Responsibility for failure to provide information on ultimate beneficiaries
The Ministry of Justice, in Order No. 1626/5 dated May 12, 2020, determined the procedure for holding liable for failure to provide or untimely submission by a legal entity of the information provided by law on the ultimate beneficial owner or on its absence, or documents to confirm such information about the legal entity.
The order supplemented clause 19 of the Procedure for state registration of legal entities, sole proprietors and public associations that do not have the status of a legal entity, as follows:
in the event that the state registrar reveals the facts of non-submission or untimely submission by the legal entity of the information provided for by law on the ultimate beneficial owner (CBC) of the legal entity or its absence, or documents to confirm such information,
- The registrar, no later than the next working day, informs the territorial body of the Ministry of Justice at the location of the legal entity of the discovery of relevant facts by sending a corresponding letter.
The provisions of this paragraph are not applied by state registrars who are officials of the Ministry of Justice of Ukraine, its territorial bodies.
This Order enters into force five days after the day of official publication, except for some provisions made to the Procedure for providing information from the USR of legal entities, sole proprietorships and public associations, which come into force on July 15, 2020.
Changes are also made to the Instructions for preparing materials on administrative offenses.
- Authorized persons to draw up relevant protocols on administrative offenses are officials of the Ministry of Justice and its territorial bodies.
In case of detection of relevant violations due to non-submission or untimely submission of the required information about the ultimate beneficial owner of the legal entity or documents to confirm the relevant information, as well as in the event of such a notification from the registrar, the Ministry of Justice or its territorial body by registered mail informs the head of the relevant legal entity or a person authorized to act on behalf of such a legal entity (executive body) about this, with the requirement to apply within a month to the Ministry of Justice or the relevant territorial body to draw up a protocol on an administrative offense, responsibility for committing which is provided for by Part 6 of Article 166-11 of the Code of Administrative Offenses.
- In case of violation of this deadline for applying, the relevant information will be transferred to the State Financial Monitoring Service.
According to Part 6 of Article 166-11 of the Code of Administrative Offenses, failure to submit or untimely submission to the state registrar of information on CBS provided for by the Law of Ukraine “On State Registration of Legal Entities, Individuals – Entrepreneurs and Public Formations” legal entity or its absence, or documents to confirm information about the ultimate beneficial owner of the legal entity – entails a fine on the head of the legal entity or a person authorized to act on behalf of the legal entity (executive body), from one thousand to three thousand non-taxable minimum incomes of citizens .
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© Legal agency “AKTIV”, 2020.
