{"id":16531,"date":"2020-04-21T10:43:01","date_gmt":"2020-04-21T08:43:01","guid":{"rendered":"https:\/\/kmp.ua\/?p=16531"},"modified":"2022-12-28T12:40:48","modified_gmt":"2022-12-28T10:40:48","slug":"legal-entities-will-be-required-to-update-information-on-final-beneficiaries","status":"publish","type":"post","link":"https:\/\/kmp.ua\/en\/analytics\/infoletters\/legal-entities-will-be-required-to-update-information-on-final-beneficiaries\/","title":{"rendered":"Legal entities will be required to update information on final beneficiaries"},"content":{"rendered":"

On April 28, 2020, the Law of Ukraine \u201cOn Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorism Financing and Financing of Proliferation of Weapons of Mass Destruction\u201d (\u201cthe Law No. 361-IX\u201d) comes into force. This law sets out in a new version the basic law on financial monitoring (No. 1702-VII) with the same name, and also introduces a number of changes to other laws.<\/p>\n

In addition to changes that will only affect financial monitoring entities, it also provides for some innovations that will be relevant to the vast majority of legal entities. In particular, changes are envisaged in the rules for disclosure of final beneficiaries of legal entities in the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations of Ukraine (“the USR”).<\/p>\n

In particular, most legal entities will need to submit to the USR updated information and documents regarding their beneficiaries within a limited period of time and then periodically confirm\/update this information. Responsibility for violating this obligation is also being strengthened.<\/p>\n

In light of this, another innovation of Law No. 361-IX is important. Namely, the entities of primary financial monitoring (including banks, insurance, financial companies, auditors, tax advisers, law firms) must separately and independently establish beneficiaries<\/em><\/strong> of their clients, and in case of any discrepancy with the information of the USR <\/em>\u2013 inform the State Financial Monitoring Service of Ukraine about it.<\/em><\/strong><\/p>\n

That is, we see that the control over the truthfulness of data in the USR on final beneficiaries is increased, and this control is largely entrusted to private business in the form of entities of primary financial monitoring.<\/p>\n

Whom does this concern?<\/strong><\/p>\n

All legal entities, except for public associations, bar associations, chambers of commerce and industry, associations of co-owners of apartment buildings, religious organizations, state bodies, bodies of local self-government, their associations, state and municipal \u00a0enterprises, institutions, organizations.<\/p>\n

This also includes legal entities whose founders are directly their final beneficiaries.<\/p>\n

Information and documents to be submitted<\/strong><\/p>\n

The information about final beneficiaries remains the same as it is now: surname, first name, middle name, date of birth, country of citizenship, passport details (series and number), the registration number of the \u00a0taxpayer’s account card (if applicable), as well as full name and identification code (for resident) of the founder of the legal entity in which that person is the final beneficiary (at the same time, the current form of the application for state registration of the legal entity implies providing such information about all legal entities through which the final beneficiary exercises ownership of the share\u00a0in the legal person).<\/p>\n

Of the new, only information about nature and extent (level, degree, share) of beneficial ownership (benefit, interest, influence) is added here.<\/p>\n

However, in addition to the information about final beneficiaries, the following documents are also required:<\/p>\n