New Penalties for Money Laundering Violations: The National Bank of Ukraine Takes a Tougher Stand
The National Bank of Ukraine (NBU) has announced stricter penalties for money laundering violations by local banks. According to the NBU, these measures are designed to promote a culture of compliance with anti-money laundering (AML) and currency legislation among Ukrainian banks.
Crackdown on Money Laundering Violations
In response to an extensive review of the NBU’s approach to imposing fines for AML and currency legislation breaches, new penalties have been introduced.
- Fines for AML violations: Violations of AML risk management legislation now carry a fine of up to 50 million UAH.
- Fines for inadequate compliance: Inadequate compliance with internal documents on AML, as required by law, is punishable by a fine of up to 1 million UAH.
Revised Maximum Fines for Key AML Violations
Maximum fines for key AML violations have been revised and significantly increased:
- Violations of AML legislation regarding customer due diligence: up to 50 million UAH
- Violations related to payment transactions and fund transfers: up to 10 million UAH
- Inadequate risk assessment of Politically Exposed Persons (PEPs): up to 10 million UAH
- Including setting unjustified risk levels
- Disproportionate measures according to risk categories
Increased Fines and Regulatory Framework
A senior NBU official commented on the new regulatory framework: “The NBU is committed to promoting a culture of compliance with AML and currency legislation among Ukrainian banks. Through increased fines and a strengthened regulatory framework, we aim to prevent non-compliance and hold banks accountable for their actions.”
Implementation and Expected Outcomes
These amendments are anticipated to be implemented soon, with affected banks being notified in due course. By implementing stricter measures, the NBU aims to deter potential violations, increase transparency, and ultimately, enhance Ukraine’s reputation in the global fight against money laundering.