as from the compliance officer of separate subdivision to the compliance officer of non-banking institution shall be established in internal procedures of non-banking institution.
The compliance officer of non-banking institution shall provide recording of financial transactions subject to financial monitoring in the Register of financial transactions subject to financial monitoring of established form (form #2-FM) (further – the Register).
The format, structure of the Register, reference book of codes and the procedure of submitting the information on paper are established by the Order of SCFM of Ukraine from May 13, 2003 under 48 “On execution of certain forms relevant to financial monitoring and Instructions for their filling in. The procedure of submitting information in electronic form approved by the Order of SCFM of Ukraine from September 28, 2004 under 122 “Procedure of appropriation of identifier to the entities of initial financial monitoring for submitting of information to SCFM of Ukraine”.
For each record in the Register the serial number and time and date of recording shall be assigned as well as the position, surname, name and patronymic of the compliance officer of non-banking institution who made the record shall be written. The Register shall have the continuous numbering from the beginning registration of the first financial transaction.
In case taking the decision by the compliance officer of non-banking institution on inexpediency of informing the SCFM of Ukraine about the financial transaction subject to initial financial monitoring, the compliance officer shall compose the written reference note where he grounds his decision. Reference note particularly shall include the composing date, serial number of the financial transaction in the Register, the results of taken measures on clarifying nature and purpose of executing this financial transaction by the client and signature of the compliance officer.
If the compliance officer of non-banking institution has grounded suspicious that revealed financial transaction is executing for the legalization (laundering) of the proceeds from crime, he shall submit information on such financial transaction to the SCFM of Ukraine.
The compliance officer of non-banking institution shall be personally responsible for protection the Register from damaging, unsanctioned access, modification or distortion of data. Correction of data included to the Register shall be prohibited.
In the case of necessity to correct noisy data in the Register on individual financial transaction, informational field of the Register consisting data on this financial transaction shall be amended with the note of its canceling and new note shall be added to the Register about this financial transaction with new number and date of registration and submitted to the SCFM of Ukraine in new information reference during 3 business days from the refusal in recording previous reference date.
Every day if new records is made to the Register, all new records or changed during business day records shall be printed. Printed pages of the Register shall be certified with signature of the head or the compliance officer of non-banking institution.
Up to fifth day of each month, printed pages of the Register for previous month shall be formed by the dates, stringed and certified by the signature of the head or the compliance officer and by the signet of non-banking institution and shall be stored for 5 years.
On the first page of the case shall be written the number of pages in case, first and last financial transaction registration dates, quantity of pages in case, term of storing.
 
61. SUBMITTING INFORMATION ON REVEALED FINANCIAL TRANSACTIONS TO THE COMPLIANCE OFFIER OF NON-BANKING INSTITUTION BY THE COMPLIANCE OFFICER OF SEPARATE SUBDIVISION
If employee of separate subdivision who executes or provide financial transaction clarifies that financial transaction subject to financial monitoring, he shall compose the reference on revealed financial transaction the same day (the pattern shall be established by the compliance officer of non-banking institution) and the same day shall submit it and documents under the grounds of which financial transaction is executing/was executed to the compliance officer of separate subdivision. The compliance officer of separate subdivision after examining received reference and documents (if available) on revealed financial transaction shall submit information to the compliance officer of non-banking institution for taking the decision on recording this financial transaction.
Separate subdivision, which independently doesn’t submit information on financial transactions to SCFM of Ukraine, shall provide record keeping of financial transactions subject to financial monitoring under requisites prescribed by the Register.
With this purpose the compliance officer of separate subdivision shall keep the Journal of recording financial transactions that could be related to the legalization (laundering) of the proceeds (further – the Journal) under requisites prescribed by the form 2-FM „Register of financial transactions subject to financial monitoring”, approved by the Order of SCFM of Ukraine from May 13, 2003 under 48  „On execution of certain forms relevant to financial monitoring and Instructions for their filling in”.
The extract from the Journal with information on revealed financial transaction by the compliance officer of separate subdivision shall be submitted to the compliance officer of non-banking institution according to the internal procedures of non-banking institution (by electronic means, by special delivery or by other available means). The measures on protection information from access of third persons shall be applied. The compliance officer of non-banking institution shall register the revealed in separate subdivision financial transaction and shall take the decision on informing/non-informing (if financial transaction subject to internal financial monitoring) SCFM of Ukraine.
After recording of financial transaction, the compliance officer of non-banking institution shall submit to relevant separate subdivision information on financial transaction recording, in particular, the sequence number of financial transaction recording in the register of non-banking institution.  After receiving such information the compliance officer of separate subdivision shall write to the Journal the sequence number of financial transaction recording in the register of non-banking institution.    
 
