If you are the owner or manager of business, lawyer or accountant dealing with documentary support of the company, this article could be actual for you.
From the date of April 28, 2020 entered into force Law of Ukraine № 361-IX “On Prevention and Counteraction to Legalization (Laundering)of the Proceeds from Crime or Terrorism Financing, as well as Financing Proliferation of Weapons of Mass Destruction” (hereinafter referred – The Law № 361).
The Law № 361 imposed into existing companies the obligation to provide the State Registrar with actual information about Ultimate Beneficial Owner (hereinafter referred – UBO) within 3 months from the date of entry into force the Regulation that will approves the form of application and content of the ownership structure.
On the moment of posting this article mentioned Regulation hasn’t been adopted, consequently respective 3 months’ term hasn’t been started yet.
The Law № 361 amends The Law of Ukraine № 755-IV “On State Registration of Legal Entities, Individual Entrepreneurs and Public Organizations” (hereinafter referred – The Law № 755) by clause 17-1 and also created obligation for all companies (new and existing) to provide State Registrar with update information about UBO on a permanent basis every year within 14 calendar days from the date of state registration of the company.
The Law № 755 lay emphasis on company’s obligation to keep updated respective information about UBO, this means that if the ownership structure has changed, the company undertakes to notify with updated information the State Registrar within 30 business days from the date of such changes.
Moreover, if company decides to register changes, which should be included to State Register, along with filing relevant documents, company should either file update information about beneficiary or inform about absence of any changes in ownership structure.
If filed information were not full or inaccurate, company should refile corrected documents within 3 business days from the moment of discovery such inaccurate data.
According to the clause 17-1 of The Law № 755 documents that requires for providing the information about UBO are the follows:
- application form;
- ownership structure;
- if the shareholder of the company is non-resident – the extract from the trade, banking, and court register of a non-resident legal entity of such entity’s country of location, – (apostilled or otherwise legalised in the country of issue, and translated into Ukrainian);
- notarized copy of identity document of UBO.
Ways of filing documents
Company could file documents in follows ways:
*in hard copy personally or postal;
*in electronic form through the portal of electronic services using digital signature
Finally, what consequences the company would suffer if it fails to comply with the law?
The Code on Administrative Offences of Ukraine imposed fine on manager of the company which fail to comply with above mentioned requirements of law. Amount of a fine is of 1000 to 3000 non-taxable minimum incomes (means 17 000,00-51 000,00 UAH).
Senior Lawyer Laudis Legal & Accountancy / Galina Basteeva