This order, as the Ministry notes on its official website, will take effect one month after publication, but at present the Order has not yet been published. We will keep an eye on this date, which we will inform our readers about separately.
Thus, the Order approves the provision to draft a letter on the ownership structure in form and content and has a direct link to the observance of the provisions of the Law of Ukraine "On Prevention and Counteraction to Legalization (Laundering) of Proceeds of Crime, Terrorist Financing and Financing Weapons of Mass Destruction Proliferation". It is important to note, if legal entities were registered before this Law came into force (before 28.04.2020), they must provide the registrar with information on the ultimate beneficial owner in the amount determined by this Law and the ownership structure within three months from the date of entry into force of the regulatory act, which will approve the form and content of the ownership structure.
The ownership structure letter is a document that has the purpose of determining the ultimate beneficial owner of a legal entity, and it is mandatory for submission to the state registrar. Samples of a schematic representation of the ownership structure are provided by the Ministry of Finance on its official website in the "financial monitoring" section for some assistance to the users. The given schemes also provide a description of the nature, decisive influence of the ultimate beneficial owner on the legal entity and its activity.
It is important to understand that failure to provide such an official document as a letter on the ownership structure and not entering these data into the state register of legal entities, individual entrepreneurs and public formations will have negative consequences in the form of a fine. For the head of a legal entity its amount is from 17000 to 51000 UAH (part 6 of art. 166-11 of Code of Administrative Offences.)
These measures are designed to accelerate the adaptation of national legislation to the recommendations of an international organization to combat money laundering, as well as international obligations assumed by Ukraine under the association agreement with the European Union.
Tetyana Trykoza, lawyer Dynasty Law & Investment.