NBU Introduces Procedure For Opening Escrow Accounts In Ukraine

Following recent regulatory changes implementing the concept of escrow accounts into Ukrainian legislation, the National Bank of Ukraine (the NBU) developed a procedure for the opening and functioning of escrow accounts. The relevant novelties were introduced by the NBU Regulation № 133 dated 18 December 2017 (the Regulation).

The Regulation stipulates the following:

1. The procedure for opening and closing escrow accounts
2. The possibility of opening escrow accounts by non-resident legal entities (both in Ukrainian hryvnias and foreign currencies)
3. An exhaustive list of transactions, which may be carried out through the escrow account, in particular:
   
   
   • Crediting by the bank of funds received from the account holder and/or third parties, which may be transferred to the beneficiary(ies) or returned to the account holder, as established by the terms of escrow account agreement