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

2/22/17

At today’s meeting of the Committee for Tax and Customs Policy, Minister of Finance Oleksandr Danyliuk has presented the draft law on the creation of an agency to fight financial violations.

What’s it about?

During the meeting of the Tax Policy Committee, the Minister of Finance presented the MPs the key ideas of the draft law which are now being finalized by the Government.

The concept of the new Financial Investigation Agency and the corresponding draft law were prepared by the Ministry of Finance jointly with the working group convened by Prime Minister V. Groysman. This strategic agency will be in charge for investigating major financial and economic violations which pose a threat to the national economic security.

The key tasks of the Agency will be to detect and to stop economic, financial and tax crimes as well as to conduct pre-trial investigations, to analyze information and to take steps to tackle factors which may cause such crimes.

The special feature of the new Agency is its transition from enforcement to the comprehensive and analytical approach requiring the application of modern methods to investigate economic crimes. The Agency shall be demilitarized and engage new personnel. It shall not be reporting to the State Fiscal Service, its personnel shall receive appropriate remuneration, there shall be no special units and no opportunities for corruption.

The Agency is planned to have a head office and not more than seven regional departments. Instead of the currently 10000 employees representing various enforcement units, the new Agency shall only have up to 3500 employees. The personnel shall be selected in open and fair contests regulated by the presented draft law.

What’s the advantage?

Creation of the Financial Investigation Agency is a strategic decision for the country which shall improve the business climate and contribute decisively to economic development.

The outcome shall be a systemic crackdown on all economic crimes, reduced pressure on business and withdrawal of corruption tools from the State Fiscal Service.

The draft law has already been publicly supported by the leading Ukrainian business associations and civil associations including the US Chamber of Commerce, the Association of Ukrainian Entrepreneurs, the Ukrainian Chamber of Commerce and Industry, the civil platform “Taxes for Economic Freedom” (uniting 24 associations), the coalition “For the Liberal Tax Reform” (uniting 15 associations), the coalition “For the De-Shadowing of the Economy” (25 associations) as well as the association of the civil experts of the Reanimation Package of Reforms uniting leading research centers and civil organizations.

What’s next?

The Government is now finalizing the key aspects of the draft law. Afterwards, the draft law will be submitted to the Government and then presented to the Parliament for a broad and open discussion involving all interested parties.

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