AML

US Patriot Act

Wolfsberg Questionnaire

IRS Form W-8BEN-E

In line with the requirements of the law of Ukraine “On Prevention of and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Financing of Terrorism and Proliferation of Weapons of Mass Destruction”, “On Banks and Banking”, regulatory and legal acts of the National Bank of Ukraine, JSB “UKRGASBANK” has established an in-house Anti-Money Laundering (AML) and Combating the Financing of Terrorism and Proliferation of Weapons of Mass Destruction (hereinafter — AML/CFT) system. The Bank has appointed Maksym Vashchuk, head of Compliance Department, member of the Management Board as Chief Compliance Officer responsible for financial monitoring at the Bank. The Chief Compliance Officer is in charge of the AML/CFT system at the Bank. To ensure the implementation of initial financial monitoring functions by the Bank, a separate unit for prevention of legalization (laundering) of the proceeds from crime/financing of terrorism – Compliance Department was established. It is supervised directly by the Chief Compliance Officer.

The Bank has internal regulations on financial monitoring approved, with the following key policies in force:

• The Rules of Financial Monitoring of JSB 'UKRGASBANK' by the Management Board, Resolution No.47 dated 27.07.2023. The Rules determine organizational structure of the financial monitoring system at the Bank; the order of analysis, detection and registration of financial transactions subject to financial monitoring; procedures, terms and volume of information provided to the State Financial Monitoring Service of Ukraine; measures to implement sanctions legislation and other restrictive measures, secure confidentiality of information.
• JSB 'UKRGASBANK' Customer Due Diligence Program approved by the Management Board, Resolution No.44 dated 18.07.2023, as amended by the Management Board Resolution No.56 dated 29.08.2023. The Program is based on "Know Your Customer" policy, risk-oriented approach and includes the procedure for customer due diligence, in particular, the customer identification and verification, establishment of the ultimate beneficial owner of the customer or its absence, establishment of the fact of the customer relation (ultimate beneficial owner of the customer) to politically exposed persons, family members or persons related to politically exposed persons, both in establishing business relations with the customers and in the process of providing services to them, monitoring on a regular basis of business relations and financial transactions of the customer, carried out in the process of such relations, on the compliance of such financial transactions with the Bank's information about the customer, its activities and risk (including, if necessary, the source of funds related to financial transactions), ensuring the relevance of received and existing documents, data and information about the customer. In accordance with the requirements of the Ukrainian legislation in force, the Bank carries out due diligence in case of: (i) establishment of business relations; (ii) suspicions; (iii) making payments (including international ones) without opening an account; (iv) conducting a financial transaction with virtual assets in the amount that equals or exceeds UAH 30,000; (v) any doubts as to the accuracy or completeness of previously obtained customer identifying data; (vi) conducting a one-time financial transaction without establishing business relations with customers, if the amount of the financial transaction that equals or exceeds UAH 400,000 or that equals or exceeds the equivalent of UAH 400,000 in foreign currency, bank metals, other assets at the official exchange rate of hryvnia to foreign currencies and bank metals at the time of conducting a financial transaction; (vii) the customer has conducted several financial transactions that may be related to each other, for a total amount that equals or exceeds UAH 400,000, depending on the risk level of the financial transaction. The Bank also identifies and verifies persons acting as the customer representatives.
• Training and Advance Training Program for JSB 'UKRGASBANK' Employees on risk management and prevention and counteraction to legalization (laundering) of proceeds from crime, terrorism financing and financing of proliferation of weapons of mass destruction approved by the Management Board, Resolution No.57 dated 31.08.2023. The Training Program determines procedures and appropriate measures associated with training and advance training of employees on issues of prevention and counteraction to legalization (laundering) of the proceeds from crime, terrorism financing and financing of proliferation of weapons of mass destruction in the course of their recruitment and work. The Program includes the key tasks and determines the elements of training and advance training process of employees, types of instructions and knowledge assessment of employees on counteraction to legalization (laundering) of proceeds from crime, terrorism financing and financing of proliferation of weapons of mass destruction.
