The Law of Ukraine
On Payment Systems and Funds Transfer in Ukraine
Date of Entry into Force:
May 16, 2001
The Law “On Payment Systems and Funds Transfer in Ukraine” defines general principles of functioning of payment systems in Ukraine, concept and general procedure for conducting funds transfer within Ukraine, as well as sets responsibility of the subjects thereof.
Funds exist in a cash (in the form of banknotes and coins) or in a cashless form (form of records at bank accounts). Banknotes and coins have nominal value defined in them. Hryvnia as the national currency of Ukraine shall be the uniform legal payment means in Ukraine, and shall be accepted by all natural persons and legal entities without any restrictions on the whole territory of Ukraine for conducting transfers.
Banks shall be entitled to open accounts for residents and non-residents of Ukraine.
Account may be opened in any bank of Ukraine according to own choice of the subject and with consent of this bank. Banks shall be entitled to open deposit, current and correspondent accounts for their clients.
Deposit account shall be an account that is opened by the bank for a client on contractual basis for storage of funds that are transferred by the client to the bank for management during a fixed term and under the fixed interest rate (income) according to conditions of the agreement.
Current account shall be an account that is opened by the bank for a client on contractual basis for storage of funds and conducting settlement and cash transactions by means of payment instruments according to the conditions of the agreement and requirements of the legislation of Ukraine.
Correspondent account shall be an account that is opened by one bank for the other bank to conduct inter-bank transfers.
The bank shall fulfill the client’s order that is contained in the settlement document which was received during the operation period of the bank on the day of its receipt. Inter-bank transfer shall be fulfilled in the term up to three operational days.
Initiation of transfer shall be performed according to the following types of settlement documents:
1) payment order;
2) payment request order;
3) cheque in settlement;
4) payment request;
5) memorial order.
Payment order may be withdrawn by the initiator of transfer at any time until writing off the funds from its account by submission of a document for withdrawal to the bank that serves this initiator.
A special payment means may exist in any form on any carrier, except for paper, that allows storing information necessary for initiation of transfer. A special payment means shall permit to identify its holder and shall meet requirements regarding protection of information.
Payment card is the property of issuer and is granted by it to the client according to the conditions of the agreement. The type of payment card that is issued by the bank, the type of its identification data carrier, requisites that are marked on it in a graphical form are defined by the payment organization of appropriate payment system in which this card is used. Payment cards of interstate payment systems shall contain identification number of the issuer defined according to the procedure set by the National Bank of Ukraine. The National Bank of Ukraine keeps official register of identification numbers of banks – issuers of payment cards of interstate payment systems.
Delivery of cash through the automated teller machines within Ukraine is performed in the national currency and through the automated teller machines of authorized banks-issuers – in the settlement currency of payment card.
Electronic document for transfer has equal legal force with the paper document. Responsibility for reliability of information that is contained in the requisites of electronic document shall be born by the person who signed this document by the electronic digital signature. Electronic documents shall be kept on information carriers in the form that allows verifying the integrity of electronic documents on these carriers. Creation of archives of electronic documents, forwarding of electronic documents to the archive establishments of Ukraine and their storage in these establishments is performed according to the procedure set by the legislation of Ukraine.
Transfer shall be considered completed from the moment of allocation of the amount of transfer to the recipient’s account or its delivery to the recipient in cash. In the event of receipt of the transfer during the operational day, the bank of the recipient shall allocate its amount to the recipient’s account or pay the amount to the recipient in cash on the same day or on the day indicated by the payer in the settlement document or in the document for transfer of cash.
The bank that serves the payer and the bank that serves the recipient shall bear responsibility for conducting transfer before the payer and the recipient. In the event of violation by the bank of set by this Law terms of fulfillment of the client’s order to transfer, wrong writing off or allocation to the account of improper amounts, this bank shall pay to the payer the fine in amount of 0.1 per cent of overdue payment for each overdue day. Total amount of fine shall not exceed 10 per cent of the transfer amount, unless other amount of fine is conditioned by the agreement between the bank and the payer.
The subjects of transfer shall meet requirements as regards to protection of information that is processed by means of payment systems that are set by the legislation of Ukraine and rules of payment systems. The rules of these payment systems shall envisage responsibility for violation of these requirements taking into account the requirements of the legislation of Ukraine.
Control over activity of payment systems that function within Ukraine is performed by the National Bank of Ukraine. The National Bank of Ukraine is entitled to set restrictions for the amount of transactions on issue of cash taking into account special payment means that are used in Ukraine.