The New AML Law passed by Ukraine will become effective starting from 28 April 2020. The law will significantly improve the country’s current anti-money laundering regulations based on the latest FATF and IMF recommendations. The ability of legal instruments detecting and preventing financial crimes will be enhanced by the New AML Law. The New AML Law establishes a definition of assets related to terrorism, conditions when such assets must be frozen by government authorities. A risk-oriented approach which must be applied by the initial Monitoring Institutions in their activities is also introduced through the New AML Law.
While developing risk criteria itself, an Initial Monitoring Institution should take into consideration the national risk assessment practice. Initial Monitoring Institutions will be expected to perform a large amount of work including revision and approval of internal risk assessment procedures. The New AML Law has changed the status of politically exposed persons from temporary to a lifetime one, this has made the rule of dealing with PEP stricter. The New AML Law has also allowed the establishment of correspondent relations between banks and financial institutions.
Members of the Initial Monitoring Institutions are now permitted to exchange information upon the activation of the New AML Law. The requirement that must be provided for payments has also been changed by the New AML Law. And the law implements long-awaited changes to the procedure of verification. The New AML Law also increases the rate of fine from 459 euros to 11, 472 euros.