The Experience of Countries of Eastern and Western Legal Traditions (Universal Theoretical Framework for Relevant Anti-Corruption Law of Ukraine)

TalTech Law School (Tallinn, Estonia) Faculty of Law Zaporizhzhia National University (Zaporizhzhia, Ukraine) Academic and Research Laboratory of Service Law of the National Academy of Legal Sciences

of Ukraine (Zaporizhzhia, Ukraine) Center for Ukrainian and European Scientific Cooperation (Uzhhorod, Ukraine)

THE INSTITUTIONALISATION OF PUBLIC RELATIONS IN THE FIGHT AGAINST CORRUPTION: THE EXPERIENCE OF COUNTRIES OF EASTERN AND WESTERN LEGAL TRADITIONS (UNIVERSAL THEORETICAL FRAMEWORK FOR RELEVANT ANTI-CORRUPTION LAW OF UKRAINE)

Volume 2

Collective monograph

PJ4\17 0117U007203 CORRUPTION PREVENTION ACT OF UKRAINE: scientific and methodological justification of ensuring the effectiveness and efficiency of provisions implementation

Tallinn, Estonia 2019

EDITORIAL BOARD

Vlad Vernygora – L.L.M., BA (Hons), MA, Lecturer at the Department of Law of the School of Business and Governance, TalTech. Tatiana Kolomoiets – Doctor of Law, Professor, Corresponding Member of the National Academy of Legal Sciences of Ukraine, Honored Lawyer of Ukraine, Dean of the Law Faculty of Zaporizhzhia National University. Dmytro Luchenko – Doctor of Law, Associate Professor, Senior Lecturer at the Department of Administrative Law of Yaroslav Mudryi National Law University, Head of the European Center for Rule of Law. Mykhailo Vikhliaiev – Doctor of Law, Associate Professor, Member of the Executive Board of the Center for Ukrainian and European Scientific Cooperation.

The institutionalisation of public relations in the fight against corruption: the experience of countries of Eastern and Western legal traditions (universal theoretical framework for relevant anti-corruption law of Ukraine) : Collective monograph. Volume 2. Tallinn: Izdevniecība “Baltija Publishing”, 2019. 448 p.

ISBN 978-9934-588-04-4 © TalTech Law School, 2019

CONTENTS

Legal interrelation of public interests satisfaction and norms of integrity for public authorities Makarenkov O. L...... 5 Legal regulation of political impartiality of the civil service in Ukraine Matyukhina N. P., Fedchyshyn S. A...... 25 Corruption risks in police activity and ways of their removal: requirements of national legislation and foreign practice Myroniuk R. V., Myroniuk S. A...... 46 Corruption prevention laws of the US government and the state of California Munisoglu Elizabeth ...... 63 The national anti-corruption policy in the context of transformation of public administration in Ukraine Novak A. M., Bashtannyk V. V...... 72 Concept, types and methods of settlement of conflicts of interests in public administration activity Pastukh I. D...... 87 Social and legal aspects as a factor with regard to the reduction of corruption in the agrarian sector of Ukraine Piddubna D. S...... 116 Lustration as one of factors of the fight against corruption: national and international practice Podorozhna T. S., Barabash O. O...... 149 Definition of corrupt crimes and practice of application of some articles of Criminal Code of Ukraine in corruption counteraction Politova A. S., Akimov M. O...... 168 Peculiarities of anti-corruption policy and competence of anti-corruption authorities in Ukraine Popova L. M., Popova S. M., Kraіnуk Н. S...... 188 Public figure as a key sector of corruption risks and risks of corruption income laundering Protsiuk T. B., Skrynkovskyy R. M...... 210 Ideology of political parties in Ukraine: populism, corruption or “national idea”? Rogova O. H...... 233 iii Public confidence as a systemic anti-corruption element in Ukraine Rozhnova V. V., Savytskyi D. O...... 252 Mythical nature of illicit enrichment and its prospects in Ukraine: if it is not permitted, but there is a strong desire, then is it allowable? Rubashchenko M. A...... 270 Limitation of getting gifts: problems of contents of the concept and terminological apparatus in the context of lawrealization and the role of administrative law principles for their decision Syniavska O. Yu., Ivantsov V. O...... 290 Corruption as a social and legal phenomena and normative notion: problems of definition Sikorskyi O. P., Sandiuk H. O...... 307 “Provocation of bribery” article 370 of criminal code of Ukraine: case-law analysis Stepanenko A. S., Stepanenko O. V...... 322 The prevention of corruption as a guarantee for the ensuring of the constitutional right of human to the secret of correspondence in Ukraine Cherevko M. O., Khaliuk S. O...... 342 Corruption: social and legal problem of society Chyzhov D. A...... 365 International experience of counteracting corruption in the police Chumak V. V., Khan O. O...... 386 Conflict of interests in the public services in Ukraine: administrative and legal regulation and problems of realization Shevchuk O. M...... 405 Financial and legal aspects of counteracting corruption and money laundering in the world and Ukraine Sheremetieva O. Yu...... 428

iv LEGAL INTERRELATION OF PUBLIC INTERESTS SATISFACTION AND NORMS OF INTEGRITY FOR PUBLIC AUTHORITIES

Makarenkov O. L.

INTRODUCTION The main goal of modern civilizational progress remains the free and effective exercise of human rights and freedoms by man1. Therefore, a positive tendency for the development of the legal system is to guarantee human rights and establish a civilized parity between the interests of the individual and the state2, minimizing opportunities for counterproductive deployment of tensions and conflicts between them when the interests of the community, the individual, and the interests of the people, and even more so of the state, do not overlap and require skill in finding acceptable points of contact for a range of issues and common options among all concerned. decisions on this basis3, aimed, as a result, at ensuring general well-being. For example, Ukraine ranks 111th out of 149 countries surveyed for the 2018 Prosperity Index. Djibouti (112th) and Malawi (110th), as well as Laos (113th) and Bangladesh (109th), ranked next to Ukraine in the consolidated ranking4. Integrity in such relationships is the basis for political, economic, legal communication at a level appropriate to the level of development of civilization where this communication takes place. Integrity in Ukraine and several other states is currently being asserted through counteraction to bribery, non-legal (not legal) enrichment and other forms of corruption. The boundary of such counteraction coincides with the boundary of high-spirited social interaction and sustainable dynamic development of society. In this regard, an important legal instrument was the institute of restriction of persons authorized to perform functions of the state and local self-government in obtaining unofficial (not legal) benefits (funds), namely: regulation of relations in the sphere of gifts to officials, concurrence / combination of work (positions ), work with close persons, restrictions upon termination of service in public authorities, etc.

1 Полешко А. Напрями реформування адміністративного права (за матеріалами Другої національної науково-теоретичної конференції). Право України. 2000. № 8. С. 35. 2 Кампо В., Нижник Н., Шльоер Б. Становлення нового адміністративного права України : науково-популярний нарис. Київ : Юридична книга, 2000. 5 с. 3 Сушинський О. Публічна влада та місцеве самоврядування: концептуальні аспекти. Матеріали Міжнародної науково-практичної конференції, Золочів – Львів, 27–28 травня 2000 р. Львів : Державність, 2000. С. 27. 4 The legatum prosperity index 2018 Key Findings: Prosperity is growing, but not equally. URL: https://www.prosperity.com/. 5 An adequately lively response to the solution of this multidimensional problem is found in legal doctrine. In particular, M. Bakay examined the implementation of the provisions of the Anti-Corruption Conventions in domestic criminal legislation (2009), K. Berdnikov – administrative responsibility for violation of the established prohibitions and restrictions in the field of corruption prevention in Ukraine (2016), D. Garbazy – International Legal Basis for Combating Corruption (2016), Y. Pylyp – Institutional Guarantees for Ensuring the Rights and Freedoms of Citizens in the Prevention and Suppression of Corruption. V. Averyanov, Yu. Bytyak, N. Berlach, A. Boyko, S. Boston, S. Gusarev, O. Dudorov are known for their detailed investigations of this problem. M. Kozyubra, T. Kolomoets, A. Komzyuk, V. Kolpakov, M. Melnyk, E. Nevmerzhitsky, S. Stetsenko, O. Tikhomirov, M. Khavroniuk, N. Yanyuk and other representatives of all law schools of Ukraine. However, the disturbed aspect of the problem has remained insufficiently disclosed and therefore relevant for research within our work.

1. Correlations between anthropic and public interests in the open society anti-corruption system Personal interests are a system of correlation of personal and social. For example, an ideological person is another lifestyle, carried by another moral ideal. Instead of being trapped in family selfishness, we are here to serve the community first. In general, without an ideological person, society would not exist5. The personal interests of people express their specific, individual place in the system of social relations, their need to develop and improve their personal qualities, their individuality. They become public interests insofar as they reflect the common living conditions of people, their sociality. For example, representatives of one social group can observe, along with specific individual traits, common homogeneous social characteristics6. Each person’s personal interest is to meet his or her needs. Unlike interests, needs are objective and conditioned by the laws of nature, which man does not change. At the same time, knowing the need and their totality is a key task for everyone. Such an understanding becomes correct when the satisfaction of the needs determines the functioning, reproduction and development of the person, in accordance with only his inherent traits, specifically the historical and civilizational conditions of his life in society. At the same time, anthropic activity requires quantitative assessments and qualitative characteristics using the categories “maximum”, “effective”. Of course, the diverse nature of humans and their social communities / groups (families, labor collectives,

5 Шлемкевич М. Загублена українська людина. Київ : МП «Фенікс», 1992. 72 с. 6 Радченко Л. Політичні інтереси: поняття, функції, типологія. Держава і право. 2012. Вип. 56. С. 602. 6 territorial communities, ethnic groups, nations, their associations) constitutes movement of different tempo and quality, which can be determined in the presence of a scale to reflect the correspondence of real objects (actions), its element (tick). For example, some officials act slowly and efficiently or slowly and poorly, while others do the opposite. The proper comparison (Latin comparatio) of one with another subject / object of the same order and makes it possible to determine their quality (better / lower; high / medium / low; etc.), as well as features. The ontology of our estimates lies precisely in the ability to map one to the other by the given parameters. As the scientific literature rightly points out, the evaluation of civil servants’ activities, including in Ukraine, is one of those human resource management procedures that has significant potential for influencing human resources management in general, its nature, including its effectiveness and efficiency transparency, as well as working conditions, fairness towards employees through the use of the same approaches and criteria7. In this connection, it seems fair that the success of the country’s modernization involves, among other things, strengthening the guarantees of the labor rights of citizens, which, in turn, depends on a clear vision of the prospects for the development of the state and society, the availability of a strategic long-term plan for the country’s development, publicity of such process and from the will, decency, knowledge, and experience of those responsible for such reforms8. The institute for verifying the fidelity of approved norms of law to the criterion of decency of its intentions for its further effective application becomes legal and expressed in the decisions of the European Court of Human Rights, because the law is a valid provision, taking into account the practice of its interpretation by competent courts9 and sometimes the certainty of a “law” can only be achieved if it is interpreted by the court10, which in fact represents a dynamic tendency in the interpretation of law11. Judicial interpretation and all other elements of judicial enforcement in relation to ensuring the integrity of public authority are suitable (due to the high spirituality of judges) to determine the content of restrictions for persons authorized to perform state and local government functions, in particular by

7 Кузьмін О., Мельник О. Теоретичні та прикладні засади менеджменту : навчальний посібник. Львів : НУ «Львівська політехніка», 2002. 117 с. 8 Коваленко В. Система фахової освіти потребує докорінного реформування. Юридичний вісник України. 2011. № 48. С. 6. 9 Малярчук Т. Понятійний апарат кримінально-процесуального права України : автореф. дис. ... канд. юрид. наук: 12.00.09. Київ, 2011. 4 с. 10 Хім’як Ю. Оціночні кримінально-правові поняття та вимога визначеності закону у рішеннях Європейського суду з прав людини. Вісник Національної академії прокуратури України. 2011. № 2. С. 69. 11 Загальна теорія держави і права : підручник / М. Цвік та ін. ; за ред. М. Цвіка, О. Петришина. Харків : Право, 2010. С. 422–423. 7 comparing the performance of such persons by factors that historically, lawyers have been found to be corrupt, namely: the influence of gifts, job matching and reconciliation, the work of loved ones, and others. Empirical data from the study of the work of officials working under the same conditions reveal different results because of their individual traits, including those that intersect with socially acceptable (altruistic, material, etc.) and corruption motivation, that is, the motivating cause of activity. Motivation is based on the categories of need and interest (feeling physiological or psychological lack of something), as well as rewards (what a person considers valuable for themselves)12. The study and evaluation of the work of persons authorized to perform the functions of the state and local self-government are the essence of the phenomenon of attestation of these persons – an instrument of state personnel policy in the direction of preventing and combating offenses and corruption in the civil service system13, justice, parliamentarism and local self-government. Relying on a person’s internal motives for professional activity related to satisfying his or her needs and interests, lawyers formulate the rules for attestation of persons authorized to perform the functions of the state and local self-government, both at the stage of their employment and during the exercise of their powers, according to the law. Examples of such procedures in Ukraine are the regulations on the procedure for conducting a competition for the vacant position of the civil service (Articles 22–30 of the Law of Ukraine “On State Service” of 10.12.2015 № 889–VIII), the procedure for holding the position of a judge of the highest anti-corruption court (Articles 7–9 of the Law of Ukraine “On the Supreme Anticorruption Court” dated 07.06.2018 № 2447–VIII) etc. Due to these procedures, the selection of persons, theoretically, by the design of those lawyers who developed them, suitable for work for the benefit of the nation is achieved. To current legislative models, public-law officials collectively identify, understand, and achieve, within their authority, what the nation needs. The realism of full- fledged public interest from Latin publicus, of course, does not rely solely on these procedures, but it is necessary to be supplemented by a number of other institutions for the performance of functions of the state, including territorial communities (reflecting in the framework of the theory of municipal dualism and state theory of local self-government). Public interests are governed by relevant areas of law. In them they are expressed not as a private will, but a

12 Кузьмін О., Мельник О. Теоретичні та прикладні засади менеджменту : навчальний посібник. Львів : НУ «Львівська політехніка», 2002. С. 9. 13 Шатун В. Оцінювання та атестація державних службовців у руслі європейського і світового тренду. Наукові праці. Державне управління. Вип. 223. Т. 235. 2002. С. 119. 8 direct will of society. It is reflected in the legislation and implemented in the interests of the subordinate (people – the majority with the utmost consideration of the interests of the minority; the nation) organizations (public authorities) and the sole entities that embody it, empowered by the subordinate to normalize social relations and the realization of social relations, other social functions14. Public interests are a reflection of the right to the harmonized and balanced interests of the state, the whole of society, a large part of it, including territorial communities, social groups, especially the most vulnerable and vulnerable, in need of state support15. The greatest challenge to the virtue of public authority arises when property (financial) temptations, usually offered by entrepreneurs to achieve their private profit goals, become great. At the same time, entrepreneurs who do not deal with public authorities with their own corruption issues often find that businesses perceive significant corruption in the distribution of public funds, and find the judiciary unable to do so. The corruption factor, therefore, impairs the country’s ability to erupt. According to the aforementioned rating, in Ukraine, for example, the situation in the sphere of education (31st) is the best compared to other countries. The worst performance in public administration (121st position). It should be noted that in the rating of the Prosperity Index, Ukraine is significantly inferior not only to all EU member states, but also to Moldova – a country with objectively poorer economic development potential16. The Institute of Restrictions on the Rights of the Person, Authorized to Perform the Functions of the State and Local Self-Government, is an important element of the mechanism of work of the state apparatus aimed at meeting the needs and interests of each and every one – the satisfaction of public interests. Over time, it became clear that the required level of self- restraint of officials is an ideal, not a reality. No less than legal naivety and idealism is perceived indifference to gifts, counterfeits, loved ones, use of official powers by persons of public-legal sphere of life. The desire and the temptation to get more of a normal phenomenon, in essence, requires a framework for relationships in that field. Quantitative and qualitative (sometimes evaluative) criteria, the most complete or exhaustive set of features (elements), and a number of other legal and technical instruments are

14 Науково-практичний коментар Закону України «Про запобігання корупції» / Т. Коломоєць та ін. ; за заг. ред. Т. Коломоєць, В. Колпакова. Запоріжжя : Видавничий дім «Гельветика», 2019. 21 с. 15 Вінник О. Теоретичні аспекти правового забезпечення реалізації публічних і приватних інтересів в господарських товариствах : дис. ... докт. юрид. наук: 12.00.04. Київ, 2004. 7 с. 16 Демидюк О. Ефективність функціонування та розвитку сучасних економічних систем : автореф. дис. … канд. екон. наук: 08.00.01. Київ, 2017. С. 138–139. 9 found in the anti-corruption laws to describe the key rules of the job restrictions of our investigated persons. It is also part of their legal status – special anti-corruption. Within the principles described above (the rule of law, human freedom, etc.), bans on officials during and for some time after the end of public authority (for example, within a year in Ukraine) show the confidence of the population and, consequently, the support of the state policy. Anywhere. The legal bases of such trust in real life give people a sincere belief in the virtue of persons empowered to perform the functions of the state and local self-government. Accordingly, only their professionalism remains to be taken care of – competence (proper knowledge, skills, training, experience) and a set of other required professional qualities that are permanently reproduced and developed, do not weaken, do not disappear. Being virtuous or poor does not mean competent, and vice versa. Entrepreneurship in the public service (in the fields of justice, parliamentary work, etc.) is excluded. Literally, it is not possible there if the state apparatus operates in accordance with the general principles of law. However, the reality is that bribery and corruption are widespread, their maximum possible neutralization of all nations, but the results in each nation are their own, non-standard, sometimes durable in the absence of heredity and the succession of the most progressive standards of public governance, lack of stable institutional and institutional structures. Tthat determine progress. Restrictions on the receipt of gifts, rules for the provision of paid services by state bodies, administration of taxes and customs payments, and a number of other norms aim to outline the extent of material and intangible benefits in the field of public power. Any applicant for the exercise of public authority by virtue of attestation prior to the appointment / election to office knows about the limitations and size of their material and other benefits while working on it. Therefore, on the one hand, after getting a job in this position, a person can not complain about the unfair remuneration and unfairness of restrictions on its increase. She has the opportunity to vacate the position, feeling that her security is inadequate. On the other hand, it is unfair, unjust and irresponsible, to pay persons authorized to perform the functions of the state and local self- government whose funds are not economically sufficient for life and development. Moreover, such an approach of poverty (poverty) towards these persons is not legal in nature, nor is it a hint of it. Just in this case, another pattern is valid – the desire of these individuals to survive and develop, according to their vocation, talents, etc.

