Ukraine introduces methodology for determining beneficial ownership


On 19 September 2023, the Cabinet of Ministers of Ukraine and the National Bank of Ukraine adopted a resolution approving a methodology for determining ultimate beneficial owners (UBOs) of a legal entity (Methodology). The Methodology became effective on 3 October 2023 and is aimed at improving the process of, and establishing a unified approach towards the determination of beneficial ownership.  

The Methodology establishes the procedures for identifying the individuals who exercise control and decisive influence over a legal entity. In particular, it includes guidance on the means of verifying and updating information that evidence the decisive influence, and the mechanisms and sources to obtain such information. The Methodology also contains specific provisions on determining the UBOs in different types of entities, such as NGOs, investment institutions (e.g. corporate, mutual investment, and non-state pension funds), and partnerships established in foreign jurisdictions, etc. 

The adoption of the Methodology is a step forward in meeting the requirements of the EU-Ukraine Association Agreement and implementing the standards of the Financial Action Task Force (FATF) in Ukraine. 

For more information on this Methodology and rules governing UBOs in Ukraine, contact your CMS client partner or these CMS experts: Maria Orlyk, Tetyana Dovgan.

Legislation: Resolution of the Cabinet of Ministers of Ukraine and the National Bank of Ukraine No. 1011 dated 19.09.2023 "On Approval of the Methodology for Determining the Ultimate Beneficial Owner by a Legal Entity".