The information for parties related to JSC "PUMB"
According to Article 52 of the Law of Ukraine “On Banks and Banking Activities”, parties related to the bank are:
- Bank controllers;
- Parties with substantial participation in the bank, and parties through which these parties indirectly hold substantial participation in the bank;
- Bank managers, head of the internal audit service, heads and members of bank committees;
- Relatives and affiliates* of the bank, including members of the banking group;
- Parties with significant participation in related and affiliated parties of the bank;
- Heads of legal entities and heads of banks that are related and affiliated parties of the bank; head of internal audit; leaders and committee members of these parties;
- Associates* of individuals referred to in paragraphs 1-6;
- Legal entities in which the individuals referred to in this part are directors or owners of significant participation;
- Any party through whom the operation is carried out in the interests of the parties specified in this part, and who is affected during the operation by the parties specified in this part, through labor, civil and other relations.
*Associates – husband or wife, direct relatives of this party (father, mother, children, siblings, grandfather, grandmother, grandchildren), direct relatives of the husband or wife of that party, husband or wife of a direct relative.
*An affiliate of a bank is any legal entity in which the bank has substantial participation or which has a substantial participation in the bank.
*A relative person – a legal entity having owners of substantial participation in common with the bank.
Transactions with party related to the bank cannot provide for conditions that are not current market conditions.
Market conditions are not considered, in particular:
- acceptance of less fulfillment security than is required from other customers;
- the purchase from a party related to the bank of the property of low quality or at an inflated price;
- making an investment in securities of a party related to the bank that the bank would not have made in another enterprise;
- payment for goods and services of a party related to the bank at prices higher than usual, or in such circumstances when the same goods and services of another party would not have been purchased at all;
- the sale to a party related to the bank of property at a cost lower than that which the bank would receive from the sale of such property to another party;
- accrual of interest and commission for services provided by the bank to parties related to the bank, which are less than usual;
- accrual of interest on deposits attracted by the bank from parties related to the bank, which are more than usual.
Agreements concluded by the bank with parties related to the bank on terms that are not current market conditions are invalid from the moment they are concluded (Article 52 of the Law of Ukraine “On Banks and Banking Activities”).
In case of invalidity of the deal, each of the parties is obliged to return to the other party in-kind everything that was received to carry out this deal, and if such a return is not possible, in particular when the received is to use the property, the performed work, the provided service, reimburse the cost of what was received at prices that exist at the time of reimbursement (Article 216 of the Civil Code of Ukraine).
The bank is prohibited from providing loans to any party to repay this party any obligations to a party related to the bank; acquisition of assets of a party related to the bank, except products manufactured by that party; acquisition of securities placed or signed by a party related to the bank.
The National Bank of Ukraine exercises control over the operations of banks with parties related to the bank.
The National Bank of Ukraine has the right to establish restrictions on the operations of banks with parties related to the bank.
According to par. 4 and par. 7 of the fourth part of Article 26 of the Law, the Fund does not reimburse funds for a deposit in the guaranteed amount of compensation (now 200,000.00 hryvnias) from the Fund:
- placed on a deposit of the bank by a party who is a party related to the bank or was such a party during the year before the day the National Bank decided to classify such a bank as insolvent (in the event that the National Bank makes a decision to revoke the banking license and liquidate the bank on the grounds specified in part two of Article 77 of the Law of Ukraine “On Banks and Banking Activities”, within a year before the day such a decision is made);
- on bank deposits, on which depositors in accordance with an individual basis receive interest from the bank under contracts concluded on conditions that are not current market conditions in accordance with Article 52 of the Law of Ukraine “On Banks and Banking Activities”, or have other financial privileges from the bank.
Do I need to contact the Bank if I have received a notification letter identifying me as a party related to the Bank?
- No, contacting the Bank is not required. A letter has been sent to you informatively in compliance with the requirements of the National Bank of Ukraine.
Why did I receive a letter regarding my identification as a party related to the Bank, if I am not a customer of the Bank and do not have any business relations with the Bank?
- You have received a letter because you meet the criteria for determining parties associated with the Bank established by the Law of Ukraine “On Banks and Banking Activities”.
Can I, after determining me as a party related to the Bank, receive the services of the Bank?
- The status of a party related to the Bank does not restrict the use of the Bank's services if the Bank provides services on current market conditions
According to Part 5 of Art. 58 of the Law of Ukraine “On Banks and Banking Activities”, a party related to the bank for violation of the requirements of the law, including regulatory legal acts of the National Bank, the implementation of risky operations that threaten the interests of depositors or other creditors of the bank, or bringing the bank to insolvency, bears civil, administrative and criminal liability.
A party related to the bank whose actions or omissions led to damage to the bank through his fault is liable with his property. If, as a result of actions or inaction of a party related to the bank, the damage is caused to the bank, and another party connected with the bank receives property benefits directly or indirectly as a result of such actions or inaction, such parties shall be jointly and severally liable for damage caused to the bank.
Article 1665 of the Code of Ukraine on Administrative Offenses and article 73 of the Law of Ukraine “On Banks and Banking Activities” for violation by the bank-related parties of the banking, currency legislation, legislation governing the transfer of funds in Ukraine, regulatory legal acts of the National Bank of Ukraine or the implementation of risky operations that threaten the interests of depositors or other creditors of the bank provides for a fine, according to the violation.
Article 2181 of the Criminal Code of Ukraine when bringing a bank to insolvency, that is, intentionally, for personal gain, other personal interest or in the interests of third parties, the performance of any actions related to the bank, which led to the classification of the bank as insolvent, if it caused great material damage* to the state or the creditor, provides for punishment by restraint of liberty for a term of one to five years, or imprisonment for the same term, with a fine of five thousand to ten thousand non-taxable minimum incomes of citizens and the deprivation of the right to hold certain posts or engage in certain activities for up to three years.
*material damage is considered large if it is ten thousand or more times the non-taxable minimum income of citizens.