When a bank applies currency supervision

A bank applies currency supervision to a resident's export and import transactions in goods within the meaning of currency legislation where settlement deadlines apply. Before work begins, the type of transaction, date, amount, contractual basis and any exceptions are determined. For each delivery or stage, a separate link is maintained between performance and payment.

The concept of goods under currency legislation covers physical products, services, property rights and other types of supply, so the type of transaction is determined by the actual substance of the agreement. The bank assesses the contract, invoice, acceptance certificate, customs information, statements and additional evidence of actual performance.

For currency supervision, the bank compares the payment amount with the contract, invoice, payment or delivery date and the document confirming performance. The internal register is therefore maintained by separate transactions and parts of settlement for each counterparty.

The commercial manager provides the contract terms and invoices, the logistics employee provides transport or customs documents, and the accountant provides statements and accounting data. The director appoints a responsible employee who consolidates this information in a register and provides the bank with supporting evidence for each amount.

The register records the advance payment or dispatch, start of bank supervision, partial settlement, performance document and completion of the transaction. For each event, the date, amount, supporting evidence and responsible employee are stated.

1. Check the Contract, Invoice and Payment Purpose
2. After settlement is completed, keep the bank notification and the document on the basis of which the transaction was removed from supervision.

Before calculating the final deadline, the current NBU rules for the relevant type of transaction and the date from which the bank starts counting are clarified. If the contract or performance has a special feature, it is recorded separately so that the director works with a date linked to the relevant delivery.

The director appoints a backup employee and gives that person access to the register, contracts and bank notifications in advance. The file contains current contacts for the buyer or supplier and a list of documents still to be obtained. The backup employee can take over the work at any time under the same procedure.

Dates, documents and completion of settlements

In the electronic archive, each row of the register contains a link to the contract, invoice, statement, declaration, acceptance certificate or other supporting evidence. When the bank asks a question, the accountant immediately opens the materials for the relevant amount from the already organised contract file.

• Contract, invoices or acceptance certificates, customs documents, bank statements and bank notifications
• Contract and Annexes
• Invoice, Acceptance Certificate or Goods Documents
• Bank Statement
• Explanation of Business Purpose

Before responding to the bank, the amount, currency, dates, contract number and actual performance are compared. If the documents use different names for goods, stages or parties, the lawyer and accountant prepare a short explanation and attach only the materials confirming the requested transaction.

After settlement for the relevant amount is completed, the date and supporting document are recorded in the register, and bank confirmations are stored with the other materials. The director can separately see completed transactions, current outstanding amounts and the nearest deadlines under all foreign trade contracts.

For exports, the start of the period and completion are linked to performance documents and receipt of payment; for imports, to transfer of the advance payment and receipt of goods, completed works or provided services. The final deadline is determined under NBU instructions and bank data and compared with the accounting records and contractual calendar.

Supervision ends after full settlement or another prescribed ground occurs and is confirmed by documents. Partial payment or partial performance is taken into account for the relevant amount. All statements, declarations, acceptance certificates and bank notifications are stored in the transaction archive.

Register of contracts and currency settlements

For several contracts, a table is created showing the counterparty, contract number, type of transaction, amount, start date, final deadline, receipt or delivery, outstanding amount and document still to be obtained. Responsible employees update it after each shipment and payment. The manager can see the settlement status, nearest dates and list of documents that need to be added.

If the terms change, a supplementary agreement, refund, price adjustment or other confirmation is added and the outstanding amount is recalculated. Before a document is provided to the bank, the commercial, banking and accounting data for the transaction are compared.

Send the contracts, invoices, acceptance certificates or declarations, statements and bank notifications. UBC specialists will identify the transactions under supervision, deadlines and amounts, prepare the table and a list of supporting evidence. If necessary, UBC specialists will prepare an explanation of the chronology and actual performance.

The owner or director receives a register of current and new contracts and a document package for the transactions. A UBC specialist will explain which data to provide to the bank and how to confirm completion of each transaction.

The table can be linked to the payment calendar and contract archive. After each receipt or delivery, the accountant adds the supporting evidence and the responsible employee updates the amount and status. The manager sees which transactions are fully completed, where a document is awaited and which contract needs attention in the coming week. A UBC specialist will help configure the register format for the number of banks, contracts and responsible employees so that it is convenient for continuous use.

For each contract, the bank, currency, amount, delivery or advance-payment date, final settlement deadline and document after which the transaction can be removed from supervision are recorded. Partial deliveries and payments are shown on separate rows so that the manager can see the actual outstanding amount for each transaction and the total contract amount separately.

The register is linked to accounting and contract work. The responsible employee receives an advance reminder about the required document, while a specialist analyses the basis and prepares an explanation for the bank. If the contract terms, schedule or details change, the adjustments are entered simultaneously in the contract file and control calendar.