Escrow Account in Ukraine at last!

In Ukraine, for the first time, a new type of account was introduced - conditional storage accounts (escrow) and a escrow agent identified.

This is stated in the resolution of the Board of the National Bank of Ukraine dated December 18, 2017, No. 133 "On Approval of Amendments to Certain Regulatory Acts of the National Bank of Ukraine" (hereinafter - Resolution No. 133).

In particular, this document addresses the following issues:

- the procedure for opening and closing of conditional storage accounts (escrow) is determined;

- the list of documents, which the client submits to the bank when opening a conditional storage account (escrow), is established;

- an exclusive list of operations that can be carried out under the conditional storage account (escrow) is defined;

- the right to non-residents - investors was granted to open conditional storage accounts (escrow) for the transfer of funds to the beneficiaries whose shares are acquired in accordance with the requirements of Article 652 of the Law of Ukraine "On Joint Stock Companies";

- the procedure for opening a current account of type "Н" to the representation of the donor organization is determined;

- charging for the object of encumbrance, which is the property rights to the funds held in a bank account, by a contractual write-off on the payment claim of the encumbrancer.

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