17 Oct 2023 17:00

Ukrainian Rada passes legislation on financial monitoring of PEP coordinated with partners

MOSCOW. Oct 17 (Interfax) - The Ukrainian Verkhovna Rada on Tuesday passed legislation on tightening the financial monitoring of Politically Exposed Persons (PEP) in an edition meeting international standards of anti-money laundering and combating the financing of terrorism (AML/CFT), which should be counted as a step meeting the International Monetary Fund's requirements, Ukrainian media reported citing Yaroslav Zheleznyak, first deputy head of the Rada's Finance, Tax, and Customs Policy Committee, as saying on his social account.

"The main novelty is: instead of three years after service, top officials (PEP) will in fact hold PEP status for life. Simultaneously, the bill tightens the liability of primary financial monitoring subjects, such as banks, for unwarranted denial of financial services to customers," Zheleznyak said.

Ukraine was supposed to implement this structural benchmark under the IMF's Extended Fund Facility (EFF) by the end of September 2023.

"This is the last step for starting negotiations on Ukraine's membership of the EU," he said.