The NBU fined the company "Nova Poshta" 90 million: what will change now

The NBU fined the company "Nova Poshta" 90 million: what will change now

The NBU fined the company "NovaPay" (a subsidiary of LLC "Nova Poshta", used for parcel payment and money transfers) 90 million for violating the financial monitoring law. "Nova Poshta" has already confirmed that they will pay the fine and added that the company will monitor the number and regularity of cash-on-delivery receptions by individuals.

As stated in the announcement of the NBU, a fine of 90,658,967 UAH was imposed for breaching the requirements of point 2 of part two of Article 8 of the Law on AML/CFT concerning the failure to ensure proper organization and conduct of initial financial monitoring.

"Nova Poshta" explained: the major part of the regulator’s remarks concerned the enhancement of the financial monitoring system of clients.

What will change now?

"To prevent new fines or other types of penalties from the regulator, NovaPay has already implemented several changes, such as monitoring the number and regularity of cash-on-delivery receptions by individuals. Additionally, we are strengthening the areas highlighted by the regulator," the company noted.

In particular, if a client (not an entrepreneur, but an ordinary individual) receives a large number of cash-on-deliveries (effectively using "Nova Poshta" for selling goods), they may be asked to explain the origin of the money (if it’s trading without sole proprietorship registration, services will be restricted).

"If you, as an individual, receive a large number of cash-on-deliveries, our financial partner – NovaPay – is obliged by the requirements of Law of Ukraine #361-IX to limit its financial services until explanations regarding the money’s origin are received. If you are planning or starting entrepreneurial activity – open an sole proprietorship or another legal form of operation. We are ready to quickly and conveniently conclude contracts for delivery and money transfer services to facilitate your work," the company noted.

Lawyer Bohdan Yankiv commented on this event in his Telegram channel.

"NovaPay, like any other financial monitoring subjects, such as banks, have no right to facilitate bypassing financial monitoring. NovaPay, like others, cannot unreasonably restore business relations from a new quarter or a new month. NovaPay, like others, is obliged to monitor the use of the limit in an FOP over several months, check access to accounts by third parties," the lawyer noted.