Fines for financial violations will increase fivefold: the government has approved a new bill
7 August 12:01
The Cabinet of Ministers of Ukraine has approved a draft law that provides for a significant increase in administrative liability for violations of financial legislation. The document proposes increasing fines severalfold and extending the period for holding violators accountable to one year.
This was reported by "Komersant Ukrainian", citing the Ministry of Finance of Ukraine.
What Changes Is the Government Proposing?
The draft law provides for amendments to the Code of Ukraine on Administrative Offenses (KUAP) intended to make financial oversight more effective.
Specifically, the government proposes:
- extend the statute of limitations for bringing administrative charges for violations of financial legislation to one year from the date the offense was committed;
- significantly increase the amounts of administrative fines;
- strengthen financial discipline and prevent repeat violations.
How the Fines Will Change
If the Verkhovna Rada approves the bill, the fines will be as follows:
For the first violation
- Previously: 136 to 255 UAH;
- will be: 850 to 1,190 UAH.
For a repeat violation within a year
- previously: 170 to 340 UAH;
- will be: 1,020 to 1,360 UAH.
In effect, the maximum administrative fine will increase nearly fivefold.
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Why the decision to increase penalties
The Ministry of Finance explains that the current regulations are no longer relevant.
First, the current fines were established back in 1996 and have long since ceased to reflect modern economic realities.
Second, most financial violations are uncovered during government audits and inspections, by which time the statute of limitations for administrative liability has already expired. As a result, those responsible often escape punishment.
That is why the government is proposing to extend the statute of limitations to one year.
What Results Does the Ministry of Finance Expect?
The Ministry of Finance believes that the new rules will:
- ensure the inevitability of administrative liability;
- improve the effectiveness of state financial control;
- strengthen financial discipline;
- reduce the number of repeat violations of financial legislation.
What’s Next
The document approved by the Cabinet of Ministers is only the first stage of the legislative process.
In the near future, the bill will be submitted to the Verkhovna Rada of Ukraine for consideration.
Only after it is adopted by parliament and signed by the President will the new fine amounts and revised time limits for imposing administrative liability take effect.
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