Legislative news digest: LEGAL HOTLINE 04.06.2020

Regulation of National Bank of Ukraine on banks’ financial monitoring takes effect allowing online opening of bank accounts

Regulation on exercise of financial monitoring by banks has provisions that allow opening bank accounts online. 

Ministry of digital transformation announced upcoming technical capabilities to open bank accounts based on a remote identification and verification of clients. Remote identification could be performed via teleconference or via BankID system by affixing electronic signature to the copy of the identity document.

Simplified system of verification: by pre-authorisation with first minimal amount payment, by reading data on ID-card or biometric passport with smartphone, will be available additionally for risk-free business relations.

New application forms for state registration of companies and private entrepreneurs are approved

Ministry of justice has approved new application forms to be submitted for state registration that are effective as of June 1, 2020.   

Instead of 24 application forms, now only 9 are used, being group based on the type of entity that is subject to registration proceedings. Information on the ultimate beneficial owner is among the application forms as well. 

Information on ultimate beneficial owner should be filled and be renewed in case a legal person is listed among the founders/members. In addition, the information on ultimate beneficial owner should be filed at state registration of changes or reorganisation of a legal person, provided such an information requires renewal because of certain changes in information about ultimate beneficial ownership.

Information on ultimate beneficiary and beneficial ownership structure should be submitted to a state registrar within 3 months as of the approval date of the form and contents of the beneficial ownership structure. 

Currently, only the form of information on ultimate beneficial owner has been approved, whereas Ministry of finance has yet to approve the contents of beneficial ownership structure. Ministry of finance informs that contents of beneficial ownership structure will be approved until July 28, 2020. Therefore, the 3-months term for renewal of information has not begun yet.

Owners can ban re-registration of their real estate

Regulation of the Cabinet of Ministers of Ukraine as of 13^th May 2020 No. 399 “On amendments to certain regulations of Cabinet of Ministers of Ukraine regarding state registration” (“Regulation”) took effect.

Regulation provides for amendments to be introduced to Rules of proceedings in state registration of property rights to immovable property and encumbrances thereof. Notaries and state registrars now shall immediately register applications of real estate owners for prohibition to perform registration proceedings and applications for revocation of previously submitted applications for prohibition to perform registration of property rights to their property.

Henceforth, upon the owner’s application, state registrar will impose the ban on registration proceedings regarding the real estate. The mandatory condition for consideration of such an application is information on the registered ownership being available in the state register of property rights to immovable property and prior identification of the owner.   

State registrar will stop state registration of rights to real estate if there is available information on the abovementioned owner’s ban, while referring to the registered owner’s application in the database. State registration of rights as to the real estate will be resumed subject to available owner’s application for revocation of its own application banning performance of registration proceedings.Additionally, state registrar will notify real estate owner on stoppage or resumption of state registration of rights. Notice to the owner will be send on the phone number and/or on email.