**1. Essence of the Law:**
This order approves the procedure by which controlling (tax) authorities will monitor the activities of financial agents, including conducting surveys. The purpose of the monitoring is to identify financial institutions that do not comply with the requirements for automatic exchange of information on financial accounts (CRS), as well as to assess the risks of violations in this area. This is necessary to ensure Ukraine’s fulfillment of international obligations in the field of tax information exchange.
**2. Structure and Main Provisions:**
The order consists of four sections:
* **I. General Provisions:** Defines the objectives of the monitoring, terms, and sources of information to be used.
* **II. Monitoring of Registration as a RFI:** Describes the process of identifying organizations that should be registered as reportable financial institutions (RFI) but have not done so.
* **III. Monitoring of CRS Requirements Implementation:** Establishes the procedure for monitoring how RFIs comply with the requirements of legislation regarding due diligence of accounts and reporting.
* **IV. Surveys:** Regulates the procedure for conducting surveys of financial agents to obtain additional information.
**3. Important Provisions for Use:**
* Controlling authorities will use a wide range of information for monitoring, including data from reports, tax information, information from foreign competent authorities, and open sources.
* Surveys can be conducted both individually and for groups of financial agents, taking into account their industry specifics.
* The results of monitoring and surveys will be used to plan documentary audits of financial agents who have a high risk of violations.
. This order concerns tax legislation.
