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LAW OF UKRAINE

About bringing of changes to some laws of Ukraine on the questions of prevention to the use of banks and other financial institutions with the purpose of legalization (washing) of the profits got a criminal way

With the purpose of improvement of legislation on the questions of prevention to legalization (to washing) of the profits, got a criminal way, and adduction of some laws of Ukraine, in accordance with Law of Ukraine "About prevention and counteraction to legalization (to washing) of the profits, got a criminal way", and also non-admission of the use of banks and other financial institutions with the purpose of legalization (washing) of the profits got a criminal way, and financing of terrorism Supreme Soviet of Ukrainedecrees:

I. To make alterations to such laws of Ukraine:

1. In Law of Ukraine "About banks and bank activity" (Information of Supreme Soviet of Ukraine, in 2001, N 5 - 6, item 30; In 2003, N 1, item 2):

1) in the article 2 of determination of term "authentication of person" to eliminate.

2) to lay out a head 11 in such release:

"Head 11. Prevention and counteraction to legalization (to washing) of the profits got a criminal way

Article 63. Prevention to legalization (to washing) of the profits got a criminal way

Banks are under an obligation to develop, inculcate and constantly proceed in the rules of the internal financial monitoring and program of his realization taking into account the requirements of legislation about prevention to legalization (to washing) of the profits got a criminal way.

The national bank of Ukraine during realization of supervision after activity of banks not rarer once on a year conducts verification of banks on the questions of observance by them the legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way.

Article 64. Duty in relation to authentication of clients

To the banks it is forbidden to open and conduct the anonymous (containing a number) accounts.

To the banks it is forbidden to enter into privity of contract with clients - physical entities legal or in case if there is doubting in relation to that a person comes forward not from the proper name.

A bank is under an obligation to identify in accordance with the legislation of Ukraine:

clients, which score first in a bank;

clients, which carry out operations, which are subject to the financial monitoring;

clients, which carry out operations with a cash on a hand without opening of account on a sum, that exceeds an equivalent 50000 hryvnyas;

persons authorized to operate on behalf of the noted clients.

To the client is scored first and the noted operations are carried out only after conducting of authentication of face of clients and use of measures in accordance with the legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way.

A bank has a right to summon, and a client is under an obligation to give documents and information necessary for finding out of his person, essence of activity, financial being. In the case of no grant by the client of necessary documents or information or intentional presentation of untruthful information about itself a bank refuses to the client in his service. In the case of presence during realization of authentication of the explained suspicion in relation to the grant by the client of unreliable information or intentional presentation of information with the purpose of introduction in the error a bank is to give information about financial operations of client specially to the authorized organ of executive power on the questions of the financial monitoring.

For authentication of client - legal entity a bank is to identify physical persons which are the proprietors of this legal entity, have a direct or mediated influence on her and extract an economic value from its activity. In case if a legal entity is economic society, a bank is to identify physical persons which have substantial participation in this legal entity. A client is to give information ponderable by the legislation, and which will be summoned by a bank with the purpose of implementation of requirements of legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way. In the case of no grant of such information by a client is not scored first, and in the case of presence before the open accounts a bank refuses in feasible services. For authentication and use of measures sufficient, in opinion of bank, for confirmation of face of client - legal entity and for providing of possibility of bank to execute the rules of the internal financial monitoring and program of his realization, including in relation to the exposure of financial operations, which have a doubtful character, a bank has a right to summon the information foreseen by the legislation, and which touches authentication of this person and its leaders, at public authorities which carry out the supervision та/або control after activity of this legal entity, banks, other legal entities, and also to carry out measures ponderable by the legislation on collection of such information from other sources. Indicated public authorities, banks, other legal entities are under an obligation during ten working days from the day of receipt of query безоплатно to give such information to the bank.

For authentication of client - physical person and use of measures sufficient, in opinion of bank, for confirmation of his person, a bank has a right to summon information which touches authentication of this person, at public authorities, banks, other legal entities, and also to carry out measures on collection of such information about this person which is necessary for implementation of rules of the internal financial monitoring and programs of his realization, including in relation to the exposure of financial operations, which have a doubtful character. Indicated public authorities, banks, other legal entities are under an obligation during ten working days from the day of receipt of query безоплатно to give such information to the bank.

