FINDING AND TRACING OF ASSETS TO FULFIL REQUESTS FROM FOREIGN AUTHORITIES

Legal grounds

The general principles of ARMA’s international cooperation are defined by Article 18 of the Law of Ukraine “On the National Agency of Ukraine for Finding, Tracing andManagement of Assets Derived from Corruption and Other Crimes”.

In accordance with Ukraine’s international treaties, on the basis of reciprocity or onits own initiative, ARMA carries out international cooperation with the relevantauthorities of foreign states in the exchange of experience and information on issuesrelated to asset finding, tracing and management.

ARMA cooperates internationally at the request of a foreign competent authority orbodies defined by Ukrainian law (the Office of the Prosecutor General or theMinistry of Justice of Ukraine). ARMA may also cooperate on the basis ofreciprocity or in accordance with international treaties of Ukraine if this facilitatesthe finding and tracing of assets by foreign competent authorities.

To ensure the execution of Requests of the Prosecutor General’s Office for thefinding and tracing of assets in accordance with part one of Article 568 of theCriminal Procedure Code of Ukraine, ARMA and the Prosecutor General’s Office, byOrder of 24.05.2022 No. 75/81, registered with the Ministry of Justice of Ukraine on30.05.2022 under No. 582/37918, approved the Procedure for interaction betweenARMA and the Prosecutor General’s Office in the framework of international legalassistance in conducting procedural actions.

ARMA’s international interaction in the field of asset finding and tracing is based onthe standards and principles used by Asset Recovery Offices, after whose modelARMA was established, and in accordance with the following international acts:

• United Nations Convention against Transnational Organized Crime (2000);

• United Nations Convention against Corruption;

• Council of Europe Convention on Laundering, Search, Seizure and Confiscationof the Proceeds from Crime and on the Financing of Terrorism (2005) (Articles6, 7, Section IV);

• International Standards on Combating Money Laundering, Terrorist Financingand Proliferation of Weapons of Mass Destruction – the FATF FortyRecommendations and their Interpretive Notes;

• CARIN Recommendations;

• Council Decision 2007/845/JHA on cooperation between Asset RecoveryOffices of the Member States in the field of tracing and identifying proceeds ofcrime;

• Directive (EU) 2024/1260 of the European Parliament and of the Council of 24 April 2024 on asset recovery and confiscation.

Procedure for fulfilling Requests of foreign authorities

ARMA accepts and fulfils a Request received from the requesting party by electronic, facsimile or other means of communication, if provided for by Ukraine’sinternational treaties or based on the principle of reciprocity.

The receipt by ARMA of a Request from a foreign competent authority is grounds torequest additional information from state authorities, local self-government bodies, enterprises, institutions, and organisations necessary to execute the Request.

According to Directive (EU) 2024/1260, Member States shall ensure that AssetRecovery Offices respond to Requests for information submitted pursuant to Article9(1) as quickly as possible, and in any case within the following time limits:

• seven calendar days for all non-urgent Requests;

• eight hours for urgent Requests concerning information specified in Article 6, which is stored in databases and registers to which the Asset Recovery Office have direct access;

• three calendar days for urgent Requests concerning information not directlyaccessible to the Asset Recovery Offices.

If the requested information is not directly available or if the Request imposes a disproportionate burden on the receiving Asset Recovery Offices, it may postponethe provision of information. The time limits start from the moment the Request isreceived.

The average processing time for Requests from foreign jurisdictions by ARMA is five days.

Refusal or postponement of the execution of a Request for international cooperationin the field of asset finding and tracing is carried out only on the basis of internationaltreaties to which Ukraine is a party.

ARMA may refuse to fulfil a Request if:

1. its execution would contradict constitutional principles or may harm thesovereignty, security, public order, or other interests of Ukraine;

2. the requesting party does not provide reciprocity in this area;

3. the Request concerns an act that is not a criminal offence under Ukrainian law;

4. the costs of execution would clearly exceed the damage caused by the offenceor would be disproportionate to the seriousness of the offence (unlessotherwise provided by an international treaty of Ukraine).

ARMA is authorised to cooperate and is a partner of universal international networksand mechanisms for cooperation, which it uses to interact with authorities of foreignjurisdictions:

• CARIN (Camden Asset Recovery Interagency Network);

• Interpol (International Criminal Police Organization);

• Europol (European Police Office);

• Asset Recovery Interagency Network of West Africa (ARIN-WA);

• Asset Recovery Interagency Network of West and Central Asia (ARIN-WCA);

• Asset Recovery Interagency Network of Asia-Pacific (ARIN-AP);

• Asset Recovery Interagency Network of Southern Africa (ARINSA);

• Asset Recovery Interagency Network of East Africa (ARIN-EA);

• Asset Recovery Interagency Network of the Caribbean (ARIN-CARIB).

The largest number of Requests for asset finding and tracing are received from theRepublic of Poland, the Czech Republic, and the Republic of Latvia.

Example of fulfilling a foreign Request

ARMA received a Request from a foreign competent authority to find and trace theassets of a suspect in criminal proceedings on suspicion of money laundering. Thesuspect is a citizen of Ukraine.

In response, ARMA provided information about the suspect’s residential real estate, land plots, and a car located in Ukraine. In addition, ARMA identified a companywhere the suspect is a co-founder together with companies registered in an offshorejurisdiction. ARMA also provided information about powers of attorney issued byand to the suspect in Ukraine. All the information was appropriately visualised.

The Request was processed by ARMA within four days.