On 28 December 2019 the newspaper Holos Ukrainy published a new Law of Ukraine “On prevention and combating of legalization (laundering) of illegal proceeds, financing of terrorism and proliferation of weapons of mass destruction” No 361-IX of 6 December 2019. It will replace current Law No 1702.
The Law stipulates increase in the amount of financial transactions, which shall be subject to obligatory financial monitoring (from 150 thousand hryvnias to 400 thousand hryvnias) with reduction of a list of signs of such financial transactions from 17 to 4).
It means that banks, insurers, credit unions, pawn shops, exchange houses, payment organizations and other financial institutions are obliged to inform the State Financial Monitoring about the transactions for the amount exceeding 400 thousand hryvnias and connected with cash, bank transfers to other countries, politically important persons and clients from the countries, which do not fulfill recommendations of the international, intergovernmental organizations, acting in anti-money laundering sector.
The list of entities, which provide information to the State Financial Monitoring about suspicious transactions, is increased. It is supplemented with persons, who provide information and consultation services relating to taxation.
The law improves procedure for disclosure by the economic entities of their financial beneficiary owners (controllers), introduces renewed system of punishment for violation of the law in the sphere of the financial monitoring.
The law introduces an obligation for the payment systems:
- to add information about payer and recipient to the bank transfers.
- to ensure availability and completeness of information about payer or recipient of the payment;
- to set preventive measures, meant to combat manipulations with proceeds of crime, connected with illegal money legalization (laundering), and financing of terrorism.
This law enters into force in four months after its publication.
Source: newspaper Interactive Accounting