The National Bank of Ukraine approved the requirements to opening of escrow accounts

Financial Services Alert


In particular, the NBU sets forth the procedure for opening and closing of escrow accounts and the list of documents to be submitted by the client to the banks.

The NBU Resolution also sets out the exhaustive list of transactions that the banks may made on escrow accounts, namely:

  • Crediting funds received from the accountholder and/or third parties to an escrow account
  • Release of funds from an escrow account to beneficiary upon event stipulated in an escrow agreement being occurred, or return of funds to the accountholder
  • Enforcement of property rights to the funds standing at the escrow account or the rights to demand of the accountholder or beneficiary to a bank pursuant to an escrow agreement
  • Payment of fee charged by a bank for servicing of an escrow account and transactions thereon

In addition, the NBU also defines that enforcement over pledged receivables to the funds standing at the bank account is exercised by way of delivery of a payment demand to the bank.

The above changes have been approved by the NBU Resolution "On Approval of Amendments to Some Regulatory Acts of the National Bank of Ukraine" dated 18 December 2017 No. 133, which is required by the Law of Ukraine "On the Introduction of Changes to the Laws and Regulations of Ukraine for the Purposes of Improving the Level of Corporate Governance in Joint Stock Companies within Ukraine".