On April 11, 2019, the results of the Pilot Program “EU Association Lab”, launched in July 2018 and intended to create a new formation of civil servants were summed up. Five project developing pre-selected teams participated in this program, that will bring Ukraine closer to the EU.One of such teams was formed by the leadership of the State Financial Monitoring Service of Ukraine. The main team goal is to implement the idea of developing the identification and verification mechanism for ultimate beneficial owners to ensure the transparency of corporate ownership in Ukraine. The team also included representatives of other state authorities and public organizations.The Head of the State Financial Monitoring Service of Ukraine Igor Cherkaskyi noted that: “The idea of verifying the reliability of the beneficiaries was proposed by the SFMS due to the fact that the fictitious entrepreneurship and concealment of real companies’ owners is one of the significant anti-money laundering system risks. It is emphasized in the results of the first National AML/CFT Risk Assessment and in the Mutual Evaluation Report of Ukraine, published by MONEYVAL”.Based on the results of a few months of hard work, the team developed a prototype Concept of the 33 steps proposed for the implementation of business owners verifying mechanism. The purpose of the Concept is to fill in the United State Register of legal entities, individuals-entrepreneurs and public formations (USR) with reliable information about the ultimate beneficial owners (controllers) of legal entities (UBOs). The Concept includes legislative proposals, procedures for their implementation and introduction of leading IT-solutions.On April 11, 2019, during the final Demo-day, the above-mentioned idea “The mechanism of verifying ultimate beneficial owners (UBO)”, entitled “100% RELIABLE”, was granted with the “Most Innovative Solution” award.The State Financial Monitoring Service of Ukraine will continue to work on the implementation of the Concept prototype and, jointly with its team partners, to participate in the implementation of business owners verifying mechanism.For reference: the program was accompanied by the Advisory Fund for EU Association of Ukraine, implemented by the German Agency “Cooperation with Germany for the Development of GIZ Ukraine” on behalf of the German Government, together with its beneficiary, the Government Office for the Coordination of European and Euro-Atlantic Integration, and with the participation of “1991 Open Data Incubator”.
Press-service of the SFMS