Weekly analysis for 11 — 17 August

Ukraine’s Accession to the Single Euro Payments Area… Through Anti-Money Laundering Whistleblowers

Event

On 10 August, the Verkhovna Rada registered Draft Law № 15501 “On Amendments to the Code of Ukraine on Administrative Offences and the Criminal Code of Ukraine to Ensure Compliance with European Union Law and the Relevant Criteria Established by the European Payments Council for Ukraine’s Accession to the Single Euro Payments Area (SEPA)” (the “Draft Law”).

The Draft Law proposes, inter alia, the following amendments:

– to Article 41 of the Code of Ukraine on Administrative Offences (“Violation of Labour and Occupational Health and Safety Legislation”) by introducing administrative liability for retaliating, or threatening to retaliate, against an employee responsible for conducting financial monitoring within an obliged entity in connection with the employee’s submission of information pursuant to anti-money laundering legislation or reporting violations of legislation on the prevention and counteraction of money laundering;

– to Article 166-9 of the Code of Ukraine on Administrative Offences (“Violations of Legislation on the Prevention and Counteraction of Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction”) by introducing liability for the use of information concerning a whistleblower who reports violations of anti-money laundering legislation;

– to Article 172 of the Criminal Code of Ukraine (“Gross Violation of Labour Legislation”) by introducing liability for dismissing an employee responsible for conducting financial monitoring within an obliged entity in retaliation for submitting information pursuant to anti-money laundering legislation or reporting violations of legislation on the prevention and counteraction of money laundering.

CPLR’s position

Ukraine must fulfil a number of commitments to secure financial assistance from international partners, including under the EU’s Ukraine Facility, which provides for EUR 50 billion in EU support over 2024–2027. Among these commitments are meeting the conditions for Ukraine’s accession to the Single Euro Payments Area (SEPA) and ensuring that Ukraine’s financial monitoring framework is aligned with EU requirements.

SEPA is an integrated euro payments market covering 41 countries, including EU candidate countries. Five EU candidate countries — Albania, Moldova, North Macedonia, Serbia, and Montenegro — have already joined SEPA. Accession to SEPA will enable Ukrainian banks, businesses, and individuals to make euro transfers more quickly, securely, and at significantly lower cost than at present, directly contributing to the development of foreign trade, capital flows, investment, and financial inclusion.

The Draft Law is intended to bring Ukrainian legislation into line with the requirements of Directive (EU) 2015/849 of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC. Specifically, it addresses the requirements of:

– Article 38, which requires Member States to provide legal protection against threats, retaliation, or hostile action to persons, including employees and representatives of obliged entities, who report suspected money laundering or terrorist financing internally or to a financial intelligence unit. Such protection must cover adverse or discriminatory measures in the workplace; 

– Article 61, which requires protection mechanisms to include, at a minimum, appropriate protection for employees or individuals in a comparable position within obliged entities who report breaches committed within the obliged entity.

The Draft Law also incorporates the requirements of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law. The Directive adopts a broad definition of a whistleblower, covering any person who, during their professional activities, reports information concerning breaches of EU law in a range of key areas specified in the Directive, including the prevention of money laundering and terrorist financing. This is broader than the approach under current Ukrainian legislation, which limits the concept of a whistleblower primarily to persons reporting corruption-related violations.

At the same time, the Draft Law fails to account for the fact that the term “employee” used in Articles 41 of the Code of Ukraine on Administrative Offences and 172 of the Criminal Code does not cover a person with the legal status of a “service member”, who may be considered persons in a position comparable to that of an employee. Depending on their position, military personnel may likewise be responsible for conducting financial monitoring within an obliged entity and may be required to submit relevant information or report violations of anti-money laundering legislation.

The Draft Law is closely related to Draft Law № 14327-d, a 100-page bill that has been pending consideration by the Verkhovna Rada since 6 April 2026 and likewise seeks to bring Ukrainian legislation into line with EU law and the relevant criteria established by the European Payments Council as part of Ukraine’s accession to the Single Euro Payments Area (SEPA).