Liability for violation of the currency law

Violation of currency legislation is a serious problem that can have a negative impact on the country's economy and lead to serious consequences for those who violate these rules. Currency legislation regulates the circulation of foreign currency funds and currency transactions within the country and sets out the rules for their conduct.

One of the most common types of currency law violations is illegal currency exchange.

This means conducting foreign currency transactions without proper authorization or at an exchange rate that does not meet the conditions established by law.

In addition, there are other types of violations:

• such as failure to declare the import or export of funds across the border;
• fictitious currency transactions;
• use of currency funds for purposes other than those specified when they were received;
• and forgery of currency documents.

In the context of negative consequences, it should be noted that the Law of Ukraine “On Currency and Currency Transactions” divides legal liability for violation of currency legislation into four groups depending on the subjective composition:

• Banking institutions are subject to the sanctions provided for by the Law of Ukraine “On Banks and Banking Activities”;
• Business entities licensed by the NBU are subject to warnings; restrictions on certain operations; fines; and license revocation;
• Other legal entities are subject to penalties in the form of fines;
• Individuals (including officials) are subject to fines in accordance with the provisions of the Code of Administrative Offenses.

Established practice shows that in terms of liability for violation of currency legislation, attention should be paid to the provisions of Articles 162 (Violation of the rules on currency transactions), 162-1 (Violation of the procedure for conducting currency transactions), 162-3 (Violation of the rules for the delivery of precious metals and precious stones) of the Code of Administrative Offenses.

At the same time, it should be noted that, depending on the degree of guilt of the official and the consequences, violation of currency legislation may be qualified under certain articles of the Criminal Code.

In view of the above, violation of currency legislation may have rather negative consequences, so timely involvement of specialists in your problem allows you to avoid or at least minimize them.

Prikhodko & Partners Law Firm is ready to provide you with professional legal assistance in resolving issues related to the regulation of currency transactions and protect your rights before regulatory authorities.