Law Digest

Preventive measures

The Order of the Ministry of Justice of Ukraine On Approval of the Regulation on the Procedure for Application of Preventive Measures with Regard to the States Failing to Follow or Improperly Following the Recommendations of International, Intergovernmental Organizations Involved in Anti-Money Laundering, Anti-Terrorism Financing, and Anti-Financing of Mass Destruction Weapons Proliferation of 16 October 2015, No.2011/5 has been adopted.

It applies to reporting entities — notaries, attorneys, law offices and societies, as well as economic entities providing legal services (except for persons providing services within the framework of labor relations) (hereinafter — an Entity), the state regulation and supervision of the activities of which is carried out by the Ministry of Justice of Ukraine.

Taking measures provided for by legislation in this field is ensured directly by the Entity, its branches, other separate subdivisions and subsidiaries, which are located in the states, in which FATF is not applied or applied insufficiently, within the limits determined by legislation of such a state.

A list of measures to be taken by entities with regard to clients from risky countries is approved.

An Entity is entitled to refuse to carry out a financial transaction should the financial transaction bear the signs of a transaction which is subject to financial monitoring pursuant to the Act.

Transparency of the AMCU

On 12 November 2015 the Act of Ukraine On Introduction of Amendments to Certain Legislative Acts of Ukraine Regarding Ensuring the Transparency of the Antimonopoly Committee of Ukraine Activity (the Draft Act No.2102 of 11 February 2015) was adopted. The Act establishes the obligation of the Antimonopoly Committee of Ukraine to publish the decisions taken based on the results consideration of cases of violation of economic competition protection legislation, as well as of consideration of applications and cases of concerted actions or concentration. It should be recalled that the adoption of this Act fits in with the obligations of Ukraine with regard to fulfillment of conditions of Article 256 of the Association Agreement between Ukraine and the European Union for the years  2014-2017. From mid-July, prior to incurrence of actual obligations, the AMCU had already started publishing the mentioned decisions on its official Internet portal in the “Decisions and Recommendations” section.

Corrupt assets

The Draft Act On the National Agency of Ukraine for Identifying, Tracing and Managing Assets Derived from Corruption-Related and other Crimes of 4 September 2015, No.3040 submitted by the Cabinet of Ministers of Ukraine, was adopted on 10 November 2015, and is being prepared for signing by Ukrainian President Petro Poroshenko.

The National Agency of Ukraine for Identifying, Tracing and Managing Assets derived from Corruption-Related and other Crimes is a central executive agency with special status, which shall provide the formation and implementation of state policy in the field of identifying and tracing assets, which may be seized in criminal proceedings, and of managing assets that are seized or confiscated in criminal proceedings.

Within the limits established by this and other acts, the National Agency shall be accountable to the Verkhovna Rada of Ukraine, controlled by and responsible to the CMU.

The Constitution of Ukraine, international treaties, the consent for the binding nature of which was provided by the Verkhovna Rada of Ukraine, this and other acts of Ukraine, as well as other regulations adopted according to them, shall be the legal basis for the activity of the National Agency.

The National Agency is made up of central administrative office and regional departments, and is a legal entity of public law.