The National Bank of Ukraine reported that the Supreme Court has overturned lower-court decisions and confirmed the legality of the NBU’s actions to revoke FINOD LLC’s licenses and exclude it from the State Register of Financial Institutions. The ruling has entered into force and is final and not subject to appeal. The Supreme Court found that FINOD LLC failed to meet document submission requirements under NBU Board Resolution No. 177 on registration and licensing procedures for non-bank financial market participants under martial law, preventing the NBU from assessing the financial and property standing of the firm’s direct and ultimate qualifying holders and their compliance with Ukrainian law. The court also referenced the NBU’s legislated powers to issue binding rules, supervise non-bank financial institutions, and apply enforcement measures, and noted that an inability to assess qualifying holders creates significant risks of delayed or non-fulfilment of obligations to clients and other creditors. FINOD LLC, described as one of the largest operators in Ukraine’s currency exchange market, had its licenses revoked on 21 August 2023 and was removed from the register on 8 September 2023.
National Bank of Ukraine 2025-02-27
Supreme Court upholds National Bank of Ukraine decision to revoke FINOD LLC licenses and remove it from the state register
The National Bank of Ukraine (NBU) announced that the Supreme Court upheld the NBU's decision to revoke FINOD LLC's licenses and remove it from the State Register of Financial Institutions, confirming the legality of these actions. The court found FINOD LLC failed to meet document submission requirements under NBU Board Resolution No. 177, hindering the NBU's ability to assess compliance with Ukrainian law. The ruling is final and highlights the NBU's authority to enforce compliance and mitigate risks in the non-bank financial sector.