Authentication of client of bank is not obligatory during realization of every operation, if a client was before identified in accordance with the requirements of legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way.

At presence of decision of the authorized state organ about abolition of state registration of legal entity or state registration of subject of entrepreneurial activity - physical person, confession in accordance with established procedure of legal entity fictitious or announcement of physical person deceased or confession obscurely absent a bank closes the account of such person and without delay gives information specially to the authorized organ of executive power on the questions of the financial monitoring in relation to such account and does not transfer or another way not dispose of facilities on this account to the receipt of orders of the noted organ. In the case of no receipt during seven working days of the noted orders or decision of court in relation to the use or disuse of measures on these facilities a bank decides the questions related to them in accordance with the legislation of Ukraine.

Article 65. Storage of documents

All documents about realization of financial operations, which are subject to the financial monitoring, and results of authentication of persons which carried out such operations, a bank is under an obligation to keep during five years from the day of conducting of such operations.

The results of authentication of proprietor of account and person authorized to operate from his name are kept a bank during five years after closing of account".

2. To lay out the article 18 of Law of Ukraine "About financial services and state adjusting of markets of financial services" (Information of Supreme Soviet of Ukraine, in 2002, N 1, item 1) in such release:

"Article 18. Prevention to legalization (to washing) of the profits got a criminal way

To financial institutions during realization (grant) of financial services it is forbidden to enter into privity of contract with anonymous persons, open and conduct the anonymous (containing a number) accounts.

To financial institutions it is forbidden to enter into privity of contract with clients - physical entities legal or in case if there is doubting in relation to that a person comes forward not from the proper name.

Financial institution is under an obligation to identify in accordance with the legislation of Ukraine:

clients, which score first in financial institution та/або enter into contract about the grant of financial services;

clients, which carry out operations, which are subject to the financial monitoring;

persons authorized to operate on behalf of the noted clients.

Financial institution provides the proper financial services only after realization of authentication of face of clients and use of measures in accordance with the legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way.

Financial institution has a right to summon, and a client is under an obligation to give documents and are foreseen by the legislation of list, necessary for finding out of his person. In the case of no grant by the client of necessary documents and information or intentional presentation of untruthful information about itself ponderable by the legislation financial institution refuses to the client in his service та/або grant of financial services та/або does not score first, and in the case of presence before the open accounts financial institution refuses in feasible services та/або does not enter into contract about the grant of financial services.

In case if there is doubting in relation to that a person comes forward not from the proper name, financial institution must identify also a person, which financial operation is carried out on behalf of.

In the case of presence during realization of authentication of the explained suspicion in relation to the grant by the client of unreliable information or intentional presentation by the client of information with the purpose of introduction in the error financial institution is to give information about financial operations of client specially to the authorized organ of executive power on the questions of the financial monitoring.

For authentication of client - legal entity financial institution is to identify physical persons which are the proprietors of this legal entity, have a direct or mediated influence on her and extract an economic value from its activity. In case if a legal entity is economic society, financial institution is to identify physical persons which have substantial participation in this legal entity. A client is to give information ponderable by the legislation, and which will be summoned by a bank with the purpose of implementation of requirements of legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way. In the case of no grant of such information by a client financial institution refuses in feasible services та/або grant of financial services та/або does not score first, and in the case of presence before the open accounts financial institution refuses in feasible services та/або does not enter into contract about the grant of financial services. For authentication and use of the measures foreseen by the legislation for confirmation of face of client - legal entity and for providing of possibility of financial institution to execute the rules of the internal financial monitoring and program of his realization, including in relation to the exposure of financial operations, which have a doubtful character, financial institution has a right to summon the information foreseen by the legislation, and which touches authentication of this person and its leaders, at public authorities which carry out the supervision та/або control after activity of this legal entity, banks, other legal entities, and also to carry out measures ponderable by the legislation on collection of such information from other sources. Indicated public authorities, banks, other legal entities are under an obligation during ten working days from the day of receipt of query безоплатно to give such information to financial institution.

