Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

The document ceased to be valid according to Item 2 of the Section X of the Law of Ukraine of October 14, 2014 No. 1702-VII

LAW OF UKRAINE

of November 28, 2002 No. 249-IV

About prevention and counteraction of legalization (washing) of income gained in the criminal way or terrorism financings

(as amended on 14-10-2014)

This Law is directed to protection of the rights and legitimate interests of citizens, societies and the states by determination of legal mechanism of counteraction of legalization (washing) of income gained in the criminal way or to financing of terrorism and ensuring forming of nation-wide mnogoistochnikovy analytical information that gives the chance to law enforcement agencies of Ukraine and foreign states to reveal, check and investigate the crimes connected with washing of means and other illegal financial transactions.

Section I. General provisions

Article 1. Determination of terms

1. In this Law the following terms are used in such value:

1) income gained in the criminal way - any economic benefit received owing to making of socially dangerous act preceding legalization (washing) of the income which can consist of the corporeal property or property expressed in the rights and also to include the personal or real estate and documents confirming the right to such property or share in it;

2) socially dangerous act preceding legalization (washing) of income gained in the criminal way - act for which the Criminal code of Ukraine prescribes primary punishment in the form of imprisonment or penalty more than three thousand free minima of the income of citizens (except for the acts provided by articles 212 and 212-1 of the Criminal code of Ukraine or the act made outside Ukraine if it is recognized socially dangerous illegal act, preceded legalization (washing) of the income, according to the penal statute of the state where it was made, and is crime under the Criminal code of Ukraine as a result of which making illegally the gained income;

3) terrorism financing - provision or collection of assets of any sort with understanding that they will be used fully or partially for the organization, preparation and making by the certain terrorist or the terrorist organization of the act of terrorism determined by the Criminal code of Ukraine, retraction in making of act of terrorism, public calls for making of act of terrorism, creation of terrorist group or the terrorist organization, assistance to making of act of terrorism, any other terrorist activities, and also attempt of implementation of such actions;

4) financial transaction - any actions concerning assets performed by means of the subject of primary financial monitoring;

5) financial monitoring - set of actions which are performed by subjects of financial monitoring in the sphere of prevention and counteraction of legalization (washing) of income gained in the criminal way or to terrorism financing that includes carrying out the state financial monitoring and primary financial monitoring;

6) object of financial monitoring - the actions with assets connected with the corresponding participants of financial transactions which carry out them on condition of availability of risks of use of these assets for the purpose of legalization (washing) of income gained in the criminal way or terrorism financing, and also any information on such actions or events, assets and their participants;

7) the state financial monitoring - set of actions which are performed by subjects of the state financial monitoring, the income directed to fulfillment of requirements of the legislation in the sphere of prevention and counteraction of legalization (washing) gained in the criminal way or to terrorism financing:

the state financial monitoring of specially authorized body - set of actions for collection, processing and the analysis by the specified body of information on financial transactions which goes subjects of primary and state financial monitoring and other state bodies, relevant organs of foreign states, and also actions from verification of such information according to the legislation of Ukraine;

the state financial monitoring of other subjects of the state financial monitoring - set of actions which are performed by the subjects determined by the paragraph the second parts three of article 5 of this Law, income directed to fulfillment of requirements of the legislation in the sphere of prevention and counteraction of legalization (washing) gained in the criminal way or to terrorism financing;

8) primary financial monitoring - set of actions which are performed by subjects of primary financial monitoring, directed to fulfillment of requirements of this Law, including carrying out obligatory and internal financial monitoring;

9) obligatory financial monitoring - set of actions which are performed by subjects of primary financial monitoring, on identification of the financial transactions which are subject to obligatory financial monitoring according to article 15 of this Law, identification of participants of such transactions and to studying of their activities, accounting of these transactions and the information about their participants, the obligatory reporting on them to Specially authorized body, and also provision of the additional information about financial transactions and their participants which became object of financial monitoring from Specially authorized body;

10) internal financial monitoring - set of actions which are performed by subjects of primary financial monitoring, on identification of the financial transactions which are subject to internal financial monitoring according to article 16 of this Law using approach which is based on evaluating risks of legalization (washing) income gained in the criminal way or terrorism financings; accounting of such transactions and information about their participants; provision of information to Specially authorized body about the transactions having high risk of legalization (washing) of income gained in the criminal way or terrorism financing, and also the additional information about financial transactions and their participants which became object of financial monitoring from Specially authorized body;

11) properly drawn up message on the financial transaction which is subject to financial monitoring, - the messages on the financial transaction which is subject to financial monitoring drawn up and submitted to Specially authorized body according to requirements of article 12 of this Law;

12) failure to provide by the subject of primary financial monitoring of information on the financial transaction which is subject to financial monitoring to Specially authorized body is:

failure to provide information on the financial transactions which are subject to financial monitoring (absence on accounting at Specially authorized body properly drawn up and served the specified subject of primary financial monitoring of the message (information) on such financial transactions);

repeated provision in an inadequate way of the drawn-up message (information) on the financial transaction which is subject to financial monitoring which is not registered by Specially authorized body (in an inadequate way of the drawn-up message (information) on the financial transaction which is subject to financial monitoring it is necessary to understand consecutive provision by the subject of primary financial monitoring as repeated provision three in an inadequate way of the drawn-up messages on the same financial transaction which is subject to financial monitoring);

