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Business expects the prompt adoption of the Draft Law “Stop Masks-Show”

10/ 02/ 2020
  European Business Association welcomes the draft law №2740 “Stop Masks-Show 3” regarding the improvement of the criminal law application procedure, which enables to reduce the risks of corruption offences conducted by investigatory and procuracy authorities, to strengthen in a balanced manner the protection of lawful rights of businesses in case of investigation into their activities, to maintain at maximum the database of evidences in the legal processes, etc.  In previous years IT companies experienced the inspections with the confiscation of the equipment and servers, which evidently had a significant impact on work: missing deadlines with the clients, halting the workflow, etc. This, in turn, led to the reputation and image losses for companies, the industry and the country in whole. For example, last year, according to the testimony of one of the businesses, the confiscation of 110 computer hard disc drives, 6 corporate and 10 personal laptops caused a direct loss of over $30 000, while an indirect loss, namely the disruption of deadlines with the clients, outreached  $100 000. Apart from that, such inappropriate actions from law-enforcement authorities led to the violation of the Convention for the Protection of Human Rights and Fundamental Freedoms dated from the 20th of March 1952. Thus, according to Article 1 of the Supplementary Protocol of the Convention, each private or legal person has a right for peaceful enjoyment of his possessions. No one shall be deprived of his property except upon the interests of the society and under conditions stipulated by law or general principles of the international law. Olga Kunychak. EBA IT Committee Manager. As long as the business is a target for law enforcement authorities and there exists a threat to the security of doing business in Ukraine, caused by ineffective work of the law-enforcement bodies, the arrival of foreign companies to Ukraine will continue to be restrained. As a law-enforcement system is a basis that set the equal rules of the game in the country. So, here are some key changes outlined in the draft law: Prohibition of the confiscation of servers and other data storage devices (the new draft law includes a clear list of devices in question): all types of computers, mobile phones, tablets, modems, printers, etc), under the condition that they are not physical evidence for the criminal procedure. Possibility to copy the information required by the law-enforcement authority without the confiscation of the device itself. The results of the copied information are documented in the corresponding protocol which must include the description of the copied data. The copy of the protocol is handed to a person who owns the device from which the information was copied, or to his representative. The criminal responsibility for the law-enforcement authorities for the deliberate illegal actions. Therefore, the EBA IT Committee expects the operational adoption of “Stop Masks Show 3” draft law as the most important thing that the investor pays attention to is the stability and security of doing business from the pressure of enforcement institutions. So, it is worth, firstly, to eradicate this problem at the legislative level to provide a smooth business activity in practice and to establish a positive image in the international arena. At the same time, the business will enjoy its legal security. We would like to remind you that the stimulation of the investment attractiveness of Ukraine as a whole and within the regions are the main priorities of the business for 2020 – as EBA mentioned earlier.

European Business Association welcomes the draft law №2740 “Stop Masks-Show 3” regarding the improvement of the criminal law application procedure, which enables to reduce the risks of corruption offences conducted by investigatory and procuracy authorities, to strengthen in a balanced manner the protection of lawful rights of businesses in case of investigation into their activities, to maintain at maximum the database of evidences in the legal processes, etc. 

In previous years IT companies experienced the inspections with the confiscation of the equipment and servers, which evidently had a significant impact on work: missing deadlines with the clients, halting the workflow, etc. This, in turn, led to the reputation and image losses for companies, the industry and the country in whole.

For example, last year, according to the testimony of one of the businesses, the confiscation of 110 computer hard disc drives, 6 corporate and 10 personal laptops caused a direct loss of over $30 000, while an indirect loss, namely the disruption of deadlines with the clients, outreached  $100 000.

Apart from that, such inappropriate actions from law-enforcement authorities led to the violation of the Convention for the Protection of Human Rights and Fundamental Freedoms dated from the 20th of March 1952. Thus, according to Article 1 of the Supplementary Protocol of the Convention, each private or legal person has a right for peaceful enjoyment of his possessions. No one shall be deprived of his property except upon the interests of the society and under conditions stipulated by law or general principles of the international law.

Olga Kunychak EBA IT Committee Manager
As long as the business is a target for law enforcement authorities and there exists a threat to the security of doing business in Ukraine, caused by ineffective work of the law-enforcement bodies, the arrival of foreign companies to Ukraine will continue to be restrained. As a law-enforcement system is a basis that set the equal rules of the game in the country.

So, here are some key changes outlined in the draft law:

  1. Prohibition of the confiscation of servers and other data storage devices (the new draft law includes a clear list of devices in question): all types of computers, mobile phones, tablets, modems, printers, etc), under the condition that they are not physical evidence for the criminal procedure.
  2. Possibility to copy the information required by the law-enforcement authority without the confiscation of the device itself. The results of the copied information are documented in the corresponding protocol which must include the description of the copied data. The copy of the protocol is handed to a person who owns the device from which the information was copied, or to his representative.
  3. The criminal responsibility for the law-enforcement authorities for the deliberate illegal actions.

Therefore, the EBA IT Committee expects the operational adoption of “Stop Masks Show 3” draft law as the most important thing that the investor pays attention to is the stability and security of doing business from the pressure of enforcement institutions. So, it is worth, firstly, to eradicate this problem at the legislative level to provide a smooth business activity in practice and to establish a positive image in the international arena. At the same time, the business will enjoy its legal security.

We would like to remind you that the stimulation of the investment attractiveness of Ukraine as a whole and within the regions are the main priorities of the business for 2020 – as EBA mentioned earlier.

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