A new type of bank accounts has been introduced in Ukraine - conditional storage accounts (escrow)

The procedure for opening and using such accounts is regulated by the NBU Board Resolution No. 133 of December 18, 2017, which entered into force today, December 21, 2017.

Throughout the world, escrow accounts are used as temporary accounts that open and operate until the end of transactions and are accessed after the parties of the transaction have fulfilled all the arrangements provided for by the transaction.

In particular, the resolution adopted by the NBU has identified:

the procedure for opening and closing of conditional storage accounts (escrow);

a list of documents that the client submits to the bank when opening a conditional storage account (escrow);

an exceptional list of transactions that can be performed with a conditional storage account (escrow);

the procedure for opening a current account of type "H" to the representation of the donor organization.

Also, the right to non-residents - investors to open escrow accounts for transferring funds to beneficiaries whose shares are acquired pursuant to the requirements of Article 652 of the Law of Ukraine "On Joint Stock Companies" and foreclosure of the subject encumbrances which is the proprietary rights to the cash funds held in a bank account by a contract write-off on the demand of the encumbrancer.