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Business discussed topical issues of cooperation with the Economic Security Bureau of Ukraine

04/ 04/ 2024
  On April 3, EBA member companies met with Andrii Pashchuk, Acting Director of the Economic Security Bureau of Ukraine, and his team. The participants of the meeting had the opportunity to learn about the current tasks and priorities of the Bureau, discuss the most pressing issues of interaction with business. Currently, the Bureau operates under four laws: the Law on the ESB, the Law on Operational and Investigative Activities, the Law on Organizational and Legal Framework for Combating Organized Crime, and the Criminal Procedure Code of Ukraine. These laws define the functionality of the Bureaus work, which currently includes both analytical and operational-search components and pre-trial investigation. The most common tool used by the ESB in its analytical activities is an information and recommendation letter to supervisory authorities/regulators in case a certain preventable risk is identified. If certain consequences have already occurred, the ESB switches to using tools in the criminal procedure area. To strengthen the analytical component of its work, the ESB needs more data for timely identification and assessment of risks, which can be data from both government agencies and businesses. In addition, the BEESBS wants to make it mandatory to respond to an information and recommendation letter (analytical references) so that more cases are resolved at the analytical stage. According to the ESB management, the lack of staff, underfunding and the absence of broad regional offices currently hinder the ESBs efficiency. Sometimes the ESB engages the SBUs operational units to work on complex cases. Businesses had the opportunity to comment on the ESBs ineffective work in combating the illegal market of excisable goods, to voice problematic cases in cooperation with the ESB, and also voiced some suggestions in the context of uncontrolled opening of economic crime investigations and deliberate delay in closing false suspicions. In particular, companies note that during the investigation, a company may face the seizure of accounts and seizure of office equipment, which may lead to blocking of the companys activities at this time. In this regard, the business suggests not blocking accounts related to payment of taxes, salaries, utility bills, etc. In addition, the business has noted that the amount of bail is often set disproportionate to the hypothetical violation. Given that economic investigations can take a long time, the business insists that companies should be able to continue operating while the procedure is ongoing. For its part, the Bureaus management assured the meeting participants that all suggestions and comments would be taken into account and proposed to set up a working group to continue the dialogue and develop constructive solutions to the issues of greatest concern to the business community. The meeting participants also had the opportunity to discuss some issues of smuggling criminalization, customs inspections and delays, the problem of import and sale of banned, inefficient boilers, and protection of intellectual property rights, etc. We are grateful to Mr. Pashchuk and his team for their attention to business issues and the opportunity for dialogue!

On April 3, EBA member companies met with Andrii Pashchuk, Acting Director of the Economic Security Bureau of Ukraine, and his team. The participants of the meeting had the opportunity to learn about the current tasks and priorities of the Bureau, discuss the most pressing issues of interaction with business.

Currently, the Bureau operates under four laws: the Law on the ESB, the Law on Operational and Investigative Activities, the Law on Organizational and Legal Framework for Combating Organized Crime, and the Criminal Procedure Code of Ukraine. These laws define the functionality of the Bureau’s work, which currently includes both analytical and operational-search components and pre-trial investigation.

The most common tool used by the ESB in its analytical activities is an information and recommendation letter to supervisory authorities/regulators in case a certain preventable risk is identified. If certain consequences have already occurred, the ESB switches to using tools in the criminal procedure area.

To strengthen the analytical component of its work, the ESB needs more data for timely identification and assessment of risks, which can be data from both government agencies and businesses. In addition, the BEESBS wants to make it mandatory to respond to an information and recommendation letter (analytical references) so that more cases are resolved at the analytical stage.

According to the ESB management, the lack of staff, underfunding and the absence of broad regional offices currently hinder the ESB’s efficiency. Sometimes the ESB engages the SBU’s operational units to work on complex cases.

Businesses had the opportunity to comment on the ESB’s ineffective work in combating the illegal market of excisable goods, to voice problematic cases in cooperation with the ESB, and also voiced some suggestions in the context of uncontrolled opening of economic crime investigations and deliberate delay in closing false suspicions. In particular, companies note that during the investigation, a company may face the seizure of accounts and seizure of office equipment, which may lead to blocking of the company’s activities at this time. In this regard, the business suggests not blocking accounts related to payment of taxes, salaries, utility bills, etc. In addition, the business has noted that the amount of bail is often set disproportionate to the hypothetical violation. Given that economic investigations can take a long time, the business insists that companies should be able to continue operating while the procedure is ongoing.

For its part, the Bureau’s management assured the meeting participants that all suggestions and comments would be taken into account and proposed to set up a working group to continue the dialogue and develop constructive solutions to the issues of greatest concern to the business community.

The meeting participants also had the opportunity to discuss some issues of smuggling criminalization, customs inspections and delays, the problem of import and sale of banned, inefficient boilers, and protection of intellectual property rights, etc.

We are grateful to Mr. Pashchuk and his team for their attention to business issues and the opportunity for dialogue!

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