UKRGASBANK comment on the measures taken by the National Bank of Ukraine towards UKRGASBANK in relation to the violation in the sphere of financial monitoring and information on the alleged tax evasion by the gambling business

Being fully aware of the responsibility to our clients, partners and stakeholders, Ukrgasbank makes the following statement.

Since 2000, Ukrgasbank has been a principal member of the largest international payment systems MasterCard Worldwide and Visa International. As a principal member of the international payment systems Ukrgasbank provides support to Ukrainian financial institutions with smaller transaction volumes — associated and affiliated members of the international payment systems — in accessing the services of the international payment systems. This means that with Ukrgasbank support, associated and affiliated participants of the international payment systems issue and process cards for their customers and provide acquiring services.

Ukrgasbank cooperation with associated and affiliated participants of the international payment systems in the field of e-commerce is conducted in strict compliance with the current legislation. Associated and affiliated members of the international payment systems   attracted customers (merchants), including from the gambling industry, independently and provided them with Internet acquiring services. Ukrgasbank was not able to ensure comprehensive monitoring of associated and affiliated participants' compliance with electronic payments rules.

We would like to note that a number of unscrupulous participants of this market have presumably taken advantage of the flawed system of internal control and monitoring of associated and affiliated participants' compliance with electronic payments rules when providing services to the gambling companies.

As soon as Ukrgasbank became aware of the systemic nature of such violations, it immediately blocked the terminals of the offending gambling companies, and started terminating all acquiring contracts with the affiliated and associated participants, as well as reviewed and significantly strengthened its own system of internal control over electronic payment transactions in order to prevent similar incidents occurring in future.

For Ukrgasbank, its impeccable reputation, openness and transparency of business have been the key foundations of its operation in the banking services market. We have always been and remain open to cooperation with the National Bank of Ukraine, authorities and law enforcement agencies. The Bank provides and, in the event of an inquiry, will continue to provide full assistance in carrying out the necessary procedural actions pertaining to the case of alleged tax evasion by the gambling business.

For Ukrgasbank team, the trust of its customers and partners is extremely important, so we will do our utmost to justify and increase this trust. We are grateful to the National Bank of Ukraine for its involvement in establishing and improving certain internal control processes at Ukrgasbank. We are confident that we will go down this path together with the regulator with the maximum benefit for the future effective work of the state-owned bank,

03.03.2023