Establishment of Financial Investigation Service (FIS)

Liquidation of the tax police belongs to the priorities of the Ministry of Finance in the reform of the SFS and has been demanded by taxpayers for a long time.Starting from the day of its foundation, the tax police has been used as a tool to put business under pressure which significantly affected the operations of companies and negatively impacted the investment climate in Ukraine. That is why the tax police will be liquidated; instead of it, an absolutely new Financial Investigation Service will be established. Contrary to the tax police, the new unit will be service- and analysis- instead of enforcement-oriented. The Financial Investigation Service won’t be reporting to the SFS, it will be directly subordinate to the Ministry of Finance. Instead of approx. 15000 employees currently working to prevent economic crimes, the new Financial Investigation Service will employ up to 2500 highly experienced and qualified specialists who will be selected in an open contest.

What’s the advantage?

- this step helps remove one of the main corruption tools at the SFS;
- an absolutely new approach is implemented in the Financial Investigation Service – analysis instead of enforcement;
- reduction of pressure on business;
- reduced number of financial crimes;
- higher attractiveness of Ukraine for investors.

What has been done so far?

The Ministry of Finance has already prepared the necessary draft law.

What’s next?
After the public discussion of the draft law the Ministry of Finance will submit it to the Minister of Cabinets and the Parliament.
Liquidation of the tax police belongs to the priorities of the Ministry of Finance in the reform of the SFS and has been demanded by taxpayers for a long time.
Starting from the day of its foundation, the tax militia has been used as a tool to put business under pressure which significantly affected the operations of companies and negatively impacted the investment climate in Ukraine. That is why the tax militia will be liquidated; instead of it, an absolutely new Financial Investigation Service will be established. Contrary to the tax militia, the new unit will be service- and analysis- instead of enforcement-oriented. The Financial Investigation Service won’t be reporting to the SFS, it will be directly subordinate to the Ministry of Finance. Instead of approx. 15000 employees currently working to prevent economic crimes, the new Financial Investigation Service will employ up to 2500 highly experienced and qualified specialists who will be selected in an open contest.

What’s the advantage?

- this step helps remove one of the main corruption tools at the SFS;

- an absolutely new approach is implemented in the Financial Investigation
Service – analysis instead of enforcement;

- reduction of pressure on business;

- reduced number of financial crimes;

- higher attractiveness of Ukraine for investors.

What has been done so far?

Minister of Finance Oleksandr Danyliuk has presented the draft law on the creation of an agency to tackle financial violations

The Cabinet of Ministers approves the draft law establishing the Financial Investigation Service

What’s next?

The draft law shall soon be examined by the National Reform Council and submitted to the Parliament. Steps are already being made to ensure the launch of the Financial Investigation Service.

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