10 2. Professional and temporal factors in the institute of restrictions on the rights of a person authorized to perform state and local government functions The characterization of the norms of the institution of restrictions on the rights of the person empowered to perform the functions of the state and local self-government is part of a holistic view of the phenomenon of corruption, being another epistemological instrument. As A. Savchenko successfully emphasized, the definition of corruption implies filling its existing definition with detailed descriptive categories that would expand and clarify the limits of its subject, actions, consequences, etc.; clear enumeration of violations of criminal, administrative or civil law, as well as disciplinary rules that constitute corruption17. Successful implementation of these proposals implies that we are offered a description / definition of this phenomenon as a process, since public relations are constantly changing, and to miss the moment of making necessary changes to the laws on preventing corruption related to the performance of public-law function within these relations not just a waste of time and other resources, their cumulative additions. Delaying to track the least significant changes in the nature (content) of legal relationships while performing a person’s specified functions in the state means the production of these values and the people who make up the body of a nation, such as the Ukrainian. The problem of timely knowledge of the nuances of the transformation of legal, political, economic, spiritual and cultural qualities of people, the interaction between them in the aspect of integrity of public authority is traditionally considered through institutes of qualification requirements and only during the tenure of a judge, parliamentarian (local deputy) branches of public authority. The limits themselves for such officials are based on the content of their functional duties, rights, guarantees and qualification requirements imposed by the legislature on persons applying for the job. At the same time, such requirements are written out based on the nature of the subject matter assigned to the official. Although, apart from the scientific justification, to look at reality, the correlation of science and social practices may not be observed at all. For example, political, rather than legal and scientific, factors may dominate, as in the case of the removal of May 12, 2016 from Part 3 of Art. 40 of the Law of Ukraine “On the Prosecutor’s Office” of 14.10.2014, the provision on the mandatory presence of legal education of a candidate for the position of Prosecutor General of Ukraine (Law of Ukraine № 1355–VIII).

17 Савченко А. Поняття «корупція» у контексті кримінального права. Кримінально-правові та кримінологічні засади протидії корупції : збірник тез доповідей V Міжнародної науково-практичної конференції, 31 березня 2017 р. Харків : ХНУВС, 2017. С. 166. 11 The general legal relations for the institute under study by the parameters of professionalism of a person authorized to perform the functions of the state and local self-government are manifested in the following features of the work of these persons and relations between them: 1) the purpose of the work becomes as a legal reconciliation of the interests of the subjects of law and regulation. social relations, as well as the implementation of the applicable rules of law and the settlement of disputes (conflicts) through legal means, which ensures the most effective development of society (satisfaction of public / soc. interest) in specific historical circumstances of his life; 2) an ontologically legal character, which, among other things, reveals the binding nature of the consequences of actions / decisions of the public authority; 3) instrumental exceptionally intricate legal and closely related other nature of ways (means, techniques, methods, etc.) of realization, in particular through drafting, adoption of norms of law, normative and other documents, formation of justice, application of educational, informational, organizational and other measures; 4) does not directly lead to the creation of material goods; 5) correspondence of actions to epistemological and epistemological standards (knowledge, ability, skills, experience and other components of the physiological, intellectual, volitional, sensual spiritual background) at the highest level accessible to human civilization, including through inter-ethnic, in violation of material rights of intellectual property; 6) creativity for the purpose of understanding the content of the truth and the clear path to it, explaining and convincing others of the truthfulness of their true thoughts, limited use of standards and templates. Considering these components, taking into account the specifics of the work of employees of public authorities, formulating restrictions on the rights of a person empowered to perform the functions of the state and local self-government, it is possible to create them effective, because they reflect essential details, not just general anticorruption intentions and corruptive intentions, honesty, honesty, honesty, etc. The truth and number of evaluation categories – “reconciliation”, “ordering”, etc. – in all these interrelationships of corruption prevention are considerable. Therefore, the task of synchronizing the correlation of professional and anti-corruption requirements in the context of the problem raised requires the timely establishment of the most accurate content of concepts and the deepest formalization of the norms of the respective institutions of law based on them for carefully monitored changes in social relations. As a result, we offer permanently up-to-date qualification rules, procedures for detecting compliance with them, peculiarities of anti- corruption restrictions of the investigated category of persons, which all together eliminates corruption risks, as well as, according to M. Melnik, other

12 factors of corruption – phenomena, processes, other factors which exert any deterministic influence on corruption, making it a phenomenon and giving rise to relevant specific manifestations18. Temporal factors at the institution of restrictions on the rights of the person empowered to perform the functions of the state and local self- government reveal the influence of time parameters on the danger of corruption – a person’s tendency to act corruptly. Essentially, these are three time dimensions: before, during, and after work in office. Those wishing to qualify for work in all public authorities are checked for lack of criminal record, including for bribery. In public administration, courts and municipal public authorities, it is impossible to hold a position of a person who has previously been found guilty / held administratively or otherwise liable to a court decision for corruption (semantically this can be nominated by other tokens), for example, in Ukraine. We trace in the norms that limit the rights of a person not yet elected / appointed to a public authority, the public’s attempt to eliminate from those bodies those people who have shown signs of not being virtuous until the moment of the desire to undergo formal certification procedures for obtaining official powers in the public interest. Such bias is not justified by the opinion that if a person has not been convicted of criminal record or lost due to statute of limitations and has been held to administrative responsibility (criminal liability for misconduct in other legal doctrines), then it is dangerous and undesirable in the public service. In agreement with this view in general, it should be emphasized that a legal system that has a set of criteria and rules for evaluating such persons, their available integrity as of the time of appraisal, and not due to their past corruption and stereotypical attitudes, also wins society. A bit of flexibility in anti-corruption law would already add the concept of “corruption-at-risk person in the past” to nominate those who committed corruption for the first time (maybe even a small one), and to provide them with particularly high demands and close attention to their integrity in order to exercise their integrity really need the community (if it is the case) the capacity to secure the public interest by being elected / appointed. Of course, the system of rules for restrictions on such persons will be very complex (it may be worthwhile for these persons to agree on all or a certain category of decisions with the manager; on some aspects of his work to provide oversight of the collegial body of public authority, etc.), but the society that implements them will benefit in part the use of human capital by such

18 Мельник М. Кримінологічні та кримінально-правові проблеми протидії корупції : автореф. дис. ... докт. юрид. наук: 12.00.08. Київ, 2002. С. 16. 13 officials (rather than the blunt loss of it) and will extend the scope of such a punishment for corruption offenses as special prevention of offenders. A sense of the degree of likelihood of a person authorized to perform the functions of the state and local self-government should be seen from the parameters of the terms and related rules of the anti-corruption norms in force. For example, the system of governance principles, namely: responsibility of executive bodies (officials) for the entrusted case before the person and the state, the rule of law, legality, participation of citizens and their associations in management, equality of citizens in management, publicity19, for violation of which inevitably and promptly comes legal responsibility. Otherwise, they are far from reality, not effective, unjust and inconsistent with the idea of the rule of law. Of course, while in office, the potential and real danger of committing a corruption offense by these persons is higher than before and after being in office. This suggests both the content of the work of these individuals and the corruption risks, which are mainly due to its fulfillment, including due to the discretionary powers, defects of personal development, incapable of overcoming corruption temptations of will, imperfection of the law and its practice. use, impact of criminality, etc. At the same time, for example, the norms of the institute of restriction of the rights of a public authority body in Ukraine do not reflect the specifics of the rules for preventing the entry of a category of persons with corrupt motives to these bodies by the criterion of tenure in certain positions (except for judicial, scientific, lawyer subject type of experience position of judge of the 2nd and 3rd instance courts); enrichment (as far as honestly, realistically within the specified period), etc. The likelihood of using their business connections and influence after graduation from their positions is high, so the justified restrictions in these cases for the above mentioned persons, for example, in Ukraine, anti-corruption standards set 1 year of such restrictions (Article 26 of the Law of Ukraine “On Prevention of Corruption” dated October 14, 2014 № 1700–VII). Restrictions on holding positions and occupation by activities after termination of office as a civil servant are also defined: in the Kingdom of Spain, the Portuguese Republic, respectively, 2 and 3 years after the end of his political office, a person is not allowed to work in a private company that is contractually related, regulatory relations or through direct submission to the authority in which the person occupied the position; similar restrictions for civil servants are established by the legislation of the Republic of Italy, the Republic of Poland – 1 year, in addition in the case of dismissal from a political position, the person who held it must obtain official consent for

19 Адміністративне право : підручник / Ю. Битяк та ін. ; за заг. ред. Ю. Битяка, В. Гаращука, В. Зуй. Харків : Право, 2010. C. 17–19. 14 employment in a private company; in the French Republic – 5 years; in the United Kingdom of Great Britain and Ireland – 2 years20.

3. Anti-corruption restrictions on the rights of officials of public authorities as a guarantee of constructively passionate attitude of these persons in the sphere of ensuring the national interests of Ukraine According to the legal definition of the concept of “national security of Ukraine”, all its elements – protection against real and potential threats to state sovereignty, territorial integrity, democratic constitutional order and others – constitute the essence of national interests of Ukraine (Paragraph 9 item 1 Art. 1 Law of Ukraine “On National Security of Ukraine” dated 21.06.2018 № 2469–VIII). Corruption is one of the essential factors that destroys any national security system. Being a person by appointment, a person authorized to perform the functions of the state and local self- government, are called upon to exercise public / national interest on an ongoing basis (from the moment of appointment / election to office). Quantitative and qualitative indicators of such professional activity should be the highest possible. Key parameters of work according to these indicators are exhausted by the capacity of phenomena of honesty, competence, freedom and creativity, responsibility and efficiency (efficiency), as a result – trust, authority, sustainable progress. How relevant it is for every nation to illustrate the loss of the Ukrainian nation over the centuries: economic and spiritual potential due to defects in the personality (worldview, intelligence, lack of spirituality, etc.) of leaders before and after being part of the USSR. The talentlessness of the leaders and their entourage and the betrayal of national interests (including each other) led to the involution of Ukraine’s scientific, technical, economic, educational, agro-industrial and defense potentials, shifting its position among the European countries in terms of achievements in these areas from the 2nd place. for 1990 to the last places in the rating. The loss of territories since 2014 is also a proof of the systematic, long-term absence of constructively passionate people in positions in public authorities or their insignificant percentage. Many years of bribery and corruption have become the basis for the betrayal of law enforcement and other public authorities (including central authorities) and the loss of territories today. F. i. only 3 900 out of 13 000 servicemen of the Armed Forces of Ukraine, who were in the Crimea at the time of the Russian aggression against Ukraine

20 Баюк М., Міщишин В. Запобігання проявам корупції та конфлікту інтересів надержавній службі (міжнародний досвід) : інформаційно-довідковий матеріал. Хмельницький : Центр перепідгот. та підвищ. кваліф. праців. органів держ. влади, органів місц. самовряд., держав. підприємств, установ і організацій. 2011. С. 9. 15 did not betray. Among the employees of the Security Service of Ukraine, 99 percent were betrayed. Among the employees of the Ministry of Internal Affairs represented in the Crimea – 99 percent were betrayed21. Staying in the positions of these persons convinces the inability of anti- corruption and other legislation, state / municipal mechanism to prevent and eliminate in a timely manner the people of the corrupted nature. The criterion for lawyers is decency – honesty, honor and dignity, denial of deception and betrayal. It is a metacategory marking the system of primary, fundamental human qualities, virtues, ideals, moral principles of high order of spirituality, laminar and synergistic inertia of development determines its energetic approach to the tops of spirituality, in particular in the society it nourishes the business qualities of man. This notion is clearly ambivalent (S. Vorkachev) – a carrier of this quality is of absolute value to society, especially if he is in a position of public authority and, at the same time, due to unfavorable conditions created by underdeveloped people, those who are not of such quality, in the study environment or other such person naturally suffers losses. Ordinary officials in relation to vulnerable / evil people (their groups) are weak situationally (of course, not globally, not organically) and this is the greatest evil of good and its mistakes. Together with a number of scoundrels in public office, this leads to colossal losses of a society suffering from violence, meanness, betrayal, etc. Restrictions on the rights of persons empowered to perform the functions of the state and local self-government, together with all other anti-corruption norms and mechanisms of their effective application, are intended not only to allow the involvement of decent people in public authorities, but to use their uniquely powerful spirituality in combination with the widest range qualities of human nature. For example, the procedure for eliminating gifts from circulation, excessive seizure of money by means of compatibility / combination, as well as defining the rules of work with close persons and other restrictions on the work of officials in the Ukrainian law and the words do not contain about honesty and its components. And without a detailed description of these phenomena and an understanding of them, there will be no faster way of thinking and intuition, as it is for the present, rather than causality, conviction of instinct and other signs of rational mastery of anti-corruption norms and manifestation of this behavior. Competence organically complements the image of a constructively passionate official and, on the example of Ukraine, its correlation with the potential of anti-corruption norms is sluggish. Attestation standards at the

21 Турчинов назвав кількість військових, що залишилися вірними присязі під час окупації Криму. 27 січня 2017 р. URL: https://tyzhden.ua/News/184132. 16 level of by-laws, anti-corruption norms at the level of laws do not even intersect, being at different levels of legal force. The public authorities and their officials act only within the limits set by law. Any deviation from this rule violates the law and incurs legal liability for those persons. The existing injunction is, in essence, a description of the formal make-up of such an offense, without considering the positive or negative nature of the consequences of such a deviation. Such inflexibility and indifference to the positive effect of creativity of every creative person acting in the interests of society, deprives us of the possibility of using the particles of such a passion for progress. Therefore, of course, in legal norms it is necessary to prescribe cases and models of deviation from the rule of law, but within the law, the behavior of officials, which are approved and encouraged, as they constitute the essence of positive deviance and progress. It is also necessary to describe in detail the models of frivolity, negligence, addition, ignorance, evil / morally low intentions and actions of officials who pose a threat to human values. It is short-lived to punish an official for formally violating part-time / combined positions / jobs. These are blind norms and formal approaches that do not contain rationally weighted estimates, and therefore the benefits of them are questionable. It is another matter if such a waste of energy of the official harms his basic work in a position in the bodies of the state or territorial communities. Accordingly, in the relevant rules of law, a society that is open to progress is obliged to provide options and features of useful combination / combination, which accelerates, improves, and substantially enriches the results of the official’s work. Other than the archaic norms that it is impossible to instill these institutions other than free jobs, during non- working time in a basic position and only for scientific, creative, pedagogical work. It is appropriate that these rules have been routed for years from one law to another without significant changes. In fact, this is far from justified in today’s fast-changing society – knowledge updates happen 100% from 6 months to 3 years (depending on the field of knowledge; for example, information technology). It is possible to repeat and paraphrase the same opinions of lawyers many times, to change knowledge by fiction, to express their fears and to cultivate myths at the level of anti-corruption policy and to ensure public interest, but only the knowledge of how we managed to understand the passionately constructive nature of human development, the stimulating nature of human development to increase human capital and to use it as efficiently as possible. Two key components of the constructive passionarity of a person empowered to perform state and local government functions – honesty and competence – are reflected in the institute of restrictions on the rights of

17 such persons and the system of other anti-corruption norms through the description of a number of abstract models that take into account the largest number of repetitive, persistent, stable legal, and therefore legal cases. Content adds quality to the official’s freedom and creativity. Often, executive positions require the non-standard decisions that they must make to protect, protect, enforce human rights or their groups, but they cannot, since the law clearly and, for the most part, clearly outlines the extent of the freedom of such persons. Going beyond the law, in such cases, it is possible to investigate the existence of corruption motivation by such an official, and to give him a vexation in the model, when he acted correctly from the standpoint of human rights, the rule and effectiveness of human-centrist, not positivist law. Freedom is nothing but especially for officials, such as responsibility for the consequences of their actions, time spent and other resources, benefits. Responsibility of persons empowered to perform the functions of the state and local self-government lies in their responsibility to realize and fulfill the tasks and duties assigned to them, to anticipate the consequences of their actions, actions and inactions, both in the sphere of the powers conferred and in the public sphere22. Responsible performance of functions of public authority implies that the official knows about the subject of his professional activity and works honestly, and therefore achieves his goal in the sphere of satisfaction of public interest entrusted to him. Such a process and the result of responsible work are characterized by the concepts of “efficiency” and “efficiency”, where the former is suitable for the unit of scale of the degrees of the second, because: efficiency is the ratio of the result of any activity and the costs associated with its conduct, as well as, which is received by a society, an individual or another entity per unit of resource used (or applied)23, and the effectiveness of legal norms is considered as the adequacy of the means of legal regulation and ways of applying the law to those public relations to which it is directed, in accordance with a goal that meets the objective conditions of society24. To the extent that these categories and the phenomena they designate are reflected in the norms of the institution of restrictions on the rights of the person empowered to perform the functions of the state and local self- government and other rules of anti-corruption legislation, so much is guaranteed to society a permanent achievement of public interest, which is

22 Державна служба : навчальний посібник / за заг. ред. С. Серьогіна. Київ : Сік-груп Україна, 2012. С. 312. 23 Нерівність в Україні: масштаби та можливості впливу / за ред. Е. Лібанової. Київ : Ін-т ДСД ім. М.В. Птухи НАНУ, 2012. C. 89. 24 Пелевин С. Эффективность права и дальнейшее совершенствование законодательства о разводах. Правоведение. 1971. № 3. С. 98. 18 the essence of sustainable social progress, in particular the realization of national ideals the space of ethnocultural tradition, its foundations and the expected horizons of desirable patterns and standards as a goal of self- expression25. For example, in Confucian legal traditions, the rules that a person must follow if they want to behave “properly” in this sense are called “li”, their content is determined by the social status of the person to whom they apply. These rules “carefully” outline the behaviors of each in a particular situation, whether it was a relationship between a superior and a subordinate, an elderly person or a young man, a nobleman or commoner, between father and son, man and woman, etc. Ideal, according to the Confucians, was considered a person who understood the essence of the natural world order and, recognizing the norms of behavior as necessary and full meaning, voluntarily follows them, and therefore humbly and modestly subordinate their personal interests to the preservation of the established harmony26. At the same time, if people are guided by the rules of the law and disciplined in punishment, they will, without reservation, look for ways to get around both. If, however, they are guided by virtues and disciplined traditions, then they will know the shame and act on justice27.

