OREANDA-NEWS.  September 24, 2014. Due to entry into force of the Resolution of the National Bank of Ukraine dd. 29 August 2014 # 540 “On introduction of additional mechanisms for stabilization of money and credit, and foreign currency markets of Ukraine”, PJSC “CREDIT AGRICOLE BANK” (hereinafter, the Bank) hereby explains how certain foreign exchange transactions should be performed by private individuals.

1. Early redemption of PI deposits in foreign currency.
The entities of the Bank continue redeeming before the maturity (following the customer’s request) term deposits attracted in foreign currency under all types of agreements in full amount in national currency using foreign currency exchange rate of the authorized bank (the Bank) on the day of such transaction.

The FX deposit redeemed before the maturity is converted into hryvnia on the Interbank Foreign Currency Market of Ukraine (hereinafter, IFCM) using the buying rate of foreign currency of the authorized bank (the Bank) on the day of such transaction.

The FX deposit is redeemed by transferring funds to the current (card) account of the customer in foreign currency specified in the bank deposit agreement. Herewith, the customer should submit to the Bank the application for sale of the foreign currency being transferred from the deposit to the current (card) account together with the application for early deposit redemption. The Bank fulfils the customer’s application for foreign currency sale on the IFCM no later than the day following the day when funds were entered to the current (card) account of the customer.
If the customer insists on getting his/her deposit before the maturity in foreign currency and refuses the possibility of its conversion into national currency, then the amount of deposit is transferred to the current (card) account of the customer in foreign currency. 

As per the terms and conditions of the bank deposit agreement, the customer should notify the Bank of his/her intention to withdraw a deposit before the maturity at least 2 banking days in advance, having submitted the relevant application.

2. The amount of foreign currency cash that may be disbursed within one day is limited to the equivalent of UAH 15,000.

Private individual customers may receive foreign currency cash from the current, card (without using the electronic payment means) and deposit accounts via the cash offices of the Bank entities within the limit of UAH 15,000 (fifteen thousand) per customer per day in the equivalent using the official exchange rate of the National Bank of Ukraine, regardless of the number of accounts opened by the customer with the Bank.

At that, the aforesaid limitations are not applied when private individuals are transferring foreign currency funds within Ukraine.

Limitations on disbursement of foreign currency cash are also applied to transactions of withdrawing FX cash abroad.

The aforesaid requirements are not applicable to diplomatic missions, consulates of foreign states in Ukraine, international financial organizations, representative offices of the international financial organizations and their employees, unless they are the citizens of Ukraine or live in Ukraine permanently and if they are accredited with the Ministry of Foreign Affairs of Ukraine. 

3. Peculiarities of FX transfers made by private individuals outside Ukraine 

At the instructions of the private individuals, foreign currency transfers are made outside Ukraine under current non-trading transactions in foreign currency.  

Resident individuals may make transfers outside Ukraine as follows:

Without supporting documents from the current account in foreign currency or without its opening – for the amount that in equivalent does not exceed UAH 15,000 per one operating (business) day;

From the current account in foreign currency – for the amount that in equivalent exceeds UAH 15,000 but no more than UAH 150,000 per month. Resident individuals make such transfers only on the ground of the supporting documents.

Limitations on the transfer amount provided for in clause 2 do not apply to: 

Paying for treatment in medical institutions of another country, as well as covering costs of patient transportation;

Covering costs related to the death of citizens abroad (costs of transportation and burial);

Transfers made by virtue of rulings, decisions, judgments and resolutions of court, prosecutor’s office and other law enforcement bodies;

Covering cost of education related to tuition fees only;

Transfers of funds received as salary, pension, alimony by non-residents of Ukraine;

Covering costs of foreign court, investigative, notary and other authorized bodies (including payment of taxes, duties and other statutory charges); 

Transfers made by the citizens when leaving for permanent residence abroad.

