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Publication date: 23.05.2024
The Cabinet of Ministers Approves the List of Foreign Stock Exchanges: New Requirements for Disclosure of Beneficial Ownership Information
On May 21, 2024, the Cabinet of Ministers of Ukraine approved a list of foreign stock exchanges subject to disclosure requirements regarding beneficial owners. The relevant resolution No. 586 was adopted at the government meeting, marking an important step in combating money laundering and terrorism financing.
Expansion of Disclosure Requirements
The new list of foreign stock exchanges covers regulated markets where companies are required to disclose information about their beneficial owners. This decision complies with the requirements of part eight of Article 5-1 of Law No. 361-IX "On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Terrorist Financing, and Financing of the Proliferation of Weapons of Mass Destruction." This step aims to ensure greater transparency and accountability for businesses operating in international financial markets.
Explanation from the Cabinet Representative
Taras Melnychuk, the permanent representative of the Cabinet of Ministers in the Verkhovna Rada, explained that this decision is aimed at ensuring the effective implementation of legislative norms aimed at countering financial crimes. "This is an important step that increases the level of business transparency and helps identify potential threats to the state's financial security," Melnychuk noted.
Impact on the Business Environment
The adoption of this resolution significantly impacts the business environment, as companies trading on the listed foreign stock exchanges will need to comply with the new disclosure requirements. This includes providing detailed information about beneficial owners, which will help combat money laundering and terrorism financing. Companies that fail to meet these requirements risk facing sanctions and losing access to international capital markets.You may be interested in the following articles: Analysis, consultation, evaluation. legal analysis of the situation, lawyer's consultation, lawyer's consultation, analysis of documents, legal analysis of the situation, written consultation, verification of documents by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, legal opinion of a lawyer, lawyer online.
Transparency and Accountability
The introduction of new disclosure requirements will promote greater transparency in company activities on stock markets. This, in turn, will help investors make more informed decisions and reduce investment risks. Financial transparency and business accountability are key factors in ensuring stable economic development and strengthening the country's financial system.
Conclusion
The adoption of Resolution No. 586 is an important step towards ensuring financial security and combating money laundering. This decision raises the requirements for companies to disclose information about beneficial owners, promotes business transparency, and helps identify potential threats to the financial stability of the state. The government has managed to create a legal foundation for effectively countering financial crimes and ensuring greater accountability for companies operating in international markets.
An important aspect of this decision is its compliance with international standards and recommendations. Thus, Ukraine demonstrates its readiness to act responsibly and strengthen control mechanisms over financial flows, contributing to the country's strengthening on the international stage and increasing trust from international investors.