CONCLUSIONS Thus, the balance of private and public interests is the best option for their relationship to maintain the legal system of society in a state of openness to progress, in particular by counteracting corruption. This level of correlation is impossible objectively without sufficient financial support for individuals in public service, in court, in parliament. By setting this minimum and guaranteeing the real socio-economic rights of these persons, it is appropriate to fully apply the rules of the institution of restrictions on the rights of a person authorized to perform the functions of the state and local self-government. Otherwise, the problem of corruption will remain, the use of this institute will not be legal and provoke new cases of corruption, the involvement of talented and developed persons in the work of the state bodies will not occur, at least to the required extent, and therefore the state will remain weak, and its ruled nation is unprotected. It is also important to understand that the purpose of this institute is not to prevent corruption and to punish the guilty, but to prevent it. After all, the loss due to the prosecution of a professional judge, employee, deputy through his

25 Аполлонов И. Идентичность личности в этнокультурном измерении : дис. ... докт. филос. наук: 24.00.01. Краснодар, 2017. C. 236. 26 Духовність, мораль, етика традиційних суспільств далекого Сходу / упоряд. В. Резаненко. Київ : Вид. дім «Києво-Могилянська академія», 2007. C. 145–165. 27 Скакун О. Общее сравнительное правоведение : учебник. Киев : Ін Юре, 2008. C. 645–648. 19 objectively conditioned, though formally prohibited, actions to obtain the necessary for him (including his family) to survive and develop a minimum of funds (benefits), leads to even greater the losses of our nation, namely: the cost of training a new person empowered to fulfill the relevant powers within the functions of the state and local self-government at a level of professionalism not lower than that of his predecessor. Simultaneously, the problem of finding a person who will be talented, and not just able to exercise public authority. It remains unaccounted for and remains unresolved, as objectively nature does not produce these axes in an amount that meets the need of a society that is incapable of: preserving those already in employment; create standards for socio-economic security for fictitious puzzles or pests, and they are sufficient. In this connection, we join the right opinion of O. Mykolenko, that in Ukraine the problem of law enforcement is the absence of real conditions for which the rule of law was created. We agree that state at first must create the conditions, and only then it may demand compliance norms of legislation. Consequently, determining the qualification requirements and timeframes for the exercise of state and local government functions by a person on the basis of purely legal and scientific, not purely political or other structural factors, is a guarantee of their veracity and suitability for formulating anti- corruption restrictions to such persons. In this connection, it is logical to specify the anticorruption restrictions for each profession and / or specialty of public authorities. Otherwise, there is a discrepancy between the specific qualification requirements that each candidate for public authority meets, becoming essentially a homo faber (wisely creative person), and the general anti-corruption requirements (bans, restrictions, etc.) that apply to such people. Objectively, we should cover persons authorized to perform the functions of the state and local self-government, minimally subjective and maximally undifferentiated in detail by the rules of ensuring their integrity. Regarding the role of the term of restriction of the rights of such persons, we note the importance of their fundamental influence in the mechanisms of action of anti-corruption norms both at the stage of certification for work in public authorities, and during such work and after leaving office. The problem is the degree of justification for these or other terms, their skillful, sophisticated (detailed, innovative-progressive) use in the anti-corruption rules of gift turnover, matching / matching positions (work), work with relatives, etc. Therefore, two important factors in the protection of national interests are the anti-corruption restrictions on the rights of a person authorized to perform the functions of the state and local self-government, and the orientation of the

20 content of these restrictions to cultivate and stimulate the development of constructive passionarity of officials of public authorities, parliament police, etc.). Law-makers must adopt such legal rules that provide for the permanent nourishment of the key components of constructive passion, namely: decency, competence, freedom and creativity, responsibility and efficiency (effectiveness), – ultimately resulting in lasting credibility, unsurpassed authority, national security and national security. The main source of nourishment of the passionary constructiveness of these persons, created and applied by them legal norms in all the above-described interrelations are not restrictions per se, especially without expanding their content according to the specific nature of the work and nature of the officials, but the trust of the population, which by its anthropic nature tends to support and obey public authority that achieves its objectives (which is effective), operates within the framework of law and legal laws effectively, being decent, competent, responsible, and is formally set up, bureaucratic, archaic and backward ideological verbally and/or in cases betraying their trust weaknesses corrupt people system and long-term threat to their well-being (in t. h. elementary permanent life comfort).

SUMMARY The exploration deals with the legal interrelation of public interests satisfaction and norms of integrity for public authorities. These legal relations are the essence of the public authorities system integrity. Their availability makes it possible for this system to satisfy the needs and the legal interests of the population. It is especially important to reflect these legal links in the norms of the legislation governing the organization and activities of anti-corruption bodies, since the only justification for their existence is to satisfy the social interest in honesty, goodwill, integrity in the distribution / expenditure of public tangible assets (funds, land and other property) disposed of by other public authorities. The purpose of such redistribution of capital and profits of economic / business activity is to ensure the free development of everyone as a prerequisite for the free development of all. This interest has a legal meaning because it reflects objectively anthropic and socio-beneficial, persistent, constant, systemic need of people relevant to that interest. It is proved that the balance of private and public interests is the best option for eliminating corruption and maintaining the legal system of society in a state of openness to progress. Such level of correlation is impossible objectively without sufficient financial support for individuals in public service, in court, in parliament. This work highlighted the importance of defining the qualification

21 requirements and timeframe for the person to exercise the functions of the state and local self-government on the basis solely of legal and scientific, and not political or other structural, factors. It becomes a pledge of the truth of a person’s genuine abilities and, accordingly, the suitability of anti- corruption restrictions for him. In this connection, it is logical to specify the anticorruption restrictions for each profession and / or specialty of public authorities. It is also emphasized that protection of national interests and orientation of the content of these restrictions on cultivating and stimulating the development of constructive passionarity of officials of public authorities (parliamentarians, public administration, judges, police, etc.) become two factors of anti-corruption restrictions on human rights.

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Information about author: Makarenkov O. L., Candidate of Juridical Sciences, Associate Professor, Associate Professor at the Department of History and Theory of State and Law of the Law Faculty, Vice-Dean for International Relations of the Law Faculty of Zaporizhzhya National University 66, Zhukovskoho st., Zaporizhzhya, Ukraine

24 LEGAL REGULATION OF POLITICAL IMPARTIALITY OF THE CIVIL SERVICE IN UKRAINE

Matyukhina N. P., Fedchyshyn S. A.

INTRODUCTION A serious problem for most post-communist states, including the states of Central and Eastern Europe, was the separation of political activity from professional bureaucracy1. Significant politicization of the civil service proved to be one of the main problems for independent Ukraine. In order to reform the civil service, ensure its development as a professional and politically impartial institute in accordance with European standards, a new Law “On Civil Service” of December 10, 2015 was adopted in Ukraine (effective from May 1, 2016). In this Law, political impartiality is enshrined in three main contexts: firstly, as an essential feature of the civil service (Article 1); secondly, as one of the principles of the civil service (Article 4); thirdly, as a component of the legal status of the civil servants (Article 10). Problems of overcoming the politicization of the civil service in Ukraine were examined by many Ukrainian2 and foreign scholars3, both in the field of science of administrative law and in the field of public administration. However, most scholars were examining the political impartiality of the civil service under the terms of the old Law of Ukraine “On Civil Service” of December 16, 1993. A number of problems in this area are still poorly examined, and a number of scientific positions are debatable. The formation of Ukrainian legislation in the field of political impartiality of the civil service, etc. gets almost no attention from scientists. The next stage of the reform requires a comprehensive study of political impartiality of the civil service – both in the historical context and under conditions of implementing the new Law of Ukraine “On Civil Service” of 2015, the peculiarities of the legal regulation of this principle and types of requirements of political impartiality of the civil servants in Ukraine. These tasks were the same when writing this research.

1 Administration Reforms in Eastern European Union Member States: Post-Accession Convergence and Divergence / M. Bileišis et al. $ ed. by P. Kovac, M. Bileisis. Ljubljana ; Vilnius : University of Ljubljana Press, ; Mykolas Romeris University Press, 2017. P. 223, 276, 485. 2 Битяк Ю., Матюхіна Н., Федчишин С. Публічна служба / за заг. ред. Н. Матюхіної. Харків : Право, 2018. С. 33–36 ; Рацюк О. Засоби забезпечення принципу політичної нейтральності у професійній діяльності державних службовців : дис. … канд. наук з держ. упр. Одеса, 2009. С. 129–170 ; Публічна служба. Зарубіжний досвід та пропозиції для України / за заг. ред. В. Тимощука, А. Школика. Київ : Конус-Ю, 2007. С. 25–28. 3 Public Administration in Post-Communist countries: Former Soviet Union, Central and Eastern Europe, and Mongolia / S. Liebert et al. Boca Raton : CRC Press, 2013. P. 7–22 ; Parrado S. Civil Service Professionalization in Armenia, Azerbaijan, Georgia, Moldova and Ukraine. SIGMA-OECD. 2014. P. 87–98. URL: http://www.sigmaweb.org/publications/ParradoDiezS-CS-Professionalisation-Nov2014.pdfetal. 25 1. Formation of the legislation of independent Ukraine in the field of political impartiality of the civil service The first stage of the formation of legislation in the field of political impartiality of the civil service begins with the proclamation of Ukraine’s independence in 1991. It is characterized by the absence of the basic Law "On Civil Service" and the regulation of relations in the field of the civil service, mainly by the norms of the labor law. At the same time after proclaiming the independence, Ukraine immediately set a course for developing a politically impartial management apparatus. Symbolically, it was on the Day of Independence of Ukraine on August 24, 1991. The Verkhovna Rada of Ukraine adopted the first act aimed at depolitization – the Order “On the departisation of public authorities, institutions and organizations”. The latter, firstly, obliged to “cease the activities of political party organizations in all public and administrative authorities, law enforcement agencies, institutions of radio and television, other public institutions, authorities and organizations”; secondly, it established that “the employees of the procuracy authorities, the Ministry of Internal Affairs, the Committee for State Security of Ukraine are obliged to terminate their membership in any political party or movement”. It was specified that those who do not fulfill this requirement are entitled to dismissal from the authorities within 10 days from the date of the adoption of the Order4. The adoption of the order on departisation as one of the first acts of the parliament of independent Ukraine confirms the immediacy of the problem of politicization of the state apparatus for post-Soviet Ukraine and the priority of the task of its reducing. Nevertheless, it remains to be noted that in the first years of independence, Ukraine failed to develop and regulate an effective model of political impartiality of the civil service, what is primarily due to the objective factors of the state-building of the young republic. At the first stage, only a fragmentary consolidation of the components of the political impartiality of the employees was evidenced, which consisted of the termination of the headquarters of political parties in the authorities and the prohibition of the employees of separate power forces to be the members in political parties. The second stage is associated with the adoption of the Law “On Civil Service” of December 16, 1993, which Ukraine adopted the first among all states of the former USSR and which remained effective for the next 22 years. This Law was general and covered all types of civil servants (of the prosecutor’s office, court, police, Security Service of Ukraine, etc.), provided

4 Про департизацію державних органів, установ та організацій : постанова Верховної Ради України від 24 серпня 1991 р. № 1429–XII. Відомості Верховної Ради України. 1991. № 38. Ст. 504. 26 that the other is not established by special laws. It regulated the procedure for passing the civil service and constituents of the legal status of the civil servants, in fact, the main principles of the merit system were formalized. In particular, professionalism and competence were defined as the principles of the civil service, the preconditions for delimitation of political, administrative and patronage positions were laid down, 15 categories of the civil servants were established, patronage service was established, the competition for admission to the service and career advancement based on the candidate’s professional qualifications was prescribed (except for certain exceptions), the exhaustive grounds for termination of civil service were determined, etc.5 The peculiarity is that the Law of Ukraine “On Civil Service” was adopted three years before the adoption of the Basic Law. With the adoption of the Constitution of Ukraine on June 28, 1996, the basic rules were laid down that led to changes in the current legislation on the civil service and became the guideline for further reforming of the administration apparatus and the development of the civil service as a politically impartial institution. The constitutional provisions played a significant role in regulating the model of political impartiality of the civil service, since the infrastructure of such model is inextricably linked with the constitutional rights of a person and a citizen, primarily with the political rights and their limitations (the right for freedom of thought and speech (Article 34), the right to organize political parties (Article 36), the right for equal access to the civil service (Article 38), the right for peaceful assembly (Article 39), the right to appeal (Article 40), etc.)6. After the adoption of the Constitution of Ukraine, the electoral legislation was updated and the laws “On Elections of the Deputies of Local Councils and Village, Settlement, City Mayors” of January 14, 1998, “On Elections of the President of Ukraine” of March 5, 1999, “On Elections of People’s Deputies of Ukraine” of January 18, 2001 were adopted. These laws in approximately the same textual version prohibited the participation in election campaigns for the authorities, their functionaries and officials. In view of this, the electoral laws actually established a separate component of political impartiality of the civil service – a prohibition on civil servants to hold rallies, demonstrations and other forms of political agitation in order to encourage the electors to vote “For” or “Against” a certain candidate or political party during the presidential election, election of people’s deputies of Ukraine or during local elections.

5 Про державну службу : Закон України від 16 грудня 1993 р. № 3723–XII, зі змін. Відомості Верховної Ради України. 1993. № 52. Ст. 490. 6 Конституція України, прийнята на 5-й сесії Верховної Ради України 28 червня 1996 р., зі змін. Відомості Верховної Ради України. 1996. № 30. Ст. 141. 27 Another important legal act in the field of political activity of the civil servants at the second stage was the Law of Ukraine “On Political Parties in Ukraine” of April 5, 20017. If the Law “On Civil Service” of 1993 does not prohibit the civil servants from being members of political parties and does not enshrine such principle as a non-party system, then according to the Article 6 of the Law “On Political Parties in Ukraine” the judges, prosecutors and the servants of internal affairs bodies, officers of the Security Service of Ukraine, military servicemen could not be the members of political parties. The members of the political party had to stop their membership in the party for the time they were in these positions or service. The norms of the Law “On Political Parties in Ukraine” were advanced in a number of special laws of Ukraine, which define the peculiarities of the service in certain state authorities (“On the Militia” (Article 61), “On the Prosecutor’s Office” (Article 18), “On The Security Service of Ukraine” (Article 6), “On the State Border Guard Service of Ukraine” (Article 15), “On the State Criminal and Penal Service of Ukraine” (Article 15), etc.). In this way, the execution of one of the central components of political impartiality took place – the requirements for the membership of the civil servants in political parties. In the absence of integral regulation of political impartiality in the Law “On Civil Service”, some of its components were introduced at the sub legislative level, in particular in the context of the rules of ethical behavior of the civil servants. For the first time, at the normative level, the political impartiality was defined as a principle of the civil service in the order of the Main Department of the Civil Service of Ukraine “On Approval of General Rules of Behavior of the Civil Servants” of November 23, 2000 (set out in the new edition on August 4, 2010). Along with that, it actually consolidated the right of the civil servants to participate in political activities and the peculiarities of its implementation: “The civil servants, taking into account the constitutional rights, can take part in political or other public activities only beyond their official duties outside office hours in order not to undermine the public’s faith in the impartial performance of their functions. They cannot use their own political views in the performance of their official duties”. Political interests were thought of as a form of private interests of servants in the context of the prevention of a conflict of interest that affects or may affect the impartial performance of official duties8.

7 Про політичні партії в Україні : Закон України від 5 квітня 2001 р. № 2365–ІII, зі змін. Відомості Верховної Ради України. 2001. № 23. Ст. 118. 8 Про затвердження Загальних правил поведінки державних службовців : наказ Головного управління державної служби України від 23 жовтня 2000 р. № 58. Офіційний вісник України. 2000. № 45. Ст. 1971. 28 Approval of the general rules of behavior of the civil servants (2000 and 2010) allowed to fill the gaps in the 1993 Law “On Civil Service” with regard to the political impartiality of the civil servants and to supplement the provisions of other laws in this field (“On Political Parties in Ukraine”, the electoral laws, etc.). Attention is drawn to the fact that with the approval of the above-mentioned rules of behavior, the so-called “ethization” of the legislative regulation of the requirements of political impartiality of the civil servants, the definition of their content and peculiarities of implementation in the context of the rules of ethical behavior as an integral part of the prevention of corruption is set up. From 2000 and till now, there is a stable tendency to perceive political impartiality of the civil servants as a problem of behavioral ethics, which is reflected in anti-corruption acts. On the initiative of the President of Ukraine, the Second Law “On Civil Service” was adopted in 2011 (№ 4050 of November 17, 2011). Unlike the previous Law (1993), this Law paid much more attention to the political impartiality of the civil servants. Political impartiality was determined by the principle of the civil service, and its specific requirements were devoted to the Article 13 of the Law. It stipulated that a civil servant should: a) perform his official duties impartially, regardless of party affiliation and personal political convictions; b) has no right to organize strikes and take part in them; c) while performing official duties, he has no right to perform actions demonstrating his political views or indicating a special attitude towards political parties9. However, the Law № 4050 has been delayed for some years and, due to various reasons, has not come into force, what does not allow it to be seriously taken into account while periodizing the development of legislation. Along with the adoption of the Law “On Civil Service” of 2011, the attempts to improve anti-corruption legislation were made. Two basic laws were adopted – The Law “On the Principles of Prevention and Counteraction of Corruption” of April 7, 2011 and the Law “On Rules of Ethical Behavior” of May 17, 2012. The provisions of the last Law defined the governing norms of behavior of the entities authorized to perform functions of the state and local self-government, while performing their official powers: a) priority of interests; b) tolerance; c) objectivity; d) competence and efficiency; e) generating confidence in government; f) confidentiality; g) refrain from performing illegal decisions or orders, etc.10 The end of the second stage is associated with the socio-political events in Ukraine in 2014 and the adoption of the Law “On Prevention of Corruption”

9 Про державну службу : Закон України від 17 листопада 2011 № 4050–VI, зі змін. Відомості Верховної Ради України. 2012. № 26. Ст. 272. 10 Про правила етичної поведінки : Закон України від 17 травня 2012 р. № 4722–VI. Відомості Верховної Ради України. 2013. № 14. Ст. 94. 29 of October 14, 2014.After putting this Law into execution, the laws “On the Principles of Prevention and Counteraction of Corruption” and “On the Rules of Ethical Behavior” became invalid. The new anti-corruption Law, which is still in force today, defines the rules of ethical behavior, a variety of which regulates the political activity of the servants. First of all, such rules are such as: a) “political neutrality” is a duty to adhere to political neutrality, to avoid demonstrations in any form of political convictions, not to use official powers in the interests of political parties or their headquarters or individual politicians while performing official duties; b) “impartiality” means the duty to act impartially, regardless of private interests, personal attitude towards any person, own political views, ideological, religious or other personal views or convictions; c) “priority of interests” is a duty of entities determined by the law, representing a state or territorial community, acting exclusively in their interests, etc.11. Summing up, we can identify the main features of the second stage of the formation of the Ukrainian legislation in the field of political impartiality of the civil service. Firstly, an important step forward was the adoption of the Law “On Civil Service” of 1993 as the main act in the field of the civil service. In general, recognizing the important role of this Law in reforming the Soviet system of governance, it has to be noted that the issue of counteracting the politicization of the civil service has not been properly regulated. This Law could not become the basis for ensuring an effective separation of political activity from the professional bureaucracy, since it did not establish party independent activity or political neutrality (impartiality) among the principles of the civil service, did not provide for a system of ensuring political impartiality, did not establish forbidden (or permissible) forms of political activity of the civil servants, the prohibition of their membership in political parties, movements, etc. Secondly, we should note the unsystemized legislation in the field of political impartiality of the civil servants. In case of the absence of regulation of political impartiality in the Law “On Civil Service”, some of its components were determined by other legal acts, particularly: а) the Law “On Political Parties in Ukraine” regarding the prohibition of membership in political parties for certain types of servants; b) the electoral laws regarding the prohibition of participation in election campaigning of functionaries and officials of public authorities; c) primarily in the departmental acts of the Main Department of the Civil Service of Ukraine, and later in the anti-

11 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700–VІI, зі змін. Відомості Верховної Ради України. 2015. № 87. Ст. 2056. 30 corruption laws (“On the Rules of Ethical Behavior”, “On Prevention of Corruption”) – the duty to avoid demonstrating own political beliefs, not to use official powers in the interests of political parties or their headquarters or individual politicians, to act impartially, regardless of private interests, personal attitude towards any person, own political views or other personal views or convictions. The sociopolitical events in Ukraine in 2014 led to a change in the political power. Involving international experts, a new Law “On Civil Service”12 was prepared, which was adopted by the Ukrainian Parliament on December 10, 2015 in extremely difficult political conditions. It became the basic law in force, which, for the first time since the proclamation of Ukraine’s independence, contained a special regulation of political impartiality of the civil service, providing liability for violating its requirements. This Law, supplemented by anti-corruption and electoral legislation, laid the foundations for a model of the political impartiality of the civil service, which broadly corresponds to European experience for the first time over the course of independent Ukraine13. The adoption of the Law “On Civil Service” of December 10, 2015 is associated with the third (modern) stage of development of legislation in the field of political impartiality of the civil servants, the peculiarities of which will be disclosed in the following sections of the article.

