Article 6. Assignment, duties and rights of the entity of primary financial monitoring
- 2, it. 23, the entity of primary financial monitoring is required to manage the risks associated with the introduction or use of new and existing information products, business practices or technologies, including those that ensure the conduct of financial transactions without direct contact with the client.
Article 17. Stopping of financial operations
- The entity of primary financial monitoring has the right to stop the implementation of financial operations, which contain the features provided for in articles 15 and / or 16 of this Law, and / or financial transactions for crediting or writing off funds, which occur as a result of actions that contain signs of the commission of a crime defined by the Criminal Code of Ukraine and is obliged to stop the implementation of financial operations, their participants and the balance of funds of the client, an open entity of primary financial monitoring that stopped the implementation of the transactions, and in the event of crediting funds to the transit accounts of the entity of the primary financial monitoring – of the balance of such accounts within the credited amounts . Such a stoppage of financial transactions is carried out for two working days from the day of the stop.
- A specially authorized body may decide to stop the financial operation carried out in accordance with the first part of this article for a period of up to five working days, which shall be immediately notified to the entity of primary financial monitoring, as well as to law enforcement agencies, authorized to take a decision in accordance with the Code of Criminal Procedure of Ukraine.
- A specially authorized body may make a decision in case of suspicion to stop spending financial transactions for a period of up to five working days, which shall be immediately notified to the entity of primary financial monitoring, as well as to law enforcement bodies authorized to take a decision in accordance with the Code of Criminal Procedure of Ukraine. In this case, the entity of initial financial monitoring is obliged on the day of receipt, but not later than 11 hours of the next working day upon receipt of the relevant decision, to inform the specially authorized body about the balance of funds on the client’s account, financial operations (funds) for which were stopped, and in the event of a stop financial transactions on the transit accounts of the entity of primary financial monitoring – on the balance of funds on such accounts within the limits of the credited amounts.
- In the event that financial transactions are stopped in accordance with part three of this article of the Law, profitable financial transactions do not stop. At the same time, the subject of the initial financial monitoring on the day of conducting, but not later than 11 hours of the next working day from the day of the profitable operation, is obliged to report on the implementation of profitable financial operations and / or attempting to implement expenditure financial transactions to a specially authorized body.
- In the event that a decision is taken in accordance with parts two and three of this article, the specially authorized body shall, during the period of further stoppage of the relevant financial transactions or stopping of financial transactions, conduct analytical work, collect the necessary additional information, process , checks, analyzes it and in case if by results of check:
– signs of legalization (laundering) of proceeds from crime or financing of terrorism or the commission of another crime defined by the Criminal Code of Ukraine are not confirmed, the specially authorized body must immediately cancel its decision on further stopping the relevant financial operations or the stopping of expenditure financial transactions and notify the subject of primary financial monitoring of this;
– there are motivated suspicions – the specially authorized body decides to continue the stoppage of the relevant financial transactions, prepares and submits the relevant generalized material or additional generalized material to law enforcement agencies authorized to take a decision in accordance with the Code of Criminal Procedure of Ukraine, and on the day of adoption of such decision informs the relevant entity of the primary financial monitor branding of the date of expiry of the relevant stop financial operations. The term for stopping the relevant financial operations is extended by a specially authorized body from the next business day after the submission of the relevant generalized material or additional generalized material, provided that the total term of such a stop does not exceed 30 working days.
The subject of initial financial monitoring resumes the conduct of financial transactions:
– the third working day from the date of the financial operation stoppage in case the entity does not receive the initial financial monitoring within the period stipulated in part one of this article, the decision of the specially authorized body on further stopping the financial (financial) operation (operations);
– the next working day after the date of receipt by the entity of the initial financial monitoring within the period specified in the decision of the specially authorized body on the further suspension of the relevant financial transactions in accordance with part two of this article or stopping the financial transaction in accordance with part three of this article, notice of cancellation by a specially authorized body of such a decision, but not later than 31 working days from the date of stopping financial;
– the next working day after the end date of the stoppage of the relevant financial operations specified in the decision of the specially authorized body to continue the stoppage of the relevant financial transactions;
– the next working day after the day of receipt by the entity of the initial financial monitoring of the commission of the specially authorized body in accordance with part 5 of Article 23 of this Law on the resumption of financial operations stopped for the implementation of the relevant request of the authorized body of the foreign state.
