FAQ

• Who falls under the PEP category?

  Politically Exposed Persons (PEPs) are individuals who are national or foreign public officials, as well as officials who perform public functions in international organisations.
  
  

  National public officials are individuals who perform or have performed prominent public functions in Ukraine, namely: the President of Ukraine; the Prime Minister of Ukraine; members of the Cabinet of Ministers of Ukraine and their deputies; the head of a permanent auxiliary body established by the President of Ukraine and his/her deputies; the head and deputy heads of the State Management of Affairs; heads of the administrative offices (secretariats) of state authorities who are not civil servants and whose positions fall within Category “A”; the Secretary and Deputy Secretaries of the National Security and Defence Council of Ukraine; Members of Parliament of Ukraine; the Governor and members of the Board of the National Bank of Ukraine, and members of the Council of the National Bank of Ukraine; presidents/chairs and judges of the Constitutional Court of Ukraine, the Supreme Court and higher specialised courts; members of the High Council of Justice; members of the High Qualification Commission of Judges of Ukraine; members of the Qualification and Disciplinary Commission of Prosecutors; the Prosecutor General and his/her deputies; the Head of the Security Service of Ukraine and his/her deputies; the Director of the National Anti-Corruption Bureau of Ukraine and his/her deputies; the Director of the State Bureau of Investigation and his/her deputies; the Director of the Bureau of Economic Security of Ukraine and his/her deputies; the Chair and members of the National Council of Television and Radio Broadcasting of Ukraine; the Chair and members of the Antimonopoly Committee of Ukraine; the Head of the National Agency on Corruption Prevention and his/her deputies; the Chair and members of the Accounting Chamber; the Chair and members of the Central Election Commission, as well as chairs and members of other state collegial bodies; ambassadors extraordinary and plenipotentiary; the Chief of the General Staff – Commander-in-Chief of the Armed Forces of Ukraine, commanders of the Ground Forces, Air Force and Naval Forces of the Armed Forces of Ukraine; civil servants whose positions fall within Category “A”; heads of prosecution authorities; heads of regional offices of the Security Service of Ukraine; presidents/chairs and judges of courts of appeal; heads and members of administrative, management or supervisory bodies of state-owned and treasury enterprises, as well as business entities in which the state directly or indirectly holds more than 50% of the share capital; and members of the governing bodies of political parties.
  
  

  Foreign public officials are individuals who perform or have performed prominent public functions in foreign countries, namely: heads of state or government, ministers and their deputies; members of parliament or other bodies performing the functions of a state legislature; chairs and members of the governing boards of central banks or courts of auditors; members of supreme courts, constitutional courts or other judicial bodies whose decisions are not subject to appeal, except in exceptional circumstances; ambassadors extraordinary and plenipotentiary, chargés d’affaires and heads of central military authorities; heads and members of administrative, management or supervisory bodies of state-owned enterprises; and members of the governing bodies of political parties.
  
  

  Officials performing public functions in international organisations are officials of international organisations who hold or have held the position of head (director, chair of the board or equivalent) or deputy head of such organisations, or who perform or have performed any other senior management or prominent public functions at the highest level, including in international intergovernmental organisations, as well as members of international parliamentary assemblies and judges and senior officials of international courts.
  
  

  Family members of politically exposed persons include a spouse or persons equivalent to a spouse; a son, daughter, stepson, stepdaughter, adopted person, or a person under guardianship or trusteeship; a son-in-law or daughter-in-law and persons equivalent thereto; a father, mother, stepfather, stepmother, adoptive parents, guardians or trustees.
  
  

  Persons associated with politically exposed persons are individuals who meet at least one of the following criteria:

  • it is known that such persons have joint beneficial ownership of a legal entity, trust or other similar legal arrangement with a politically exposed person, or have any other close business relations with a politically exposed person;
  • they are the ultimate beneficial owners of a legal entity, trust or other similar legal arrangement that is known to have been established de facto for the benefit of a politically exposed person.

• What is considered a connection with a state that carries out armed aggression against Ukraine?

  NBU Resolution No. 26 dated 16 March 2023 defines the following list of connections with a state (the Russian Federation) that carries out armed aggression against Ukraine:

  • the client is a citizen of the aggressor state (except for citizens of such state who were granted the status of a combatant after 14 April 2014) and/or a person whose permanent place of residence (stay or registration) is the aggressor state (hereinafter – a citizen of the aggressor state); 
  • the client is a participant (shareholder) of a legal entity incorporated and registered in accordance with the laws of the aggressor state;
  • the client is a participant (shareholder) of legal entities jointly with a citizen of the aggressor state and/or legal entities incorporated and registered in accordance with the laws of the aggressor state;
  • the client has business relations with a citizen of the aggressor state and/or legal entities incorporated and registered in accordance with the laws of the aggressor state;
  • the client has business relations with a legal entity in which the aggressor state and/or a citizen of the aggressor state and/or a legal entity incorporated and registered in accordance with the laws of the aggressor state holds a participation interest (shareholding) of 10% or more in the authorised capital;
  • the client owns securities (other than shares) issued by legal entities incorporated and registered in accordance with the laws of the aggressor state (related parties) and/or by the aggressor state itself;
  • the client carries out financial transactions where the source of funds originates from the aggressor state;
  • the client directly and/or indirectly transfers (receives) assets to (from) Ukraine using depository institutions, banks, other financial institutions or non-bank payment service providers whose location and/or place of registration is in the aggressor state.

• Where can up-to-date information on the application of sanctions imposed by the National Security and Defense Council of Ukraine (NSDC) be found?

  Information sources on the application of sanctions to individuals and legal entities:

  • Official website of the President of Ukraine: https://www.president.gov.ua/documents/decrees
  • Official website of the National Security and Defense Council of Ukraine: https://www.rnbo.gov.ua/ua/Ukazy/

• Who is considered a U.S. tax resident?

  U.S. tax residents are U.S. citizens (whether they acquired citizenship by birth or through naturalization), regardless of whether they also hold citizenship of another country; individuals who hold a U.S. permanent residence permit (Green Card); and individuals who have been present in the United States for more than 31 days in the current year and for more than 183 days in total during the three preceding years (except for teachers, students and trainees who are or were temporarily present in the United States under “F”, “J”, “M” or “Q” visas). 

• What is independent professional activity?

  Independent professional activity means an individual’s engagement in scientific, literary, artistic, educational or teaching activities, as well as the professional activities of doctors, private notaries, attorneys, insolvency practitioners (asset managers, rehabilitation managers, liquidators), auditors, accountants, appraisers, engineers or architects, persons engaged in religious (missionary) activities, or other similar activities, provided that such person is neither an employee nor an individual entrepreneur and employs no more than four individuals.