On the 18th of July 2019, the State fiscal service of Ukraine in conjunction with other state authorities signed a Memorandum on cooperation in developing a mechanism for verifying information about the beneficial owners.
Memorandum prescribes implementation of the Concept of a mechanism for verifying the reliability of information about ultimate beneficial owners for the purpose of counteraction against corruption, money-laundering, fraud, tax evasion and other crimes related to fictitious activities of companies.
The SFS was a member of the interdepartmental working group, which also included representatives of the State Financial Monitoring Service of Ukraine, the National Bank of Ukraine, the Ministry of Justice and the Ministry of Finance. During 2018 members of the working group have developed a draft concept for verifying the ultimate beneficial owners due to the support of Advisory Fund for EU Association of Ukraine.
Signed Memorandum is a “communication map” that determines steps, deadlines and responsible individuals for the implementation of the concept.
Thus, the SFS in conjunction with other participants of Memorandum will take part in the development and organization of business processes for verifying information about the beneficial owners (description of business processes, definition of ultimate beneficiaries, description of the interaction of information systems, structures and data formats) taking into account Beneficial Ownership Data Standards (BODs) etc. Implementation of the concept will contribute to the creation of transparent beneficial property in Ukraine, the provision of the SFS with rights for the analysis, verification of information provided to the State Unified Register in order to identify the signs of violations. In addition, the SFS will have the power to prosecute in cases of failure to provide or providing the false information about the ultimate beneficial owner.
The draft Concept was developed according to the Action Plan for 2017-2019 on the implementation of the Strategy on the Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction for the period up to 2020, approved by the Cabinet of Ministers of Ukraine dated August 30, 2017 No. 601-p, and the Action Plan on the Improvement of the National System of Financial Monitoring based on the results of the 5th session of the Council on the Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction dated April 12, 2018 and supported by the instruction of the Cabinet of Ministers of Ukraine dated May 29, 2018 No. 16465/1 / 1-18.
In April 2019, a draft Concept was developed and received the award as the best innovation project within the framework of the Program “EU Association Lab”.