Tight controls no longer apply to foreign financial transactions between Ukrainian resident companies and the top 2000 largest public companies in the world, following new rules laid down by the National Bank of Ukraine.
According to Ukrainian currency control requirements, banks are obliged to review and verify supporting documentation and information on all foreign transactions whenever local companies receive funds from abroad or transfer money to non-residents under foreign economic contracts. The new rules mean that operations under the agreements concluded between Ukrainian residents and international companies listed in the Forbes Global 2000 ranking – or their subsidiaries or affiliates – are now exempt from such detailed scrutiny.
This welcome change, effective 29 January 2016, speeds up foreign transactions between reputable companies and somewhat eases the regulatory burden for Ukrainian legal entities that carry out foreign economic activity.
How to comply
In order to comply with the simplified procedure, an agreement concluded between a Ukrainian resident and the affiliate or subsidiary of a Forbes Global 2000 listed company must clearly specify the relation to the listed company. In case the agreement is concluded directly with the listed company, no specific actions are required.
Download our latest Global Benchmark Complexity Index here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