• JSB 'UKRGASBANK' Financial Monitoring Program for Money Transfers via Payment Systems approved by the Management Board, Resolution No.57 dated 03.09.2020. The Program covers money transfers sent/received by individuals to/from Ukraine via international payment systems regardless whether a payer/receiver uses a current bank account or not (including the use of electronic payment means). The Program defines the main principles and mechanisms for interactions between the employees of Bank’s structural/separate divisions within their competence on prevention and counteraction of legalization (laundering) of the proceeds from crime/financing of terrorism in the course of remittances using international payment systems as well as requirements on information accompanying a remittance.
• JSB 'UKRGASBANK' Monitoring Program for Customers’ Financial Transactions approved by the Management Board, Resolution No.57 dated 03.09.2020, as amended by the Management Board Resolution No.64 dated 01.10.2020. The Program has been developed for the following areas of banking activity: cash and settlement transactions, deposits and loans, foreign currency transactions and transactions with securities. The Program determines: (i) allocation of responsibilities and appointment of the subdivision(s) and / or employees of the Bank (different in every business) responsible for the timely analysis to identify and provide the responsible employee of the Bank or the employee authorized by the responsible employee with information on financial transactions, that might be subject to financial monitoring; (ii) characteristics of financial transactions, taking into account the specifics of financial monitoring in the areas of activity subject to financial monitoring (threshold and suspicious financial transactions); (iii) specifics of the analysis and monitoring of financial transactions subject to financial monitoring and their regularity, in order to identify financial transactions that are subject to financial monitoring or may be related to or aimed for financing of terrorism or proliferation of weapons of mass destruction, taking into account the areas of the Bank's activity in the process of customer servicing, including the procedures for subsequent monitoring of financial transactions.
• JSB 'UKRGASBANK' Risk Management Program of Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction approved by the Bank's Emergency Operational Body, Resolution No.101 dated 05.07.2022, as amended by the Management Board Resolution No.4 dated 14.03.2023, Resolution No.55 dated 24.08.2023. This Program has been developed and implemented in order to detect, manage the risks of legalization of the proceeds from crime/terrorism financing and mitigate them to an acceptable level of risks of legalization of the proceeds from crime/terrorism financing of JSB “UKRGASBANK”. The Program defines, in particular (i) the Bank`s organizational structure for managing the risks of Legalization (Laundering) of Proceeds from Crime, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction; (іi) risk criteria; (іiі) the procedure for assessing/reassessing the Bank's risk profile and customers’ risk profile and taking measures to minimize the risks of legalization of the proceeds from crime/terrorism financing; (iv) procedures for monitoring the risks of money laundering / terrorism financing; (v) procedures for assessing the risks of products/services or technologies, including those that enable to conduct financial transactions without direct contact with the customer in order to identify and reduce to acceptable for the Bank risks of legalization of the proceeds from crime/terrorism financing; (vi) taking measures aimed at minimizing the risks of legalization (laundering) of proceeds from crime, terrorism financing and financing of the proliferation of weapons of mass destruction (risk mitigation).
• Policy for Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction of JSB “UKRGASBANK” (approved by the Supervisory Board of JSB “UKRGASBANK”, Resolution No.5 dated 16.02.2023, as amended by the Supervisory Board of JSB “UKRGASBANK”, Resolution No.28 dated 28.06.2023 (hereinafter – the Policy). The Policy defines the structure of the internal banking system for preventing the legalization of criminal proceeds / terrorism financing; the terms of bans on establishing / maintaining business relations, conducting financial transactions; ensuring confidentiality of information.
  
  The internal regulations on financial monitoring are checked by the regulator (the National Bank of Ukraine) during its planned inspections that are conducted according to a plan approved by the management of the National Bank of Ukraine. The last inspection was conducted in the 4th quarter of 2022. The Internal Audit Department checks the Bank’s compliance with all legal requirements in the field of prevention of legalization of the proceeds from crime/ financing of terrorism (including the sufficiency of measures taken by the Bank in respect of managing the risk of legalization of the proceeds from crime/financing of terrorism).
  