2. Political impartialityas a principle of the civil service in Ukraine: legal definition and approaches to understanding The principles of the civil service (from the Latin principium – the basis, initial positions, etc.) are defined as the basic, conceptual ideas that underlie the organization and functioning of the civil service. The principles serve, firstly, as the expression of objective regularities and trends in the functioning and development of the civil service, secondly, as the development of purposes, directions and intentions of the subjects of public administration, and thirdly, as the requirements of the civil society to the civil service and servants14. In Article 4 of the Law of Ukraine “On Civil Service” from 10.12.2015 10 the principles of civil service are defined, among them: the rule of law;

12 Про державну службу : Закон України від 10 грудня 2015 р. № 889–VIII, зі змін. Відомості Верховної Ради України. 2016. № 4. Ст. 43. 13 Федчишин С. Політична неупередженість державних службовців: європейський досвід правового регулювання. Публічна служба і адміністративне судочинство : матеріали І Міжнародної науково-практичної конференції, м. Київ, 5–6 липня 2018 р. Київ : Дакор, 2018. С. 418–422. 14 Черепанов В., Иванов В. Основы государственной службы и кадровой политики. Москва : Юнити-Дана, 2008. С. 43. 31 legality; professionalism; patriotism; virtue; efficiency; ensuring equal access to the civil service; political impartiality; transparency; stability. This act not only consolidates political impartiality as a principle of civil service at the level of the Law for the first time since the proclamation of Ukraine’s independence, but also provides normative definition. The content of political impartiality is disclosed as “the prevention of the influence of political views on the actions and decisions of a civil servant, as well as refraining from demonstrating his attitude towards political parties, demonstrating his own political views while performing official duties”. However, we should pay attention to Article 10 of the Law “On Civil Service”, entitled “Political Impartiality”. It is located in the section “Legal status of civil servants”, which shows the legislator’s perception of political impartiality, also as a component of the legal status of a civil servant. Main rights and duties of civil servants in the sphere of political activity are defined in Article 10. In particular, the Article 10 states that a civil servant has no right: a) to demonstrate his political views and to commit other acts or omissions that in any way can testify to his particular attitude towards political parties and adversely affect the image of a public authority and confidence in the authorities or constitute a threat to the constitutional order, territorial integrity and national security, for the health and rights and freedoms of others; b) to be a member of a political party, if such a servant holds a position of civil service of the category “A”; c) to hold positions in the governing authorities of the political party; d) to combine the civil service with the status of a deputy of the local council, if such a civil servant holds a position of civil service of the category “A”; e) to involve civil servants, local self-government officials, budget employees, other persons to participate in election campaigning, actions and events organized by political parties by using the official position; f) to organize and engage in strikes and agitation (except for the exceptions provided for in the Law “On Civil Service”); g) to use the official position for political purposes in any other way, etc. In this regard, the question arises as to the relationship between the principle of the political impartiality of the civil service (Article 4) and the requirements of political impartiality as a part of the legal status of civil servants (Article 10), and the existence of links between them. On this occasion, certain considerations were expressed in the Ukrainian science of administrative law. For example, L. Kornuta identifies these concepts, emphasizing that “the essence of the principle of political impartiality is defined in Article 4 of the Law. At the same time, the legislator defines the

32 principle of political impartiality in more details in Article 10 of the Law”15. In turn, N. Panova does not indicate the direct identity of these concepts, but in fact notes the primacy of the principle of political impartiality of the civil service in relation to the requirements of political impartiality as an element of the status. She emphasizes that “the requirement of political impartiality is a logical continuation of the principle of political impartiality of the civil service”16. In our opinion, the principle of political impartiality and corresponding requirements cannot be denied by all means. However, these concepts should not be identified, since the principle of political impartiality of the civil service is broader in comparison with the requirements of the political impartiality of a civil servant. The fact is that the current version of the principle of political impartiality offers a rather limited understanding of it, because it contains only the so- called “internal” component. It focuses exclusively on the requirements of the behavior of the civil servant, his duties and does not foresee an “external” component of political impartiality. Firstly, it is a question of the requirements regarding the conduct of external subjects of political activity (political parties, candidates for elections, etc.) in relations with the civil service, provisions regarding the prevention of unlawful interference of political parties in the activities of civil servants, guaranteeing their protection from such interference, etc. At the same time, analyzing the problem, it has to be taken into account that politicians are investing more time and energy in politicizing civil service now than in the recent past17. Secondly, the requirements of political impartiality should also be imposed on the subjects that are authorized to manage the civil service, participate in the conduct of the competition and other procedures for entry into the civil service, civil servant career procedures (evaluation of the results of activities, disciplinary proceedings, etc.), appoint citizens to the post, dismiss them or take other personnel decisions within the civil service. The principle of political impartiality, as well as other principles of civil service, must have a fundamental (cross-cutting) character. It should not be manifested solely in the legal status of a civil servant (as in the Ukrainian model), but should also penetrate other components of the civil service institute (promotion, transfer, termination, etc.), cover relations not only those

15 Корнута Л. Принцип політичної неупередженості в системі принципів державної служби. Актуальні проблеми вітчизняної юриспруденції. 2016. № 5. С. 73. 16 Панова Н. Політична неупередженість державного службовця як гарантія ефективності та стабільності державної служби. Науковий вісник Ужгородського національного університету. Серія «Право». 2017. Вип. 47. Т. 2. С. 144. 17 Politicization of the Civil Service in Comparative Perspective. The Quest for Control / Guy B. Peters et al. London : Routledge, 2004. P. 6. 33 that relate to the civil service, but also those that precede the acquisition of the status of a civil servant (a competition for entry to service, a special examination at assignment, etc.). Revision of the principle of political impartiality, enshrined in Article 4 of the Law “On Civil Service”, is ambivalent, oriented mainly on the status of servants, and therefore does not allow to ensure the introduction of political impartiality as a cross-cutting idea in all components of the civil service institute. In this regard, it cannot be perceived as a reliable basis for developing a model of political impartiality of the civil service. The experience of the leading countries of the world (Great Britain, USA, Canada, etc.) testifies to the broad understanding of political impartiality. In particular, we can note the experience of Canada according to which the relevant requirements apply not only to public servants, but also to politicians and other persons. For example, The Values and Ethics Code for the Public Service explicitly states that “Ministers are responsible for <…> maintaining the tradition of political neutrality of the Public Service and its continuing ability to provide professional, candid and frank advice”. In the Canadian model of political impartiality, there are two key blocks that cover both internal and external components, which include the protection of employees from unlawful influence. “First, the public service must have a staffing system free from political influence and in which recruitment, hiring, promotions and terminations are based on merit (or, in the case of terminations, a lack thereof). Second, public servants must perform, and be perceived to perform their duties in an impartial manner. A party independent public service can be maintained only if the staffing system is protected from political influence, the merit system has been firmly implanted and the professional commitment to impartiality is widespread”18. We can propose two approaches to understanding the political impartiality of the civil service. In the narrow sense, it includes only the requirements for the behavior of a civil servant, their rights and responsibilities in the field of political activity (status approach). In the broadest sense, the political impartiality of the civil service, except the status element, also includes “external” requirements: a) requirements for internal service subjects – subjects of management of the civil service and other persons who are empowered to make decisions on civil servants (subjects of assignment, competition commissions, subjects of evaluation of the results of the activity of civil servants, etc.) regarding the prohibition of the use of the latter in political campaigning and the provision of orders (commands, instructions)

18 Furi M. Public Service Impartiality : Taking Stock. Ottawa : Public Service Commission of Canada, 2008. P. 19. 34 concerning the commission of other actions prohibited by the legislation, and the duty to oppose discrimination of citizens for political reasons during entry into service and service career, to protect citizens from forced illegal behaviour in politics; b) requirements to non-service subjects – subjects of political activity, their rights and duties in relations with civil servants (political parties, candidates for elections, etc.). We believe that in defining the principle of “political impartiality” (Article 4 of the Law “On Civil Service”) the broadest approach should be reflected. It is expedient to consolidate 3 types of requirements: a) to subjects of political activity; b) to subjects of management of the civil service and other persons who are empowered to make decisions on civil servants; c) to the civil servants themselves. The combination of the internal and external components will create the most effective architecture of the model of political impartiality, which will include responsibilities not only of the civil servant, but also corresponding responsibilities of other subjects, will counteract possible forms of encroachments on the political impartiality of the civil servants, will promote their protection against possible encroachments. An important factor for distinguishing political activities from professional civil servants, including the introduction of a broad understanding of political impartiality, has a clear legal separation of political and administrative public positions, and the distinction between their legal status. In this sense, the new Law “On Civil Service” of 2015 should be welcomed, it introduced the institute of the heads of the civil service in the state authority. It is understood as an official who holds a senior position in the civil service in the state authority, whose duties include the exercise of powers on civil service and the organization of work of other servants in the authority. Being the senior civil servants of the state authorities, the heads of the civil service like lay the “red line” between bureaucrats and politicians, creating conditions for constructive interaction between them, effective implementation of the requirements of political impartiality. The powers of the head of the civil service are exercised by: 1) the Secretariat of the Cabinet of Ministers of Ukraine – the State Secretary of the Cabinet of Ministers of Ukraine; 2) the ministry – the state secretary of the ministry; 3) another central executive body – the head of such authority; 4) local state administrations: the head of the apparatus – in the apparatus of administration and its structural subdivisions (except for the subdivisions with the status of legal entities of the public law); the head of the structural subdivision with the status of a legal entity of the public law – in such a subdivision; 5) state authorities, head positions of which belong to the civil service positions – the head of such an authority; 6) other authorities or in the

35 case of direct subordination to an entity holding a political position – the head of the apparatus (secretariat). At the same time, there remains the issue on fixating an exhaustive list of political positions, what had not been possible up to now. As of today, only some of the public positions are legally defined as political ones. In particular, in accordance with the laws of Ukraine “On the Cabinet of Ministers of Ukraine” of February 27, 2014 (Part 3 of Article 6) and “On Central Executive Bodies” of March 17, 2011 (Part 5, Article 9), the posts of members of The Cabinet of Ministers of Ukraine, as well as the positions of the first deputy minister and deputy ministers, belong to political positions that are not covered by labor legislation and the law “On Civil Service”.

3. Types of requirements of political impartiality of the civil servants in Ukraine Such requirements are the basis of this principle, are its content in the narrow sense. The requirements of political impartiality are elements of the status of the civil servants and are defined in the Article 10 of the Law “On Civil Service”. In addition, these requirements are supplemented by the requirements of other legal acts (Laws of Ukraine “On Prevention of Corruption”, “On Political Parties in Ukraine”, “On Elections of the President of Ukraine”, “On Local Elections”, etc.). The basic requirements of political impartiality of the civil servants can be combined into 7 conventional groups: a) loyalty requirements. Loyalty is traditionally considered as one of the main foundations of the concept of separation of political activity and professional bureaucracy, an idea cultivated in the classical works of M. Weber19. Compliance with the requirements of loyalty implies the equally effective implementation by a public servant of a policy that is made by any lawfully formed government, regardless of its political “color”, contributes to the preservation of institutional memory and heredity during the change of political power. The peculiarity of the Ukrainian model is that the current Law does not define loyalty as a civil service principle and does not even contain the term “loyalty”. Analysis makes it possible to conclude that the requirements of loyalty still apply to civil servants, since they are included in the requirements of political impartiality of civil servants. According to Part 1 of Article 10 of the Law, the content of the requirement of loyalty is reduced to the fact that “a public servant must comply with lawful orders (commands), instructions of directors regardless of their party affiliation and their political beliefs”.

19 Weber M. Bureaucracy. Classics of Public Administration / ed. by Jay M. Shafritz, Albert C. Hyde. 6th ed. Boston : Thompson Higher Education, 2007. P. 43–48. 36 The disadvantage of legislative regulation of the requirements of loyalty is their narrowing and restriction by orders (commands) or instructions of executives. The corresponding textual formulation can only ensure loyalty to specific individual acts that relate to a civil servant, and not to political authority as a whole and to its political course. In particular, the Article 10 of the Law of Ukraine does not stipulate the duty of civil servants to loyally comply with normative acts of management (orders, dispositions, etc.) issued by the President, the Government of Ukraine or other authorized entities, and are directed to the implementation of the legal basis state policy. We also emphasize that the implementation of a number of regulatory acts of governance, which contain rules of direct action, do not require additional processing of orders (commands), instructions; b) requirements for the demonstration of attitude – a civil servant has no right to demonstrate his political views and to commit other acts or omissions that can in any way testify to his particular attitude towards political parties and adversely affect the image of the state body and authorities’ credibility or imperil the constitutional order, territorial integrity and national security, health and rights and freedoms of other people. The requirement is associated with the obligation to refrain not from any behaviour, but namely from that which collectively meets two conditions: a) can testify to a special attitude towards political parties (a formal condition); b) may negatively affect protected objects (image of the state authority and trust to it) or create a threat to protected objects (constitutional order, territorial integrity, health and rights and freedoms of other people). Such circumstances are associated with negative consequences and can be conditionally called the material condition. The behaviour of a civil servant, by means of which he demonstrates political views and attitudes towards political parties on conditions that such a demonstration cannot negatively affect or threaten the protected objects, is formally acceptable (not forbidden). In our opinion, the regulatory revision of the requirements for demonstrating the attitude has drawbacks. Regarding the formal conditions, to the use of the evaluation category – “special” attitude by the legislator attracts a lot of attention. Formally legal behaviour of the servant, which testifies to the attitude to the political party and does not receive a special character, cannot be qualified as a violation of the requirement. In this context, it becomes legitimate to question the qualification of statements, actions or inactivity as a “special” attitude, delimitation of behavior, which indicates the “simple” attitude towards political parties (positive or negative) from the “special” attitude, the criteria for delimitation the relevant acts of

37 behaviour, etc. The resolution of these issues will be carried out by authorized entities solely through administrative discretion, which, in the absence of proper control, can become a prerequisite for abusive and corrupt actions. We believe that the consolidation in Part 2 of Article 10 of the Law of the “special” sign regarding the attitude is not justified, since in order to establish the fact of the violation of political impartiality, in the presence of other conditions, the civil servant’s expression of attitude towards the political party should be sufficiently expressed without reference to the degree of such attitude or its specific manifestation (positive or negative); c) requirements for party affiliation. The Law of Ukraine “On Civil Service” provides for a differentiated approach to the settlement of the content of these requirements. The criterion for such a differentiation is the category of position occupied by a civil servant. For the category “A” (senior civil service), which was institutionalized by the new Law, there are more stringent requirements than for “B” and “C” categories. Civil servants of the category “A” are prohibited from being a member of a political party (party independency). For the time of civil service in the category “A”, the relevant persons must stop their membership in a political party. The Law “On Civil Service” does not contain a procedure for termination of membership in a political party and does not specify which document from a party must be submitted to a state authority to confirm the fulfilment of the requirements of the Law. The imperative ban on membership in political parties for civil servants of category “A” looks quite logical, since this category includes heads of authorities and their apparatus. In particular, it is the State Secretary of the Cabinet of Ministers of Ukraine, state secretaries of ministries; heads of central authorities, who are not members of the Cabinet of Ministers of Ukraine, and their deputies; the heads of the apparatus of the Constitutional Court of Ukraine, the Supreme Court, the high specialized courts and their deputies, the heads of the secretariats of the High Council of Justice, the High Qualifications Commission of Judges of Ukraine and their deputies, the Head of the State Judicial Administration of Ukraine and his deputies; heads of civil service in other authorities, whose jurisdiction extends over the entire territory of Ukraine. Objectively, it is the governing body that has the greatest potential for using the “administrative resource”, involving civil servants and other servants in political activities, and so on. With regard to civil servants of the categories “B” and “C”, they have not been subject to a total prohibition of membership in political parties. The requirements for their party affiliation allow the membership in a political

38 party and are strictly reduced to prohibition of holding a post in the governing authorities of a political party. In our opinion, under current conditions, we can note the arguments in favor of a total prohibition on civil servants to be members of political parties, regardless of their category. Firstly, allowing civil servants to be members of political parties, but at the same time prohibiting them from acting in the interests of these parties means to consolidate positions knowingly at the legislative level that objectively contribute to the emergence of a conflict of interest among relevant civil servants, the prevention of which is one of the directions of combating corruption. Legislative requirements according to which civil servants can be members of political parties, but can not act in their interests, contain the features of corruption-causing factors, as they create the preconditions for corruption. We believe that all civil servants who are members of political parties are automatically at least in a potential conflict of interest. According to Art. 1 of the Law of Ukraine “On Prevention of Corruption” dated 14.10.2014, a potential conflict of interest is defined as “the presence of a person’s private interest in the sphere in which he performs his official or representative powers, which may affect the objectivity or impartiality of his decisions, or to commit or not to commit actions in the execution of these powers”20. Secondly, under current conditions it is unlikely that in practice it will be possible to ensure the approach when civil servants, being members of a political party, will not use their official powers in the interests of this party, will not demonstrate their own views in a manner favourable to themselves and a political party or candidate. Significant obstacles are the significant politicization and protectionism that are observed today in the civil service and are rightfully recognized as one of the main problems of its further development. It is eloquent that, according to sociological studies, about 32% of respondent civil servants do not attribute political neutrality to the list of characteristics that facilitate their career advancement21. Civil servants have traditionally been seen as an important point of reference for the ruling political force, a powerful and efficient administrative resource that allows the maintenance of power and desired results during elections. Mainly it is because of former Soviet Union tradition, where membership of, and support