 
7. PROCEDURE OF SUBMITTING TO THE SCFM OF UKRAINE THE INFORMATION ON FINANCIAL TRANSACTIONS SUBJECT OT FINANCIAL MONITORING
Recording financial transactions subject to financial monitoring shall be provided in Register composing and keeping by the compliance officer of non-banking institution and is electronic (paper) document of established structure.
Register is the totality of data on financial transactions subject to financial monitoring and their participants.
Information submitting by the non-banking institution under information received from separate subdivision shall contain the requisites prescribed in this Section. The list of necessary requisites shall be determined by SCFM of Ukraine.
The procedure of submitting by non-banking institution to the SCFM of Ukraine information on financial transaction subject to financial monitoring approved by the Resolution of Cabinet of Ministers of Ukraine from April 26, 2003 under 644 „On approving the Procedure of recording financial transactions by the entities of initial financial monitoring”.
The format, structure of the Register, reference book of codes and the procedure of submitting the information on paper are established by the Order of SCFM of Ukraine from May 13, 2003 under 48 “On execution of certain forms relevant to financial monitoring and Instructions for their filling in”. 
The procedure of submitting information in electronic form approved by the Order of SCFM of Ukraine from September 28, 2004 under 122 “Procedure of appropriation of identifier to the entities of initial financial monitoring for submitting of information to SCFM of Ukraine and submitting information in electronically form by the non-banking entities of the initial financial monitoring”.
 Information on each financial transaction submitting to the SCFM of Ukraine in electronic form as file – reference shall be signed with electronic digital signature of the compliance officer of non-banking institution (the person temporary executing his responsibilities).
Information on financial transactions subject to financial monitoring submitting to the SCFM of Ukraine on paper shall be signed by the compliance officer of non-banking institution.
In case of receiving from the SCFM of Ukraine file – receipt with codes of mistakes on separate financial transaction submitted in file – reference or on file – reference as a whole, the compliance officer of non-banking institution shall analyze the reasons of mistakes, provide correcting mistakes and submit information on these financial transactions as new file – reference again to the SCFM of Ukraine. The procedure of correcting (canceling) mistakes established in the Section 6 of the Rules.
File – receipt with zero codes of mistakes shall be the approval that this transaction is recorded by the SCFM of Ukraine. Copies of references submitted to the SCFM of Ukraine shall be stored by non-banking institution in electronic form for 5 years.
In case of receiving from the SCFM of Ukraine the form 5 – FM „Notification on recording financial transaction or refusal of recording by SCFM of Ukraine” with sign on refusal of recording information in connection with its improperly execution, the compliance officer of non-banking institution shall be obliged in 3 business days submit properly executed information to SCFM of Ukraine again.
 
