Law against front organizations passed
Claims that an end has been put to the offshore age may be overly optimistic, however the law passed on Tuesday making it mandatory to name the real owners of companies is undoubtedly a good step.
Law No. 5114 was passed with a comfortable majority (265 votes). The law introduces amendments to current legislation making it mandatory for companies to reveal the real individuals behind the company, and not a front organization. One of the amendments stipulates that the final beneficiary of the legal entity is an individual who, regardless of formal ownership, has the possibility of exerting decisive influence on the management or economic activities of the legal entity whether directly or via others.
After the bill was passed, Prime Minister Arseny Yatsenyuk stated that the owners of companies will no longer be able to hide behind anonymous companies, and that this is the end of the ‘offshore era’.
Viktor Chumak, from the UDAR faction noted that ten amendments had been made to the bill before its second reading. One is fairly major – the proposed criminal liability for directors of firms who infringe the law has been changed to administrative.