Publication date: 09.07.2024
Legal regulation of currency control in Ukraine
Introduction
Currency control is an important mechanism of state regulation of foreign economic activity, ensuring financial stability and preventing illegal financial transactions. In Ukraine, the legal regulation of currency control is based on legislative and regulatory acts that define the procedure for conducting currency transactions, liability for violation of currency legislation and measures to control the movement of currency funds. In this article, we will review the main principles, regulations and authorities exercising currency control in Ukraine, as well as the rights and obligations of currency transactions.
Basic principles of legal regulation of currency control
The legal regulation of currency control in Ukraine is based on several basic principles that ensure the efficiency and stability of the currency market:
Theprinciple of legality. All currency transactions must be carried out in accordance with the laws of Ukraine, in compliance with the established rules and regulations.
Theprinciple of transparency. Currency control should be carried out transparently, ensuring that information on currency transactions is available to the regulatory authorities.
Theprinciple of equality. All subjects of currency transactions have equal rights and obligations before the law, regardless of their form of ownership and legal form.
Theprinciple of efficiency. Currency control should be effective, ensuring an appropriate level of control over currency transactions and preventing illegal financial transactions.
Key regulations
The legal regulation of currency control in Ukraine is based on a number of regulations, among which the key ones are:
TheLaw of Ukraine "On Currency and Currency Transactions". This law defines the legal framework for currency transactions, establishes requirements for currency control, rights and obligations of currency transactions, the procedure for currency control and liability for violation of currency legislation.
TheCivil Code of Ukraine. The Civil Code contains general provisions on contractual relations and obligations that affect currency transactions.
The CommercialCode of Ukraine. The Commercial Code defines the legal framework for conducting business activities, including foreign exchange transactions, and establishes rules for doing business and protecting the rights of entrepreneurs.
TheTax Code of Ukraine. The Tax Code regulates the taxation of foreign exchange transactions and sets requirements for tax accounting of foreign exchange transactions.
Resolutions and regulations of the National Bank of Ukraine (NBU). The NBU develops and approves regulations governing the procedure for conducting foreign exchange transactions, requirements for currency control and reporting, and other issues related to currency control.
Governmental regulatory authorities
The main governmental authorities responsible for regulating and supervising currency control in Ukraine are:
TheNational Bank of Ukraine (the "NBU"). The NBU is the principal authority in charge of currency control in Ukraine, developing regulations in the area of currency regulation, monitoring currency transactions and ensuring compliance with currency legislation.
State Fiscal Service of Ukraine (SFS). The SFS monitors compliance with tax legislation in the area of currency transactions, conducts inspections of currency transactions and imposes sanctions for violations of currency legislation.
State Customs Service of Ukraine. The State Customs Service controls currency transactions related to foreign economic activity, conducts inspections of import and export transactions and imposes sanctions for violations of customs legislation.
Rights and obligations of foreign exchange transactions
Currency transactions entities have a number of rights and obligations in relation to currency transactions that ensure proper compliance with the requirements of currency legislation. The main rights and obligations include the following:
Rights of currency transactions entities
Theright to conduct currency transactions. Currency transactions entities have the right to carry out currency transactions in accordance with the requirements of the law, including the purchase and sale of currency, transfers of funds abroad, import and export transactions and other currency transactions.
Theright to receive information. Currency transactions entities have the right to receive information on the requirements of currency legislation, consultations on currency control and other services provided by state authorities and financial institutions.
Theright to protect interests. Currency transactions entities have the right to protect their interests in case of violation of their rights or abuse by state authorities or financial institutions.
Obligations of foreign exchange transactions
Obligation to complywith currency legislation. Currency transactions entities are obliged to comply with the requirements of currency legislation, including the rules for conducting currency transactions, reporting and other requirements.
Reporting obligation. Currency transactions entities are obliged to submit reports to state authorities in accordance with the requirements of the law, including reports on currency transactions, financial statements and other documents.
Obligation to keepdocuments. Currency transaction entities are required to keep documents confirming currency transactions for the prescribed periods, ensuring their integrity and availability for inspection.
Currency control procedure
The currency control procedure in Ukraine includes several main stages:
Registration of currency transactions. Subjects of currency transactions are required to register all currency transactions in accordance with the requirements of the law, ensuring full and accurate reflection of all transactions in accounting.
Reporting. Currency transactions entities are obliged to submit reports to state authorities in accordance with the established deadlines and requirements of the law. The reports must contain complete and accurate information on currency transactions.
Conducting inspections. The state authorities exercising currency control have the right to conduct inspections of currency transactions of business entities, check their reports and documents confirming currency transactions.
Impositionof sanctions. In case of detection of violations of currency legislation, state authorities have the right to impose sanctions on business entities, including fines, revocation of licenses and other measures in accordance with the law.
Protection of rights in the field of currency control
The protection of rights in the field of currency control is carried out through various legal mechanisms that ensure the proper implementation of currency control legislation. The main ways to protect rights include:
Administrative protection. It is carried out by applying to public authorities, in particular to the National Bank of Ukraine, the State Fiscal Service of Ukraine or the State Customs Service of Ukraine.
Civil remedies. This includes filing lawsuits for recognition of rights, compensation for damages, recovery of compensation for violation of rights in the field of currency control, cessation of actions that violate rights, and other claims.
Criminal defense. Criminal liability is provided for certain types of violations of rights in the field of currency control, in particular for illegal currency transactions or money laundering.
Administrative sanctions. Administrative fines and other sanctions may be imposed for violations of currency control rights in accordance with Ukrainian law.
International aspects of currency control
Currency control is international in nature, and many Ukrainian business entities engage in currency transactions with foreign partners. The main international aspects of currency control include:
International exchange control standards. Ukraine is obliged to comply with international currency control standards, including the recommendations of the FATF (Financial Action Task Force on Money Laundering) and other international organizations.
International cooperation. Ukrainian business entities may cooperate with foreign partners using international standards and best practices in the field of currency control.
Settlement ofinternational disputes. International disputes in the field of currency control may be resolved through international arbitration or judicial authorities of the countries that are parties to the dispute.
Conclusion.
Legal regulation of currency control in Ukraine is an important tool for ensuring financial stability, preventing illegal financial transactions and protecting the interests of the state and business entities. It includes the regulatory framework, activities of state regulatory and supervisory authorities, rights and obligations of currency transactions, as well as mechanisms for protecting rights in this area. Effective legal regulation contributes to the development of the economy, increases the level of trust in financial institutions and ensures a stable legal environment in Ukraine.
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