8. PROCEDURE OF REVEALING AND SUSPENDING THE TRANSACTION PARTICIPANT OR BENEFICIARY OF WHICH IS PERSON INCLUDED TO LIST OF PERSONS RELATED TO TERRORIST ACTIVITY
 For providing complying the requirements of the Article 121 of the Law on suspending financial transactions related to terrorist activity, employee of non-banking institution (separate subdivision) before executing each financial transaction shall examine presence among participants or beneficiaries of such transaction persons included to List of persons related to terrorist activity.
If there are persons included to List of persons related to terrorist activity among participants, information on such transaction shall be immediately submitted to the compliance officer of non-banking institution.
Submitting information from separate subdivision to non-banking institution shall be provided in procedure prescribed by Section 61 of these Rules.
The compliance officer of non-banking institution shall suspend financial transaction participant or beneficiary of which is person included to List of persons related to terrorist activity up to 2 business days.
Decision on suspending such financial transaction shall be taken by the compliance officer of non-banking institution according to internal procedures of non-banking institution through composing written commission which is obligatory to execute by all employees of non-banking institution and separate subdivisions providing financial transactions. The sample of written commission shall be developed by the compliance officer of non-banking institution and approved by the Head of non-banking institution.
In case of taking decision on suspending financial transaction non-banking institution shall inform SCFM of Ukraine the same day. Information shall be submitted to SCFM of Ukraine providing measures that exclude uncontrolled access to such information during delivery.
The compliance officer shall be obliged to insure that submitted information is received by SCFM of Ukraine.
Procedure of suspending financial transactions shall be established by state agencies authorized to regulate and supervise over entities in the sphere of financial monitoring within their competence.
In case of non-receiving decision of SCFM of Ukraine on further suspending financial transaction by non-banking institution in 2 business days, the compliance officer shall take decision on renewal of such financial transaction.
In case of receiving decision of SCFM of Ukraine on further suspending relevant financial transaction, the compliance officer of non-banking institution shall provide according to internal procedures further suspending financial transaction or renewal of such financial transaction.
SCFM of Ukraine can take decision on further suspending such financial transaction for the term of up to 5 business days, it shall be obliged to inform non-banking institution and relevant law enforcement authorities prescribed by the legislation about this. In case of termination the term for further suspending financial transaction mentioned in relevant decision of SCFM of Ukraine, the compliance officer shall take decision on renewal of such financial transaction.
The total term of suspending financial transaction can’t exceed 7 business days from the moment of receiving by non-banking institution documents on grounds of which financial transaction executes.
List of persons related to terrorist activity by SCFM of Ukraine is available on the web-site of SCFM of Ukraine (www.sdfm.gov.ua) in section “List of persons related to terrorist activity”
  
9. PROCEDURE OF REFUSAL OF PROVIDING FINANCIAL TRANSACTION AND SUBMITTING INFORMATION ON SUCH TRANSACTION TO SCFM OF UKRAINE
 
 Before executing the financial transaction but the next business day at least the employee of non-banking institution, who provides financial transaction, shall clarify the opportunity to consider this financial transaction subject to financial monitoring according to the Law. In case of revealing such financial transaction employee of non-banking institution shall immediately inform the compliance officer of about it.
The compliance officer of non-banking institution shall have the right to refuse of executing or providing financial transaction if established that such financial transaction subject to financial monitoring according to the Law and shall be obliged to identify persons who want to execute mentioned financial transaction and inform SCFM of Ukraine about these persons and nature of this transaction.
The compliance officer of non-banking institution shall obligatory inform the head of about taken decision on refusal of executing or providing financial transaction subject to financial monitoring according to the Law, and only after that the compliance officer of non-banking institution shall submit written commission to the employee of non-banking institution (separate subdivision) who executes such financial transaction.
Employee of non-banking institution (separate subdivision) after receiving relevant written commission shall return to customer documents without execution with written grounding of refusal of executing financial transaction subject to financial monitoring.
If the employee of non-banking institution (separate subdivision) after receiving relevant written commission shall return to customer documents without execution with written grounding of refusal of executing financial transaction subject to financial monitoring (with obligatory reference on the Part 2 of the Article 7 of the Law) and shall write the date of returning of documents (shall be certified by the signature of employee and signet of non-banking institution). Refusal of providing financial transaction shall be legalized by separate written letter). Employee of non-banking institution (separate subdivision) shall be obliged to identify persons executing mentioned financial transaction and shall clarify it nature.
If financial transaction executes in separate subdivision the compliance officer of separate subdivision shall inform the compliance officer of non-banking institution on executing financial transaction subject to financial monitoring according to the Law and on persons who executed or waned to execute such financial transaction, and the character of such financial transaction under procedure prescribed by the Clause 6 of this Rules.
Financial transaction which was refused for execution shall be recorded to the Register. Reference with information about refusal of providing financial transaction shall be submitted to SCFM of Ukraine in 3 business days from the moment of recording such transaction.
 
