Banking activity

In order to obtain a banking license (authorization to perform banking services), an applicant must submit to the NBU an application form (based on the form provided by the legislation) and a set of supporting documents which, inter alia, includes the following:

• A copy of the by-laws of the bank with the state registrar’s indication of the state registration of the legal entity
• For a bank established as a joint-stock company, copies of the report registered by the NSSMC on the results of private stock placement and certificate of registration of issue of shares
• Information on the number of members of the Supervisory Council, the Board, and the Revision Committee
• Evidence set out in an NBU form showing the following:
  • The availability of at least three persons, appointed members of the board, including its chairman, as well as information on their professional skills and business reputation
  • The professional skills of the chief accountant and the head of Internal Audit
  • The business reputation of the supervisory council members, chief accountant and the head of Internal Audit
  • The availability of the organizational structure and corresponding specialists necessary to ensure the provision of banking and other financial services, banking equipment, computers, software and premises compliant with NBU requirements
• Copies of the internal bank regulations that a) govern the rendering of banking and other financial services and b) determine the performance of internal control and risk management procedures
• A business plan for three years compiled in line with NBU requirements
• A copy of the payment document confirming payment of the fee for the banking license in an amount determined by the NBU

The NBU must decide whether to grant the banking license within two months from the day on which it received the full set of documents.

Other financial services activities

The documents, time periods and process for obtaining authorization in the field of financial activity depend on the type of financial institution (insurance company, custodian, pension fund, etc.). Ukrainian legislation provides for different requirements and procedures for each type of financial institution.

Fintechs and "sandboxes" for technologically innovative new services

On 1 August 2021 the new law on payment services entered into force. Very broadly, it aims to: (i) remove certain regulatory barriers to entry to the payments market; and (ii) implement certain EU laws applicable to payment services, such as Directive 2015/2366 (PSD2) and Directive 2009/110/EC (Second E-Money Directive).

Very broadly, all payment market participants may be allocated into four separate groups. The biggest group is composed of banks (which may provide any payment service based on their banking license), and other financial institutions (e.g., insurance companies) entitled to provide money remittance and acquiring services subject to conditions envisaged under the general financial services legal framework. The second largest group comprises various financial infrastructure entities, such as payment and e-money institutions, postal operators, and providers of non-financial payment services. These also seem to exist in the Ukrainian market now, albeit sometimes under different names and with different capacities. The third group is composed of the regulator and competent authorities. The last group is composed of providers of limited payment services.

Moreover, the draft law provides for the setting up of the regulatory sandbox to test products and services based on innovative technologies.