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From now on, banks, payment processors, audit, tax consultancy companies and all legal entities active in the financial market are obliged to report on 'suspicious transactions'. Furthermore, banks and the Financial monitoring department of the NBU are entitled to freeze transactions and ask for approval documents.
The key aspect of the Law is mandatory customer identification. Cash transactions between private entities exceeding UAH 5,000 as well as all non-cash transactions exceeding UAH 30,000 are in the scope of the Anti-Money Laundering Law. In addition to the above, the following aspects have been clarified and improved with the new regulations:
. The AML Law describes the possibility of remote customer verification;
. The number of reporting items has decreased from 17 to 4;
. The provisions show a clear transition towards a risk-based approach;
. Distinct measures have been put in place for violators (ranging from warnings to significant fines);
. The range of subjects of primary financial monitoring has been extended;
. The defining procedure for beneficial owners has been improved.
The AML Law includes into the scope not only physical but legal entities as well. For companies,
- The transaction (or sum or transactions) is higher than UAH 400,000.00.
- One of the following is met:
a. The participant/bank is from a country which does not follow FATF recommendations;
b. The transaction is made by a public person;
c. All transfers are made abroad;
d. The transaction(s) are in cash.
Overall, these actions are a part of
Originally published
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