{"id":11765,"date":"2023-09-21T09:29:17","date_gmt":"2023-09-21T07:29:17","guid":{"rendered":"https:\/\/centreua.org\/?p=11765"},"modified":"2023-09-21T09:29:17","modified_gmt":"2023-09-21T07:29:17","slug":"financial-monitoring-of-public-figures","status":"publish","type":"post","link":"https:\/\/centreua.org\/en\/monitoring\/financial-monitoring-of-public-figures\/","title":{"rendered":"Financial monitoring of public figures"},"content":{"rendered":"<p><span style=\"color: #800000;\"><b>Draft bill <\/b><a style=\"color: #800000;\" href=\"https:\/\/itd.rada.gov.ua\/billInfo\/Bills\/Card\/42683\"><b>#9269-\u0434 of September 4, 2023<\/b><\/a>\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Cosponsors<\/span><\/b><b><span data-contrast=\"none\">: <\/span><\/b><span data-contrast=\"auto\">a group of 5 MPs from the factions Servant of the People and Holos with Danylo Hetmantsev as the first signatory<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Status<\/span><\/b><b><span data-contrast=\"none\">: <\/span><\/b><span data-contrast=\"none\">the dedicated parliamentary committee issued its review of the bill. The bill is ready to be considered in the first reading<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Who is affected<\/span><\/b><b><span data-contrast=\"none\">: <\/span><\/b><span data-contrast=\"auto\">persons performing public functions in international organizations (for example, the UN Secretary-General or NATO), national public figures (government members, their deputies, MPs, the President, the leadership of the Office of the President, ambassadors, heads of law enforcement agencies, state regulators, the Armed Forces, and major state companies), and foreign public figures<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Summary of the bill:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">the status of a \u201cpolitically significant person\u201d will no longer be limited to three years after a person left their position. \u201cPolitically significant\u201d status will apply to a public official and their family permanently<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">banks, financial, auditing, and a number of other institutions will be obliged to re-assess the risks of cooperation with a \u201cpolitically significant\u201d person within 12 months after this person leaves their position<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">banks, financial, auditing, and other institutions will be held liable for unjustified restrictions imposed on their interactions or business relations with politically significant persons. The fine for the offense will be up to 17 million UAH.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">What is right:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"none\">liability for unjustified risk assessment for interactions with politically significant persons <\/span><span data-contrast=\"auto\">will supposedly reduce risks of <\/span><a href=\"https:\/\/texty.org.ua\/articles\/103481\/finansovi-vyhnanci-chomu-lyudyam-zi-statusom-pep-blokuyut-rahunky-u-bankah\/\"><span data-contrast=\"none\">unjustified blocking<\/span><\/a><span data-contrast=\"auto\"> of bank transactions<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"none\">regulatory authorities, banks, financial, auditing, and other institutions will be able to properly allocate resources <\/span><span data-contrast=\"auto\">to prevent potential crimes since financial monitoring will not be limited to only three years after a public person leaves their position.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"none\">What is wrong:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"7\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">the lifelong status of a \u201cpolitically significant person\u201d will create unwarranted inconveniences for a person, e.g., unjustified blocking of financial transactions by banks. Fewer people will aspire to step into politically important positions.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">Why this is important:\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Politically significant persons are a priori suspected of having influence and maintaining it even after they leave their positions. These individuals will have to justify their sources of income due to increased risks of high-level corruption. This approach is based on the international standards of the Financial Action Task Force (<\/span><a href=\"https:\/\/www.fatf-gafi.org\/en\/home.html\"><span data-contrast=\"none\">FATF<\/span><\/a><span data-contrast=\"auto\">).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For example, the current head and deputy heads of the Office of the President are considered \u201cpolitically significant persons.\u201d It is reasonable to monitor them if they make relatively expensive purchases (e.g., purchases over 400 thousand UAH worth) or open new bank accounts regardless of whether they are still occupying their positions or not. Such control is necessary due to the influence of these persons on Ukrainian politics and the significant risks of money laundering and corruption.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"none\">Background information:<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">On November 4, 2022, the President of Ukraine signed the law <\/span><a href=\"https:\/\/zakon.rada.gov.ua\/laws\/show\/2736-IX#Text\"><span data-contrast=\"none\">#2736-IX<\/span><\/a><span data-contrast=\"auto\"> on the implementation of some of the FATF standards. It was this particular law that made the status of \u201cpolitically significant person\u201d limited to three years instead of being a lifelong status. After this change was introduced, the EU and the IMF began to pay closer attention to this issue and changing it is one of the conditions for negotiations on EU membership and continued cooperation with the IMF to begin.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Draft bill #9269-\u0434 of September 4, 2023\u00a0 Cosponsors: a group of 5 MPs from the factions Servant of the People and Holos with Danylo Hetmantsev as the first signatory\u00a0 Status: the dedicated parliamentary committee issued its review of the bill. The bill is ready to be considered in the first reading\u00a0 Who is affected: persons [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":11712,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[259],"tags":[],"level":[],"area":[],"coauthors":[1032],"class_list":["post-11765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-monitoring"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"Draft bill #9269-\u0434 of September 4, 2023 Cosponsors: a group of 5 MPs from the factions Servant of the People and Holos with Danylo Hetmantsev as the first signatory Status: the dedicated parliamentary committee issued its review of the bill. 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