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The International Monetary Fund believes that the draft law on lifelong financial monitoring proposed by the relevant committee contradicts previous agreements between Kyiv and the Fund, its resident representative Vahram Stepanyan told Interfax-Ukraine news agency.

The adoption of the financial monitoring law is an important structural benchmark of the IMF programme.

Last week, the Ukrainian parliamentary financial committee greenlighted the draft law with an amendment that would restore the indefinite status of politically exposed persons only after Ukraine’s becoming a member of the European Union.

The anti-money laundering and counter-terrorism financing regime (AML/CFT), Mr Stepanyan said, must comply with international standards.

"As the deadline for the implementation of this structural benchmark by the end of September has not been met, IMF experts are very much looking forward to the reform being adopted and implemented without delay," he added.

Politically exposed persons (PEPs) in Ukraine are people who hold or have held important public positions, such as presidents, prime ministers, ministers and their deputies, MPs, senior political figures, senior officials of the judiciary, law enforcement, justice, defence, the management of the National Bank, etc., their family members and related parties, including business partners.

Last November, the Verkhovna Rada passed a law cancelling lifetime financial monitoring for officials and politicians, replacing it with a three-year monitoring following their leaving office.

One of the IMF’s benchmarks for the new loan programme included amending the law on anti-money laundering and counter-terrorism financing "to introduce enhanced due diligence measures for politically exposed persons" in line with FATF standards, which provide for lifelong financial monitoring of PEPs.