Regulation on the Implementation of Financial Monitoring by Subjects of Primary Financial Monitoring Has Been Published

On July 16, the Order of the Ministry of Justice No. 282 “On the Approval of the Regulation on the Implementation of Financial Monitoring by Subjects of Primary Financial Monitoring, the State Regulation and Supervision of the Activities of Which Is Carried Out by the Ministry of Finance of Ukraine” was registered. The Regulation will come into force on August 1.

The document regulates the activities of the following subjects:

• subjects of audit activity;

• accountants, business entities providing accounting services;

• business entities providing tax consultancy;

• business entities providing intermediary and/or consulting services during real estate transactions;

• business entities carrying out cash trade in precious metals, precious stones and their products;

• business entities carrying out trade activities in cultural values ​​and/or providing intermediary services in such activities;

• business entities conducting lotteries and/or gambling.

The Regulation obliges the subjects of primary financial monitoring to take the following measures:

1) appoints a responsible employee in accordance with the requirements of the legislation of Ukraine in the field of prevention and countermeasures at the level of the management of the subject of primary financial monitoring (except for specially defined subjects of primary financial monitoring that conduct their activities individually, without forming a legal entity);

2) ensures the functioning of the risk management system for the legalization (laundering) of proceeds obtained through crime, the financing of terrorism and/or the financing of the proliferation of weapons of mass destruction;

3) develops and approves internal documents on financial monitoring;

4) ensures submission of information for registration (de-registration/renewal of registration) and submission of information on financial transactions subject to financial monitoring to the State Financial Monitoring Service;

5) ensures on an ongoing basis consideration of problematic and urgent issues of the functioning of the prevention and counteraction system;

6) provides sufficient resources for the functioning of the prevention and counteraction system;

7) implements and constantly improves the system of internal checks (auditing) of its activities and/or engages independent auditors to identify problematic issues and signs of an inadequate risk management system for the legalization (laundering) of proceeds obtained through crime, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction;

8) ensures on a permanent basis that training events are held for employees of the subject of primary financial monitoring;

9) ensures the verification of the presence of an impeccable business reputation and the absence of citizenship (citizenship) of the state carrying out armed aggression against Ukraine (the Russian Federation and/or the Republic of Belarus) of the head, deputy heads of the subject of primary financial monitoring, the head and members of the supervisory body of the subject of primary financial monitoring, responsible employee;

10) ensures timely and full performance of the duties of the subject of primary financial monitoring;

11) detects financial transactions that are subject to financial monitoring, freezes assets related to terrorism and its financing, proliferation of weapons of mass destruction and its financing, makes it impossible to carry out transactions by persons from the list of persons connected with the conduct of terrorist activities or in respect of which the international sanctions, in accordance with the Procedure for the Creation of a List of Persons Associated with the Conduct of Terrorist Activities or in respect of whom international sanctions have been applied (Resolution of the Cabinet of Ministers of Ukraine dated July 22, 2020 No. 622);

12) ensures the timely submission to the State Financial Monitoring Service of information on financial transactions subject to financial monitoring, other information that may be related to the legalization (laundering) of proceeds obtained through crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, and proper information exchange with the State Financial Monitoring System;

13) develops and implements measures for due diligence of the client in order to understand the essence of the activity and/or type of client, the purpose and expected nature of business relations with them;

14) documents and records events related to the performance of duties of the subject of primary financial monitoring;

15) keeps all documents, data, information (reports, orders, files) related to the performance of the duties of the subject of primary financial monitoring, within the terms specified by the law;

16) timely and in full provides the necessary documents/information/explanations/arguments properly confirming the fulfillment by the subject of primary financial monitoring of the requirements of the legislation in the field of prevention and countermeasures upon the requests of the Ministry of Finance.

Text of the Regulation