NBU Extends and Enhances Supervision of Nonbank Financial Service Providers

The National Bank of Ukraine has updated its organizational structure to extend and enhance its supervision of nonbank financial service providers.
In order to strengthen its institutional capacity, the regulator has reorganized the Nonbank Financial Services Supervision Department, creating on its basis the Nonbank Financial Service Providers Supervision Department.
The powers and responsibilities of the new department have been expanded in scope.
It will continue to perform all the functions of the Nonbank Financial Services Supervision Department and assume a number of new ones,
including the conduct of the off-site supervision over:
financial service providers, ancillary service providers (except for collection agencies, credit bureaus, legal persons licensed to conduct cash transactions, providers of services that are ancillary to payment services) and their standalone units nonbank financial groups (except for nonbank financial groups whose authorized persons are defined as nonbank payment service providers), members of such nonbank financial groups, as well as entities that, according to the procedure established by the Law of Ukraine On Financial Services and Finance Companies and special laws, provide outsourcing services to nonbank financial service providers. The NBU also continues to strengthen the legal, regulatory, and supervisory framework for nonbank financial institutions and financial markets.
The new structure is tailored to strengthen the differentiation of the second line of internal controls within the department, create competence centers that will independently identify specific risks in specific markets, optimize the work of supervisory teams, and facilitate the transition to a risk-based approach by deepening expertise.
The continued transition to risk-based supervision will also increase the NBU’s effectiveness and improve the professional capacity of supervisors, which will include the development of necessary professional profiles and a multi-year training program for new employees.
The Nonbank Financial Service Providers Supervision Department (just like the Nonbank Financial Services Supervision Department) is part of the Prudential Supervision reporting line, which NBU Deputy Governor Dmytro Oliinyk is in charge of.
Currently, all the employees of the Nonbank Financial Services Supervision Department continue to perform their functions and duties (until the completion of the personnel procedures in accordance with labor legislation or the transfer to the newly created unit).
At the same time, the NBU has launched a competitive selection process to fill the vacant positions of the director of the new department and heads of its subordinated offices.
The applications to participate in the competitive selection for said positions can also be submitted by internal candidates.