On February 10, partner Denys Bugay, as a leading expert in the banking sector, took part in a discussion panel on the criminal risks of shareholders and CEO of banks in the VII Legal Banking Forum.

He spoke about the key events and criminal proceedings of the past year and cited statistics from the Deposit Guarantee Fund: 5 692 applications were submitted; UAH 374 952 – the total amount of losses; 31 suspicions were served; 39 cases were sent to court.

Denys noted the growth of professionalism of law enforcement agencies in banking and the active work of specialized police units, Security Service of Ukraine, National Anti-Corruption Bureau.

The partner focused on the interests of law enforcement officers and who their target audience is. He noted that law enforcement officers have made significant progress in disclosing banking secrecy, seizing documents and evidence not only in Ukraine but also abroad.

Summing up the speech, Denys announced 5 effective tips that reduce the risks of criminal liability of banks:

1.  Strict observance of the formalities provided by the charter and internal regulations. If there were the slightest violations during the operation, law enforcement officers will consider them not in favor of management.

2.  Arrangement and legalization of meetings in absentia – when the decision is made by collegial bodies without face-to-face meetings. If the format of meetings in absentia is not provided by the acts of the bank – law enforcement officers will treat it as a gross violation.

3.  Exclusion of evaluation categories from methodological documents. If the term is not disclosed on its own, the investigator will give it the broadest meaning.

4.  Reaction to individual acts of the NBU is a must. Failure to comply with them will be interpreted as circumstances contributing to the commission of the offense.

5.  Special examination of the bank’s business processes. If you start prevention and elimination of potential problem, you have more chances to avoid the negative consequences.