Using bank accounts abroad

Given the unstable situation that has arisen in the Ukrainian banking system and stricter ways to regulate currency flows, there is an increased attention among residents-individuals to the possibility of using bank accounts opened outside the country.

The use of such accounts is associated with subsequent investment in assets of foreign origin, which are real estate or other types of property, as well as with the placement of funds on deposits. It should be noted that not so long ago the National Bank of Ukraine lifted restrictions prohibiting individuals from transferring funds to accounts in other countries if they exceed an amount equivalent to 600 thousand hryvnias during the year. Such a move significantly expanded the possibilities of accessing foreign accounts.

Also, accounts opened abroad make it easier to obtain loans from non-residents. However, the contract documents governing the receipt of these loans are subject to mandatory registration with the National Bank of Ukraine.

Practice shows that it is not uncommon for foreign accounts to be used to transfer earnings during professional activities abroad, to credit bonuses and remuneration amounts under special programs that provide incentives to employees.

It must be emphasized that domestic law prohibits the use by individuals of foreign accounts in the process of doing business.

The necessary conditions

To open a foreign account, you do not need to receive any special permissions. It is necessary within three days from the moment of opening such an account to contact the National Bank, more precisely, to its territorial administration with a corresponding notice. But further use of the account will require obtaining an individual license of the National Bank for the right to place funds. It should be noted that by the standards of the NBU, the placement of funds in another country also means the transfer of money to a foreign account by a third party, and not only by the resident himself.

The License is not necessary if, with the help of such an account, a foreign financial institution only carries out accounting operations providing for the provision and repayment of a loan or a loan by a resident. A license is not required even when individuals are abroad. But if, upon returning to Ukraine, an individual intends to continue to use a foreign account, then you still have to get a License.

This can be done in the appropriate department where the applicant lives. The process of obtaining a License is officially limited to 25 business days, but in fact the applicant must be prepared for numerous requests from the National Bank regarding the provision of a number of documents. In connection with the receipt of such a request, the periods during which the application is considered will be extended by 10 working days, and the process of obtaining a License may be significantly extended. There were times when issuing a document took about six months.

The validity period of the License is limited to one year, so opening an account for use in the long term will entail the receipt of a new License annually. As soon as the validity period expires, the resident is obliged to transfer all the money available on the foreign account to Ukraine no later than the next business day or withdraw it from the account for subsequent import into our country.

The validity of one License applies only to accounts or accounts opened with one foreign bank. All money transfers from and to Ukraine must be made through an account with a domestic banking institution, the link to which is in the License. Transfer of hryvnia funds to this account is prohibited. Before the License is issued, the balance of the foreign account must be zero.

In practice, the process of issuing Licenses to individuals has rare precedents. This situation leads to additional difficulties accompanying the receipt process, and is associated with a large number of requests in order to provide additional documents, and also threatens with a refusal for formal reasons.

You can open a deposit in Kiev and take out a loan secured by real estate without a statement of income in the Zaraz CS