The NBU wants to change the rules for disclosing banking secrecy: what the project entails
The National Bank of Ukraine has put forward for public discussion a draft amendment to the regulatory legal acts that govern the procedure for disclosing banking secrecy, as well as the secrecy of payment service providers, financial and insurance secrecy.
As reported by the NBU, the document is intended to bring the current rules in line with updated legislation and to unify the procedure for the National Bank to obtain restricted access information from supervised institutions.
In particular, the project provides for amendments to:
- Rules for storing, protecting, using, and disclosing the secrecy of payment service providers;
- Regulations on financial service secrecy;
- Regulations on insurance secrecy.
One of the key innovations is the provision by banks of information about the term of a bank deposit and the type of account of legal entities and individuals, as well as individual entrepreneurs, upon requests from the state executive service bodies and private executors.
In addition, the National Bank proposes to exclude the clarification that banks, financial service providers or intermediaries, payment service providers, and insurers are obliged to provide the NBU with information containing secrecy in the form of documents and copies of documents only during inspections and on-site checks and during its off-site supervision.
The National Bank notes that after the adoption of the changes, the regulator will be able to more promptly receive from banks, financial companies, payment institutions, and insurers the information necessary for supervision. At the same time, such information can be requested not only directly during an inspection but also at the preparation stage or in other cases when it is necessary to perform supervisory functions. The NBU will also be able to obtain information not only about the institution being inspected but also about other supervised entities. According to the regulator, this will improve the quality of inspections and allow for more substantiated conclusions.
Furthermore, the changes are expected to simplify the work of state and private executors. The NBU notes that the implementation of the proposed changes will contribute to ensuring that state and private executors perform their functions regarding the procedure for imposing arrests on funds, taking into account the type of account on which such funds are placed, and the enforcement of claims on funds placed in clients' deposit accounts exclusively after the expiration of the terms of the respective bank deposit agreements.
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