NBU mandates automatic currency conversion for non-bank payment service providers
The National Bank of Ukraine has introduced new regulations for non-bank financial institutions handling foreign currency inflows. Effective immediately, all funds arriving at payment accounts for individuals and legal entities must be automatically converted into the national currency. This was reported by Liga:Zakon, according to the portal PromPolitInform.
According to NBU Resolution No. 106, which amended Regulation No. 2, non-bank payment service providers are no longer permitted to hold foreign currency received from abroad in client accounts. These restrictions apply to both standard transfers and card-based operations processed via international payment systems. The same regime now applies to legal entities and individual entrepreneurs who use payment accounts to receive incoming funds.
Conversion mechanism and exchange rate terms
Conversion must be performed using the selling exchange rate set by the bank with which a formal agreement is in place. Payment service providers are required to pre-negotiate exchange rate conditions with their partner financial institution. If no such agreement exists, or if currency conditions are not clearly defined, the technical capability to credit the foreign currency transfer will be blocked. Any discrepancies between the bank’s rate and market rates are passed on to the recipient.
Identification requirements for payers
In addition to currency restrictions, supervision over transaction-related data has been strengthened. Under Law No. 361, the information provided regarding both the payer and the recipient must strictly adhere to financial monitoring standards. Insufficient data regarding the parties involved creates significant regulatory risks, as such transactions are flagged for violating anti-money laundering protocols.
Adapting to the new requirements
Financial institutions must now update their agreements with servicing banks, revise fee schedules, and ensure transparent disclosure to clients regarding exchange rate risks. Providers are also tasked with configuring their acquiring infrastructure so that the payer’s consent to the conversion terms is captured automatically during every transaction. While multi-currency accounts for individuals remain functional, this feature no longer applies to incoming international transfers.
Illustrative photo: Wadco2 / CC BY-SA 3.0
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