News (#04 April 2017)

Draft

Depriving the Ministry of Justice of right to cancel state registrars acts

Draft Law No. 6121 was registered at the  Parliament, according to which it is intended to exclude from the Law On State Registration of Proprietary Rights to Real Property and their Encumbrances the right of the Ministry of Justice: to revoke decisions on refusal in state registration of rights and to conduct state registration of rights; to amend records of the State Register of Rights and to correct errors made by the state registrar; to cancel access to the State Register of Rights by a state registrar.

At the same time, it is proposed to introduce the possibility of temporary blocking of any actions in the State Register of Rights regarding an object against which a decision, action or inaction of the state registrar is being appealed.

 

Reducing penalties for employers

A group of Ukrainian MPs has registered Draft Law No. 6087 On Amendments to Certain Legislative Acts of Ukraine on Improving the Procedure for State Supervision (Control) over Compliance with Labor Legislation and Responsibility for Violations in this Sphere.

The Draft proposes to reduce penalties for violation of labor legislation, as well as to strengthen responsibility of the State Service of Ukraine (Bailiffs) against labor officials for violating the procedure for conducting inspections of employers.

It is proposed in the Labor Code to tie the sum of penalties to the minimum living wage, and not to the minimum salary, as is the case now. At the same time, it is suggested to reduce the administrative penalty for admission to work without the signing of a contract — from 100 to 300 tax-free minimum incomes of an individual (from 500 to 1,000 tax-free minimum incomes of an individual). It is also suggested to charge from 300 to 500 tax-free minimum incomes of an individual (from 1,000 to 2,000) for repeat violation. At the same time, the penalty for violation of procedure for exercising the state supervision (control) in the sphere of economic activity shall be increased — from 100 to 500 tax-free minimum incomes of an individual (from 50 to 150).

In the explanatory note to the Draft it was stated that due to the rise in the minimum salary from 1 January 2017 (to UAH 3,200), which is the basis for calculating penalties for violation of labor legislation, the penalty amounts have been doubled.

At the same time, for commission of offenses in the labor sphere, public danger of which is less if compared with offences that pose a threat to the lives and health of people (violation of construction norms, sanitary legislation, etc.), harsher responsibility is currently imposed.

 

News in funds transfer regulation

Draft Law No.5361 On Amendments to Certain Legislative Acts of Ukraine Regarding Regulation of Transfer of Funds was registered in Parliament, which should grant the right to issue electronic money to a non-bank financial institutions, should improve the procedure for payment systems oversight, and should bring national criminal legislation into line with the requirements of European legislation.

The document provides for the following innovations: new definition of the term “payment system”, close to the definition set out in Directive 2007/64/EC; introduction of the concept of “Internet payment provider” to the legislation and definition of it; granting the right to issue electronic money and to have agents to non-bank financial institutions that have a license to transfer funds without opening accounts, and to the National Bank — the right to determine requirements for non-bank financial institutions to obtain such a license, including requirements on minimum equity and disclosure of information on ownership structure; granting the right to pay taxes, fees, other mandatory payments, as well as to make charitable (voluntary) contributions and donations using electronic money to residents of Ukraine; allowing banks of Ukraine to open accounts to non-resident legal entities, and also replacing the type of punishment (exclusively with a penalty on restrictions or imprisonment) for a crime in the form of illegal actions with payment instruments and means of their identification, payment devices, electronic money and establishing a legal penalty that shall reflect the level of public danger.

 

Amendments to the Law on State Support for Agricultural Insurance

Parliament has adopted in the first reading Draft Law No.4570 On Amendments to the Law On Specifics of Insurance of Agricultural Products with State Support (on clarifying certain terms and concepts).

This Draft was developed by the State Agency of Fisheries of Ukraine. Introduction of amendments stated in the document will permit agricultural commodity manufacturers in the fishing industry to receive state support when insuring aquatic biological resources.

 

Financial Investigation Service

The Cabinet of Ministers has approved Draft Law On Establishment of the Financial Investigation Service. The Draft splits the service and law-enforcement functions of the fiscal service.

The aim of the Draft is liquidation of the tax police and optimization of the structure and number of bodies that fight crime in the financial sphere.

According to Alexander Danilyuk, the Minister of Finance, the functions of the Financial Investigation Service will include investigation of crimes, which objects are procedures for the financing of political parties, procedures for financing and taxing economic activities, functioning of the monetary and banking systems, procedures for issuing and turnover of securities.

The head and the deputy head of FIS will be appointed by the Cabinet of Ministers at the suggestion of the Prime Minister on a competitive basis.

For this purpose the Minister of Finance must create a competitive commission consisting of 9 members who will elect the FIS management.

The FIS will consist of central and territorial divisions. No more than seven territorial divisions of the Financial Investigation Service will be established to ensure the fulfillment of functions by the FIS.

 

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