Legislative Reforms for Asset Management in Ukraine
On July 27, President Volodymyr Zelensky signed bill 12374-d, which introduces amendments to several laws in Ukraine to enhance the institutional capacity of the National Agency for Detection, Investigation, and Management of Assets Obtained from Corruption and Other Crimes.
The corresponding bill No. 4503-IX has been returned to parliament with the president's signature, and the document is available on the Rada's website.
As previously reported, on February 12, the Verkhovna Rada of Ukraine supported the bill No. 12374-d in its first reading, which aims to eliminate gaps and corruption risks in the legislation governing the activities of the National Agency for Asset Recovery and Management (ARMA).
According to the explanatory note to the document, the purpose of its adoption is to create conditions for economically efficient and corruption-resistant management of seized assets and to correct existing institutional shortcomings that hinder ARMA from effectively performing its functions.
According to a decision by the Audit Chamber dated December 25, 2024, the results of ARMA's activities do not fully meet the expectations for implementing transparent and effective mechanisms for formulating and executing state policy in asset management.
Members of parliament propose to introduce a mechanism for involving professional managers, including arbitration managers and private executors, in asset management. There is also a proposal to automate the system for determining asset managers.
Furthermore, it is proposed to transfer to ARMA the management of assets whose value exceeds a threshold (more than 200 minimum wages for able-bodied individuals) and for which management is economically justified.
Among other things, the bill proposes to establish a transparent selection procedure for the head of ARMA and to initiate an independent external evaluation of the institution's effectiveness.
