Since the beginning of the full-scale invasion of Russia into Ukraine, there has been an urgent need to eliminate the influence of the occupier on our financial system, because some banks and other financial institutions in our country were directly or indirectly managed by citizens of the Russian Federation.
And so, on November 19, in accordance with Law No. 2736-ХХ, the necessary changes to the Law of Ukraine "On Prevention and Combating the Legalization (Laundering) of Criminal Proceeds, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction" (hereinafter referred to as the Law) entered into force regarding the provision from the influence of the aggressor country of our financial system.
From now on, the Law, in particular, establishes enhanced verification of financial transactions in which companies of the aggressor country participate, and prohibits citizens of such a country from managing subjects of primary financial monitoring (hereinafter referred to as SPFM), i.e. banks and other financial institutions that carry out economic activities in Ukraine.
Thus, threshold financial transactions that are subject to financial monitoring include transactions where one of its participants is registered, has a place of residence/location in a country that carries out armed aggression against Ukraine, or one of the participants of such a transaction is a person who has a bank account registered in the aggressor state.
In addition, according to the Law, from now on the manager, his deputy, the chairman and members of the supervisory body, the responsible employee of the SPFM, as well as other employees involved in the primary financial monitoring, must not have the citizenship of a state that carries out armed aggression against Ukraine, and must also have an impeccable business reputation.
Thus, the aforementioned legislative changes will contribute to the detection and stopping of operations aimed at financing the terrorist regime of Russia, as well as the protection of the economic and internal interests of the national security of our state.
Legislation in the field of financial monitoring does not stand still and since the beginning of the war there have been other novelties and innovations, which the specialists of Dynasty Law & Investment will help to understand.
