Concerning compliance with the requirements of the legislation in the field of financial monitoring during martial law

In connection with the military aggression of the Russian Federation against Ukraine, pursuant to subclause 1 of clause 1 of the Law of Ukraine “On protection of interests of entities subject to submitting reports and other documents during for the duration of martial law or state of war” of 03.03.2022 No. 2115 - IX (hereinafter – Law No. 2115) natural persons, natural persons-entrepreneurs, legal entities shall submit accounting, financial, bookkeeping, settlement, audit reports and any other documents required to be submitted in accordance with current legislation in the documentary and/or electronic form, within three months after the termination or abolition of martial law or state of war for the entire period of non-reporting or obligation to submit documents.

Moreover, subclause 3 of clause 1 of Law No. 2115 envisages that entities that do not have the physical ability to submit reports or documents specified in
subclause 1 of this clause within the period specified in this Law, due to the direct consequences of their participation in warfare, shall be released from administrative and/or criminal liability and shall submit reports or documents within one month from the date of completion of the consequences that made it impossible to submit them.

In this regard, the reporting entities are obliged to provide information on financial transactions subject to financial monitoring in accordance with the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction” (hereinafter – the Basic Law) no later than three months after the termination or abolition of martial law or state of war.

At the same time, taking into account the objective and physical possibility, and in order to adequately manage the risks of money laundering, terrorist financing and financing of proliferation of weapons of mass destruction, Law No. 2115 does not restrict the reporting entities in the right to apply other requirements of the Basic Law, in particular, regarding:

proper organization and conduction of initial financial monitoring;

CDD measures;

application of RBA;

detection of suspicious financial transactions, etc.

In addition, in order to identify financial transactions subject to financial monitoring, in particular of persons, involved in the armed aggression of the Russian Federation against Ukraine, it is recommended to use lists of such persons posted on:

European Commission website: https://eur-lex.europa.eu/eli/dec/2014/145(1)/;

US Treasury Department website (OFAC list): https://home.treasury.gov/.../financial.../faqs/topic/6626;

National Security and Defense Council of Ukraine website: https://www.rnbo.gov.ua/ua/Ukazy/, https://sanctions-t.rnbo.gov.ua/;

“Invader” website, information resource of the Office of the National Security and Defense Council of Ukraine: https://invaders-rf.com/;

official websites of state bodies of foreign states, with lists of sanctioned persons, etc.

Russia’s war against Ukraine is a challenge to the whole civilized world, so we have to respond to it together. It is necessary to use all available opportunities and resources to force the aggressor to pay dearly for its war crimes.

We look forward to a constructive response and support from the private financial and non-financial sectors in the incredibly difficult context of the aggressor’s criminal attack on an independent state in the heart of Europe!