Disclosure Requirements - Ukraine
Disclosure Category: 1
In order to comply with the legislation as aforementioned, customers entering into transactions in the Ukrainian domestic market must consent and are hereby deemed to consent to disclosure and to the appointment of the requestor (for example, the Ukrainian National Bank) as their attorney-in-fact, under power of attorney to collect from CBL such information as is required to be disclosed.
Customers not willing to give this consent cannot hold such securities and/or financial instruments in their account with CBL.
In the case of holding Ukrainian securities, Clearstream Banking S.A. (“CBL”) may fall under a legal obligation, under the Ukrainian Laws (as referenced below), to disclose the identity and holdings of its customers.
Background and Legal basis
Article 25 of the Law of Ukraine On Depository system of Ukraine No 5178-VI dated 06/07/2012 (as amended)
The Central Depository and the National Bank of Ukraine shall disclose information contained in the depository record-keeping system with regard to the number of a certain issuer’s securities of a certain issue on a certain client’s account with the Central depository or the National Bank of Ukraine as of a certain date, with regard to transactions with a certain issuer’s securities of a certain issue on clients’ accounts with the Central Depository or the National Bank of Ukraine over a certain period, and with regard to a list of the Central Depository’s or the National Bank of Ukraine’s clients, on which accounts a certain issuer’s securities of a certain issue were held as of a certain date, in the following cases:
- by decision of a court;
- upon written request of a state authority within the terms of its reference and on the grounds of the law.
Article 3 of the Law of Ukraine On Securities and Stock Market No 3480-IV dated 23/02/2006 (as amended)
Securities issuer has a right to receive information on securities owners contained in the depository record-keeping system in the form of register of registered securities owners.
Article 57 of the Law of Ukraine On the National Bank of Ukraine No 679-XIV dated 20/05/1999 (as amended)
In order to be able to produce monetary, financial, balance of payments, international investment position, external debt and banking statistics, deliver an analysis of financial stability, as well as to analyse and forecast macroeconomic, monetary, foreign exchange and financial indicators, the NBU may request that state and local authorities, as well as economic entities, regardless of their form of ownership, provide it, free of charge, with the required information.
There are currently no sanction or administrative measures in the legislation in case of non-disclosure.
It remains the sole responsibility of the customer to ensure compliance with local disclosure requirements. If a local requirement is not met, it is the customer who will be liable to any related penalty. Customers are therefore advised to seek independent legal advice on the existence and interpretation of local disclosure requirements.