Fines in Ukraine for false information about beneficial owners

Starting from 1 September 2024, fines in the amount of UAH 17,000 to UAH 340,000 (approx. USD 415 to 8,270) will be imposed for false information about the ultimate beneficial owners of legal entities.

The Law of Ukraine ‘On Prevention and Counteraction to Legalisation (Laundering) of the Proceeds of Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction’ (hereinafter – the “Law”) obliges legal entities to maintain information on their ultimate beneficial owner or lack thereof and ownership structure, as well as to submit information on their ultimate beneficial owner or lack thereof and ownership structure for entry into the Unified State Register of Legal Entities, Private Entrepreneurs and Public Organisations. The Law also obliges legal entities to keep information on the ultimate beneficial owner and ownership structure of the legal entity up to date.
If a public authority, law enforcement body, primary financial monitoring body, or other person (if the information relates to such a person) discovers discrepancies between the information on the ultimate beneficial owner and ownership structure of a legal entity (in particular, incompleteness, inaccuracies or errors in the information on the ultimate beneficial owner or ownership structure of such a legal entity contained in the Unified State Register), such body, entity or person must report the discrepancies to the state registrar within 10 days.

Related article: New rules for filing information on ultimate beneficial owners in Ukraine

The Ministry of Justice of Ukraine holds persons liable for violations in accordance with the Procedure for Bringing to Liability and the Procedure for Determining the Amount of Fines for Violations in the Field of State Registration of Legal Entities.

The fines ranges from UAH 17,000 to UAH 340,000 (approx. USD 415 to 8,270) and is imposed on a legal entity for the following:

• knowingly entering false information about the ultimate beneficial owner or absence thereof by persons authorised to perform actions aimed at state registration of the establishment of a legal entity or change of participants in a legal entity in documents submitted for such state registration;
• failure to submit or untimely submission to the state registrar of information about the ultimate beneficial owner or absence thereof by persons authorised to act on behalf of the legal entity.

A fine of the same amount shall be imposed in case of failure by legal entities that are founders (participants) of legal entities and individuals who are founders (participants) of legal entities or exercise decisive influence on their activities, upon request of a legal entity, to provide information required for the legal entity to submit or update information on the ultimate beneficial owner and ownership structure of the legal entity to the Unified State Register of Legal Entities, Private Entrepreneurs and Public Organisations.