ukraine_criminal liability for entities
TRANSCRIPT
HEDGE-SQUARE
As a part of action plan on liberalisation of the EU Visa regime of Ukraine, on May 23, 2013, the Parliament of the Ukraine accepted the Law on amendments to certain legislative Acts of Ukraine. This law emphasis on several anti-corruption laws, including the Law on Criminal Liability of Legal Entities, Principles of Prevention and Combating Corruption and the Law on Ensuring the Safety of persons involved in Criminal Proceedings.
The said law will be made applicable w.e.f September 1, 2014.
09.07.2012
UKRAINE – CRIMINAL LIABILITY OF LEGAL ENTITIES I N S I D E T H I S
UKRAINE – CRIMINAL LIABILITY OF LEGAL ENTITIES
Purpose & Scope:
Law has been introduced to curb the practices of the manager, owners an authorised representatives acting on behalf and in the interest on an entity. In other words, said Law shall become applicable, only when the acts done are on behalf and for the interest of an entity. Following are some of the avaricious activities committed by the above mentioned officials: a. Money laundering b. Terrorism related offences c. Use of funds from trafficking narcotics, psychotropic substances and bribery d. Exercising undue influence or aggravating the officials Previous to this introduction of Law, legal person were liable administratively and/ or financially.
Criminal Liability for Entities Conditions for levying criminal liability
Impact on Economy
Applicability:
This law covers under its purview enterprises, institutions or organizations but excludes: a. State authorities b. Local government authorities c. Organisations established by such authorities in prescribed order that are financed through state or municipal budgets d. Obligatory state social insurance funds e. Individual Deposit Guarantee Fund f. International organisations
Penalty:
Legal entities found guilty of committing a crime can be sanctioned under criminal law to a fine, property seizure, or liquidation. The fine amount will depend on severity of the crime and can range from approximately $10,000 to $160,000.Confiscation of property and liquidation of the legal entity are additional types of punishment
Conclusion:
This Law may create the restrictions on economic activities of the Companies and indirectly would result in to negative impact on investment scenarios of the Country & hence on economic development of the Country. Further this introduction of Law will also lead to various amendments/ alterations in other Laws.
“This Law will create restriction on economic growth of the Country”
UKRAINE – CRIMINAL LIABILITY OF LEGAL ENTITIES Page 2
Unnatti Jain
Hedge-Square Consultancy Services Pvt. Ltd.
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