By KYIV. Nov 17 (Interfax-Ukraine) – President of Ukraine Volodymyr Zelensky on November 16 signed a law (No. 2736, passed in the Rada as bill No. 8008), which expands the list of clients for whom the subject of primary financial monitoring must establish a high risk of business relations to citizens of the Russian Federation, Russian companies and companies with co-owners from the Russian Federation.
"The law on protection of the financial system of Ukraine from the actions of the state carrying out armed aggression and the adaptation of legislation to certain FATF standards and the requirements of EU Directive 2018/843 establishes (also) the non-admission to the management of primary financial monitoring entities of persons who are citizens of Russia and/or Belarus," the Ministry of Finance said.
The agency noted that the law implements the recommendations specified in the Opinion of the European Commission on Ukraine’s application for EU membership, in terms of ensuring compliance of anti-money laundering legislation with the standards of the Financial Action Task Force (FATF).
In particular, the restriction on the application of financial sanctions to subjects of primary financial monitoring is eliminated, and their list is also expanded due to art dealers and intermediaries in such trade, economic entities providing intermediary or consulting services for the lease of real estate, but if the monthly rental amount is UAH 400,000 and more per month.
The Ministry of Finance clarified that it is entrusted by law with state regulation and supervision of such merchants and landlords.
The agency also clarified that the law exempts subjects of primary financial monitoring who are in the territory of hostilities and temporarily occupied territories from liability for failure to fulfill certain duties and cannot perform their duties, and also reduces the status of PEP (Politically Exposed Persons) from life to 3 years after leaving office.
