The Verkhovna Rada, Ukraine’s parliament, has voted to reinstate criminal liability for illegal enrichment and introduced a civil confiscation tool for unjustified assets possessed by officials.
Bill No. 1031 was adopted by 259 MPs in the second reading on Oct. 31, to amend certain legislative acts regarding the confiscation of the illegal assets of persons authorized to function as state or local government officials, and the punishment for gaining such assets.
Its adoption is one of the conditions for continuing the program of cooperation between Ukraine and the International Monetary Fund.
While introducing the bill for the second reading, head of the parliament’s anti-corruption policy committee Anastasia Krasnosilska (Servant of the People) said that liability for illegal enrichment was proposed to be established when the assets acquired by an official exceed his or her legal income by over Hr 6.5 million.
“The mechanism of the so-called civil confiscation is proposed to be applicable if an official’s income in question is worth more than his or her legal income, starting from Hr 1 million,” Krasnosilska said.
She noted that “these two mechanisms will work together and, accordingly, there will be criminal liability for larger thefts, and civil confiscation for smaller ones.”
Krasnosilska noted that civil confiscation requires court ruling, evidence for the court must be collected by the prosecutor’s office.
The bill supplements the Criminal Code with Article 368-5 “Illegal Enrichment,” which stipulates that the acquisition by an official of assets worth more than 6,500 non-taxable minimum incomes of citizens exceeds his or her legal income will be punished by imprisonment for five to ten years along with deprivation of the right to occupy certain positions or engage in certain activities for up to three years.
Such assets will include cash, property, work or services, as well as the amount of a reduction in financial obligations and cryptocurrency.
A claim for declaring assets illicit may be filed without a guilty verdict against the person. Confiscation of illegal assets of officials will be carried out by a court order in a civil proceeding.
The High Anti-Corruption Court of Ukraine will consider civil claims for declaring assets illicit. Plaintiffs are representatives of the National Anti-corruption Bureau of Ukraine or prosecutors of the General Prosecutor’s Office of Ukraine.
The limitation period in cases of recognizing assets unjustified will be four years from the date of entry into the disputed assets.
On Sept. 11, the Verkhovna Rada adopted the bill as a basis.
