LAW ON CORRUPTION PUNISHMENT. TO WHOM DOES THIS LAW APPLY? WHAT ARE THE NUANCES? OPINION OF THE LAWYER

 On October 31, the Verkhovna Rada adopted the Law “On Amendments to Certain Legislative Acts of Ukraine on Confiscation of Illegal Assets of Persons Authorized to Perform State or Local Government Functions, and Punished for Acquiring Such Assets.”

 The law regulates the issue of ensuring the proper functioning of the institute for the recognition of unjustified assets of persons authorized to perform the functions of the state or local self-government, and their recovery into the state revenue, especially the lawsuit in these cases.

 Thus, the Law, in particular, supplemented the Criminal Code with the new Art. 368-5 “Illegal enrichment”, according to which the acquisition of a person authorized to perform the functions of the state or local self-government, assets whose value is more than six thousand five hundred tax-free minimum income exceeds its legal income (UAH 6 243 250), – shall be punished by imprisonment for a term of five to ten years, with deprivation of the right to occupy certain positions or engage in certain activities for a term of up to three years.

 Acquisition of assets should be understood as the acquisition of property by a person authorized to perform the functions of state or local self-government, as well as the acquisition of assets by another natural or legal person, if it is proved that such acquisition was made on behalf of a person authorized to perform the functions of the state. or local government, or that a person authorized to perform the functions of a state or local government may, directly or indirectly, act on such assets of an act identical to the content of the exercise of the right to deploy ordering them.

 Assets should be understood as cash (including cash, funds held in bank accounts or deposited with banks or other financial institutions), other property, property rights, intangible assets, including cryptocurrency, the amount of financial liabilities reduced. ‘ the work or services provided to a person authorized to perform the functions of state or local government.

 The legitimate income of a person should be understood to mean the income legitimately received by a person from lawful sources, in particular as defined in paragraphs 7 and 8 of Part 1 of Art. 46 of the Law on Prevention of Corruption.

 In determining the difference between the value of the assets acquired and the legitimate income, the assets that are the subject of proceedings for the recognition of the assets as unfounded and their recovery into government revenue, as well as the assets collected in the government’s income in the course of such proceedings are not taken into account.

 Cases of recognition of unfounded assets and their recovery into the state income are considered by the Supreme Anti-Corruption Court.

Author: Andrey Kubov

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