ARMA strengthens control over property transfer and asset accounting: implementation of the recommendations of the Accounting Chamber

The National Agency of Ukraine for the Identification, Tracing and Management of Assets Obtained from Corruption and Other Crimes (ARMA) has begun work on an inventory of court decisions that provide for the transfer of assets to it for management with the involvement of representatives of the Prosecutor General's Office, as well as the reflection in the accounting of all assets accepted by the Agency for management. These steps were taken to implement the recommendations of the Accounting Chamber, provided following the results of the audit of the compliance of the use of state budget funds and the management of ARMA assets. 

This audit revealed certain shortcomings in the Agency's activities in the period 2022-2023 and the first half of 2024, which impede the effective management of seized assets. In particular, it was established that ARMA, since its establishment, has not reflected in its accounting the assets transferred to it (except for monetary ones),and the Agency's management accounting does not contain complete and reliable information on the value and generalized characteristics of each asset, which casts doubt on the reliability of data on their assessment and preservation.

The auditors also established the imperfection of the existing mechanisms for selecting managers and appraisers of confiscated assets and the shortcomings of internal regulatory norms necessary for effective monitoring and control of assets.

In addition, the auditors emphasized the lack of regulation of the relationship between ARMA and the prosecutor's office and pre-trial investigation bodies in terms of the transfer and acceptance of assets. This was the reason for the non-execution of 80.3% of court decisions and the non-acceptance of assets worth over 39.4 billion hryvnias for management at the time of the audit.

To eliminate the identified shortcomings, ARMA implemented three of the ten recommendations provided, in particular:

– determined the mechanism and ensured the reflection (from December 2024) in the accounting of all assets accepted for management;

– improved regulatory documents and brought them into line with the requirements of the law, in particular in terms of the selection of asset appraisers on the eve of the auction;

– conducted a data reconciliation (full inventory) of all court decisions that provide for the transfer of assets to the management of ARMA, in order to ensure their full implementation, and also introduced a quarterly inventory.

The implementation of seven more recommendations of the Accounting Chamber has been started, but has not yet been completed.

The auditors emphasize that after the amendments to the legislation regulating the activities of ARMA come into force (from 07/30/2025),the implementation of all unimplemented measures will require taking into account the relevant provisions of the updated law.

The Accounting Chamber will continue to monitor the implementation of the recommendations and inform the public about this.

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