13) deliberate provision by the subject of primary financial monitoring of obviously unreliable information about the financial transactions which are subject to financial monitoring, Specially authorized body - deliberate provision of obviously unreliable information about the financial transactions which are subject to financial monitoring which is not true;

14) risks - danger (threat, weak spots) to subjects of primary financial monitoring to be the used clients by provision of services by them according to nature of their activities for the purpose of legalization (washing) of income gained in the criminal way or terrorism financing;

15) risk management - actions which are performed by subjects of primary financial monitoring, for determination, assessment, monitoring, risk control, directed to their reduction to acceptable level;

16) Specially authorized body - the central executive body which realizes state policy in the sphere of the prevention and counteraction of legalization (washing) of income gained in the criminal way or to terrorism financing;

17) assets - means, property, the property and non-property rights;

18) participants of financial transaction - the client, the partner, and also persons acting from their name or in their interests;

19) the client - any person who addresses for provision of services or uses services of the subject of primary financial monitoring;

20) it is excluded;

21) it is excluded;

22) the final beneficiary of the legal entity - the physical person, irrespective of formal ownership has opportunity to perform decisive influence on management or economic activity of the legal entity is direct or through other persons, is performed, in particular, by realization of right of possession or use of all assets or their considerable share, the right of the solving influence on forming of structure, results of vote, and also transactions which give opportunity to determine conditions of economic activity, to give mandatory instructions or to perform functions of governing body or which has opportunity to exert impact by direct or mediated (through other physical person or legal entity) ownerships of one person independently or jointly with the related physical persons and/or legal entities of shares in the legal entity in the amount of 25 or more percent of the authorized capital or voting powers in the legal entity.

At the same time the person which is the agent, the nominee holder (the nominal owner) or being only the intermediary concerning such right cannot be physical person - the final beneficiary of the legal entity;

23) essential participation - immediate or mediate possession of shares in the amount of 10 and more percent of the authorized capital (fund), 10 and more percent of shares or voting powers in the legal entity, direct or mediate impact on it;

24) the beneficiary - person, in advantage or for the benefit of which financial operation is performed;

25) business relations - the relations between the client and the subject of primary financial monitoring which arose based on the agreement on provision of financial or other services;

26) branch of foreign bank - the isolated structural division of foreign bank which has no status of the legal entity and performs banking activity in the territory of Ukraine;

27) the generalized materials - data on financial transactions which were object of financial monitoring and on which analysis results Specially authorized body reveals suspicions concerning laundering of income gained in the criminal way, either terrorism financing, or socially dangerous act preceding legalization (washing) of income gained in the criminal way. The generalized materials are the message on crime and contain the bases for adoption of the decision by law enforcement agencies according to the Criminal Procedure Code of Ukraine and also for carrying out by law enforcement and prospecting agencies Ukraine operational search activities. The form and structure of the generalized materials are established by the central executive body which provides forming of state policy in the sphere of the prevention and counteraction of legalization (washing) of income gained in the criminal way or to terrorism financing with rutting in coordination with law enforcement agencies;

28) the additional generalized materials - the data collected based on the analysis of in addition acquired information in addition to earlier given generalized materials;

29) public figures are the national public figures, foreign public figures, figures performing considerable functions in the international organization and also their connected persons.

National public figures are physical persons which perform public functions in Ukraine, namely: President of Ukraine, Prime Minister of Ukraine, cabinet ministers of Ukraine, first deputy minister, deputy minister, other heads of the central executive bodies and their deputies; Chairman and members of Central Election Commission; People's Deputies of Ukraine; Chairman and board members of the National Bank of Ukraine, members of council of the National Bank of Ukraine; Chairman and judges of the Constitutional court of Ukraine, Chairman and judges of the Supreme Court of Ukraine, chairmen and judges of the supreme specialized courts, members of the Highest qualification commission of judges of Ukraine, members of the High Council of Justice; Attorney-General of Ukraine and his deputies; Chairman and members of Audit Chamber; ambassadors extraordinary and plenipotentiary; The chief of the General Staff is the Commander-in-chief of the Armed Forces of Ukraine, chiefs of Land forces, Air Forces, Naval forces; Chairman of the Security Service of Ukraine and his deputies; Chairman of the Antimonopoly Committee of Ukraine and his deputies; members of National council of Ukraine concerning television and broadcasting; government employees whose positions are referred to the first and second categories of positions; heads of regional territorial authorities of the central executive bodies and prosecutors of areas equated to them and equated to them heads of regional territorial authorities of the Security Service of Ukraine, chairmen of Appeal Courts; heads of administrative, managerial or supervisory authorities of the state and state companies, economic societies, the state share in which authorized capital exceeds 50 percent; heads of authorized bodies of political parties; members of the central authorized bodies of political parties.

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.