The National Bank has taken a range of measures to resolve misunderstandings in foreign exchange transactions and to minimize the impact of the human factor in determining the degree of wear and tear of foreign currency.
Three key decisions of the NBU.
1. Adopted amendments to the regulatory framework that canceled the list of signs of minor wear and tear on banknotes
All foreign currency banknotes without exception, except for significantly worn or damaged ones, must be subject to currency exchange operations.
All foreign currency banknotes, the authenticity of which is confirmed using counters and detectors, must be accepted for exchange. This eliminates the influence of the "human factor" in determining the degree of wear and tear on the banknote.
Banks and non-banking institutions are prohibited from refusing to exchange foreign currency to customers that fully complies by design and security elements with the samples and descriptions of foreign central banks and the authenticity of which is confirmed using appropriate equipment.
Banknotes with signs of significant wear and tear must be subject to collection operations. Banks and non-bank institutions that carry out such operations must place a clear list of signs of significant wear and tear of banknotes, collection rates at the cash desk in a place accessible to customers.
2. Banks and non-bank institutions are prohibited from setting restrictions on the denomination and year of issue of foreign currency banknotes that are legal means of payment in the territory of the relevant foreign state during currency exchange.
The regulator's principled position is as follows: in case of violation, such actions will be regarded not only as non-compliance with the NBU's regulatory requirements, but also as a potential sign of fraudulent activity.
3. In cases of violations of the NBU's requirements set forth in the appeals of financial services consumers, increased control has been introduced and appropriate measures will be taken (including suspension of certain types of foreign exchange transactions).
In particular, depending on the level of the offense committed, the NBU will apply penalties that provide for the maximum amount of a fine, in compliance with the principle of adequacy:
- to banks - in the amount of up to UAH 400,000 and it is planned to increase it for significant violations;
- to non-bank financial institutions - in the amount of up to 5% of the institution's equity capital.
For our part, we note that at ConcordBank, all dollars are "working" and accepted without fees in accordance with the current requirements of the regulator.
Read more about the decisions made at the link.