20 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700–VІI, зі змін. Відомості Верховної Ради України. 2015. № 87. Ст. 2056. 21 Мартиненко В.,Серьогін С., Євдокимов В. Кадрова політика і державна служба у сфері публічного управління (регіональний аспект) : монографія / за заг. ред. В. Мартиненка. Харків : Магістр, 2008. С. 187. 39 for, the Communist Party was essential for members of the state and military apparatus22. It has to be always taken into account that the exact design and developmental route of organization of Civil Service, including inner political values, is significantly conditioned by particular societal and political- administrative contexts of every country23. It is no coincidence that the reports on the assessment of the governance system in Ukraine conducted by the experts of the international project SIGMA noted that “the civil service is politicized: it does not function as a professional corps <…>. This is partly due to legislative shortcomings, but mostly due to inheritance of practical activity and administrative-command culture <…>. Facts indicate that the political elites are unlikely to welcome professional state governance, which embodies legal rationality, state integrity, and that is a bulwark against the abuse of state power and defends the principle of law”24; d) requirements for combining with the deputy mandate. The general requirements for combining the mandate in terms of the categories of posts are as follows: a) for the category “A” – a ban on combining the civil service with the status of a deputy of the local council and the status of a deputy of the Verkhovna Rada of Ukraine; b) for the categories “B” and “C” – the prohibition to combine the civil service with the status of deputy of the Verkhovna Rada of Ukraine, as well as the status of a deputy of the local council, but only in the case if he occupies a paid position at such a local council (the position of the secretary of the city council, etc.); e) requirements for using the official position. The content of these requirements is the prohibition: a) to involve civil servants, local self-government officials, budget employees, other persons to participate in election campaigns, actions and events organized by political parties; b) to use the official position for political purposes in any other way; f) requirements for participation in elections. Unlike some European countries, the Ukrainian model of political impartiality of civil servants does not prohibit the latter from participating as candidates in the elections of the President of Ukraine, as well as in parliamentary and local elections. The only requirement in accordance with Part 4 of Article 10 of the Law on Civil Service is the performance of a specific duty by an official – “in the case of the

22 Harris P. Foundations of Public Administration : a Comparative Approach. Hong Kong : Hong Kong University Press, 1990. P. 10. 23 Raadshelders J., Toonen T., Van der Meer F. The Civil Service in the 21th Century. Comparative Perspectives. London : Palgrave MacMillan Publishing House, 2007. P. 6. 24 Україна. Оцінювання системи урядування. Березень 2006 р. SIGMA. Київ : Центр сприяння інституційному розвитку державної служби, 2007. С. 14. 40 registration of a civil servant as a candidate for deputy by the Central Election Commission or election commissions formed in accordance with the established procedure, he is obliged to inform the head of state service within one day”. Such a civil servant, on his application, is granted a leave without saving wages while participating in the election process. The aforementioned leave is given by the decision of the head of the civil service from the day of his notification about participation in the election process and before the day it is completed in accordance with the election legislation. While on leave during the election process, a civil servant has a right to participate in campaigning; g) strike requirements. The peculiarity of the Ukrainian approach is that, firstly, civil servants are forbidden to organize and participate in strikes, and secondly, the Law “On Civil Service”, included such strikes in the requirements of political impartiality. An essential feature is that the right to strike is implemented by workers to protect their economic and social interests (Article 44 of the Constitution of Ukraine). The right to strike is a right of social and labor nature, and, as a rule, does not apply to the political activity of a civil servant, his political rights. In this regard, in general, not denying the expediency of a ban for civil servants to strike, we point out the illogical nature of placing the norm on the prohibition on strike in Article 10 “Political Impartiality” of the Law.

CONCLUSIONS Political impartiality is a relatively new principle of the civil service in Ukraine, which was enshrined in the Law of Ukraine “On Civil Service” of December 10, 2015. Before the adoption of this Law, only certain elements of the principle that were not systematized and belonged to various legal acts were regulated. The introduction and implementation of the principle of political impartiality is connected to the adaptation of the civil service in Ukraine to European standards, its development, organization and functioning as a professional, honest and effective institute aimed at ensuring the rights and freedoms of citizens. The further development of political impartiality of the civil service in Ukraine requires, first of all, a broad perception of its content, the separate elements of which must be recognized not only to the civil servants, but also to political actors, civil service management entities and other entities authorized to take decision regarding the civil servants. It is necessary to improve the legislation of Ukraine in this area (eliminating conflicts, filling gaps, etc.) and creating other conditions for the practical implementation of the requirements of political impartiality. As the foreign experience shows, including the

41 experience of the countries of Eastern and Central Europe which became members of the European Union (Slovakia25, Hungary26, etc.), a balanced legislative settlement of the components of political impartiality of the civil service is far from sufficient for the practical maintenance of the political impartiality of the state apparatus. In this sense, the definition and effective use of the means that allow to assure the politically impartial behavior of the civil servants, to respond to the violations in this field from the side of politicians, political parties, subjects of civil service management, etc. are of particular importance.

SUMMARY The article examines the legal regulation of political impartiality of the civil service in Ukraine. The author analyzes the stages of formation of the legislation of independent Ukraine in the field of political impartiality of the civil service in Ukraine, emphasizes their features. The study of political impartiality as a principle of the modern civil service in Ukraine, legal regulation of its content and its main components are under examination. The author concludes that it is necessary to perceive the political impartiality of the civil service in a broad sense. It should include requirements not only to civil servants, but also to political actors (political parties, candidates for elections, etc.), as well as civil service management entities and other entities authorized to take personnel decisions regarding the civil servants. Types of requirements of political impartiality of the civil servants in Ukraine are defined and researched. Proposals to improve the legal regulation of the political impartiality of the civil service in Ukraine are made. In particular, it is pointed out to the reasonability of the permanent prohibition of the civil servants from being members of political parties, regardless of the category of their positions, what, according to the author, will be adequate to the existing conditions in Ukraine and will correspond to the fulfillment of tasks aimed at counteracting a significant politicization of the civil service. There are shortcomings of the Ukrainian legislation in terms of regulating the requirements of loyalty of the civil servants. The author emphasizes the importance of the means of ensuring compliance with the requirements of political impartiality of the civil servants in Ukraine.

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44 S. Vanhoonacker, L. Verhey. London : Palgrave Macmillan Publishing House, 2013. P. 123–151. 28. Weber M. Bureaucracy. Classics of Public Administration / ed. by Jay M. Shafritz, Albert C. Hyde. 6th ed. Boston : Thompson Higher Education, 2007. P. 43–48.

Information about authors: Matyukhina N. P., Doctor of Juridical Sciences, Professor of Administrative Law Department Yaroslav Mudryi National Law University 77, Pushkinska st., Kharkiv, Ukraine

Fedchyshyn S. A., Candidate of Juridical Sciences, Associate Professor of Administrative Law Department Yaroslav Mudryi National Law University 77, Pushkinska st., Kharkiv, Ukraine

45 CORRUPTION RISKS IN POLICE ACTIVITY AND WAYS OF THEIR REMOVAL: REQUIREMENTS OF NATIONAL LEGISLATION AND FOREIGN PRACTICE

Myroniuk R. V., Myroniuk S. A.

INTRODUCTION Corruption – it is a negative social appearance, the main source of economic, political and social risks for society. Corruption is one of the most dangerous threats of human rights, that prevents state economic development, has negative effects for state and also for citizens. Nowadays in our country is using activity in the sphere of prevention and combating against corruption. One of the main direction in the sphere of corruption prevention is an identification corruption risks, that can arise in civil servants activity, and removal conditions and reasons for causing this risks. It should be noted, that the legislative definition of concept and types of corruption risks isn’t specified. However, Art. 19 of the Law of Ukraine “About corruption prevention” (further – the law) provides the necessity of development and approval of anti-corruption programs in each body of public authorities, including the National Police, which consists of: defining the principles of a general departmental politics in direction of prevention and corruption counteraction in the appropriate sphere, measures for their realization, and implementation of anticorruption strategy and state anti-corruption program; assessment of corruption risks in the activities of the authorities, institution, organization, the causes that cause them and the conditions that promote them; measures to removal the identified corruption risks, persons who are responsible for their execution, terms and required resources1. For execution of this norm, the National Police yearly approves the Anticorruption Program taking into account the Decree of the Cabinet of Ministers of Ukraine from October 05, 2016 № 803-p “Some issues of corruption prevention in ministries and other central executive power”2, “On approval of the action plan of realization Communications Strategy in the area of Prevention and Counteraction of Corruption from 2018” of January 31, 2018, № 86-r3, in compliance with the provisions of the

1About Prevention of Corruption : Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 2Some Issues of Corruption Prevention in Ministries and Other Central Executive Bodies : Decree № 803-p of the Cabinet of Ministers of Ukraine from October 05, 2016. Government Courier. 2016. № 213. 3About Approval of the Action Plan for the Implementation of the Communication Strategy in the Field of Prevention and Combating Corruption from 2018 : Ordinance of the Cabinet of Ministers of Ukraine from January 31, 2018 № 86-p. Government Courier. 2018. № 36. 46 Methodology for Assessing Corruption Risks in the Activities of Authorities, the Approved Decision of the National Agency for the Prevention of Corruption (hereinafter – NACC) of December 2, 2016, № 1264, Methodological Recommendations for the Development of Anti-Corruption Programs of Authorities, approved by the decision of the NACC of January 19, 2017 № 315, and taking into account preparation procedure, submission of anti-corruption programs for approval by the National agency on corruption prevention and their approval, appointed by the decision of the NACC of December 08, 2017, № 13796. Despite this, the current anti-corruption legislation of Ukraine does nоt fully regulate corruption risks system in the activities of the public service and, in general, in the National Police, in particular, in it firstly focuses on taking systematic measures to prevent (minimize) corruption risks in a separate authority of public power, at the same time, there is no definition of the corruption risks that occur in the daily work of the individual police officer, it is quite complicated for police officers to understand, and does not answer the questions: which acts or decisions mustbe refused or inactive by police officers in order to his actions are not assessed as related to corruption or corruption. In this manner, the purpose of this unit of this monograph is to find out those corruption risks that should be eliminated, prevent (minimize) their occurence by the police officers so as not to become the subject of committing a corruption offense. In order to accomplish the task within this unit, the following tasks will be solved: to identify corruption risks in the activities of the police officer; to find out the ways of the activity (inactivity) of the policeman leading to the occurrence of corruption risks and identify ways to eliminate (minimize) them.

1. Legislative regulation of corruption risks in the activity of civil servants in Ukraine Returning to the notion of corruption risks in the police activity, it should be noted that their normative definition that is given in the NAPC Guidelines – Methodology for assessing corruption risks in the activity of the

4About approval of the Corruption Risk Assessment Methodology in the Activity of the Authorities : Decision of the National Agency for the Prevention of Corruption from December 02, 2016 № 126. Official Bulletin of Ukraine. 2017. № 4. P. 811. Art. 168. 5About Approval of the Methodological Recommendations for the Development of Anti-Corruption Programs of the Authorities : Decision of the National Agency for the Prevention of Corruption of January 19, 2017 № 31. URL: https://zakon.rada.gov.ua/rada/show/v0031884-17. 6About approval of the Procedure for preparation, submission of anti-corruption programs for approval by the National Anti-Corruption Agency and their implementation : Decision of the National Anti-Corruption Agency from December 08, 2017 № 1379. URL: https://zakon.rada.gov.ua/laws/show/z0087-18. 47 authorities, approved by the decision of NAPC from December 2, 2016, № 126, according to which the corruption risk in the activity of the police should be considered probability that a decision, action or inactivity of a police officer can lead to a corruption offense or an offense related to corruption. The object of corruption risks assessment is the functions, tasks and powers of the police, established by legislative acts, and the ways of their implementation; assessment of corruption risks is the process of identifying, analyzing and directly assessing of corruption risk; factors of corruption risk include the conditions and reasons that encourage (stimulate), cause or allow committing of police actions that may lead to committing corruption offense or an offense that related with corruption7. An assessment of corruption risks can be made by the National Police corruption risk assessment commission (or its separate structural unit), which includes not only police officers, but in consent, there may be included representatives of the public, experts, who have knowledge of the internal and external police environment and have work experience in the law- enforcement (human rights) sphere. Such commission is created by the head of a separate structural unit of the Ministry of Internal Affairs (National Police), in particular in the National Police, the composition of such a commission was approved by the order of the National Police of Ukraine № 35 from January 18, 20198. In educational institutions of the Ministry of Internal Affairs with special educational conditions such commission is created and operates on the base of the provision approved by the head (rector) of the institution of higher education9. The process of assessing corruption risks consists of the following main stages: organizationally preparatory measures; identification (detection) of corruption risks; assessment of corruption risks; report compilation on the results of the assessment of corruption risks that it makes no sense to analyze, as they are explained in detail in the aforecited methodological recommendations and concern all corruption risks for the relevant public authority, but not a specific civil servant. It should also be added to the detailed analysis the subjects of the form (types) of corruption risks for the authorities in the methodological recommendations “Corruption risks in the

7About approval of the Corruption Risk Assessment Methodology in the Activity of the Authorities: Decision of the National Agency for the Prevention of Corruption from December 02, 2016 № 126. Official Bulletin of Ukraine. 2017. № 4. P. 811. Art. 168. 8About approval of the composition of the Corruption Risk Assessment and Monitoring Commission of the National Police of Ukraine Anti-Corruption Program : Order of the National Police of Ukraine from January 18, 2019 № 35. URL: https://dp.npu.gov.ua/assets/sites/dp. 9About Approval of the Regulations on the Commission for Corruption Risk Assessment and Monitoring of the Anti-Corruption Program of Dnipropetrovsk State University of Internal Affairs. URL: /Structure/anticorruption/2017/4.pdf. 48 activities of civil servants”, which are given in explanation of the Ministry of Justice of Ukraine from April 12, 201110, in accordance with which according to the prevalence corruption risks in the activity of civil servants can be arranged in the following order: not virtue of civil servants; the occurance of a conflict of interest; insufficient level of control or uncontrolled management; availability of discretionary powers. To achieve the purpose of the study through the implementation of its clearly defined goals, we will continue to discuss the real decisions, actions or inactivity of the police officers, which determine the existence of corruption risks in their activity, and identify ways to eliminate them.

2. Analysis of the most common corruption risks in their activities of the police officer and ways of their elimination In particular, we will begin fromt using of official authority or his position, restrictions on which are determined by Article 22 of the Law. An analysis of this norm indicates that the police are forbidden to use their official powers or their position and the related possibilities in order to obtain an unlawful benefit for themselves or other persons, including the use of any state or communal property or funds in private interests. Without giving a legal analysis of this norm-prohibition (restriction), in spite of all this one should take into account several factors: 1) the use of his official authority (as defined by the job description) or his position as a policeman (not direct powers, but tacit possibilities, for example, access to relevant police records); 2) obtaining (actual or potential) undue advantage, which should be understood as cash or other property, benefits, benefits, services, intangible assets, any other benefits of immaterial or non-monetary nature, which promise, offer, provide or receive without legal for those reasons (Clause 1, Clause 1 of Article 1 of the Law); 3) the use of any state or communal property or funds (which are directly used by the police, for example, a vehicle, or which temporarily have to access to a police officer, for example, special means, in private interests (that is, outside of their legitimate use in the public interest). For example, the use of a service vehicle by a policeman to bring family members to work (study), to deliver things (products) to other items for their own or other private interests in11.

10Corruption Risks in the Activities of Civil Servants : Clarification of the Ministry of Justice of Ukraine from 12.04.2011. URL: https://zakon.rada.gov.ua/laws/show/n0026323-11. 11About Prevention of Corruption : Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 49 The next is a gift limit. Here it is necessary to distinguish between the legal and illegal reception of police gifts. Legitimate gifts and ways to receive them should include: 1) accepting gifts that are in accordance with generally accepted notions of hospitality. Note: Gifts that comply with generally accepted notions of hospitality and may be accepted by the police if the cost of such gifts does not exceed one living wage for able-bodied persons, established on the day of acceptance of the gift, once, and the aggregate value of such gifts received from one person (group of persons) during year does not exceed the two subsistence minimum established for an able-bodied person on January 1 of the year in which the gifts were accepted (the living wage for the able-bodied persons should be taken into account The promise to the Law of Ukraine “About the State Budget of Ukraine”. It is 1921 UAH for today12; 2) any gifts that are given by close friends or received as public discounts on goods, services, public prizes, prizes, bonuses, bonuses. Note. Families should be understood as persons living together, connected with common life and having rights and obligations with the subject, which are subject to this Law (except for persons whose mutual rights and duties with the subject are not been of the character of the family), including persons who live together, but who are not married, as well as – regardless of the specified conditions – husband, wife, father, mother, stepfather, stepmother, son, daughter, stepchild, brother, sister, grandfather, grandparent, great-grandfather, great- grandfather, grandson, granddaughter, great-grandson, great-grandchild, son-in- law, bride, father-in-law, mother-in-law, adoptive parent or adopted, guardian or trustee, a person who is in the custody or care of the said subject. Accordingly, unlawful gifts are those that exceed one living wage for able- bodied persons, established on the day of the gift, once, and the aggregate value of such gifts received from one person (group of persons) during the year exceeds two subsistence minimum fixed for an able-bodied person on January 1 of the year in which gifts are accepted; and in the illegal way of receiving them it is necessary to consider, directly or through other persons, the extortion, request or receipt of such gifts for themselves or persons close to them from legal entities or individuals in connection with the exercise by such persons of activities related to the exercise of state or local functions self-government or if the person making the grant is subject to such a person.

12On the State Budget of Ukraine for 2019 : Law of Ukraine from November 23, 2018 № 2629-VIII. Information of the Verkhovna Rada. 2018. № 50. Art. 400. 50 Other ways of obtaining gifts by the police are completely legal (in particular, receiving gifts from friends who are not in any connection with the police officer) related to his professional activities, refers to the real rather than potentially possible stay in such relationships (for example can serve as a completely legitimate gift for a patrol police birthday present from a friend who is a driver and can potentially be in a patronage relationship with the last rush action decision spare for committing traffic rules). In this case, when receiving gifts within the established limits, the police must also remember the need to indicate gifts as their income in the relevant section of the declaration, provided that the amount of the gift in cash received from one person (group of persons) during the year or the value of one gift in a form other than cash (movable property, vehicles, real estate, etc.), exceeds the minimum 5 established for able-bodied persons on January 1 of the corresponding year (that is, more than UAH 8,000). And if the subject of the declaration received a gift for the amount that exceeds the 50 living wages established for able-bodied persons on January 1 of the corresponding year (as of 2017 – UAH 80,000), he additionally has a duty to submit a notice of material change in property status. In addition, the conditions for the receipt of gifts must be observed. Thus, in particular, in accordance with Article 719 of the Civil Code of Ukraine, an agreement on the donation of immovable property, currency valuables in excess of fifty times the amount of the non-taxable minimum of citizens’ incomes are entered in writing and is subject to a notarial certificate13. Regarding liability for the unlawful receipt of a gift, it is differentiated as follows: 1) a criminal offense under Articles 368, 368-4 of the Criminal Code – acceptance of a proposal, receipt, exaction, a request to provide a gift to himself or a third person for the act or omission in the interests of who it offers or provides it, or in the interests of a third party using authority or official position (authority)14; administrative under Article 172-5 of the CUAO (violations of statutory restrictions on the receipt of gifts, namely: acceptance of a gift that does not conform to generally accepted notions of hospitality – not in connection with the implementation of activities related to the exercise of state or local government functions and not from a subordinate person)15.

