On April 28, 2020, a new Law of Ukraine On Prevention of, and Counteraction to, Legalization (Laundering) of Proceeds from Crime, Financing of Terrorist Activities and Proliferation of Weapons of Mass Destruction No. 361-IX dated 06.12.2019 (hereinafter referred to as the "Law") is to enter into full force and effect.
The Law considerably updates, inter alia, the requirements of the disclosure of information regarding beneficial owners of legal entities, trusts and other similar legal structures.
In particular, the Law provides for the following:
- The legal entities incorporated before April 28, 2020, shall be obliged to file data related to the beneficial owner and ownership structure within three months from the date of entry into force of the relevant regulation whereby the form and content of such a report disclosing the ownership structure are to be approved.
- During the state registration of a legal entity, or the state registration of changes to the data related to a legal entity, or transition of a legal entity to operations under the model charter, or vice versa, or registration of a separate unit of a legal entity, etc., the ultimate beneficial owner of the founder shall be obliged to submit a notarized copy of his/her passport to the registrar, except for the instances when his/her passport is issued using the Unified State Demographic Register (the so-called biometric passport).
- Legal entities are obliged to keep up to date the information regarding ultimate beneficial owner and ownership structure; to amend such information when necessary; to notify the state registrar of such amendments within 30 working days from the day of their occurrence; and to submit documents confirming these amendments to the state registrar.
- All legal entities are obliged to confirm, annually, within 14 calendar days, their information regarding the ultimate beneficial owner by submitting the documents stipulated by the Law.
In consideration of the above, Ukrainian legal entities shall be obliged to bring information regarding their beneficial owners into compliance with the requirements determined by the new Law within a time limit set by it.
The failure to submit, or late submission of, the information regarding ultimate beneficial owners shall be punishable by a fine imposed upon the legal entity's executive or person authorized to act on behalf of such a legal entity (executive body), within a range from UAH 17,000 (€643 as of today) to UAH 51,000 (€1,930 as of today).
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