Financial Monitoring of PEPs, Minimum Wage, New Stage of Land Reform Has Began

The Procedure for Financial Monitoring of PEPs has been updated

On 02.01.2024, the Resolution of the NBU Board dated 29.12.2023 No. 198 came into force, which provides for changes to the financial monitoring of politically exposed persons (PEPs) by financial institutions.

The Resolution stipulates that institutions may decide to terminate monitoring and other measures in relation to persons if more than 12 months have passed since the termination of their PEP status and if the transactions of such persons are low risk.

In order to make a decision, institutions must analyze the financial transactions of the relevant politically exposed persons, their family members and persons related to them since the date of termination of the PEP status.

We would like to remind you that in case of refusal to conduct, establish business relations or conduct a financial transaction to a client who is a PEP, the institution is obliged to provide such a person with an explanation justifying the refusal, which is signed by the head of the financial institution.

Minimum Wage and Subsistence Level Increased in the New Year

On 01 January 2024, the Law of Ukraine “On the State Budget for 2024” came into force, which increased the subsistence minimum and the minimum wage.

Thus, the subsistence minimum per person per month is now UAH 2,920.00 (for able-bodied persons – UAH 3,028.00), and the minimum wage in the monthly

  • amount from 01 January 2024 – UAH 7,100.00;
  • from 01 April 2024 – UAH 8,000.00.

We would like to remind you that the amount of the Unified Social Tax (22%) is calculated on the minimum wage. Therefore, starting from 01 January 2024, the tax will increase to UAH 1,562.00.

New Stage of Land Reform Has Began

On 01 January 2024, the second stage of the land reform officially begins.

The main innovations in the land market are:

  • opening of the agricultural land market for legal entities;
  • only private land plots with a total area of no more than 10 thousand hectares may be purchased;
  • the ban on the purchase and sale of land for foreigners remains in force;
  • a ban on the sale of land in communal and state ownership;
  • individuals and legal entities may not own more than 10 thousand hectares;
  • the minimum purchase price of agricultural land should not be lower than the NMV (normative monetary value);
  • leaseholders retain the preemptive right to purchase land.

If you have any questions in the field of land ownership and real estate, please contact:

Serhiy Dzis
Partner at Sirota, Dzis, Melnyk and Partners Law Firm
s.dzis@sdm.partners
+38 (050) 356-87-38