The operation of the payment market of Ukraine is under threat: the payment association “MPA” (formerly UAPS) appealed to Zelensky

The International Payment Association “MPA” (formerly the Ukrainian Association of Payment Systems, UAPS) appealed to the President of Ukraine Volodymyr Zelenskyi with a request not to allow the payment market to stop working if the Law of Ukraine “On Amendments to the Tax Code of Ukraine” does not enter into force by 02.01.2023 (regarding payment services)” registration number of the draft law 4366 dated November 12, 2020.

The association noted that according to the current regulations, starting from February 1, 2023, all participants of the non-bank payment market will not have the right to provide payment services. The reason is that the draft law on amendments to the Tax Code regarding payment services (No. 4366), for which market participants were extended the validity period of licenses to transfer funds in hryvnia without opening accounts until the date of implementation of the Law on Payment Services, is still on signatures of the President of Ukraine Volodymyr Zelenskyi.

Also, the international payment association “MPA” (formerly UAPS) noted that so far not a single participant of the payment market has received authorization under the “Regulations on the procedure for the authorization of activities of providers of financial payment services and limited payment services”, approved by the resolution of the board of the NBU dated 7.10. 2022 No. 217.

International Payment Association “MPA”:

“We ask you to return the Law of Ukraine “On Amendments to the Tax Code of Ukraine (regarding payment services)” as soon as possible, registration number 4366 of 11/12/2020, which will not stop the work of financial service providers.”

According to the Law “On Payment Services”, market players must renew their licenses by submitting an appropriate package of documents to the National Bank of Ukraine by February 1, 2023. At the same time, Resolution 217 of the NBU, which describes the procedure, was published only at the end of December last year. In the conditions of consideration of documents within three months (60 working days), relicensing turned out to be technically impossible.

The situation with the terms of renewal of licenses had to be corrected by draft law No. 4366 “On Amendments to the Tax Code of Ukraine (regarding payment services)”, which postpones the process for three months. However, as of January 27, 2023, the document is signed by the head of state.

Earlier, the National Bank of Ukraine assured that it would provide conditions for the work of non-banking financial institutions if draft law No. 4366 “On Amendments to the Tax Code of Ukraine (Regarding Payment Services)” does not enter into force by February 1.

Source: Ministry of Finance

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