10. PROCEDURE OF INFORMING THE HEAD OF NON-BANKING INSTITUTION BY THE COMPLIANCE OFFICER ABOUT REALIZATION OF RULES FOR INTERNAL FINANCIAL MONTORING
 
Every month, the fifth day of next month at least, the compliance officer of non-banking institution (separate subdivision) shall inform the head of non-banking institution on complying the legislation norms and internal documents of non-banking institution in the sphere of prevention and counteraction to the legalization (laundering) of the proceeds from crime.
Informing shall be provided by submitting to the head of non-banking institution the written reference of free form.
The reference shall contain information about:
·          The issuing date;
·          The quantity of executed financial transactions;
·          The quantity of identified persons;
·          The quantity of revealed financial transactions subject to financial monitoring;
·          The quantity of recorded financial transactions with signs of obligatory and internal financial monitoring;
·          The quantity of submitted to SCFM of Ukraine financial transactions subject to obligatory and internal financial monitoring;
·          The quantity of repeatedly submitting to SCFM of Ukraine financial transactions after correcting made mistakes;
·          The taken measures concerning developing and renewing the Rules and Program for internal financial monitoring considering the requirements of the legislation, including normative legal acts of SCFM of Ukraine;
·          The taken measures concerning personnel training on revealing financial transactions subject to financial monitoring according to the Law by holding educational and practical measures;
·          The signature of the compliance officer of non-banking institution (separate subdivision).
The reference with signature of the head of non-banking institution shall be stored by the compliance officer of non-banking institution (separate subdivision) in separate case under nomenclature number of this case for 5 years.
 
11. RESPONSIBILITY FOR VIOLATIONS OF THE LEGISLATION REQUIREMENTS IN THE SPHERE OF COUNTERACTION TO THE LEGALIZATION (LAUNDERING) OF THE PROCEEDS FROM CRIME AND THESE RULES
The head of non-banking institution, the compliance officer of non-banking institution (separate subdivision) as well as other officials of non-banking institution shall be administrative and criminal responsible for violations of the legislation on prevention and counteraction to the legalization of the proceeds from crime.
. The administrative responsibility shall be prescribed by the Article 1669 of the Code of Administrative Offences of Ukraine.
Article 1669. Violation of legislation on prevention and counteraction to legalization (laundering) of the proceeds from crime.
Violation of requirements on identification of persons executing financial transactions, violation of the procedure of registration of financial transactions subject to initial financial monitoring, non-submission, untimely submission or submission of inauthentic information on such transactions to SCFM of Ukraine, as well as nonobservance of requirements on keeping documentation concerning identification of persons executing financial transactions and documentation concerning financial transactions executed by them, leads to imposition of fines on officials of entities of initial financial monitoring in amount from fifty to one hundred untaxed minimum incomes of citizens.
Disclosure of information submitted to SCFM of Ukraine, or the fact of submission of such information leads to imposition of fines in amount from one hundred to three hundred untaxed minimum incomes of citizens
. Criminal responsibility shall be prescribed by the Article 2091 of the Criminal Code of Ukraine.
1. Intentional failure to submit the information on transactions, or repeated intentional submission of deliberately false information regarding transactions subject to internal or obligatory financial monitoring to SCFM of Ukraine, shall be punishable by a fine of 1000 to 2000 untaxed minimum incomes of citizen, or limitation of liberty for a term up to two years, or imprisonment for the same term with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to three years.
2. Intentional illegal disclosure of information in any form, which was submitted to SCFM of Ukraine, by a person who learned such information in the course of performance of his/her professional or service duties, shall be punishable by a fine of 2000 to 3000 untaxed minimum incomes of citizen, or limitation of liberty for a term up to three years, or imprisonment for the same term with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to three years.
. Employees of non-banking institution (separate subdivision) could be made responsible under decision of the Head of non-banking institution for violations of these Rules. Such responsibility shall be prescribed by the Labour Code and shall be established for non-execution of job responsibilities (job discipline).
 
