Dear colleagues!
On 28 April, 2020, the new Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction” (hereinafter – the Law) has entered into force. In pursuance of the Law, the Ministry of Finance of Ukraine developed and published a draft Order “On Approval of the Regulations on the Form and Content of the Ownership Structure” (hereinafter – the Order).
Thus, all legal entities are obliged to update the information on the ultimate beneficial owners (hereinafter – the UBO) and submit a detailed ownership structure in electronic or paper form within three months from the date of entry into force of the Order, which approves the form and content of ownership structure. The order stipulates that samples of the schematic representation of the ownership structure will be published on the official website of the Ministry of Finance.
Therefore, companies should start preparing
- documents confirming that foreign legal entities own corporate rights in such legal entity (if the ownership structure includes non-residents);
- documents confirming the ability of UBO to exert a decisive influence on the management or activities of the company, etc.
Please note that for failure to submit or late submission of information about the UBO or documents to confirm the information about the UBO, the head of the legal entity or an authorized person may be held administratively liable in the form of a fine.
Of course, the promulgated Order is only a draft, but its adoption is a matter of time. OMP will keep an eye on it and will notify you of any changes that will be related to the submission of information about the UBO and ownership structure!