Counsel of Spenser & Kauffman tells about top-priority measures to prevent the outflow of assets from Ukraine

To prevent the withdrawal of assets from Ukraine, the National Bank of Ukraine should timely respond to the schemes already identified within insolvent banks to preclude the use of such mechanisms by operating banks.

This was emphasized by Nickolas Likhachov, Counsel at Spenser & Kauffmann, Attorneys at Law in his commentary to the Hubs web portal, which analyzed the problem of the withdrawal of assets from the Ukrainian economy through the banking system.

“Additionally, attention should be paid to the NBU’’s institution of curatorship to enable controlling authorities to conduct a more profound analysis of the operations of banks coming under suspicion over their future activities,” highlighted N. Likhachov.

According to him, Ukraine should generally give a serious thought to the global trend of deoffshorization and join the initiative of the Organisation for Economic Co-operation and Development regarding the automatic exchange of information for tax purposes. These steps will not prevent possible risks of asset removal, but they will enable to easier track asset movement and take measures to prevent the same.

Besides, Mr. Likhachov believes that capital withdrawal reasons should be minimized to prevent the outflow of assets from Ukraine. Furthermore, the main step towards prevention of the same would be to optimize taxation: reduce the number of taxes, lower tax rates, and simplify tax payments.