What are legal consequences of including data about an individual of entity to the Register?

The Register is created for journalists, civil activists and organizations, as well as for financial monitoring actors providing financial (primarily banking) services in Ukraine and abroad, and is to be used for:

1) Identifying persons who are national politically exposed persons;

2) identifying legal entities connected with national politically exposed persons.

The Service of Financial Monitoring of Ukraine included the Register to its Methodical Guidelines for identifying politically exposed persons and ensuring financial monitoring of their financial operations.

Provisions for identification, verification, and study of a client as a politically exposed person by the agencies of primary financial monitoring, as well as the list of identification data are specified in Article 9 of the Law.

As a rule, identification, verification, and study of a politically exposed person includes:

●   conducting identification and verification in cases stipulated by Article 3 of the Law;

●   in-depth verification of information on a politically exposed person or a person acting on their behalf, their associate or one connected to a politically exposed person for confirmation or refuting of data provided by them, if their credibility and completeness are dubious;

●   clarification of identifying data and other available information on a politically exposed person in case of changes or expiration term of the documents which were basis for identification, verification, study;

●   determining of sources of funds and assets of politically exposed persons.

Based on the identification data analysis of a politically exposed person and other available statements and information on them and their activity, the primary financial monitoring actor evaluates the risk considering the risk criteria (establishing contractual relationship with a national politically exposed person can have high or unacceptably high risk).

Primary financial monitoring actors can set individual (specific) inner mechanisms of identifying politically exposed persons in their internal documents on financial monitoring. Primary financial monitoring actor can use open information sources as well as this Register for identifying politically exposed persons. However, the fact of publishing any statement from the Register does not automatically entail obligation from a bank/another financial monitoring actor to include a person in the category of national politically exposed persons/their associates; to stop financial operation of this person or deny establishing contractual relations.

Information in the Register and the technical specifications of the site are always being subject to update, therefore, in case you would like to receive the notifications of updates of the information that you are interested in, or any other changes in the Register’s operating, follow our blog.