Ukraine AML Obligations for Auditors and Accountants: Law Guide

Ukraine's anti-money laundering rules sit in the Law of Ukraine on preventing and counteracting the legalisation (laundering) of the proceeds of crime, terrorist financing and financing the proliferation of weapons of mass destruction. This guide is based on an unofficial English translation published on the website of Ukraine's financial intelligence unit. It is written for accountants, auditors and finance students who want to see how the regime treats professional advisers. For the shared basics, see our guide to politically exposed persons and our wider guide to ultimate beneficial ownership.

Please read "What we could not confirm" at the end. The translation we read does not show its adoption date or last amendment, and it cuts off part-way through the supervision provisions, so this post describes the structure of the law rather than a current compliance checklist.

Who is covered

According to Article 5(2)(7)(d) of the translation, notaries, lawyers, law firms, auditors, accounting firms and businesses providing accounting or legal services are reporting entities, excluding services provided under labour relations. Article 8 describes the activities that bring lawyers, auditors and accountants within the rules: services relating to real estate, managing client assets or accounts, and forming and managing legal entities. Article 8(5) lets notaries, lawyers and auditors withhold suspicion reports where the information is protected by professional secrecy. Tax advisers are not mentioned in the text we read.

Who supervises

Article 5(3) lists the state regulators, including the National Bank of Ukraine, the Ministry of Justice, the securities and stock market commission and the financial services market commission, plus a "specially authorised body". The supervisory powers article is cut off in our copy, so we cannot say which regulator inspects an accounting or audit firm.

Customer due diligence

Article 9 covers identification and verification. It distinguishes residents from non-residents, sets the timing of identification before or during the business relationship, and requires in-depth verification where authenticity is doubted. Article 10(1) requires refusal where identification fails, and Article 11(2) requires the customer's risk to be reassessed at least annually. The threshold amounts in Article 9 relate mostly to money transfers and one-off transactions without business relations, and the article that sets mandatory reporting thresholds (Article 15) was not in our copy.

Beneficial owners and politically exposed persons

Article 1(20) defines a beneficial owner generally as a person with 25 percent or more of the share capital or voting rights, or other decisive influence. Nominees and agents do not count as owners. The translation defines foreign and national politically exposed persons as persons who hold, or held within the last three years, specified functions. Article 6(5)(2) requires head-level approval, source-of-funds checks and annual updates for PEPs, and Article 6(4) treats them as high risk.

Reporting deadlines

Article 6(2)(6) sets working-day deadlines. Transactions subject to mandatory monitoring are due within three working days of registration or attempt. Suspicions identified through internal monitoring are due on the day of suspicion and no later than the next working day after registration. Suspicions of terrorist financing or proliferation financing are due on the day of discovery and no later than the next working day. Our guide to suspicious activity reports and tipping off compares the UK approach.

Tipping off and protection

Articles 12(11) and 12(13) bar staff from informing transaction participants or third parties about reports or requests, and the duty extends to anyone who learns of them through professional duties. Article 12(3) protects good-faith reporters from liability.

Record keeping

Article 6(2)(15) requires records to be kept for at least five years after the transaction is completed, the relationship ends or the account is closed, and regulators may set longer periods.

Responsible officer, training and liability

The translation requires a "responsible officer" appointed at management level, with an impeccable reputation, who reports to the head of the entity at least monthly (Article 7(6)). Training is required within three months of appointment and refreshed every three years (Article 6(2)(20)). The head of the entity bears ultimate responsibility (Article 6(11)). The text refers to liability "according to the Law" but gives no fine amounts.

Our suggestions for a Ukrainian practice

These are our own suggestions, not requirements of the law. Check each new engagement against the real estate, client assets and company formation triggers in Article 8 before you decide whether the rules apply. Diary the annual risk reassessment and the three-year training refresh. For structured study, see our CPD courses.

Frequently asked questions

Are auditors and accountants both covered?

The translation lists auditors, accounting firms and businesses providing accounting services in Article 5(2)(7)(d), with the activity triggers in Article 8.

How long must records be kept?

At least five years under Article 6(2)(15), with regulators able to set longer periods.

Can an auditor withhold a report because of professional secrecy?

Article 8(5) allows notaries, lawyers and auditors to withhold suspicion reports where the information is protected by professional secrecy.

What we could not confirm

We read an unofficial English translation that does not show the law's number, adoption date or last amendment, and the text breaks off in Article 14. We did not confirm which regulator supervises accountants and auditors, the mandatory reporting thresholds in Article 15, or the penalties. We did not check later amendments or the Ukrainian original, and we did not read any guidance from the financial intelligence unit or professional bodies. Always check the current law before acting. This post is general information, not legal advice.