On June 7, 2023, the Verkhovna Rada of Ukraine registered the project of the Law "On Amendments to Certain Laws of Ukraine Regarding Digitalization of Executive Proceedings", which was developed by the Cabinet of Ministers, in particular the Ministry of Justice.
After analyzing the said draft law, we can come to the following conclusion that in the case of the adoption of the corresponding Law, the functionality of the Unified Register of Debtors (ERB) will be significantly improved, as well as the deadlines for execution of enforcement actions will be reduced, which will speed up the achievement of the goals of enforcement proceedings.
Thus, the draft law provides:
- Expanding the functionality of the Automated System of Executive Proceedings in order to improve the cooperation of the Internal Revenue Service bodies and private executors with financial service operators for the effective execution of foreclosure on the debtor's property;
- Introduction of cooperation between the ERB, state registers and the securities depository accounting system in order to prevent the commission of fraudulent acts. The order of information interaction will be established by a separate act of the Ministry of Justice;
- Functionality for creating a certificate about the presence/absence of information about a person in ERB with the overlay of the system administrator's KEP;
- Automation, both the seizure of funds and the exclusion of information about a person from ERB;
- The procedure for renewing enforcement proceedings in which a decision was made to return the enforcement document, which will prevent the repetition of information about the debtor in the ERB.
- Addition of Article 62-1 to the Law "On Executive Proceedings", which details the procedure for executing a decision to secure a claim by imposing a seizure on the property (funds) of the debtor.
Also, the novelties of the draft law are the entry of a debtor who owes alimony payments to the Register if the debt exceeds the amount of the corresponding payments for three months, the regulation of the collection of electronic money and securities that exist in electronic form, as well as other minor terminological corrections.
Vitaly Levchenko, lawyer at Dynasty Law & Investment