 
Annex 1
Approximate list of criteria for considering financial transactions subject to internal financial monitoring
1.   
Granting a credit under guarantee of nonresident on condition that there is no evident connection between customer activity location and his counteragents, and location of guarantor, especially if guarantee was given by the subsidiary of nonresident
2.   
overdue debt repayment under credit agreement if conditions of person activity and information known to initial financial monitoring entity about this person give no possibility to clarify the sources of funds for such repayment
3.   
early repayment of credit by the funds from unmentioned or unknown for initial financial monitoring entity sources
4.   
Systematic receiving large amounts of cash the same day it comes to his account
5.   
Providing financial transactions on payments to economic entities statutory funds in securities in amounts that exceeds 50% of statutory fund of enterprise which is registering
6.   
Purchase by residents under commission agreement blocks of securities (often non-liquid) of Ukrainian economic entities from firms – nonresidents for prices essentially higher than market prices
7.   
Regular providing financial transactions with bills if person is not issuer or fund receiver under such bills and has no license of professional participant of security market
8.   
Obtaining ownership on block of securities summary value of which equal or exceed UAH 80 000 or it equivalent in currency under donation or barter contract
9.   
purchase (selling) block of securities cost of which equal or exceeds UAH 80000 without participating of security trader
10.    
Regular transaction on purchase with further selling securities that have n ratings on market if profit from such selling will be used for purchase high-liquid securities that are free circulating on organized market
11.    
Simultaneous giving commissions for purchase and selling securities and other financial instruments for prices essentially different from equal contracts
12.    
Receiving funds from account opened in financial institution in country included to list of offshore zones by Cabinet of Ministers of Ukraine
13.    
One of financial transaction participants is legal person registered in country included to list of offshore zones by Cabinet of Ministers of Ukraine
14.    
Regular transferring funds abroad by natural person who has no entrepreneurship
15.    
Payment by resident to nonresident penalty (fine) for non-execution of contract for supplying goods (making works, providing services) or for violations of contract conditions, if amount of penalty exceeds 10% from the value of unsupplied goods (works, services)
16.    
Impossibility to clarify the object of foreign economic transactions. Absence of clear description of goods, works, services that are subject of foreign economic contract
17.    
Purchasing currency by person for repayment credit received the same or previous banking day under foreign economic contract by another person or under commission agreement
18.    
Regular returning to payers funds send abroad
19.    
Regular canceling insurance contracts (returning of insurance payments)
20.    
Regular returning of insurance payments to customer account if took place mistaken or surplus transferring
21.    
Concluding insurance/reinsurance contracts on evidently disadvantageous conditions
22.    
nonstandard or very complicated schedules of settlements that differs from usual practice which is used by this customer or from usual market practice
23.    
Regular purchase/selling goods on amount that equal or exceeds UAH 80000 or it equivalent  in currency if payments provide in cash
24.    
Purchase tokens in gambling institution on amount that equals or exceeds UAH 10000 or it equivalent in currency
25.    
Regular and cyclic providing financial transactions on purchase/selling assets without fact supplying assets between participants of transaction
26.    
Providing financial transactions on purchase/selling goods (services) which can’t be valued (e.g., object of intellectual property etc.)
27.    
Evident non-complying mentioned in contract value of goods or services to their market prices
28.    
Evident non-complying of income/outcome payments destination
29.    
Customer is legal person that is not financial institution but provides financial services on funds transferring, cashing cheques etc.
30.    
Providing financial transaction if it participant registered (located, temporary stayed) in country in which war actions are held
31.    
Customer is person which is (was) widely authorized official (e.g., in state power authorities), or members of family of such person
32.    
Providing financial transaction if it participant is person registered (located, temporary stayed) in country the legislation of which doesn’t foresee disclosure or submitting information on financial transactions to competent authorities
 
 
 
