The new Law of Ukraine “On prevention of and fight against the legalization (laundering) of illegally received incomes, funding of terrorism and funding of the dissemination of mass-destruction weapons” (hereinafter, the “Law”) has come into force.
The Law provides new rules for disclosure of information about ultimate beneficial owner (physical person who directly or indirectly owns 25% and more shares in charter capital of a legal entity or rights to vote, the “UBO”) and ownership structure of the legal entity.
To comply with the Law legal entities that have been registered before the effective date of the Law must submit to the State Registrar information about the UBO and ownership structure within 3 month from the date when the standard application form for ownership structure is approved by the state authorities*.
From now on all legal entities must
– provide the State Registrar with information about the UBO within 14 calendar days of the date of state registration of the legal entity, annually commencing from the year following the year of registration;
– provide the State Registrar with information about any changes regarding the UBO and ownership structure within 30 working days form the day of such changes.
With the purpose of performing aforesaid duties authorized representative of the legal entity must submit to the State Registrar the following documents:
– confirmation of information regarding the UBO;
– standard application form for ownership structure;
– document confirming registration of non-resident legal entity in the country of its registration (if the shareholder of Ukrainian legal entity is non-resident legal entity);
– notarized copy of ID document of the UBO (if the UBO is non-resident of Ukraine).
A fine in amount from UAH 17,000.00 to UAH 51,000.0 will be imposed on the Director of the legal entity (or authorized representative) for failure to submit the documents confirming information regarding the UBO to the State Registrar.
*The standard application form for ownership structure is yet to be approved by the State Financial Monitoring Service of Ukraine; all the aforesaid requirements are effective as of the date of the standard application approval.