13Civil Code of Ukraine : Law of Ukraine from January 16, 2003 № 435-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 40–44. P. 356. 14The Criminal Code of Ukraine from April 5, 2001 № 2341-III. Information of the Verkhovna Rada of Ukraine. 2001. № 25–26. P. 131. 15Code of Ukraine on Administrative Offenses : Resolution of the Verkhovna Rada of the Ukrainian SSR № 8074-10 from 07.12.84. Information of the Verkhovna Rada of the Ukrainian SSR. 1984. Supplement to № 51. P. 1122. 51 A police officer, in the event of receipt of an offer of unlawful benefit or gift, regardless of private interests, must immediately take the following measures:  refuse the offer;  if possible identify the person who made the offer;  bring witnesses, if possible, including from among employees;  inform in writing form about the proposal of the direct manager (if any) or specially authorized subjects in the field of combating corruption. Also, Article 24 of the Law defines a sufficiently precise algorithm for actions found in its official premises, which may be unlawful gain or gift; in this case, he must promptly, but not later than one working day, in writing form his immediate supervisor about this fact; the identification of the property that may be illegitimate benefit or the gift is an act signed by the person who found the wrongful benefit or gift and its direct manager (it should be noted that this requirement applies to cases of the identification of such property and police officer)16. With regard to foreign law and practice regarding the receipt of police gifts, the following restrictions have been established: Thus, in the Federal Republic of Germany, a police officer, like any other employee, has the right to receive a gift of a value not exceeding 10 euros, and in some states, US $20, provided, that the total cost of such gifts from one source during the year does not exceed $5017. The next corruption risk in police activity is the combination and combination with other types of activities. The norm in Article 25 of the Law indicates that the restriction (forbidden) for a policeman is to engage in other paid or entrepreneurial activities (except for teaching, scientific and creative activity, medical practice, instructor and judge practice in sports)18. Without resorting to a careful comparative legal analysis of the feasibility of introducing such restrictions for the police, it should be noted that the legislation and law-enforcement practice of most democratic states allows for the possibility of a combination of police activities with other types of

16About Prevention of Corruption : Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 17Lupalo O.A., Rokotianska A.S. Some questions of theoretical and legal basis for determining the statutory offenses for receiving gifts. Protection of human rights and freedoms by administrative law : materials of a scientific-practical seminar / ed. board: O.V. Kuzmenko, I.D. Shepherd. Kyiv : Department of Publishing Center, 2017. P. 15–21. Kolomoyets T.O. Restrictions on receiving gifts by persons authorized to perform the functions of the state or local self-government under the legislation of Ukraine: a scientific and practical essay. Zaporizhzhia : Helvetika Publishing House, 2018. P. 24. 18About Prevention of Corruption : Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 52 activities that involve the use of a police worker’s resource to obtain the last extra income as stimulating factor for improving his personality abilities and the possibility of their realization19. However, there are quite logical and reasonable restrictions on such activities, in particular: 1) it can only be carried out outside the working hours of the police officer (depending on the schedule of his service, but not usually within the average 40 hours of working week); 2) it should not be connected with the use of police service by police service; 3) such activities must be documented; 4) the police must pay all taxes on profits to be declared. We hope that in the future, with the improvement of anti- corruption legislation, such prospects of conciliation will be open to our policemen. At present, a police officer in Ukraine is prohibited from engaging in entrepreneurial activities directly, that is, according to Art. 42 of the Commercial Code of Ukraine – an independent, initiative, systematic, at its own risk, economic activity, carried out by economic entities (entrepreneurs) in order to achieve economic and social results and profit20. The exception is teaching, scientific and creative activity, medical practice, instructor and judge practice in sports. When applying the restriction in terms of engaging in entrepreneurial activity, one should be guided by the definition in Article 42 of the Commercial Code of Ukraine of the definition of entrepreneurship as an independent, initiative, systematic, for own risk of economic activity carried out by economic entities (entrepreneurs) in order to achieve economic and social results and obtaining profit21. These activities can be carried out by police officers with certain limitations: firstly, outside of service (work) time; secondly, with proper legal registration, usually in a contract with the mandatory payment of taxes on profits and declaration of such profits and making such profits in the declaration. It should be noted that the Order of the Ministry of Labour of Ukraine, Ministry of Finance of Ukraine, Ministry of Justice of Ukraine dated June 28, 1993 № 43 “On Approval of the Regulation on the Conditions of Employment of Employees of State Enterprises, Institutions and Organizations” stipulates that all employees, in addition to the main work and work part-time, have the right to perform work that is not part-time according

19Policy and Practice of Conflicts of Interest in Nine EU Member States: Comparative Review: Prof. Manuel Villoria-Mendieta University Ray Juan Carlos. Cheap hotels in Madrid, Spain. 2008. 32 p. URL: http://www.sigmaweb.org/publications/39577476.pdf. 20Commercial Code of Ukraine: Law of Ukraine of January 16, 2003, № 436-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 18, № 19–20, № 21–22. Article 144. 21Commercial Code of Ukraine : Law of Ukraine of January 16, 2003, № 436-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 18, № 19–20, № 21–22. Article 144. 53 to the current legislation. In particular, Paragraph 3 of the above List specifies a pedagogical work with hourly wages of not more than 240 hours a year22. Thus, the police officer has the right to perform teaching activity, medical practice, instructor’s and judge’s practice in sports in the amount of no more than 240 hours per year with hourly wages if the permission for such work was provided by the head of the relevant body. It should be noted that, in accordance with the legislation of Ukraine, if a person plans to independently, systematically, at his own risk, in order to achieve economic and social results and in order to receive profits to engage in the specified activities, he is obliged to register as a natural person – an entrepreneur or to register enterprise. A citizen can engage in entrepreneurial activities directly as an entrepreneur or through a private enterprise that he creates and bears the relevant responsibilities. This is provided for in Articles 19, 58, 128 of the Civil Code23 and the Law “On State Registration of Legal Entities, Natural Persons – Entrepreneurs and Public Associations”24. Actual occupation of entrepreneurial activity without state registration or without a corresponding license is prohibited and liable for Art. 164 CUAO or other relevant articles of CUAO or Criminal Code. There may also be a set of entrepreneurial activities without state registration and an offense stipulated in Art. 172-4 CUAO. Thus, teaching, scientific and creative activity, medical practice, instructor and judge practice in sport for persons specified in paragraph 1 of Art. 3 of this Law are prohibited business activities, and not permitted exceptions from “other paid activity”, if they are carried out independently, initially, systematically (three times a year or more) at their own risk, in order to achieve economic and social results and in order to profit-making. For example, it is about creating an institution of education and continuing to work there, creating a research laboratory and systematic research or experimental development, systematic provision of landscape services or systematic theatrical or concert activities, continuous medical practice, the creation of a sports club and instructor activities in him etc. At the same time, it can not be considered as an entrepreneurial activity in lecturing, conducting seminars or trainings, etc., preparing articles, monographs, textbooks, etc., theatrical or concert activities, medical practice,

22On approving the Regulations on the conditions of work in combination of employees of state-owned enterprises, institutions and organizations : Order of the Ministry of Labor of Ukraine, Ministry of Finance of Ukraine, Ministry of Justice of Ukraine from 28.06.93 № 43. URL: https://zakon.rada.gov.ua/ laws/show/z0076-93. 23Commercial Code of Ukraine: Law of Ukraine of January 16, 2003, № 436-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 18, № 19–20, № 21–22. Art. 144. 24About the state registration of legal entities, natural persons – entrepreneurs and public entities : Law of Ukraine from May 15, 2003 № 755-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 31–32. Art. 263. 54 instructor and judge practice in sports – if they are carried out, albeit systematically and in order to receive earnings, but not at the initiative of a person and not at his own risk, they are not organized independently and the person does not have the objective of achieving economic and social results. These are situations where a person is systematically involved as an expert (specialist) in a particular area for the performance of a particular work, and the remuneration received by him is paid for work (that is, remuneration directly for the work performed), but not for profit (that is, not a sum per what income exceeds the costs associated with them). Summarizing the foregoing, it should be noted that the development of various types of entrepreneurial activity and the possibility of occupying it outside the service of the police, in the long run, should make it simpler to restrict the occupation of activities that bring the police additional income. For example, is it possible to limit the activity of a policeman who, having mastered his knowledge of computer simulation, uses his personal computer technology outside of working hours to develop sites for ordering online stores and receives payment for his services, or a policeman who On the day off, managing its own car, using the international service platforms “Bla Bla Car”, “Uber” provides paid services for passenger transportation. Perhaps to consider such activity solely as an entrepreneur with the identity of an entrepreneur is inappropriate, as well as to restrain a person in such activity, which is associated with personal motivation and ability to do such an activity. However, it is indisputable that conditions should be provided for the police, as well as other civil servants, to be granted such a right, in particular: 1) it can be performed exclusively outside the working hours of the police officer (depending on the schedule of his service, but not usually within the average 40 hours working Sunday); 2) it should not be related to use police officers by the police at the expense of the civil service; 3) such activity must be documented in any form (even through registration on the Internet resource); 4) the police must pay all taxes on the profit received; 5) this profit must be declared. The following restriction on coping with a police officer is a prohibition on being a member of the board, other executive or supervisory bodies, a supervisory board of an enterprise or an organization seeking profit (except in cases where persons perform shares management functions (shares) owned by the state or the territorial community, and represent the interests of the state or territorial community in the council (supervisory board), the audit commission of the economic organization), unless otherwise provided by the Constitution or laws of Ukraine, individual concerned provisions of Article 66 of the Law of Ukraine “On the national police”, which states that police can

55 during military service to engage in other paid activities, except for scientific, educational, scientific or artistic25. In order to determine whether or not there are corruption risks, the following should be taken into account by the police: 1) a categorical prohibition on entering the board, other executive or supervisory bodies, the supervisory board of an enterprise or organization seeking profit, and the very fact of such entry, even without active behaviour of a person (as in the case of a prohibition on engaging in other paid activities); is a violation of the requirements of the Law26; At the same time, a policeman may be a founder, a member of the board and a deputy head of a non-profit organization if he does not receive an adequate income from the results of the organization’s activities27; 2) is not a corruption risk, and in accordance with the law violates the right to be a passive shareholder of a joint-stock company, that is, without direct business activity, while obtaining income from shares, but taking into account one condition that the presence of such number of shares does not give the right to take managerial decisions (to be part of the board of a legal entity), which influence the activity of the enterprise; This also applies to the opening of deposit accounts, which provide for the receipt of profits in the form of dividends by the police, on condition of declaring the number of dividends (equity), as well as the profits received from their placement. The following restriction on coping with a police officer is a prohibition on being a member of the board, other executive or supervisory bodies, a supervisory board of an enterprise or an organization seeking profit (except in cases where persons perform shares management functions (shares) owned by the state or the territorial community, and represent the interests of the state or territorial community in the council (supervisory board), the audit commission of the economic organization), unless otherwise provided by the Constitution or laws of Ukraine, individual concerned provisions of Article 66 of the Law of Ukraine “On the national police”, which states that police can during military service to engage in other paid activities, except for scientific, educational, scientific or artistic28.

25About the National Police: Law of Ukraine from July 2, 2015 № 580-VIII. Information of the Verkhovna Rada. 2015. № 40–41. Art. 379. 26About Approval of Methodological Recommendations for the Prevention and Settlement of Conflicts of Interest. URL: https://mfa.gov.ua/mediafiles/files/misc/2017-10-30/2017-10-30_2.pdf. 27Concerning the possibility of a civil servant to be a founder, a member of the board and a deputy chairman of a non-profit public organization : Explanation of the National Agency of Ukraine on Civil Service from 15.08.2014. URL: https://zakon.rada.gov.ua/rada/show/n0003859-14. 28About the National Police : Law of Ukraine from July 2, 2015 № 580-VIII. Information of the Verkhovna Rada. 2015. № 40–41. Art. 379. 56 In order to determine whether or not there are corruption risks, the following should be taken into account by the police: 1) a categorical prohibition on entering the board, other executive or supervisory bodies, the supervisory board of an enterprise or organization seeking profit, and the very fact of such entry, even without active behaviour of a person (as in the case of a prohibition on engaging in other paid activities); is a violation of the requirements of the Law29; At the same time, a policeman may be a founder, a member of the board and a deputy head of a non-profit organization if he does not receive an adequate income from the results of the organization’s activities30; 2) is not a corruption risk, and in accordance with the law violates the right to be a passive shareholder of a joint-stock company, that is, without direct business activity, while obtaining income from shares, but taking into account one condition that the presence of such number of shares does not give the right to take managerial decisions (to be part of the board of a legal entity), which influence the activity of the enterprise; This also applies to the opening of deposit accounts, which provide for the receipt of profits in the form of dividends by the police, on condition of declaring the number of dividends (equity), as well as the profits received from their placement. Thus, a policeman may, in essence, be a founder, a board member and deputy chairman of a non-profit organization if he does not receive an adequate income from the results of this organization’s activities. However, it should be noted here that if a public organization invests funds for a charity event, for example, to provide medical care to a sick person, a policeman who is the founder or a member of the board of this organization, may not be the manager of these funds under an internal statutory decision, in which case he even there is no right to vote if it is carried out by means of charitable funds. The next corruption risk for a policeman is the joint work of close people, which is subject to restrictions under Article 27 of the Law. Thus, the police can not have direct subordination to their loved ones or to be directly subordinate in connection with the exercise of powers to their loved ones, the list of which is defined in Art. 1 of the Act31. It should be borne in mind that the law gives a fairly broad concept of “direct subordination”, which should be understood as the relationship of direct organizational or legal dependence

29About Approval of Methodological Recommendations for the Prevention and Settlement of Conflicts of Interest URL: https://mfa.gov.ua/mediafiles/files/misc/2017-10-30/2017-10-30_2.pdf. 30Concerning the possibility of a civil servant to be a founder, a member of the board and a deputy chairman of a non-profit public organization : Explanation of the National Agency of Ukraine on Civil Service from 15.08.2014. URL: https://zakon.rada.gov.ua/rada/show/n0003859-14. 31About Prevention of Corruption: Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 57 of the subordinate person from its head, including through the decision (participation in the decision) issues of recruitment, dismissal, application incentives, disciplinary penalties, giving instructions, orders, etc., monitoring their implementation. However, this issue is directly related to the presence or absence of a conflict of interest in which we will pay attention below. For a clear understanding of the direct subordination of the police to the police, we give the following examples: it is evident that the daughter can not be on the post of investigator department whose head is her father; On the other hand, can the son work as a district police officer in a unit where his father is the head of the recruitment service? And the answer to this question is affirmative – yes, but a conflict of interests must be eliminated – the parent should be expelled from a commission that takes a staff decision for his son. The obvious way of eliminating this corruption risk is by the person who claims to be in the relevant police unit of the authority, the position in which he claims to be, and the persons who work in this body of his or her relatives. If such corruption risk already exists, it should be removed from the initiative of the parties of the conflict of interest within fifteen days, or, upon the decision of the head, within one month from the moment of the occurrence of the circumstances, the person (person) is to be transferred to another position according to the established procedure, which excludes direct submission. In the event of the impossibility of such transfer, the person being subordinated shall be dismissed from office. The most complicated category of occurrence of corruption risks in the activity of a policeman in the presence of real or potential interests, as categories of analysis which need to be allocated to a separate study. Below, based on the legal definition of a potential conflict of interest, the presence of a person’s private interest in a field in which he carries out his official or representative powers, which may affect the objectivity or impartiality of his decisions, or commit or not to act during fulfilment of these powers, or a real conflict of interest, as a contradiction between the private interest of a person and his official or representative powers, which affects the objectivity or impartiality of the acceptance of decisions on committing or non committing acts during the execution of these powers, we give some examples of conflicts of interest that may arise in the activities of the police, the investigator can not carry out criminal proceedings against his cousin; the Permit System Inspector can not handle clearance for the carriage, transportation or storage of a relative’s; An investigator can not carry out administrative supervision of a relative, and so on. In order to prevent the emergence of a real, potential conflict of interest, a policeman is obliged to report the existence of a conflict of interests of the direct leader, not to take actions and to not make decisions

58 in the conditions of a real conflict of interests, independently take measures to resolve a real or potential conflict of interests. A direct police chief within two working days of receiving notice of the presence of a potential or potential conflicts of interest in a subordinate person makes a decision on resolving a conflict of interest by: removing a person from performing a task, committing an act, taking a decision or taking part in its adoption in a real or potential conflict of interest; the use of external control over the execution of a particular task by a person, the commission of certain actions or decision- making; restriction of access of a person to certain information; reviewing the scope of official authority of a person; transfer of person to another post; dismissal of a person32. Another corruption risk for a policeman is the non-observance of the deadlines for completing the declaration and making changes to it. The policeman is obliged to submit annually by April 1, by filling in the declaration on the official website of the NAPC, the person authorized to perform the functions of the state or local self-government in the past year in the form determined by the NAPC, as well as within seven days after the submission of the declaration, the police officer has the right to file corrected declaration. It should also be borne in mind that in the event of a significant change in the property of a police officer, in particular income received by him, the acquisition of property for an amount exceeding 50 subsistence minimum established for able-bodied persons as of January 1 of the corresponding year (for the first half of 2019 it is 96 thousand 50 hryvnias), a policeman, within ten days from the date of receipt of income or acquisition of property, is required to notify the NAC in writing, the said information shall be entered into the Unified State Register of Declarations of persons authorized to perform functions of the state or local self-management and published on the official website of the National Agency.

CONCLUSIONS Thus, in order to accomplish the task within this unit of the monograph, we attempted to identify the main corruption risks in the activity of the policeman, elucidated the ways of the policeman’s activity (inactivity) leading to the occurrence of corruption risks and the algorithms of the policeman’s activions were identified to exclude or, at least, minimize the offensive’s negative legal consequences in the form of liability for committing a corruption offense or an offense, related to corruption.

