Weekly analysis for 21 — 27 Jule

Ukraine’s New Anti-Corruption Commitments Under the IMF Memorandum

Event

Ukraine has received a second tranche of USD 690 million under the International Monetary Fund (IMF) financing programme. This became possible following the approval of an updated Memorandum of cooperation with the IMF. The Memorandum reaffirms Ukraine’s commitment to advancing anti-corruption reforms and includes several new measures, notably:

– safeguarding the independence and institutional capacity of the National Anti-Corruption Bureau of Ukraine (NABU), the Specialized Anti-Corruption Prosecutor’s Office (SAPO), and the High Anti-Corruption Court (HACC);

– updating (or adopting) regulations of the National Agency on Corruption Prevention (NACP) aimed at strengthening the asset-declaration verification system for high-level public officials;

– introducing semi-annual public reporting by the NACP on the effectiveness of asset declaration verification and lifestyle monitoring;

– conducting an independent external audit of the NACP;

– reforming the forensic examination system to ensure its independence, quality, and effectiveness in criminal proceedings investigated by NABU;

– introducing financial sanctions for legal entities that violate anti-money laundering (AML) and counter-terrorist financing (CTF) requirements;

– strengthening the liability of beneficial owners for breaches of AML/CTF legislation;

– ensuring effective cooperation among the State Financial Monitoring Service, tax authorities, and law enforcement agencies in detecting and investigating financial crime.

CPLR’s assesment 

CPLR has previously mentioned that, compared to earlier IMF programmes, the current programme lacks sufficient ambition in the area of anti-corruption reform. The updated Memorandum reinforces this assessment.

Notably, the programme currently contains only one anti-corruption structural benchmark: the revision (adoption) of NACP regulations aimed at prioritizing and strengthening the verification of asset declarations submitted by high-level public officials. This benchmark was initially due by the end of June 2026, but the deadline has since been extended to September 2026 (paragraph 63 of the Memorandum). It should be noted that failure to implement a structural benchmark, or to do so within the prescribed timeframe, may result in the postponement or suspension of IMF financing. Although the other anti-corruption commitments are also expected to be fulfilled, their non-compliance does not entail comparable consequences.

Furthermore, the previous IMF programme included a permanent structural benchmark aimed at addressing deficiencies in the regulation of pre-trial investigation time limits and the closure of criminal proceedings following their expiry. However, the updated programme no longer contains such a commitment.

Beyond the single anti-corruption structural benchmark, the updated Memorandum also sets out a number of implementation deadlines in anti-corruption area, including:

1) appointment of a deputy head of SAPO – by December 2026 (paragraph 62 of the Memorandum);

2) approval by the Cabinet of Ministers of updated criteria and methodology for assessing the performance of the NACP – by July 2026 (paragraph 63); 

3) preparation of legislative amendments on forensic examinations – by September 2026 (paragraph 64), which should:

– strengthen the independence of the Scientific and Research Centre for Independent Forensic Examinations, including by establishing an oversight body responsible for the transparent selection of the Centre’s leadership and for protecting it from undue interference;

– ensure NABU’s timely access to forensic examinations conducted by the Centre, generally within two months;

– expand opportunities for engaging private forensic experts by limiting the exclusive jurisdiction of state forensic institutions;

4) adoption of the Law aimed at introducing financial sanctions for legal entities that violate anti-money laundering and counter-terrorist financing requirements – by March 2027 (paragraph 65).

5) adoption of the Law aimed at strengthening the liability of beneficial owners for violations of anti-money laundering and counter-terrorist financing legislation – by December 2026 (paragraph 66).

6) ensuring effective cooperation among the State Financial Monitoring Service, tax authorities, and law enforcement agencies – by March 2027 (paragraph 67).