For authentication of client - physical person and use of the measures foreseen by the legislation for confirmation of his person, financial institution has a right to summon information about him at public authorities, banks, other legal entities, and also to carry out measures ponderable by the legislation on collection of such information about this person which is necessary for implementation of rules of the internal financial monitoring and programs of his realization, including in relation to the exposure of financial operations, which have a doubtful character. Indicated public authorities, banks, other legal entities are under an obligation during ten working days from the day of receipt of query безоплатно to give such information to financial institution.

Authentication is not obligatory during realization of every operation, if a client was before identified in accordance with the legislation, which regulates the relations in the field of prevention of legalization (to washing) of the profits got a criminal way.

At presence of decision of the proper public authority about abolition of state registration of legal entity or state registration of subject of entrepreneurial activity - physical person, confession in the order of legal entity set by a law fictitious or announcement of cramps of physical person deceased or confession obscurely absent financial institution halts subsequent maintenance of such person and without delay gives information specially to the authorized organ of executive power on the questions of the financial monitoring in relation to the financial assets of such person and does not transfer or another way not dispose of financial assets to the receipt of orders of the noted organ. In the case of no receipt during seven working days of the noted orders or decision of court in relation to the use or disuse of measures on these financial assets financial institution decides the questions related to them in accordance with the legislation of Ukraine".

3. In Law of Ukraine "About prevention and counteraction to legalization (to washing) of the profits got a criminal way" (Information of Supreme Soviet of Ukraine, in 2003, N 1, item 2, N 5, item 48):

1) to lay out part third of the article 8 in such release:

"The subjects of the первинного financial monitoring, their public servants and other workers do not carry disciplinary, administrative, civil legal and criminal responsibility for the grant to the Authorized organ of information about financial operation, if they operated within the limits of this Law, even if by such actions the harm is caused to the physical entities legal or, and for other actions related to implementation of this Law";

2) in an indention first of the article 11 of word "if a sum, which she is conducted on, at non-cash settlements is evened or exceeded 300000 hryvnyas or evened or exceeded a sum in foreign currency, equivalent 300000 hryvnyas, at calculations by a cash on a hand is evened or exceeded 100000 hryvnyas or evened or exceeded a sum in foreign currency, equivalent to replace 100000 hryvnyas" by words "if a sum, which she is conducted on, is evened or exceeded 80000 hryvnyas or evened or exceeded a sum in foreign currency, equivalent 80000 hryvnyas";

3) to complement by the article 131such maintenance:

"The article 13is a 1. Political independence of the Authorized organ

The leader of the Authorized organ is appointed and rid of position in the order set by the legislation.

The use of the Authorized organ in party, group or personal interests is shut out.

Activity of parties, motions and other public associations, which have political goals, in the Authorized organ is forbidden.

On the period of service or work on a labour contract membership of public and duty servants of the Authorized organ in such associations is stopped.

Membership of workers which concluded a labour treaty with the Authorized organ is allowed as an exception, in trade unions".

4. Indention second of part first of the article 306 of the Criminal code of Ukraine (in the release of Law of Ukraine from January, 16, 2003 to lay out N 430-IV) in such release:

"are punished by imprisonment on a term from five with deprivation of right to hug to twelve years certain positions or carry on certain activity within three years with confiscation of facilities or other property got a criminal way, and with confiscation of property".

II. Eventual positions

1. This Law goes into effect simultaneously with the entry in force by Law of Ukraine "About prevention and counteraction to legalization (to washing) of the profits got a criminal way" 

2. Subitem of a 2 point 7 of section the VII "Eventual Law provisions" of Ukraine "About prevention and counteraction to legalization (to washing) of the profits got a criminal way" (Information of Supreme Soviet of Ukraine, in 2003, N 1, item 2) to eliminate.

3. To the cabinet of Ministers of Ukraine and National bank of Ukraine in a monthly term from the day of entry in force by this Law to provide acceptance of acts necessary for realization of this Law.

4. Banks are under an obligation during one month from the day of entry in force by this Law to close anonymous currency and encoded accounts in the order set by the National bank of Ukraine.

President Of Ukraine

Л. КУЧМА

Kiev

On February, 6, 2003

N 485-IV