32About the National Police: Law of Ukraine from July 2, 2015 № 580-VIII. Information of the Verkhovna Rada. 2015. № 40–41. Art. 379. 59 SUMMARY This article outlines the main corruption risks in the activity of the National Police, found out the ways of police action (inactivity) leading to the occurrence of corruption risks, and identifies the algorithms for the policeman’s to exclude or at least minimize their offense in the form of responsibility for committing a corruption offense or an offense that related with corruption. It is established that under the corruption risk of a policeman activity, should be considered a possibility of that decision, action or inactivity of a policeman may lead to a corruption offense or an offense that related with corruption. The object of corruption assessment risks is the functions, tasks and policeman’s powers, determined by legislative acts, and the ways of their realization; assessment of corruption risks is the process of identifying, analyzing and directly assessing corruption risk; factors of corruption risk include the conditions and reasons that encourage (stimulate), cause or allow of the commiting police actions that may lead to committing a corruption offense or an offense that related to corruption. An assessment of corruption risks can be conducted by the National Police (or its separate structural unit) or corruption risk assessment commission, which includes not only police officers, but in consent, there may be included representatives of the public, experts, who have knowledge of the internal and external police environment and have work experience in the law-enforcement (human rights) sphere. It is established that the greatest corruption risks that arise in police activity are related with: using of official power to receive unlawful benefits; receiving gifts; moonlighting and combining with other activities; occupation in entrepreneurial and other paid activities; joint work of close people and presence of real or potential interest.

REFERENCES 1. About Prevention of Corruption : Law of Ukraine of October 14, 2014 № 1700-VII. Information of the Verkhovna Rada. 2014. № 49. Art. 2056. 2. Some Issues of Corruption Prevention in Ministries and Other Central Executive Bodies : Decree № 803-p of the Cabinet of Ministers of Ukraine from October 05, 2016. Government Courier. 2016. № 213. 3. About Approval of the Action Plan for the Implementation of the Communication Strategy in the Field of Prevention and Combating Corruption from 2018 : Ordinance of the Cabinet of Ministers of Ukraine from January 31, 2018 № 86-p. Government Courier. 2018. № 36. 4. About approval of the Corruption Risk Assessment Methodology in the Activity of the Authorities : Decision of the National Agency for the Prevention of Corruption from December 02, 2016 № 126. Official Bulletin of Ukraine. 2017. № 4. P. 811. Art. 168.

60 5. About Approval of the Methodological Recommendations for the Development of Anti-Corruption Programs of the Authorities : Decision of the National Agency for the Prevention of Corruption of January 19, 2017 № 31. URL: https://zakon.rada.gov.ua/rada/show/v0031884-17. 6. About approval of the Procedure for preparation, submission of anti- corruption programs for approval by the National Anti-Corruption Agency and their implementation : Decision of the National Anti-Corruption Agency from December 08, 2017 № 1379. URL: https://zakon.rada.gov.ua/laws/ show/z0087-18. 7. About approval of the composition of the Corruption Risk Assessment and Monitoring Commission of the National Police of Ukraine Anti- Corruption Program : Order of the National Police of Ukraine from January 18, 2019 № 35. URL: https://dp.npu.gov.ua/assets/sites/dp. 8. About Approval of the Regulations on the Commission for Corruption Risk Assessment and Monitoring of the Anti-Corruption Program of Dnipropetrovsk State University of Internal Affairs. URL: /Structure/anticorruption/2017/4.pdf. 9. Corruption Risks in the Activities of Civil Servants : Clarification of the Ministry of Justice of Ukraine from 12.04.2011. URL: https://zakon.rada.gov.ua/ laws/show/n0026323-11. 10. On the State Budget of Ukraine for 2019 : Law of Ukraine from November 23, 2018 № 2629-VIII. Information of the Verkhovna Rada. 2018. № 50. Art. 400. 11. Civil Code of Ukraine : Law of Ukraine from January 16, 2003 № 435-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 40–44. P. 356. 12. The Criminal Code of Ukraine from April 5, 2001 № 2341-III. Information of the Verkhovna Rada of Ukraine. 2001. № 25–26. P. 131. 13. Code of Ukraine on Administrative Offenses: Resolution of the Verkhovna Rada of the Ukrainian SSR № 8074-10 from 07.12.84. Information of the Verkhovna Rada of the Ukrainian SSR. 1984. Supplement to № 51. P. 1122. 14. Lupalo O.A., Rokotianska A.S. Some questions of theoretical and legal basis for determining the statutory offenses for receiving gifts. Protection of human rights and freedoms by administrative law : materials of a scientific- practical seminar / ed. board: O.V. Kuzmenko, I.D. Shepherd. Kyiv : Department of Publishing Center, 2017. P. 15–21. 15. Kolomoyets T.O. Restrictions on receiving gifts by persons authorized to perform the functions of the state or local self-government under the legislation of Ukraine: a scientific and practical essay. Zaporizhzhia : Helvetika Publishing House, 2018. 40 p.

61 16. Policy and Practice of Conflicts of Interest in Nine EU Member States: Comparative Review: Prof. Manuel Villoria-Mendieta University Ray Juan Carlos. Cheap hotels in Madrid, Spain. 2008. 32 p. URL: http://www.sigmaweb.org/publications/39577476.pdf. 17. Commercial Code of Ukraine : Law of Ukraine of January 16, 2003 № 436-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 18, № 19–20, № 21–22. Art. 144. 18. On approving the Regulations on the conditions of work in combination of employees of state-owned enterprises, institutions and organizations : Order of the Ministry of Labor of Ukraine, Ministry of Finance of Ukraine, Ministry of Justice of Ukraine from 28.06.93 № 43. URL: https://zakon.rada.gov.ua/laws/ show/z0076-93. 19. About the state registration of legal entities, natural persons – entrepreneurs and public entities : Law of Ukraine from May 15, 2003 № 755-IV. Information of the Verkhovna Rada of Ukraine. 2003. № 31–32. Art. 263. 20. About the National Police : Law of Ukraine from July 2, 2015 № 580-VIII. Information of the Verkhovna Rada. 2015. № 40–41. Art. 379. 21. About Approval of Methodological Recommendations for the Prevention and Settlement of Conflicts of Interest. URL: https://mfa.gov.ua/mediafiles/files/ misc/2017-10-30/2017-10-30_2.pdf. 22. Concerning the possibility of a civil servant to be a founder, a member of the board and a deputy chairman of a non-profit public organization : Explanation of the National Agency of Ukraine on Civil Service from 15.08.2014. URL: https://zakon.rada.gov.ua/rada/show/n0003859-14.

Information about authors: Myroniuk R. V., Doctor of Juridical Sciences, Professor, Professor of the Department of Administrative Law, Process and Administrative Activity of Dnipropetrovsk State University of Internal Affairs 26, Gagarin ave., Dnipro, Ukraine

Myroniuk S. A., Candidate of Juridical Sciences, Senior Lecturer of the Department of Tactical and Special Training of Dnipropetrovsk State University of Internal Affairs 26, Gagarin ave., Dnipro, Ukraine

62 CORRUPTION PREVENTION LAWS OF THE US GOVERNMENT AND THE STATE OF CALIFORNIA

Munisoglu Elizabeth

INTRODUCTION “But who is to guard the guards themselves?” The poet, Juvenal, was addressing a different kind of infidelity when he posed this question, over the course of centuries, however, the dilemma he poses has acquired a much broader application: In a democracy, who is watching those to whom the instruments of government are entrusted? Public corruption involves a breach of trust and / or abuses of power by government officials acting in concert with private sector parties. To foster and preserve confidence in the democratic process, prevention of public corruption is essential. “[A] democracy is effective only if the people have faith in those who govern, and that faith is bound to be shattered when high officials and their appointees engage in activities which arouse suspicions of malfeasance and corruption”1. Regrettably, corruption is an international phenomenon. It does not discriminate. It has the potential to infect any society, culture or government anywhere in the world. Virtually no country is immune. So long as there are persons or groups who are greedy for money, power, or other material benefits, or who seek to monopolize politics or markets, corruption will occur when circumstances permit. The United States is no exception. So, what are the measures and methods used to combat public corruption in the United States – legislatively, administratively, and by law enforcement? The obvious goal is to prevent, or root out and punish, abuses by government officials who seek to enrich themselves by soliciting, accepting, or agreeing to receive something of value in return for using their official position to influence policy, allocate public funds, award contracts, and more. The institutional tools to combat public corruption are found in federal and state statutes that criminalize corrupt conduct and create administrative methods to facilitate internal investigations in addition to investigations by law enforcement.

1. Anti-corruption measures in the federal government and the State of California The jurisdictions of the U. S. government (hereinafter also referred to as the “federal” government) and State and local units of government often overlap. Each level of government has an independent hierarchy of officials,

1From the U. S. Supreme Court decision in United States v. Miss. Valley Generating Co. (1961) 364 U.S. 520, 562. URL: https://supreme.justia.com/cases/federal/us/364/520/. 63 policies, rules, and arrayl of public assets for which it is responsible. Limited resources can constrain the extent and effectiveness of local investigations. Efforts to combat corruption are therefore diverse. Equally diverse are the rates of success, or failure, at the local level, depending in large part on the presence of an effective legal framework, available resources, and local political will. This paper provides an overview of anti-corruption measures in two spheres of governance: the federal government and the State of California. The former applies to activities nationwide that are conducted directly by federal agencies and employees, or by persons responsible for implementing projects with federal funds. California’s system is similar to the systems in other states, but not necessarily parallel in scope or effectiveness. Each of the 50 states has its own Constitution and body of state laws, and within each state there are multiple subdivisions, local governing bodies – cities, counties, etc. – each with its own local rules. Nonetheless, to the extent that California has seen a fair number of prosecutions of public officials on corruption charges, it is a useful example of what can be done at the local level. Recognizing the importance of a strong legal framework to prevent corruption, both California and the federal government have enacted statutes and rules into law which directly target public corruption. The federal rules are found primarily, albeit not exclusively, in Title 18 of the U. S. Code, Chapter 11, which addresses inter alia bribery of public officials, graft, and conflicts of interest. Section 201(a) of Chapter 11 defines the persons and official acts subject to the statute, as follows: “(1) the term “public official” means Member of Congress, Delegate, or Resident Commissioner, either before or after such official has qualified, or an officer or employee or person acting for or on behalf of the United States, or any department, agency or branch of Government thereof, including the District of Columbia, in any official function, under or by authority of any such department, agency, or branch of Government, or a juror; (2) the term “person who has been selected to be a public official” means any person who has been nominated or appointed to be a public official, or has been officially informed that such person will be so nominated or appointed; and (3) the term “official act” means any decision or action on any question, matter, cause, suit, proceeding or controversy, which may at any time be pending, or which may by law be brought before any public official, in such official’s official capacity, or in such official’s place of trust or profit”. A U.S. Supreme Court decision, Dixson v. United States (1984) 465US 482, made it clear that the reach of the statute was not limited to direct employees of

64 the government, stating Congress never intended the term “public official” to be restricted to persons in a formal employment or agency relationship with the Government. The proper inquiry is whether the person occupies a position of public trust with official federal responsibilities. P. 465 U. S. 489–4962. The top investigative priority of the Federal Bureau of Investigation (“FBI”) is public corruption at the federal level, which is perceived as a threat to national security and to the integrity of public infrastructure, such as roads and bridges, because it siphons off funds that would otherwise be invested in such projects. It is estimated that public corruption costs billions of federal tax dollars every year. Although there are no federal statutes which are aimed at public corruption at state and local levels, various federal statutes have been successfully utilized when the corrupt activity has an impact, even if only slight, on interstate commerce3, or when it involves mail or wire fraud § 1341 & 13434. For example, when the mail is used to send documents or information between two parties engaged in a significant corrupt enterprise, the use of the mail system can be a sufficient nexus to allocate federal law enforcement personnel and resources to local efforts, so as to further investigations that would otherwise exceed the capacity of local law enforcement investigative resources. Given the growth of the “administrative state”, where in the functions of the federal government are allocated to an enormous and widespread bureaucracy, a supplemental approach to assure accountability of government agencies was instituted with the Inspector General Act of 19785. Since its enactment, Inspector General Offices (“IGOs”) have been established in virtually every federal department and agency. They are tasked with identifying and attacking fraud, abuse and waste, and thus maintaining the integrity of the organization’s primary mission and function. A penetrating analysis of the federal IGO system, its successes and failures, is set forth in a recent book: The Accountablity State: US Federal Inspectors General and the Pursuit of Democratic Integrity6. In subsequent years many State and local

218 U.S. Code Chapter 11 – Bribery, graft, and conflicts of interest et seq. URL: https://codes.findlaw.com/us/title-18-crimes-and-criminal-procedure/18-usc-sect-201.html. 3The Hobbs Act (named after Congressman Sam Hobbs): 18 US Code § 1951. URL: https://www.justice.gov/jm/jm-9-131000-hobbs-act-18-usc-1951. 418 U.S. Code Chapter 63 – Mail fraud and other fraud offenses: § 1341, 1343 5Public Law 95–452 : “An Act to reorganize the executive branch of the Government and increase its economy and efficiency by establishing Offices of Inspector General within the Departments of Agriculture, Commerce, Housing and Urban Development, the Interior, Labor, and Transportation, and within the Community Services Administration, the Environmental Protection Agency, the General Services Administration, the National Aeronautics and Space Administration, the Small Business Administration, and the Veterans’ Administration, and for other purposes” Oct. 12. 1978. URL: https://www.govinfo.gov/ content/pkg/STATUTE-92/pdf/STATUTE-92-Pg1101.pdf. 6Hilliard N. The Accountablity State: US Federal Inspectors General and the Pursuit of Democratic Integrity. Lawrence : University Press of Kansas, 2017. 288 p. 65 agencies, including numerous agencies in California, have followed the federal model and established their own equivalent IGOs7. It is not uncommon for IGOs in different agencies to work in concert with one another to ferret out waste and corruption that crosses agency lines. A recent federal case in California is illustrative. It involves the successful investigation and prosecution of a civilian employee of the U.S. Navy, who pleaded guilty in federal court, admitting to using his position as the “approving official” for public works projects at 3 facilities at a U. S. Naval Base in California. By conspiring with a local businessman, the U.S. Navy employee submitted false invoices and accepted bribes and kickbacks totaling in excess of $1.2 million. He now faces up to 8 years in prison and a fine of $500,000. The local businessman who was his partner in this scheme was also prosecuted. He, too, has pleaded guilty to bribery. The IGO criminal investigative services of the Defense Department, the U. S. Navy, and the Internal Revenue Service joined forces in conducting the investigation8.

2. Anti-public corruption measures in California The statutory framework for combating public corruption in California is codified in California’s Government Code and its Penal Code. The California Government Code was added to the California statutes in 1943. Section 1090 of that code, entitled “Contracts, sales, and purchases made in official capacity, ”was initially intended to eliminate unnecessary duplication of functions and expenses among state departments. Amended at various intervals over the years, the “Political Reform Act of 1974” added § 81000 to the Government Code, and § 87100 “Prohibition because of financial interest, ”was adopted June 4, 1974 (operative January 7, 1975). Government Code § 1090 states, “Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity”9. Historically, defining the

7Approximately 200 state and local agencies nationwide have been identified as having functioning IGOs. A list of those agencies. URL: https://inspectorsgeneral.org/useful-links/directory-of-state-and-local- government-oversight-agencies/. 8Press Release 19-043, U. S. Attorney’s Office, Central District of California (Los Angeles) March 7, 2019. URL: https://www.justice.gov/usao-cdca/pr/former-us-navy-contract-official-pleads-guilty-bribery- scheme-which-he-received-more-12. 9 Government Code 1943, Title 1. General [100–7914] Division 4. Public Offcers And Employees [1000–3599] Chapter 1. General [1000–1241] Article 4. Prohibitions Applicable to Specified Officers [1090–1099]. URL: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1090.&law Code=GOV. 66 term “conflict of interest” has been the subject of many and varying approaches. As all public officials have legitimate interests which arise out of their capacity as private citizens, conflicts of interest cannot simply be avoided or prohibited, and must be defined, identified, and managed. These Guidelines adopt a definitional approach which is deliberately simple and practical to assist effective identification and management of conflict situations, as follows: A “conflict of interest” involves a conflict between the public duty and private interests of a public official, in which the public official has private-capacity interests which could improperly influence the performance of their official duties and responsibilities. Defined in this way, “conflict of interest” has the same meaning as “actual conflict of interest”. A conflict-of-interest situation can thus be current, or it may be found to have existed at some time in the past”10. Whereas some may theorize may the Political Reform Act of 1974 preempts or repeals Government Code § 1090, the eniire statutory scheme remains intact and viable and unchallenged today, 40+ years later. All of its laws apply to members of the California Legislature and to all state, county, district and city officials and employees. These statutes prohibit those officials and employees from having a financial interest in any sale or purchase made in their official capacity. § 87100 amplified the provisions of the Political Reform Act of 1974, by requiring that any and all potential conflicts of interest must be disclosed even if it is reasonably foreseeable that the actions taken by an official would not affect his or her personal financial interests. Furthermore, a public official outside the immediate hierarchy of the decision-making process may violate the law by using his or her official capacity to influence an agency’s decision either directly or indirectly. The statutes attempt to establish an objective standard that will deter dishonest conduct as well as conduct that tempts dishonesty in the course of awarding contracts and making purchases for the government. A violation of § 1090 is prosecuted as a felony crime, with a sentencing range of 16 months to 3 years in state prison. Violation of § 87100 is a misdemeanor, with a maximum fine of $10,000 and maximum confinement of 1 year in jail. Bribery is a separate public corruption crime under California law: a violation of California Penal Code § 68, prohibiting any executive officer or employee of the State, a county, or city to accept a bribe (money or a favor) in exchange for a vote or some other official action. Violation of § 68 is a felony, with a sentencing range of 2 to 4 years in State Prison.

10Managing Conflict of Interest in the Public Sector a Toolkit. Paris : OECD. 2005. P. 97. 67 Misappropriation of public funds is also a separate public corruption crime under California law: a violation of California Penal Code § 424, prohibiting the use of public money for one’s personal use or the use of another without authority of law. A violation of this statute is a felony with a sentencing range of 2 to 4 years in State Prison. Numerous public officials in Los Angeles County have been successfully prosecuted for a variety of public corruption crimes. Within the boundaries of the 10,000+ square kilometers that is Los Angeles County, there are 88 incorporated cities, each with its own Mayor and / or City Manager, City Council and staff of city employees. In recent decades, the Los Angeles County District Attorney’s office has overseen the investigation and conviction of local city officials for bribery, conflict of interest, and a variety of other related crimes. For example: In 2011, the Mayor of Temple City was convicted of bribery for receiving a cash bribe of $10,000 from a local developer seeking to build a shopping center in the city. The Mayor also was convicted ot perjury (lying in testimony under oath to a Grand Jury). She was sentenced to 4 years in State Prison11. In addition to the Mayor, a member of the City Council also pleaded guilty for her part in the scheme, and was sentenced to 16 months in State Prison. In 2010, an investigation into another small city – Bell, California – began, ultimately resulting in conviction of the City Manager, the Assistant City Manager, and 5 City Council members for public corruption crimes. In 2014, the City Manager was sentenced to 12 years in State Prison and ordered to pay $8.8 million in restitution to the City of Bell12. The case was investigated and prosecuted by the Los Angeles County District Attorney’s Office, based on information initially uncovered by the Los Angeles Times newspaper. The facts were egregious: In 2010 the City of Bell had a small population of approximately 37,000 residents. The average per capita income of those residents was only $36,000, and about one quarter of them had incomes below the federal poverty guidelines. Furthermore, the City’s boundaries include an area of only 2.5 square miles. Yet, the City Manager secretly awarded himself a salary of $1.3 million per year (more than double the salary of the President of the United States!), while the Assistant City Manager was paid a secret salary in excess of $500,000.

