Ukraine plans to increase fines for financial violations several times over

The Cabinet of Ministers has approved a bill that increases administrative fines for violating financial legislation and extends the statute of limitations to one year.

The government endorsed a draft law developed by the Ministry of Finance to strengthen liability for violations of financial legislation.

The document proposes amendments to Articles 38 and 164 of the Code of Ukraine on Administrative Offenses.

Current fines for such violations are as follows:

• for a first violation — from 136 to 255 hryvnias, or 8–15 non-taxable minimum incomes of citizens;
• for a repeat violation within one year — from 170 to 340 hryvnias, or 10–20 non-taxable minimum incomes.

If the bill is adopted, fines will rise to:

• for a first violation — up to 850–1190 hryvnias, or 50–70 non-taxable minimum incomes;
• for a repeat violation within one year — up to 1020–1360 hryvnias, or 60–80 non-taxable minimum incomes.

For administrative fine calculations, one non-taxable minimum income of citizens equals 17 hryvnias.

The bill also sets a separate statute of limitation for administrative liability regarding financial offenses — up to one year from the date of commission.

The Ministry of Finance explained that the existing time limits are often insufficient. Violations may only be detected during state financial control measures, when the period for imposing sanctions is already expiring. As a result, those responsible escape accountability.

The fines under Article 164 of the Code of Ukraine on Administrative Offenses have not been revised since 1996. The ministry believes they no longer ensure proper financial discipline or deter repeat violations.

This is a resubmission of a bill that was previously registered under number 15043. The earlier document was withdrawn following the termination of the previous Cabinet of Ministers’ mandate.

The new fines and the one-year liability period are not yet in effect. After being submitted to the Verkhovna Rada, the bill must be passed by parliament and signed by the president.

Based on materials from: Ministry of Finance of Ukraine