Russia Suffers Money Transfer Disappointment in Ukraine

MOSCOW, Russia -- The National Bank of Ukraine introduces a license system for money transfer before the end of this year, closing a key business profile for Russian banks. To get license in Ukraine, a paying system is to submit a certificate of its registration by place of establishment. This document is beyond the reach of Russian systems, as its is not required and, therefore, not issued under the laws of the country.

Justice Ministry of Ukraine sealed early May the ruling of the National Bank that requires from the banks operating with any international money transfer system to get registered with the said bank before close of this year. This move of Ukrainian bank followed FATF requirements, which added Ukraine to the list of countries favoring money laundering in 2002-2003.

National Bank of Ukraine

In particular, the banks are to submit to the National Bank of Ukraine documents confirming that their payment systems identify the clients transferring over $10,000. The banks also have to provide a copy of the registration certificate or any other certifying registration document issued by the foreign authority.

The above innovation can severely handicap the better part of the Russian money transfer systems. Under the Russian laws, the business of money transfer calls for no license, therefore, such systems are unable to provide registration certificates to their Ukrainian partners.

In Russia, all local money transfer systems, but for STB-Express that has a separate license, could be viewed as the bank product. Operating under clearing banks, they hold no licenses of the kind, said Igor Klyuchnikov, deputy chairman at Eurotrust and head of Migom system.

The loss of Ukrainian market will be quite sizable, like the loss of any key revenue. Ukraine could be called one of the most advantageous and profitable markets, specified Alexey Abromiitsev, head of the interbank ties department at Impexbank.

Source: Kommersant