With a view to implementing the concept of escrow accounts (“Escrow Accounts”) which was introduced into the Ukrainian legislation in 2017, the National Bank of Ukraine (“NBU”) adopted a number of amendments to its regulations governing non-cash settlements in Ukraine and the procedure for the opening, maintenance and the closure of bank accounts in Ukraine.
In particular, pursuant to the implementing Regulation No. 133 dated 18 December 2017, the NBU:
- defined that an Escrow Account can be opened by both residents and non-residents of Ukraine;
- developed the procedure for the opening and closure of Escrow Accounts and provided a list of documents which must be submitted to a Ukrainian bank in order to open an Escrow Account;
- set out an exhaustive list of permitted operations which can be performed through an Escrow Account;
- expressly provided that a security interest created in respect of rights of claim over the moneys placed on an Escrow Account can be enforced pursuant to a demand of the secured party via the so-called “contractual debiting” mechanism; and
- described the role of Ukrainian bank as an escrow agent.
NBU Regulation No. 133 came into effect on 21 December 2017.