The National Bank of Ukraine Tightens Payment Systems Oversight

17.02.2017 17:56 | National bank of Ukraine

National Bank of Ukraine strengthens oversight in relation to payment systems operation,  payment systems participants and payment infrastructure operators.

On 13 February 2017, the Board of the National Bank of Ukraine adopted the respective  Resolution No. 11 On Amendments to Some Regulations of the National Bank of Ukraine  (hereinafter – Resolution No. 11).  
Resolution No. 11, in particular, introduces the following requirements and obliges payment systems to:

-	control the activity of its participants regarding fulfillment of payment system rules;
-	register cash receiving and payment points of their participants;
-	store the information on each money transfer transaction performed within payment system by payment institution, its participants and payment infrastructure operator;
-	register customers’ requests regarding payment system operation and money transfer;
-	provide the participants with information from the NBU regarding rendering services by participants and payment infrastructure operators;
-	provide the participants, settlement bank, payment infrastructure operator with information, which is essential for ensuring payment system operational continuity and risk management within the payment system (in particular, on informing procedure, interactions and communications in case in an emergency situation, and also regarding execution/rendering critical operations/services in case of computer networks failure and/or separate software and hardware components)

This Resolution also expands the grounds for application of adequate corrective measures to oversight objects by the National Banks of Ukraine. For instance, the NBU can apply corrective measures in connection with application of foreign sanctions during their validity period starting from day of official publication of information on application of such.

Moreover, regulator received bigger opportunities to perform scheduled and unscheduled inspections of oversight objects:

-	NBU will be able to perform unscheduled inspections to ensure application by inspection object the measures with aim to remove previously identified violations of Ukrainian laws, due to which the regulator applied corrective measures;
-	NBU will continue to assess payment systems when they enter the market and after obtaining the status of systemically important payment systems taking into account new requirements set out by Regulation No.11

Resolution No. 11 comes into effect from 17 February 2017.

As a side note, according to the Law of Ukraine On Payment Systems and Money Transfer in Ukraine, payment system oversight is an activity of the National Bank of Ukraine aimed at ensuring continuous, safe and effective operation of payment systems that includes:
-           payment systems monitoring;
-           assessment with respect to compliance with requirements of Ukrainian laws and international standards for payment systems oversight;
-           if needed, give instructions and recommendations regarding operation of respective systems and application of corrective measures

For reference
Resolution No.11 amends:

-	the  Regulation On Payment Systems and Settlement Systems Oversight in Ukraine, approved by NBU Board Resolution No.755 of 28 November 2014;
-	Regulation On the Procedure to Conduct Inspections on Compliance by Oversight Objects with the Requirements of the Laws of Ukraine on Payment Systems in Ukraine approved by NBU Board Resolution No.503 of 9 December 2013;
-	the Regulation on the Application by the National Bank of Ukraine of Enforcement Measures for Violation by Entities Subject to Supervision (Oversight) of the Laws Regulating Payment Systems Operating in Ukraine approved by NBU Board Resolution No.524 of 19 December 2013