Page 44 - bne IntelliNews Ukraine Country Report May 2017

These laws, which have been developed with assistance from the EU and the World Bank, will bring Ukraine's accounting framework broadly in line with the EU Accounting Directive and establish a new oversight structure for the audit profession, while safeguarding the NBU's and the National Securities and Stock Market Commission's ability to set additional standards for auditors of banks and other regulated entities (professional market participants and issuers) in a transparent manner. These laws will be adopted by end-July 2017.
8.1.4 Bank news
The National Anti-Corruption Bureau of Ukraine (NABU), the country's main anti-graft agency, has raided the offices of the National Bank of Ukraine (NBU) under an investigation into possible wrongdoing of regulatory officials concerning the insolvent Platinum Bank, the head of the Specialised Anti-Corruption Prosecutor's Office (SAPO) said on March 30. "[The raid conducted a day earlier] is linked to abusive practices, including linked to the operation of Platinum Bank, as investigators are following clues about the deliberate increase of liquidity and the reduction of economic risks any financial institutions usually have," local media quoted SAPO head Nazar Kholodnytsky as saying. On March 29, the NABU raided the headquarters of the central bank and seized documents under what they said was a criminal investigation into abuse of power by senior NBU officials in 2015-2016.
The National Bank of Ukraine (NBU) declared Kyiv-based Diamantbank insolvent , hours after its minority shareholder was arrested . Mykola Martynenko, an ex-MP and close associate of former prime minister Arseniy Yatsenyuk, was briefly detained by law enforcers for suspected embezzlement. Diamantbank, Ukraine's 23th bank by assets, failed to achieve the minimum level of regulatory capital adequacy at a ratio of 5% established by the central bank, the NBU said in a statement on April 24. In a separate statement, Diamantbank's board chairman Oleh Khodachuk attributed the situation to the recent detention of Martynenko by the National Anti-Corruption Bureau (NABU) on suspicion of diverting funds from the state-owned Eastern Mining and Processing Combine Mining during the purchase of uranium concentrate.
44 RUSSIA Country Report April 2017 www.intellinews.com