Non-resident individuals make these transfers as follows:

Without supporting documents from the current account in foreign currency or without its opening – for the amount that in equivalent does not exceed UAH 15,000 per one operating (business) day on the ground of the documents confirming the source of funds;

From the current account in foreign currency – for the amount that in equivalent exceeds UAH 15,000 but no more than UAH 150,000 per month only on the ground of the supporting documents.

4. Peculiarities of disbursing transfers to private individuals in foreign currency that came to Ukraine from abroad.

When paying in cash without the account opening:

If the amount of transfers received within one operating (business) day does not exceed the equivalent of UAH 150,000, the transfer is either disbursed to the recipient in cash in hryvnia only, or, as per his/her request, is transferred to the FX account of the recipient in the currency of the transfer. 

If the amount of transfers coming within one operating (business) day exceeds the equivalent of UAH 150,000, then the Bank shall enter the entire amount of such transfer(s) to the current account of the recipient in foreign currency. At that, the disbursement of cash from the account in performed in line with the requirements set forth in clause 2 hereof.

5. Peculiarities of purchase and sale of foreign currency cash.

A person may buy foreign currency cash within one operating (business) day in amount that does not exceed the equivalent of UAH 15,000 within the Bank. To do that, the customer has to show a passport or another identity document.

6. Peculiarities of buying foreign currency cash on the IFCM. 

To buy foreign currency cash at the instructions of private individuals, their funds are first entered to the separate analytical account 2900. After that, the currency is purchased no sooner than the third operating day after hryvnia was entered to this account.
If the amount in national currency (as a result of changes in the exchange rate) is insufficient for the purchase of the specified amount of foreign currency, the Bank shall:

Either enter the necessary amount from the customer’s account on the day of foreign currency purchase; 

Or, subject to the customer’s consent, purchase foreign currency for the actual amount of hryvnia that was entered to the separate account.  

7. Peculiarities of cash disbursement in hryvnia, from the customers’ accounts as well

Disbursement of hryvnia cash via the cash offices of the Bank and ATMs is possible only in the amount not exceeding UAH 150,000 per customer per day, including from current (card) and deposit accounts regardless of how the account was replenished – in cash or cashless form. 

Limitations on cash disbursement are not applied to: 

Payment of salary, business trip allowance (within the standards set forth in the legislation), pensions, scholarship, other social and similar payments (except financial aid);

Payment of guaranteed reimbursement to the depositors at the expense of funds of the Individual Deposit Guarantee Fund. 
 
8. Disbursement of cash funds under transactions with payment cards

Starting from 02 September 2014 funds may be disbursed from the card accounts in foreign currency via the cash offices of the Bank using the payment card (electronic payment tool) in hryvnia only. 

At the same time, if the customer wants to receive cash funds from his/her card account in foreign currency, the Bank shall disburse foreign currency cash via its cash office following the application for cash disbursement and taking into account the limitations specified in clause 2 hereof.

All limitations specified in clauses 1-8 hereof have been imposed by the National Bank of Ukraine till 02 December 2014 inclusively.

9.Payment of duty on Mandatory State Pension Insurance when carrying out foreign currency purchase transactions.

Starting from 01 April 2014, when carrying out foreign currency purchase transactions in cash and/or cashless form, the Bank accrues, deducts and transfers the duty on Mandatory State Pension Insurance on behalf of the customers (residents and non-residents).   

The duty on Mandatory State Pension Insurance is accrued at the rate of 0,5% of the amount of foreign currency purchase transaction in hryvnia excluding fee charged for such transaction. 

The duty on Mandatory State Pension Insurance is not paid for foreign currency purchase transactions made by diplomatic missions, consulates of foreign states in Ukraine and their employees, unless they are the citizens of Ukraine or live in Ukraine permanently and if they are accredited with the Ministry of Foreign Affairs of Ukraine, international financial organizations which according to Ukrainian legislation (including the international treaties of Ukraine ratified by Verkhovna Rada of Ukraine) are exempt from taxes and duties in Ukraine.