– the subject of initial financial monitoring informs the client in case of his request to stop the financial operation, if the term of its stop exceeded seven working days.
- The stopping and resumption of financial operations takes place in the manner determined by the entities of state financial monitoring, which carry out state regulation and supervision over the activities of primary financial monitoring entities within their authority.
The decision by the specially authorized body to stop the relevant financial operations, stop or resume or carry out monitoring of the financial operation of the person concerned to fulfill the request of the authorized body of the foreign state and bring decisions or instructions specially authorized body to the subject of primary financial monitoring is carried out in the order that is established the central body of executive power from the formation and enforcement of state policy in the field of preventing and combating the legalization (laundering) of proceeds from crime or the financing of terrorism.
The deadline for stopping financial (financial) transactions (transactions) by entities of primary financial monitoring and by a specially authorized body specified in parts one – five of this article is final and
can not be continued.
- The list of persons associated with the implementation of terrorist activities or concerning which international sanctions are applied is formed in the manner determined by the Cabinet of Ministers of Ukraine. The basis for making a legal or physical person to this list is:
1) the verdict of a court that entered into legal force on recognizing a natural person as guilty of committing crimes under articles 258-258-5, 439 and 440 of the Criminal Code of Ukraine, a court decision regarding the recognition of an organization, legal entity or individual to such, which is associated with the implementation of terrorist activities or the proliferation of weapons of mass destruction;
2) information that is generated by international organizations or bodies authorized by them with respect to organizations, legal entities and individuals that are associated with terrorist organizations or terrorists, as well as individuals subject to international sanctions;
3) sentences of courts, decisions of other competent bodies of foreign states regarding organizations, legal entities or individuals related to the implementation of terrorist activities or the proliferation of weapons of mass destruction, which are recognized by Ukraine in accordance with international treaties of Ukraine.
- The list of persons associated with the implementation of terrorist activities or concerning which international sanctions are applied, to note the entities of primary financial monitoring by a specially authorized body in the manner determined by the central executive authority from the formation and enforcement of state policy in the field of prevention and counteraction to legalization (laundering ) of proceeds from crime or financing of terrorism and coordinated with other entities state financial monitoring, which in accordance with this Law perform the functions of state regulation and supervision of subjects of primary financial monitoring.
The subjects of the primary financial monitoring and the specially authorized body are responsible for observing the types and conditions of application of sanctions, which are stipulated in the above-mentioned list.
- Access to assets related to the financing of terrorism and related to financial transactions stopped in accordance with a decision taken on the basis of resolutions of the UN Security Council is carried out in accordance with the procedure established by law. Such access is provided to cover basic or extraordinary expenses.
- The suspension of financial operations in accordance with parts one – three, five, three of this article, part three of Article 23 of this Law shall not be grounds for the emergence of civil liability of the subject of primary financial monitoring and its officials for violation of the conditions of the relevant legal transactions.
- The exclusion from the list of persons associated with the implementation of terrorist activities or concerning which international sanctions are applied is carried out in the manner determined by the Cabinet of Ministers of Ukraine. The grounds for excluding a legal or natural person from the said list are:
1) repayment or removal of a criminal record from a natural person convicted by a court verdict that entered into legal force, on recognizing that person as guilty of committing crimes under articles 258-258-5, 439 and 440 of the Criminal Code of Ukraine;
2) the exclusion of data on a person from information that is formed by international organizations or bodies authorized by them, organizations, legal entities and individuals associated with terrorist organizations or terrorists, as well as individuals who are subject to international sanctions;
3) repay or remove a criminal record from an individual convicted by a court judgment, a decision of other competent bodies of foreign states regarding organizations, legal entities or individuals associated with the implementation of terrorist activities, which are recognized in accordance with international treaties of Ukraine.
- Consideration of requests for removal from the list of persons associated with the implementation of terrorist activities or concerning which international sanctions are applied is carried out in accordance with the procedure established by the Cabinet of Ministers of Ukraine for a period not exceeding 30 working days.
