What is a credit union? What distinguishes the credit union on the subject of entrepreneurial activity? Credit
Union - a non-profit organization founded by individuals, labor unions
and their associations on a cooperative basis to meet the needs of their
members in a mutual credit and financial services by combining cash
contributions of members of the credit union. At
its core, the credit union is a form of self-organization of people
who, together, create for themselves the opportunity to meet their needs
in the financial sector. The
concept of non-profit credit union is that his work is not about making
a profit, but to provide certain financial services to its members. Credit unions may exercise only those activities that are prescribed in the Law of Ukraine "On credit unions". Credit unions in accordance with its charter and under the Act: take introductory and mandatory unit and other contributions from the members of the union; provide loans to its members on the terms of payment, urgency and in a cash and cashless attracted to the contractual terms contributions (deposits) of its members to deposit accounts, both in cash and cashless to sponsor a member of the Union of the execution of obligations to third parties; places
temporarily free funds on deposit in banks that have a license to work
with the contributions of citizens, associations of credit unions and
the like; attracted
to the contractual terms of the loans of banks, credit associations of
credit unions, other organizations and institutions to provide loans
only to its members, unless otherwise stipulated by the decision of the
authority; provide loans to other credit unions; were members of payment systems; pay on behalf of its members, the value of goods and services in the limits of their credit; carry out charitable activities through funds specifically created for the fund. Credit unions provide services only to their members. Thus, in contrast to business entities in the credit union members at the same time act as owners and customers. The
credit union is not the founders and charter capital from the point of
view of the traditional interpretation of these concepts in relation to
business entities. Any
member, regardless of the date of its entry into the Union, shall have
the same management and ownership rights as the first 50 founding
members. The credit union is an open organization, which guarantees freedom of entry and exit from the members. Credit union or engage in any other business activities other than the provision of certain financial services to its members. For activities credit union must comply with the following regulations: Regarding the legal form: the legal form of the credit union shall be defined as - a credit union. Related to the material, technical support and the requirements for the workshop: software
and special technical equipment credit unions associated with the
provision of financial services, must comply with the requirements of
regulatory bodies; credit
union has a separate room with restricted access, and a safe deposit
money and documents, eliminating the abduction (damage), necessary
security, including security alarms and / or adequate protection, and to
have other special technical equipment related to the provision of financial services, and a list of requirements that establish the Financial Services Commission. Regarding statutory and internal documents of the credit union: statutes,
and the establishment of the credit union must comply with legal
requirements, in particular the Law of Ukraine "On credit unions"; internal regulations of the credit union must comply with the law. In
order to ensure efficient and safe operation of the Credit Union within
three months from the date of state registration is required to develop
and adopt according to the requirements, such internal regulations: 1. The situation on the activities of the credit union, as follows: a) The position of the supervisory board; b) Regulations on the Audit Commission; c) The position of the credit committee; d) The position of the board; e) The position of the other governing bodies (if any). 2. Provision of a separate structural unit (branch, branch - if any). 3. Regulations on the workflow. 4. Provision of financial services. 5. Regulations on financial management. This list of internal regulations is not exhaustive. A credit union may claim other provisions that regulate certain aspects of its operations under the law and the Constitution. About the qualifications of the manager and the chief accountant of the credit union: The manager must meet the following professional requirements: a) have completed higher education (education and qualification level expert, master); b)
pass training and pass an examination for compliance with professional
knowledge of the requirements of a model program, prepared under
direction of the financial institution and approved by the Financial
Services Commission; c) have at least 5 years of general experience of work, of which: Chairman of the Board for credit union - experience decision makers for at least 1 year; g)
for the last 5 years to be a leader, chief financial officer or the
chief accountant of the financial institution, declared bankrupt,
undergo the procedure of compulsory liquidation, or to which was applied
a measure of the appropriate authority, which regulates the financial
services, in the form of removal from the leadership of financial institution and the appointment of an interim administration; e)
not have a conviction for premeditated crimes, crimes of economic and
service activities, and not to be deprived of the right to hold certain
posts or practice certain activities. The chief accountant must meet the following professional requirements: a) have full or basic higher education (education and qualification level, master's, bachelor's); b)
pass training and pass an examination for compliance with professional
knowledge of the requirements of a typical training program chief
accountants, prepared under direction of the financial institution and
approved by the Financial Services Commission; c) have experience in positions related to financial and accounting activities - at least 3 years; d)
in the last five years to be a leader, chief financial officer or chief
accountant of the financial institution, declared bankrupt, undergo the
procedure of compulsory liquidation, or to which was applied a measure
of the appropriate authority, which regulates the financial services, in
the form of removal from the leadership of financial institution and the appointment of an interim administration; e)
not have a conviction for premeditated crimes, crimes of economic and
service activities, and not to be deprived of the right to hold certain
posts or practice certain activities. Officer responsible for the financial monitoring must meet the following requirements: -
Have completed higher education and work experience for at least 1 year
in the relevant area of the reporting entities or work experience in a
managerial position in the reporting entities not less than one year,
or at least one year of experience in the field of prevention and
counteraction to legalization ( laundering) of proceeds from crime and terrorist financing -
A course of long-term training in the prevention and counteraction to
legalization (laundering) of proceeds from crime and financing of
terrorism, and has a certificate; -
Do not have a conviction for premeditated crime (at the time of
appointment, you need to collect a certificate of no criminal record); - Must have the employment relationship.
Credit Union
