On 30 August 2016, the National Bank of Ukraine (the “NBU”) issued Regulation No. 378 (the “Regulation”) which came into force on 3 September 2016. The Regulation is part of ongoing reform of the financial sector and e-governance in the Ukraine. It launches an electronic system called BankID which allows the remote identification of individuals and businesses administered by the NBU (the “BankID system”). The purpose of BankID is to introduce a secure and easy way to verify the identity of a person ordering public administration services online. Verification through BankID is only available to the clients of banks who have joined the BankID system. Ukrainian banks, state authorities, and the web-portals administered by them, have already started joining. The NBU plans to expand the use of the BankID system to allow banks to provide new online banking services.

It is anticipated that implementation of the BankID system will simplify the access to public administration services for businesses and individuals by reducing the time and expenses involved and prevent corruption in this area, thereby improving the overall business environment in Ukraine.

Legislation: Regulation of the National Bank of Ukraine “On Adoption of the Regulation on the Unified National System of Electronic Identification of Individuals and Legal Entities “BankID” of the National Bank of Ukraine” No. 378 dated 30 August 2016