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Information collection, sharing, availability

Putting in place mechanisms to verify the accuracy of the Beneficial Ownership information provided by companies and enforce compliance with the obligation to submit this information by June of 2017.

Country: Ukraine

Status: ongoing

Themes: Beneficial ownership

Last updated: December 2020

Classification:

Concrete: Concrete | New: New | Ambitious: Ambitious

  • 11 Evidence:

    On Prevention and Counteraction to Legalization (Laundering) of Criminal Proceeds, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction

    New Register from the Minister of Justice: Where do beneficiaries fit in?

    Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations

    Draft Anti-Corruption Strategy for 2020-2024 has been published based on the results of public discussions: more than 1,000 proposals have been considered

    Ukraine National Anti-corruption strategy for 2020 - 2024

    BENEFICIAL OWNERS: THE STATE AND THE PUBLIC SIGN THE MEMORANDUM OF UNDERSTANDING

    Legislation on company ownership disclosure in Ukraine - Ukraine has not introduced verification mechanisms yet.

    Open Government Partnership Mid Term Assessment

    Getting out of the shadows: About the discovery of real owners of companies in Ukraine

    WHY IMPROVE THE REGISTER OF BENEFICIAL OWNERS

    Memorandum on the development of a mechanism for verifying information about final beneficial owners is signed

  • 8 Notes:

    Amendments to the legislation on the disclosure of information about the ultimate beneficial owner is one of the conditions for cooperation with the International Monetary Fund. In addition, the implementation of such rules is mandatory in order to bring national legislation in line with the Fourth Anti Money Laundering Directive.

    To fulfill these obligations, on December 6, 2019, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction". Despite the fact that Law № 361-IX entered into force on April 28, 2020, Part 4 of Sec. X "Final and Transitional Provisions" stipulates that legal entities registered before its entry into force shall submit information on the ultimate beneficial owners as specified by this Law and the ownership structure within three months from the date of entry into force of the normative legal act that introduce the form and content of the ownership structure. the Code of Ukraine on Administrative Offenses impose a fine from 17,000 to 51,000 UAH on the head of the company or a person authorized to act on behalf of a legal entity (executive body) which violated the requirements for disclosure of information about the ultimate beneficial owners and the ownership structure.

    On August 16 the Ministry of Justice launched a new Unified State Register of Legal Entities, Sole Proprietors and Public Associations (USR), also the Ministry of Justice works on the updated form of the legal entities ownership structure of legal entities.

    The working group (consisting of the Ministry of Justice, the SoE National Information Systems, the National Bank of Ukraine, the State Financial Monitoring Service and representatives from civil society) developed a draft business process to build a verification mechanism. To implement and further develop it, a Memorandum was signed. This Memorandum envisages establishment of Transnational Electronic Laboratory (TeLAB) - an official platform for communication and testing of innovative technologies in verification of beneficial owners between governmental organizations, NGOs, businesses, and experts at an international level.

    Implementation of this mechanism requires adoption of additional normative acts, technical and structural improvement of registries, further work on development of the “beneficial ownership” concept in legislation and in practical application.

    Implementation of effective mechanisms for verification of information on the ultimate beneficial owners of legal entities of private law in the Unified State Register of Legal Entities, Individuals - Entrepreneurs and Public Associations became the strategic goal in the draft Anti-Corruption Strategy 2020 -2024 that was presented by National Agency for Corruption Prevention to Cabinet of Ministers of Ukraine on September 9, 2020.

    Updated: October 31, 2020

    The working group consisting of the Ministry of Justice, the SoE National Information Systems, the National Bank of Ukraine, the State Financial Monitoring Service and representatives from civil society developed a draft business process to build a verification mechanism. To implement and further develop it, a Memorandum was signed. This Memorandum envisages establishment of Transnational Electronic Laboratory (TeLAB) - an official platform for communication and testing of innovative technologies in verification of beneficial owners between governmental organizations, NGOs, businesses, and experts at an international level.

    Updated: April 30, 2020

    In the end of July,2019 as part of the international initiative Open Government Partnership, the Memorandum of Cooperation on Developing a Verification Mechanism for Information on Ultimate Beneficial Owners. The verification mechanism tests should start by December 2019.Transparency International Ukraine has been involved in the process since the very start. Among other things, TI Ukraine experts will be able to test data entering and provide their feedback before the system is finalized.

    Updated: October 30, 2019

    There is a Working group created in order to create a verification mechanism for the information provided in the registry

    Updated: May 30, 2019

    Working group consists of government agencies, international partners and non-governmetal orgs. OGP Mid Term Assessment 2016-2018: "Currently, the matter of development of mechanism for checking the accuracy of information provided by the companies on beneficiary owners is under development. Consultations are being held with the representatives of the European Union regarding development of the 18 relevant legal norms and software adaptation, as this issue should be regulated at the legislative level only. " pg.17

    Peer reviewer: 1

    Updated: May 30, 2019

    There are no developments on this commitment

    Updated: October 30, 2018

    Ukraine has not introduced verification mechanisms yet. Not yet overdue (deadline is end of 2018).

    Updated: June 30, 2018

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