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.
For more than six months, the necessary changes to the Law of Ukraine "On Prevention and Counteraction of Legalization (Laundering) of Criminal Proceeds, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction" (hereinafter referred to as the Law) have been in the works regarding safeguarding our financial system from the influence of an aggressor country. established by the Law of Ukraine No. 2736-IX.
Thanks to legislative innovations, there is a strengthened verification of financial transactions in which companies of an aggressor country participate, and a ban on citizens of such a country from managing subjects of primary financial monitoring (hereinafter - SPFM), that is, banks and other financial institutions that carry out economic activities in Ukraine.
It should also be noted that the legislative changes to the 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 towards Ukraine, or is one of the participants of such a transaction a person with a bank account registered in the aggressor state.
Among other things, 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 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.