Rada exempts churches from mandatory disclosure of beneficial owners
By amendments, religious organizations were added to the list of legal entities exempt from the requirements of Article 5-1 about ultimate beneficial owners and ownership structure.
On August 20, 2024, the Verkhovna Rada of Ukraine made amendments to Section II "Final and Transitional Provisions" of the Law of Ukraine "On the Protection of the Constitutional Order in the Activities of Religious Organizations", according to the IRS publication.
The amendments concerned the eighth part of Article 5-1 of the Law of Ukraine "On Preventing and Combating the Legalization (Laundering) of Proceeds from Crime, Financing Terrorism, and Financing the Proliferation of Weapons of Mass Destruction". As a result of these amendments, religious organizations were added to the list of legal entities exempt from the requirements of Article 5-1 regarding the provision of information about ultimate beneficial owners and ownership structure.
Previously, on September 6, 2022, the Verkhovna Rada of Ukraine had amended this law, requiring religious organizations to disclose information about ultimate beneficial owners and ownership structures, which created significant difficulties in their operations. This issue was repeatedly raised by the All-Ukrainian Council of Churches and Religious Organizations in meetings with government and parliamentary representatives.
To address this problem, last year, MPs Mariyan Zablotskyy and Yuriy Kamelychuk proposed a legislative initiative to exempt religious organizations from this requirement. The changes now relieve religious organizations from unnecessary bureaucratic procedures, facilitating more effective operations of churches and religious organizations in Ukrainian society.
It will be reminded that on August 20, 2024, the Verkhovna Rada of Ukraine also adopted the Law of Ukraine "On the Protection of the Constitutional Order in the Activities of Religious Organizations".
