Author: Oleksandr Fedoryshyn, Managing Partner at F&P
In 2024, the National Anti-Corruption Agency resumed full audits of declarations by declarants, which had been suspended since February 22, 2022.
First of all, it should be noted that during full audits, the NACP began using the “declaration risk rating indicator” – a numerical indicator of the degree of identified discrepancies (risks) in the declaration, which consists of the sum of the weighted coefficients of discrepancies (risks), calculated by the software of the Unified State Register of Declarations of Persons Authorized to Perform Functions of the State or Local Self-Government (hereinafter referred to as the Register) based on the results of logical and arithmetic control.
Logical and arithmetic control is carried out by the system (LAC software) of the NACP, which automatically checks the information specified in the declaration for compliance with the information displayed in the register. The more errors the system finds, the higher the declaration of the declarant will rank for a full audit. Therefore, to minimize risks, it is advisable to use the reference formed in the Register for filling out the declaration. Let’s analyze several risks that are often found in the subjects of declaration during full inspections.
- Open enforcement proceedings.
Having many years of experience in accompanying the process of full verification of declarations of declarants and protecting their interests in court and pre-trial proceedings, we can conclude that obtaining a conclusion from the NACP about the establishment of false information is almost 100% if the declarant did not provide information about an open enforcement proceeding, regardless of the status of the declarant in such enforcement proceeding (debtor or creditor).
In such a case, in order to prevent a person from being held liable due to excessive formalism, it is extremely important to prove the absence of an offense by the declarant.
Such a case became the first victory for the law firm Fedorishin and Partners in 2025, as on January 2, our company’s lawyers successfully defended the interests of a client in court, who was accused of committing a corrupt administrative offense due to the failure to provide information about an open enforcement proceeding.
- Information about the payment of fines for traffic rule violations.
If it has already happened that the National Agency has started a full verification of the declaration of the declarant, it should be taken into account that, in addition to data from: the Unified State Demographic Register, the State Register of Property Rights to Real Estate, the State Register of Civil Status Acts of Citizens, the Unified State Register, the State Land Cadastre, the Unified State Register of Vehicles, the State Ship Register of Ukraine, the Unified Register of Powers of Attorney, the Inheritance Register, etc., the NACP can gain access to the information and communication system “Information Portal of the National Police of Ukraine” (hereinafter – the IPNP system).
From the IPNP system, the NACP can obtain information about the payment of fines for traffic rule violations and information about traffic rule violations recorded automatically.
Yes, in the case of a declarant paying a fine for violating traffic rules on a vehicle that does not belong to them, several times during the reporting period, the NACP may conclude that the declarant used the vehicle.
- Information obtained during the special verification.
Although, a special verification is conducted for candidates for certain positions and is carried out to ensure the incompatibility of corrupt practices and public service and, as a result, the exclusion from positions of individuals who have assets not confirmed by legal income, who have submitted false documents for appointment, cooperate with the enemy, etc. That is, the special verification has a preventive function to prevent corruption risks.
However, the NACP uses information obtained during the special verification of the declarant to conduct a full verification of the declaration. Thus, if certain information is established during the special verification and is not reflected in the annual declaration (for example, property that is owned and/or used, termination of rights to objects, etc.), the National Agency may conclude that false information has been established during the full verification of the declaration.
- Property and assets abroad.
It is impossible to overlook the international cooperation of the National Agency, which it reports on its official resources. Yes, during a full verification of a declaration, the NACP can receive information from foreign bodies engaged in financial monitoring. In this regard, the National Agency can obtain information from international systems, such as the Egmont Group, which contains financial intelligence information from various countries.
At the same time, the NACP is expanding cooperation with international anti-corruption organizations, particularly GRECO and FATF. Such activities of the anti-corruption agency make it possible to obtain information about the property and assets of the declarant outside of Ukraine during a full verification of the declaration.
- Monitoring of lifestyle.
Additionally, the National Agency uses the results of lifestyle monitoring (LSM) during inspections.
LSM is carried out based on information obtained from individuals and legal entities, as well as from media and other open sources of information. A large amount of information may be used to obtain information about the declarant within the framework of conducting LSM, including from surveillance cameras, social media posts, hotel visits, and other places.
For reference, it is worth noting that the Procedure for the Implementation of Asset Declarations by Declarants currently complies with the requirements of the regulatory legal act, as it has been registered with the Ministry of Justice of Ukraine.
Yes, during the implementation of the LSM, the National Agency may, in particular, but not exclusively:
- Check the movement of vehicles and their location with other vehicles and individuals;
- Fix the systematic residence of the declarant at the address. For example, the declarant did not declare a person with whom they lived for 183 days or more during the reporting period. In turn, the NACP has confirmation from surveillance cameras placed as part of the implementation of the “Safe City” project or placed by other entities that the declarant systematically visited a certain address and stayed there for some time, for example, overnight. Establishing that the person with whom the declarant interacts resides at that address, the National Agency may conclude that the declarant concealed a person with whom they have shared responsibilities, shared household, and have mutual rights and obligations, and did not declare such a person during the reporting period. In this case, the NACP will apply paragraph b) part 1 article 1 of the Law of Ukraine “On Prevention of Corruption” (any persons who live together, are connected by a common household, have mutual rights and obligations with the subject specified in part one of article 3 of this Law (except for persons whose mutual rights and obligations do not have a family nature), including persons who live together but are not married).
- A similar method for documenting the joint presence of the declarant with another person within the framework of conducting an LSM can include the fixation of mobile devices in the same area, photos on social networks and location tags, purchased tickets for the same period in one direction, tickets purchased by one person for the benefit of another, crossing the border for entry and exit by individuals in the same or very close time period, the use of property by another person belonging to the declarant or their family members, etc.
