Legislative news digest: LEGAL HOTLINE 20.09.2017

BANKS WILL BE CHOOSING AGENTS FOR IDENTIFICATION AND VERIFICATION

The National Bank of Ukraine (NBU) allowed banks to entrust resident legal entities, resident individuals, as well as resident sole proprietors with performing identification and verification of individual clients on the contractual basis and in accordance with the requirements of the legislation on financial monitoring.

Herewith, such agents are obliged to ensure the protection of bank secrecy and clients’ personal data, and the bank is obliged to familiarize agents with the requirements of internal documents of the bank related to financial monitoring issues and organise training for agents to ensure the proper level of their preparation. The bank has the right to appoint intermediaries only after it is convinced of the impeccable business reputation of such persons.

Responsibility for the improper performance of identification and verification of individual bank customers by agents rests with the bank.

THE NBU ALLOWED NOT TO REGISTER LOANS FROM THE INTERNATIONAL FINANCIAL ORGANISATIONS

On September 13, 2017, the Resolution of the National Bank of Ukraine No. 88 of September 7, 2017, which abolished the requirement for registration with the NBU of credit (loan) agreements between resident borrowers and lender international financial organisations, came into force.

Credit (loan) agreements between residents and international financial organisations are also not subject to the requirements for the amount of payments for using the loan, while observing the maximum interest rates set by the NBU.

Let’s recall that currently the maximum interest rates are set for short-term (not higher than 9.8% per annum), medium-term (not more than 10% per annum), and long-term (not higher than 11% per annum) loans, and residents have to perform external borrowings in the form of credits and foreign currency loans based on these rates.

ABSENCE OF JOB DESCRIPTION CONSTITUTES A VIOLATION OF THE LABOUR LEGISLATION

According to the information provided by the State Labour Service, the absence of job descriptions at the enterprise can be classified as a violation of the labour legislation.

The need for using job descriptions is determined by the Ukrainian labour legislation, in particular, by Article 29 of the Labour Code of Ukraine, as well as Section “General Provisions” of Issue No. 1 of the Dictionary of Occupational Titles.

Job descriptions are drawn up for employees occupying all positions specified in the staffing structure. They have to reflect a complete list of tasks, duties, powers, and responsibilities, and contain all necessary explanations, if needed, and all terms need to be clearly defined.

If an enterprise lacks job descriptions, officials may be fined in the amount of UAH 510 to UAH 1700, and in case of a repeated violation – in the amount of UAH 1700 to UAH 5100.

ALL INCOME OF NON-RESIDENT INVESTORS IN GOVERNMENT SECURITIES SHALL NOT BE SUBJECT TO TAX

On September 10, 2017, amendments to the Tax Code of Ukraine regarding taxation of non-resident investors’ income in securities came into force.

Before the enactment of the said law, non-resident investors’ income earned in the form of interest or income (discount) from government securities, or municipal bonds, or debt securities, fulfilment of obligations thereunder was secured by the state or local guarantees, was not subject to tax.

Now, in addition to income earned in the form of interest or discount from the abovementioned securities, income of non-residents earned in the form of other income from government securities paid by the central executive body, which ensures the formation and implementation of the state fiscal policy, is not subject to tax either.