  Further be advised that the Bank:

  (i) does not establish business relations, does not carry out crediting, transfer of funds and/or other financial operations with assets and/or other actions provided for by sanction restrictions in the event, that the person of the client (representative of the client, and/or participant (founder, shareholder) the client and/or the ultimate beneficial owner (controller) of the client, and/or a participant in a financial transaction and/or a beneficiary (hereinafter - related persons)) is included in:

  • the lists of persons to whom personalized sanctions are applied, formed and maintained by the Office of Foreign Assets Control (OFAC) of the US Treasury Department (hereinafter - the OFAC list);
  • the consolidated list of the UN Security Council (hereinafter - the UN list);
  • a consolidated list of persons, groups and entities subject to financial sanctions of the European Union (hereinafter - the EU list);
  • the OFSI list of HM Treasury of Great Britain (hereinafter - the UK list);
  • the list of persons to whom personal special economic and other restrictive measures (sanctions) have been applied, adopted by the relevant decision of the National Security Council of Ukraine and put into effect by the relevant Decree of the President of Ukraine (hereinafter - the list of National Security Council of Ukraine);
  • list of persons;
  • a list of certain types of activities of persons in relation to which there is a prohibition to fund, participation and any other actions related to or may be related to sectoral sanctions applied to certain types of activities and/or the economy of the respective countries.

  (ii) does not establish business (contractual) relations, does not carry out crediting, transfer of funds and/or other financial transactions with assets and/or other actions provided for by restrictions in the event that the client and/or his related persons (including diplomatic representative office, embassy, consulate of a foreign state) and/or the institution through which the transfer (receipt) of assets is carried out, and/or the country of origin of the goods and/or the territory of transit of the goods/services have the appropriate registration, place of residence (residence), location, place of origin states (territories) that:

  • included in the list of states (territories) that do not implement or improperly implement the recommendations of international, intergovernmental organizations that conduct activities in the field of combating the legalization (laundering) of proceeds obtained through crime, or the financing of terrorism or the financing of the proliferation of weapons of mass destruction, which is formed and approved in accordance with the procedure established by the legislation of Ukraine;
  • do not comply with the requirements in the field of combating the legalization (laundering) of proceeds obtained through crime, or the financing of terrorism or the financing of the proliferation of weapons of mass destruction in accordance with the statements of the Group for the development of financial measures to combat money laundering (FATF black list);
  • recognized by the US State Department as a state-sponsor of terrorism or subject to increased US control;
  • unrecognized states/territories/political entities that possess the main features of statehood, but lack international recognition;
  • is self-proclaimed, not recognized by Ukraine, with the exception of the country for which the Bank has received relevant clarifications/recommendations regarding financial transactions from the National Bank of Ukraine.

  (iii) does not establish/does not maintain contractual relations/does not conduct financial transactions with clients:

  • in case of impossibility to fulfill the obligations defined by the Law of AML/CFT or to minimize the identified risks associated with such a client or financial transaction;
  • if there are reasonable suspicions based on the results of studying the client's suspicious activity that such activity may be fictitious;
  • in the case when there is a doubt that the person does not act on his own behalf;
  • with shell banks, as well as with banks and other non-resident financial institutions maintaining correspondent relations with shell banks.
  • with shell companies.

  (iv) carries out enhanced control measures for clients and their financial transactions with assets, if the client and/or a person related to the client (including a diplomatic mission, embassy, consulate of a foreign state) and/or an institution through which the transfer is carried out ( receipt) of assets, and/or the country of origin of the goods and/or the territory of transit of the goods/services have the appropriate registration, place of stay (residence), location, place of origin from the state (territory) that:

  • has strategic deficiencies in the field of combating the legalization (laundering) of proceeds of crime, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction in accordance with the statements of the Group for the development of financial measures to combat money laundering (FATF gray list);
  • does not fulfill or improperly fulfills the recommendations of international, intergovernmental organizations that carry out activities in the field of combating the legalization (laundering) of proceeds obtained through crime, or the financing of terrorism or the financing of the proliferation of weapons of mass destruction;
  • is a state that in any way occupied a part of the territory of Ukraine or that commits aggression against Ukraine, recognized by the Verkhovna Rada of Ukraine as an aggressor state or an occupying state;
  • assigned to the list of offshore zones by the Cabinet of Ministers of Ukraine;
  • supports terrorist activities, is subject to sanctions, embargoes or similar measures in accordance with the resolutions of the UN Security Council and/or the legislation of Ukraine;
  • is a country identified by the European Commission as having a weak anti-money laundering and terrorist financing regime.
  • included in the list of certain types of activities of persons in respect of which there is a prohibition to fund, participation and any other actions related to or may be related to sectoral sanctions applied to certain types of activities and/or the economy of the respective countries.

