The National Bank of Ukraine is taking new measures against money laundering through individual entrepreneurs. The updates aim to complicate the procedure for closing individual entrepreneurs to prevent their use for illegal purposes.
'There is a problem with the use of individual entrepreneurs' accounts as 'drop accounts' for illegal purposes, particularly for tax evasion,' the NBU document notes.
According to the National Bank, 'money mules' or 'drop individual entrepreneurs' open many bank accounts, transfer large amounts to them based on fictitious contracts, and quickly close down their activities, avoiding the attention of tax authorities.
New requirements for closing individual entrepreneurs
The National Bank recommends making changes to the 'Dii' system to verify the cash turnover and tax payments before closing an individual entrepreneur. The system will also automatically prepare a liquidation declaration, which will allow for the legal termination of entrepreneurial activity only after these requirements have been met.
These innovations affect all entrepreneurs, but they will not create significant obstacles for honest businesses. Moreover, tax consultancy offices are already operational in Ukraine to support businesses.
The National Bank of Ukraine is taking steps to prevent the use of individual entrepreneurs' accounts for money laundering and tax evasion by implementing new requirements for closing entrepreneurs and promoting the development of honest entrepreneurial activities.