Annex 2
CUSTOMER CARD
(for legal person – resident)
I. Identification data of legal person – resident according to the Article 6 of the Law
Information
1.1.
Name  
Full______________________________
Abbreviate __________________________
1.2.
Location
1.3.
Documents on confirmation of state registration:
1.3.1.Certificate of state registration
Series ________________ issuing date________________
Issuing authority _________________
1.3.2. Statute (with last registered amendments)
of registration ______________ registration date __________
Registration authority _______________________
1.4.
Information on officials and their responsibilities
1.4.1 The head _____________(Surname, name, patronymic),
passport data, identification code, number and date of the order for assignment on position.
1.4.2. The deputy head ____________ (Surname, name, patronymic), passport data, identification code, number and date of the order for assignment on position
1.5.
Identification code under Unified State Register of Entities, Organizations and Institutions
1.6.
Bank account number, MFO, name and address of bank
1.7.
E-mail
II. Additional information for customer studying
2.1. Identification data of natural persons authorized to act in the name of customer (passport data or other identification document, identification code, series and number of power of attorney term of validity)
2.2. Fact location
2.3. Founders and related persons
2.4. Owners of essential participation with mentioning of their part in the legal person capital
2.5. Financial condition
2.6. Main counteragents
2.7. Availability of subsidiaries and other separate subdivisions
2.8. Degree of risk of executing financial transaction related to the legalization of the proceeds from crime
Other additional information about legal person – nonresident necessary for non-banking institution according to internal procedures.
______________________ / Surname, name, patronymic /
(signature of the compliance officer of non-banking institution who provided customer identification)
 _____________ filling date
Annex 3
CUSTOMER CARD
(for natural person - resident)
I. Identification data of natural person – resident according to the Article 6 of the Law
Information
1.1.
Surname
Name
Patronymic
1.2.
Birth date
1.3.
1.3.1. Data on identification document
Passport or other document _______Series _______ ___________ issuing date ________________
Issuing authority ____________________________________________
1.4.
Location
1.5.
Identification code under State Register of Natural Persons – Tax Payers
1.6.
E-mail
 
II. Additional information for customer studying
2.1. Identification data of natural persons authorized to act in the name of customer (passport data or other identification document, identification code, series and number of power of attorney term of validity etc.).
Other additional information about natural person – nonresident necessary for non-banking institution according to the internal procedures.
______________________ / Surname, name, patronymic /
(the signature of the compliance officer of non-banking institution who provided customer identification)
 _____________ filling date
   
Annex 4
CUSTOMER CARD
(for legal person – nonresident )
I. Identification data of legal person – nonresident according to the Article 6 of the Law
Information
1.1.
Full name ______________________________
1.2.
Location and requisites of bank in which the account is opened and bank account number
1.3.
Documents on confirmation of state registration:
1.3.1. Copy of legalized extract from trading, banking or court register
Series ________________ issuing date________________
Issuing authority _________________
1.3.2. Or notary certified registration certificate of the foreign country authorized agency on registration of this legal person
1.3.3. The country of registration
1.4.
Information on officials and their responsibilities
1.4.1 The head _____________(Surname, name, patronymic),
passport data, identification code, number and date of the order for assignment on position.
1.4.2. The deputy head ____________ (Surname, name, patronymic), passport data, identification code, number and date of the order for assignment on position
1.5.
The registration country of legal person – nonresident
1.6.
E-mail
II. Additional information for customer studying
2.1. Identification data of natural persons authorized to act in the name of customer (passport data or other identification document, identification code, series and number of power of attorney term of validity)
2.2. Founders and related persons
2.3. Owners of essential participation with mentioning of their part in the legal person capital
2.4. Financial condition
2.5. Main counteragents
2.6. Availability of subsidiaries and other separate subdivisions
2.7. Degree of risk of executing financial transaction related to the legalization of the proceeds from crime
Other additional information about legal person – nonresident necessary for non-banking institution according to internal procedures.
______________________ / Surname, name, patronymic /
(the signature of the compliance officer of non-banking institution who provided customer identification)
 _____________ filling date
Annex 5
CUSTOMER CARD
(for natural person - nonresident)
I. Identification data of natural person – resident according to the Article 6 of the Law
Information
1.1.
Surname
Name
Patronymic (if available)
1.2.
Birth date
1.3.
1.3.1. Data on identification document
Passport or other document _______Series _______ ___________ issuing date ________________
Issuing authority ____________________________________________
1.4.
Citizenship
1.5.
Location or temporary staying
1.6.
E-mail
 
II. Additional information for customer studying
2.1. Identification data of natural persons authorized to act in the name of customer (passport data or other identification document, identification code, series and number of power of attorney term of validity etc.).
Other additional information about natural person – nonresident necessary for non-banking institution according to the internal procedures.
______________________ / Surname, name, patronymic /
(the signature of the compliance officer of non-banking institution who provided customer identification)
 _____________ filling date
 
 


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