The State Fiscal Service will operate for another six months after the launch of the Bureau of Economic Security

24/ 02/ 2021

This was announced to the business community during the EBA meeting with Vadym Melnyk, Head of the State Fiscal Service of Ukraine, on February 23. A question has arisen regarding the functioning of the SFS in connection with the adoption of the draft law №3087-d on the Bureau of Economic Security of Ukraine (BES). The newly created BES authority should start its work within six months after the relevant draft law is signed. Thus, during the first two months, there will be a transfer of procedural powers from the State Fiscal Service to the BES by the decision of the prosecutors office. Therefore, it is planned that during the six-month transition period, the SFS will continue its activities related to the investigation of economic crimes. Besides, in the first six months of its establishment, the Bureau must recruit at least 30% of its staff. According to Mr. Melnyk, the appointment of new staff should be on a competitive basis. During the six-month period, the BES also needs to organize premises, equipment, and infrastructure to start the full-scale operation. Mr. Melnyk also stated that the economic security functions will be distributed among law enforcement agencies in accordance with the Criminal Procedure Code of Ukraine. According to the community, there is a risk that during a certain period, several authorities will be able to exert pressure on business simultaneously, namely the BES, the SFS, the SBU, and the national police. Meanwhile, the SFS is actively reorganizing its work. Thus, as a part of the anti-corruption campaign, the State Fiscal Service of Ukraine has changed 70% of the management staff in its regional offices. The business community also drew the Services attention to the problems of the shadow economy. In turn, Mr. Melnyk reported on key successes in this direction achieved over the past two months. Thus, 97 criminal proceedings were initiated against sellers of contraband products, and the activities of 15 unscrupulous distilleries and 4 tobacco factories were shut down. Also, there was a confiscation of alcohol worth UAH 48.6 million, alcoholic beverages worth UAH 18.4 million, tobacco products worth UAH 53.3 million, and fuel and lubricants worth UAH 87.9 million. The Head of the Service stressed that systematic actions in the fight against smuggling should be continued with regard to both excisable and non-excisable goods, such as coffee and consumer electronics. On behalf of the European Business Association, we thank the State Fiscal Service of Ukraine for its openness to dialogue and willingness to share relevant information with the business. Regardless of the development of the situation with BES, the community will hope for the quality work of law enforcement agencies in the fight against dishonest practices and economic crimes that hinder the work of legitimate business. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

This was announced to the business community during the EBA meeting with Vadym Melnyk, Head of the State Fiscal Service of Ukraine, on February 23.

A question has arisen regarding the functioning of the SFS in connection with the adoption of the draft law №3087-d on the Bureau of Economic Security of Ukraine (BES). The newly created BES authority should start its work within six months after the relevant draft law is signed. Thus, during the first two months, there will be a transfer of procedural powers from the State Fiscal Service to the BES by the decision of the prosecutor’s office. Therefore, it is planned that during the six-month transition period, the SFS will continue its activities related to the investigation of economic crimes.

Besides, in the first six months of its establishment, the Bureau must recruit at least 30% of its staff. According to Mr. Melnyk, the appointment of new staff should be on a competitive basis. During the six-month period, the BES also needs to organize premises, equipment, and infrastructure to start the full-scale operation.

Mr. Melnyk also stated that the economic security functions will be distributed among law enforcement agencies in accordance with the Criminal Procedure Code of Ukraine. According to the community, there is a risk that during a certain period, several authorities will be able to exert pressure on business simultaneously, namely the BES, the SFS, the SBU, and the national police.

Meanwhile, the SFS is actively reorganizing its work. Thus, as a part of the anti-corruption campaign, the State Fiscal Service of Ukraine has changed 70% of the management staff in its regional offices.

The business community also drew the Service’s attention to the problems of the shadow economy. In turn, Mr. Melnyk reported on key successes in this direction achieved over the past two months. Thus, 97 criminal proceedings were initiated against sellers of contraband products, and the activities of 15 unscrupulous distilleries and 4 tobacco factories were shut down. Also, there was a confiscation of alcohol worth UAH 48.6 million, alcoholic beverages worth UAH 18.4 million, tobacco products worth UAH 53.3 million, and fuel and lubricants worth UAH 87.9 million. The Head of the Service stressed that systematic actions in the fight against smuggling should be continued with regard to both excisable and non-excisable goods, such as coffee and consumer electronics.

On behalf of the European Business Association, we thank the State Fiscal Service of Ukraine for its openness to dialogue and willingness to share relevant information with the business. Regardless of the development of the situation with BES, the community will hope for the quality work of law enforcement agencies in the fight against dishonest practices and economic crimes that hinder the work of legitimate business.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.