The Bureau of Economic Security (BEB), created in 2021, was supposed to become a powerful tool in the fight against economic crime. However, during two years of operation, it did not live up to expectations, showing low efficiency and numerous scandals. This became the reason for initiating the draft law No. 10439, aimed at restarting the work of the Bureau.
On June 20, 2024, the Verkhovna Rada adopted this draft law in the second reading and as a whole. If signed by the President, it is expected that it will significantly affect the work of the BEB and its interaction with business.
The main changes introduced by draft law No. 10439
Changes in the requirements and procedure for the election of the director of BEB
The competition will be held with the participation of 3 international experts, identified by international partners of Ukraine, and 3 members of the Public Council under the BEB. The term of office of the director of BEB is limited to 5 years with the possibility of one re-election.
The director of BEB is dismissed on the same grounds as the director of NABU. WITHand at the request of the President of Ukraine; at the request of the Cabinet of Ministers of Ukraine in accordance with the conclusion that he violated the requirements of the law; voluntarily.
The BEB budget will be approved by the Verkhovna Rada, but will not depend on the Cabinet of Ministers.
The activities of BEB will be strictly controlled by the Council of Public Control. The Public Control Council includes representatives of the public, business and expert circles. The Council of Public Control will have the right to conduct independent inspections of the BEB, make recommendations on its activities and contact law enforcement agencies in case of violations.
The requirements for candidates for the position of director of BEB have been significantly strengthened. The candidate must have at least 7 years of work experience in combating economic crime or combating corruption. The candidate must pass a special check, including an integrity check. The candidate must have knowledge of the Ukrainian and English languages.
Re-certification and renewal of personnel of the BEB
All BEB employees, except for the management team, must undergo re-certification within 6 months from the date of entry into force of this law. Re-certification will be carried out by a commission, which includes representatives of the BEB, international experts and members of the Public Council at the BEB.
Employees who do not pass re-certification are dismissed. New employees of BEB are selected on a competitive basis according to a transparent procedure.
At the same time, there are no assessment criteria during re-certification of BEB employees, the law does not directly regulate them, which carries the risks of passing certification by current employees, which clearly will not contribute to updating the composition of BEB. It is necessary to clearly define the evaluation criteria, the method of re-certification and ensure the transparency of this process.
Introduction of the Omudsman's Office at the BEB
According to the bill No. 10439, an ombudsman office will be established at the Bureau of Economic Security (BEB). Its purpose is to protect the rights and interests of business entities in their interaction with the BEB:
The ombudsman will have the right to consider the complaints of entrepreneurs about the actions or inaction of the BEB, which, in their opinion, violate their rights and legitimate interests. The ombudsman will be able to provide business entities consultations and recommendations on the protection of their rights in communication with BEB.
The ombudsman will have the right to monitor the activities of the BEB and identify possible violations of the rights and interests of entrepreneurs. The ombudsman will be able to address the BEB management with demands on the elimination of detected violations.
To do this, he will have access to information about the activities of the BEB, which does not constitute a state secret. The ombudsman will be able to publish reports on his work and provide recommendations for improving the work of the BEB.
The ombudsman at the BEB will be appointed by the Verkhovna Rada of Ukraine upon the proposal of the President of Ukraine. The term of office of the ombudsman will be 5 years.
List of bona fide taxpayers
A "white list" mechanism has been introduced for conscientious taxpayers. The purpose of the "white list" is to stimulate honest tax payment and reduce pressure on business. The "white list" will include taxpayers who have not violated tax legislation for 3 years. This includes timely payment of taxes, submission of reports on time, compliance with other requirements of tax legislation.
The taxpayer must not be involved in any dubious tax optimization schemes that aim to artificially reduce tax liabilities.
Business entities that are on the "white list" will be exempted from most routine inspections by the BEB.
According to the idea of the authors of the project, the "white list" will be a signal to other taxpayers that the state values honest business and will not put undue pressure on it.
The procedure for inclusion in the "white list". A business entity can submit an application to the BEB for inclusion in the "white list". BEB will verify the information provided by the applicant. Based on the results of the inspection, the BEB will decide whether or not to include the business entity in the "white list".
At the same time, the draft law does not clearly define the working mechanisms of the "white list". Perhaps they will be clarified later.
Conclusions
It is difficult to predict whether the work of the BEB will actually change, and how the newly elected detectives and the head of the BEB will act, after so many comments and public distrust of this law enforcement agency. We hope that thanks to these changes, BEB will become more efficient and impartial in its work, which will contribute to the improvement of the investment climate in Ukraine and business development.
The original article is published on the website Liga.Zakon.
