Recent News

On May 15, a law was passed allowing the use of frozen russian assets. We are talking about the Government's proposed Law on Amendments to the International Sanctions Law and, in connection with this, other laws. In order to decide on the use of property as compensation for damage, the existence of damage and the need for compensation must be proven in accordance with international law. The injured foreign state must make a corresponding claim to the state that caused the damage. To begin proceedings in Estonia regarding the use of Estonian property, a corresponding request must be sent. Estonia and the applicant state must agree on terms and conditions for the use of property as an advance payment for compensation for damages, as well as conditions for transferring the right of claim to the owner of the property. The connection between the owner of the property and the unlawful act must be sufficiently proven. The decision to use property as an advance payment for damage caused is made by the Ministry of Foreign Affairs during administrative...

One of the main changes was changes in reporting. From now on, only reports sent by email will be accepted. It is also required to provide reporting on blocked property that is unblocked or transferred within 10 business days from the date of unblocking or transfer of property. Transactions that must be reported include those involving securities, checks, foreign exchange, and the sale or purchase of goods or services. If the information required by OFAC is not available at the time the transaction is rejected, providing that information is not...

The NBU adopted Resolution No. 56, which cancels some currency restrictions introduced in connection with martial law. Thus, currency restrictions on transfers for operations on the import of works and services have been abolished. It is also allowed to transfer funds abroad to repay loans received from non-residents until June 20, 2023, which, according to the terms of the loan agreement, are payable in the period from February 24, 2022. In addition, restrictions on repaying loans received from non-residents after June 20, 2023 have been eased. Namely: it is allowed to buy foreign currency to pay interest on "new" loans, and the minimum term of using a "new" loan, after which it is allowed to buy foreign currency to repay such a loan, is reduced from three to one year. It is also possible to repatriate dividends for corporate rights or shares abroad. Transfers by representative offices of international card payment systems and foreign airlines are allowed. It is allowed to buy foreign currency and transfer funds abroad to pay airport and port fees, fines and membership...

Canadian authorities have fined the world's largest cryptocurrency exchange 6.6 million Canadian dollars (4.4 million US dollars) for violating money laundering and terrorist financing laws. According to an analysis by the Financial Transactions and Reporting Center of Canada, Binance failed to report thousands of large virtual currency deals worth more than 10,000 Canadian dollars (~$7,310) per transaction thousands of times. In addition, the company was not registered as a foreign enterprise in the country. Also, Binance founder Changpeng Zhao was recently sentenced to 4 months in prison after pleading guilty to violating anti-money laundering...

The Estonian bank considers the decision to impose a fine of 300,000 euros unfair. This decision was made by the Estonian Financial Intelligence Unit after conducting an investigation into 3 episodes with settlements in 2022 and 2023. In two cases, the bank failed to implement strict due diligence measures, and in the third, it late notified a transaction that violated financial sanctions. The financial intelligence team is confident that these incidents were caused by bank negligence. Representatives of the bank, in turn, assure that they take compliance with the requirements during the audit very seriously and do not agree with the...

The Verkhovna Rada adopted an amendment to draft law No. 10168-2 regarding the abolition of fines for failure to submit reports on controlled foreign companies until the end of martial law. In addition, draft law No. 10168-2 was adopted in its entirety. It is aimed at minimizing tax evasion, in particular during the export of grain and oil crops. After 6 months from the entry into force of the draft law, it is assumed that only VAT payers will be able to export these groups of...

The Lithuanian government is actively discussing the possibility of increasing taxes for citizens in order to increase funding for the defense sector. Thus, corporate tax could increase from 15% to 16%. VAT rates may rise from 21% to 22%. Progressive income tax rates may be revised and some benefits removed. In addition, the rate for small companies may increase from 5% to 10% in order to place all businesses in fairer conditions. At the moment, all proposals are at the discussion stage and require detailed...

Remote workers from 38 countries can get special visas. Applicants must be between the ages of 21 and 55 with a college degree. Monthly income requirements are $3,000. To obtain a visa, you need to provide a diploma, an international passport, a contract or an employment contract with the company where the employee is employed (these cannot be Turkish companies), a photo and a document confirming a monthly income of $3,000 or an annual income of $36,000. The first stage of application is carried out using a special online service. After fulfilling all the requirements and receiving the "Digital Nomad Identification Certificate", the applicant can apply for a visa at the consulate or visa center. Nomads can stay in Turkey for one year with the possibility of...

The corresponding bill is already in the Verkhovna Rada, its ratification is expected. Prior to this, on February 19, 2024, during the Japanese-Ukrainian Conference on Economic Growth and Reconstruction, the Minister of Finance of Ukraine Sergei Marchenko signed the Convention between the Governments of the countries. This Convention is designed to improve partnerships between countries, as well as facilitate the process of economic cooperation. The convention regulates the rules of taxation, royalties, interest and dividends between countries. Tax rates on some income may be 5 or 10 percent, which may be beneficial for developing investment relationships. In addition, the Convention establishes rules for the exchange of tax information between...