  (v) does not establish or continue business relations with entities of economic activity that are engaged in the organization and conduct of gambling.

  (vi) refuses to carry out financial transactions that:

  • aim at, contribute to, or can contribute to the avoidance of restrictions established by sanctions;
  • violate, contribute to or may contribute to the violation of restrictions established by sanctions.

  (vii) does not establish/maintain business relations, does not conduct financial transactions in case of:

  • when identification and/or verification of the Client is impossible;
  • when the legal entity has a non-transparent ownership structure (it is not possible to establish the full ownership structure and/or data that allows to establish the ultimate beneficial owners (controllers));
  • the Bank has doubts about the fact that the person acts on his own behalf;
  • in the case of establishing the fact that the Client submitted inaccurate information during identification and/or verification of the Client (in-depth verification of the Client) or submitted information for the purpose of misleading the Bank;
  • in other cases determined by the legislation of Ukraine or the Bank's internal documents on AML/CFT issues or ensuring the implementation of personal special economic and other restrictive measures (sanctions).

  (viii) does not establish / maintain business / correspondent relations with persons listed in section 311 of the USA Patriot Act or who have the relevant registration, residence or location in the country specified in section 311 of the USA Patriot Act.

  Additionally, we would like to inform you that in accordance with the Regulation on Financial Monitoring by Banks, approved by the Resolution of the Management Board of the National Bank of Ukraine dated 19.05.2020 №65, as amended, the bank independently determines and documents the procedure for classifying the internal documents of the Bank on prevention and counteraction to legalization (laundering) of the proceeds from crime/terrorism financing as documents with limited access and the procedure for access to them by the bank employees and third parties. Thus, in accordance with Section V of the Rules of Financial Monitoring of JSB “UKRGASBANK”, approved by the Bank's Emergency Operational Body, Resolution No.164 dated 30.09.2022, as amended, the Bank's internal documents on prevention of money laundering / terrorism financing are documents with limited access, the access to which is provided only to certain categories of the Bank's employees specified in these Rules. At the same time, the Rules do not provide for the possibility of handing over the Bank's internal documents on the prevention of money laundering / terrorism financing to the third parties.
• Anti-corruption Program of PUBLIC JOINT-STOCK COMPANY JOINT STOCK BANK “UKRGASBANK” was approved by the Order of the Chairman of the Management Board of JSB “UKRGASBANK” dated 03.04.2020 No.62-n/pt and is a set of rules, standards and procedures for detection, counteraction and prevention of corruption in the Bank’s activity.  The Program has been developed in order to meet the requirements of the Law of Ukraine “On Corruption Prevention” (hereinafter referred to as the Law) in accordance with the effective legislation of Ukraine and taking into account the best existing corporate governance practices, and it sets the standards and requirements not lower than those provided by the Law. 
  
  The purpose of the Program is to create at the Bank an effective system of prevention and counteraction to corruption based on new principles of formation and implementation of anti-corruption policy, elimination of corruption preconditions of doing business, reduction of corruption risks, and formation of the Bank’s employee intolerance to the manifestations of corruption.
  
  Counteraction to corruption lies in the activity of governing bodies, employees of the Bank within the authorities with respect to the following:
  • Corruption prevention – prevention of acts of corruption, including identification and further elimination of the causes of corruption;
  • Counteraction to corruption – prevention, detection, cessation, disclosure and investigation of corruption crimes;
  • Minimization and / or elimination of the consequences of committing corruption offenses.
  The main tasks of the system of corruption counteraction include the following:
  • Creation of effective mechanisms, procedures, control and other measures aimed at counteracting corruption;
  • Formation of the Bank’s employees’ intolerance to the manifestations of corruption;
  • Formation of a common understanding of the principles of this Program among the Bank’s employees, customers and contractors;
  • Minimization of the risks of involving the Bank and its employees in corrupt practices;
  • Provision of the information to the Bank’s governing bodies about corruption offenses committed by the Bank’s employees, and measures taken in the framework of combating corruption.