Concerning compliance with the requirements of the legislation in the field of financial monitoring during martial law (to replace Recommendations of March 11, 2022)
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 March 3, 2022 No. 2115-IX (hereinafter – Law No. 2115) individuals, individual 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 ending of the consequences that made it impossible to submit them.
According to the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction” (hereinafter – the Basic Law), reporting entities are obliged to inform the SFMS about suspicious financial transactions (activities), discrepancies between information on the ultimate beneficial owners of the customer and other information required by law.
During martial law, if physically possible, the information above shall be submitted within the time limits specified in the Basic Law.
However, in case of physical impossibility due to martial law to submit information to the SFMS, reporting entities shall submit such information within the time limits specified by Law No. 2115.
Further, taking into account the objective and physical ability, and in order to properly manage risks of legalization (laundering) of proceeds from crime, terrorist financing and financing the proliferation of weapons of mass destruction, reporting entities should apply all requirements of the Basic Law in terms of:
- proper organization and conduction of initial financial monitoring;
- taking 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:
-the European Commission website: https://eur-lex.europa.eu/eli/dec/2014/145(1)/;
-US Treasury Department website (OFAC list): https://home.treasury.gov/policy-issues/financial-sanctions/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.
Separately for reporting entities, on March 31, 2022, risk indicators of suspicious financial transactions were prepared and provided for internal use, which aim to increase reporting entities attention in research and analysis of such transactions to confirm suspicions of terrorist financing.
At the same time, we inform that the Unified State Information System in the field of prevention and counteraction to legalization (laundering) of proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction operates under regular mode, enables stable, continuous collection and processing of information necessary for conducting by the SFMS a comprehensive analysis of information and data on financial transactions subject to financial monitoring, other information and data that may be related to legalization (laundering) of proceeds from crime, or terrorist financing or financing the proliferation of weapons of mass destruction.
We would also like to inform you that all notifications used in the exchange of information on financial monitoring between reporting entities and the SFMS are received and processed in the manner prescribed by law.
Russia’s war against Ukraine is a challenge to the entire 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 environment of the aggressor’s criminal attack on an independent state in the heart of Europe!
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