11Miller T. Former Temple City Mayor Sentenced to 4 Years in State Prison; Cathe Wilson Collapses in Court – Paramedics Called. 2011. URL: http://www.templecitytribune.com/featured/former-temple-city- mayor-sentenced-to-4-years-in-state-prison-cathe-wilson-collapses-i. 12Bell, Calif. city manager gets 12 years prison for $6 million corruption scheme. The Associated Press. April 16, 2014. URL: https://www.nydailynews.com/news/crime/bell-calif-city-manager-12-years-prison-9- million-corruption-scheme-article-1.1758564. 68 CONCLUSIONS Thus, the above are a few cases that illustrate the efforts that have been, and continue to be, made to fight public corruption in the United States, by federal, State and local law enforcement agencies and prosecutors. Although this paper focuses on cases in California, federal IGOs and the FBI are active in all States, and many States have similar statutes and engage in similar anti-public corruption activities at the local level. Within California, Los Angeles County is the only local jurisdiction where there is a prosecutorial unit dedicated exclusively to investigating and prosecuting public corruption cases: the Public Integrity Division of the Los Angeles County District Attorney’s Office. Cases of suspected malfeasance by public officials, whether federal or local, are brought to the attention of investigators and prosecutors primarily via complaints from the public, but also may originate from newspaper reports and other sources. In order to maintain the integrity of public institutions so people will have confidence in the democratic process, public corruption must be vigorously and diligently deterred and punished, and all public officials must be required to adhere to high ethical standards.

SUMMARY This paper provides an overview of anti-corruption measures in two spheres of governance: the federal government and the State of California. The former applies to activities nationwide that are conducted directly by federal agencies and employees, or by persons responsible for implementing projects with federal funds. California’s system is similar to the systems in other states, but not necessarily parallel in scope or effectiveness. Each of the 50 states has its own Constitution and body of state laws, and within each state there are multiple subdivisions, local governing bodies – cities, counties, etc. – each with its own local rules. Nonetheless, to the extent that California has seen a fair number of prosecutions of public officials on corruption charges, it is a useful example of what can be done at the local level. It is emphasized that the institutional tools to combat public corruption are found in federal and state statutes that criminalize conflict of interest and other type of corruption actions, conduct and create administrative methods to facilitate internal investigations in addition to investigations by law enforcement.

REFERENCES 1. From the U. S. Supreme Court decision in United States v. Mississippi Valley Generating Co. (1961) 364 U.S. 520, 562. URL: https://supreme.justia.com/cases/federal/us/364/520/.

69 2. 18 U.S. Code Chapter 11 – Bribery, graft, and conflicts of interest et seq. URL: https://codes.findlaw.com/us/title-18-crimes-and-criminal- procedure/18-usc-sect-201.html 3. The Hobbs Act (named after Congressman Sam Hobbs): 18 US Code § 1951. URL: https://www.justice.gov/jm/jm-9-131000-hobbs-act-18-usc-1951. 4. Public Law 95-452 : “An Act to reorganize the executive branch of the Government and increase its economy and efficiency by establishing Offices of Inspector General within the Departments of Agriculture, Commerce, Housing and Urban Development, the Interior, Labor, and Transportation, and within the Community Services Administration, the Environmental Protection Agency, the General Services Administration, the National Aeronautics and Space Administration, the Small Business Administration, and the Veterans’ Administration, and for other purposes” Oct. 12. 1978. URL: https://www.govinfo.gov/content/pkg/STATUTE-92/pdf/STATUTE-92- Pg1101.pdf. 5. Hilliard N. The Accountablity State: US Federal Inspectors General and the Pursuit of Democratic Integrity. Lawrence : University Press of Kansas, 2017. 288 p. 6. Approximately 200 state and local agencies nationwide have been identified as having functioning IGOs. A list of those agencies. URL: https://inspectorsgeneral.org/useful-links/directory-of-state-and-local- government-oversight-agencies/. 7. Press Release 19-043, U. S. Attorney’s Office, Central District of California (Los Angeles) March 7, 2019. URL: https://www.justice.gov/usao- cdca/pr/former-us-navy-contract-official-pleads-guilty-bribery-scheme- which-he-received-more-12. 8. Government Code 1943, Title 1. General [100–7914] Division 4. Public Officers and Employees [1000–3599] Chapter 1. General [1000–1241] Article 4. Prohibitions Applicable to Specified Officers [1090–1099]. URL: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNu m=1090.&lawCode=GOV. 9. Managing Conflictof Interestin the Public Sector a Toolkit. Paris : OECD. 2005.119 p. 10. Richards, Watson & Gershon law Conflicts Of Interest Handbook Summary of the Major Provisions and Requirements of Principal Conflicts of Interest Laws And Regulations. 2019. 83 p. URL: https://www.sealbeachca.gov/ Portals/0/Documents/2019%20Conflicts%20of%20Interest%20Handbook%20 (002).PDF?ver=2019. 11. Miller T. Former Temple City Mayor Sentenced to 4 Years in State Prison; Cathe Wilson Collapses in Court – Paramedics Called. 2011. URL:

70 http://www.templecitytribune.com/featured/former-temple-city-mayor-senten ced-to-4-years-in-state-prison-cathe-wilson-collapses-i. 12. Bell, Calif. city manager gets 12 years prison for $6 million corruption scheme. The Associated Press. April 16, 2014. URL: https://www.nydailynews.com/news/crime/bell-calif-city-manager-12-years- prison-9-million-corruption-scheme-article-1.1758564.

Information about author: Munisoglu Elizabeth, Doctor of Juridical Sciences, Honourable Court Commissioner at State of California Superior Court 350, McAllister st., San Francisco, USA

71 THE NATIONAL ANTI-CORRUPTION POLICY IN THE CONTEXT OF TRANSFORMATION OF PUBLIC ADMINISTRATION IN UKRAINE

Novak A. M., Bashtannyk V. V.

INTRODUCTION Strategic orientation of the institutional changes in the system of public administration in Ukraine is the transformation of the available model of public authority. According to the main lines of reforming public administration, the tasks of development of an integrated system of governance based on the harmonization of principles, instruments, forms and methods of public policyemerge full-blown. The current process of state formation in Ukraine necessitates the study of problems related to the purposeful activity of public authorities on ensuring the rule of law and law and order in the country, protection of human and civil rights and freedoms embodied in the Constitution of Ukraine. At the same time, the problem of preventing and combating corruption and corruption-related offenses, which pose a serious risk to Ukraine’s existence as a democratic, social, a rule of law state, has become particularly urgent. The problems of corruption prevention in public bodies are still one of the most important tasks for public administration in Ukraine. Thus, corruption poses a significant danger to the life of society, and today, its extent is a real problem for the functioning of the national security system. The importance of research on the principles of national anti-corruption policy is to determine the directions of improving the legal framework on the fight against corruption in public authorities, organizational support for the prevention of corruption. The establishment of specialized anti-corruption bodies and the introduction of standards for the activity of civil servants are not significant factors of the fight against corruption, while judicial reform and legal reform in terms of improvement of the performance of available institutions significantly impact on the effectiveness of the anti-corruption policy. At the same time, analysis of the development of anti-corruption legislation shows its inefficiency that indicates the lack of consideration of the problem of the formation of the level of legal culture and citizens’ awareness in developing the fundamentals of national anti-corruption policy. The relevance of the study of the directions of implementation of European principles of democratic governance in the process of formation and implementation of the national anti-corruption policy is determined by the importance of a comprehensive analysis of the process of fundamental changes in the political system of Ukraine, changes in the constitutional legal 72 status of the main subjects of public relations, implementation of international legal acts. At the same time, the course for EU integration determined by the state requires socio-political, economic and legal adaptation of the system of governance at central and regional levels in Ukraine to European models of democratic governance, the functioning of legal mechanisms for rationalization of public administration. The current state of preventing and combating corruption is characterized by a formal approach in determining the priorities of the national anti-corruption policy (NACP), declarative nature, inconsistency, delaying the adoption of laws, the prevalence of political factors. At the same time, dichotomous dependence between the economic level of state development and corruption level in the country needs a special analysis. Integrated nature of the task of efficiency of the administrative activity of state authority in such a context is conditioned by the need to adopt more conservative law-making and law-enforcement activities to the processes of formation and development of civil society institutions, maintenance of the state of law, ensuring the rights and freedoms of the citizen, the interests of society and the state. For this very reason, it is expedient to mark consideration of the problem of raise of the level of legal culture and citizens’ awareness as an individual focus of theoretical research in developing the anti- corruption policy of the state, informing of the population about state initiatives in the area of the NACP implementation.

1. Research methodology of the national anti-corruption policy in the context of transformation of public administration in Ukraine Methodological base of research of formation and implementation of NACP is modern theoretical developments of domestic and foreign scholars on problems of public administration; general scientific principles of knowledge of social phenomena; systems, interdisciplinary, institutional, historical approaches. Studying topic, it is expedient to use systems approach as a basic method that allows examining the peculiarities of the formation of national anti-corruption policy in the context of internal system transformations and external challenges. The application of the methodology of system analysis makes it possible to study the organizational and legal principles of the activities of anti-corruption subjects in public administration: functional features and characteristics, general tendencies, stages of formation of NACP. General scientific principles of objectivity and historicism, analysis, synthesis, generalization and induction, research methods based on them: instrumental, institutional, sociological, axiological, activity, statistical analysis of empiric data, real cognition, personal observation, etc., enable the formation of a sufficient theoretical research base. In particular, it is expedient to study the principal preconditions and factors of NACP formation by means

73 of historic method; the logical method makes theoretical reconstruction of the NACP essence and its influence on system reforming impossible, and types and modern forms of the realisation of authorities’ tasks in the prevention of corruption are specified based on the analysis of the subject-matter area of NACP. The methodology of scientific generalisation provides an analysis of general features and regularities of the state participation in NACP formation, and formalization of the components facilitates analysis of the NACP as a new style of social development in Ukraine. Modeling methodology makes it possible to elaborate optimization model of NACP in the context of system reforms, and regulatory and technical methods promote the analysis of legal content of universal procedures and regulations of NACP. Besides, the integrated method provides the conducting of analysis of impact factors of NACP on the development of the state and civil society, and systematization of approaches to the development of the principles of implementation of foreign experience in the formation and realisation of the NACP allows analyzing the peculiarities of reforming processes of public administration in the context of compliance with international standards. It is important to use functional analysis as a methodological means for substantiation of directions of improvement of public administration and development of a structural-functional model of implementation of foreign experience in reforming public administration. In the process of analysis of the peculiarities of the formation and implementation of the NACP, it is also important to use the classical scientific principles of objectivity and historicism and research methods based on them: instrumental, institutional, sociological, axiological, activity based method, statistical analysis of empirical data, personal observation and others. Analysis of factual and empirical information of public administration bodies, results of sociological researches for the determination of actual directions of increase of efficiency of public administration in the process of formation and realization of the NACP is an important method of the research of the NACP practical content. Based on the use of the above methods, it is possible to analyze the specifics and impact form of the NACP effectiveness on the functioning of the public administration system. At the same time, falling into line with the viewpoints of domestic scholars, taking into account approaches of Ye. Nemerzhytskyi, S. Serohin, V. Soloviov1 and in terms of holistic nature

1Невмержицький Є.В. Корупція в Україні: причини, наслідки, механізми протидії : монографія. Київ : КНТУ, 2008. 364 с. Серьогін С.С. Механізми попередження та протидії корупції в органах публічної влади. Університетські наукові записки. 2009. № 4. С. 284–289. Соловйов В.М. Запобігання і протидія корупції в державному управлінні України: теоретичний аспект : автореф. дис. ... докт. наук з держ. упр. : 25.00.01 / Ін-т законодавства Верховної Ради України. Київ, 2013. 35 с. 74 of research methodology of problems of corruption prevention, it is expedient to provide the application of the following scientific methods (approaches) for the study of corruption influence on the public administration system:  systems approach – to clarify corruption influence on society and the system of public authorities, to study the disorganization and reorganization effects of corruption;  institutional method – to determine the system of public administration institutions whose purpose is to prevent and counteract corruption, to eliminate the consequences of corruption;  morphological method – to describe forms and manifestations of corruption in public bodies;  phenomenological method – to study the subjective perception of corruption, its socio-cultural, in particular psychological, social, and mental preconditions;  comparative-historical method – during an analysis of historical forms of corruption, including in Ukraine, it provides a retrospective analysis of the social psychology of the people, their socio-cultural mentality where changes always lag behind the dynamics of the socio-economic sphere;  comparative method – implementation of foreign experience in the formation of anti-corruption policy, implementation of standards of international and intergovernmental organizations in the fight against corruption;  empiric method (observations, surveys, peer review, statistical and content analysis, modeling, etc.). It should be noted that the very process of corruption at the middle and lower levels of government over the last years has been deliberately permitted by the corrupt part of the government and even encouraged to some extent2. It is, on the one hand, one of the hidden mechanisms of real governance and, on the other – a method of ensuring one’s security and permanence in governance by weakening and breaking down civil society institutions. In addition, the principle of citizens’ equality in obtaining social (public) goods is violated. According to V. Rymskyi, corruption among officials of lower level should be considered as offensive as among senior ones. Corruption in education and medicine shapes and supports discrimination of Ukrainian citizens on the grounds of their social status and standard of living violating the constitutional principle of equality and public access to relevant services. This very fact creates a particular institutional trap for Ukraine when public

2Федорчак Х.Ю. Механізми реалізації державної політики запобігання та протидії корупції на регіональному рівні. Ефективність державного управління : збірник наукових праць / за заг. ред. В.С. Загорського, А.В. Ліпенцева. Львів : ЛРІДУ НАДУ, 2014. Вип. 40. С. 269–276. 75 institutions become not only ineffective but also, despite reforms, unable to solve the most important problems of citizens3. It is worth mentioning that the process of forming the NACP is characterized by the availability of a complex of interdependent components of theoretical- methodological, organizational and institutional character. The building of a democratic, a rule of law state requires the formation of relevant scientific support for the implementation of reforms based on advanced research models for improvement of public administration. The authors consider modern approach of domestic researchers to the theoretical-methodological problem of public administration expedient, which is down to the fact that “administration processes are common only to complex, dynamic systems whose inherent attribute is self-government that is the ability to put the system in order, to bring it in line with the objective conformity of this environment, to optimize its functioning”4. For this very reason, public administration as a social phenomenon is now determined by the needs of social development and requires regulation of the activity of public authorities through the legal definition of forms, methods, principles of such regulation. Besides, this brings up the question of formalization of complex administrative systems as a format of public administration by developing a modern approach to transformation processes in the system of public administration, transition in such a system of administration to the implementation of the principle of decentralization as the basis of state modernization. V. Poberezhnyi has a scientifically-substantiated system of anti-corruption directions in the bodies of executive power, which includes the following focuses: organizational (they concern the special check of candidates for positions related to the performance of state functions, restrictions on persons who have discharged or ceased activities related to the performance of state functions; regarding anti-corruption expert examination of draft legal acts, transparency of information); personal (restriction on work of relatives and close persons, on double jobholding or overlapping with other types of activity, use of official status, on settlement of conflict of interests, and also related to education of anti-corruption behavior); financial (restrictions on receiving gifts (donations), prohibition on receiving services and property by executive authorities, financial control, and raise in salary)5.

3Предборський В.А. Інституційні особливості корупційних процесів в Україні. Формування ринкових відносин в Україні. 2011. № 12. С. 16–22. 4Сушинський О. До питання про суб’єкти відповідальності за корупційні правопорушення. Актуальні проблеми державного управління : збірник наукових праць. Одеса : ОРІДУ УАДУ, 2002. Вип. 11. С. 122–132. 5Побережний В.В. До питання про сучасну державну політику у сфері запобігання корупції. Університетські наукові записки. 2010. № 4. С. 271–275. Побережний В.В. Механізм обмеження корупційних дій державного службовця. Університетські наукові записки. 2011. № 3. С. 424–428. 76 Actually, the analysis of the concept “corruption” in legal acts of different states and definitions of scholars6 shows different approaches to its formulation. A wide array of researchers is trying to consider corruption from different perspectives, which are specific to the sciences they represent. Most often, especially at the mundane level, corruption is identified with corrupt practices of officials, which is denoted by the criminal concept “bribery”. However, most scholars find it incorrect to identify corruption with a specific criminal act highlighting that corruption is not limited to bribery but is a much broader concept. In the context of corruption and fight against this phenomenon in public authorities, it has been found out that in recent decades, most researchers have examined it through the prism of a structural and functional approach where much attention is paid to the impact of corruption on various aspects of public life, and corruption itself is studied as an independent phenomenon. Depending on the methodological approach to the problem of corruption, the very concept of this phenomenon can be interpreted as a general result of negative manifestations in the public authority in a broad sense and as one of the forms of self-interest in the area of professional management activity in the narrow sense7. Thus, according to public opinion and statements of policymakers, corruption and bribery can be identified or, vice versa, considered as coordinate but different phenomena. The scientific approach requires the application of classification of elements of corruption and the identification of forms of its manifestation in various spheres of life. At the same time, the world practice shows that it is essential to distinguish the fundamental difference between corruption and civilized lobbying, which is legal in many Western countries and aims at convincing officials within a smooth-running and generally efficient decision-making mechanism. The dominant factors that have decisively influenced the dynamics of corruption in modern Ukraine were, first of all, the crisis of political power, mistakes in economic reforms, the combination of business and authority, the weakness of democratic traditions, the limited institutions of civil society, the imperfection of anti-corruption legislation, and uncertain prospects for the

6Василевська Т. Сучасні тенденції розвитку етики державного службовця в Україні. Збірник наукових праць НАДУ / за заг. ред. О.Ю. Оболенського, С.В. Сьоміна. Київ : Вид-во НАДУ, 2006. Вип. 2. С. 16–27. Вишинська Т.Л. Корупція як експліцитний чинник іллегалізації зовнішньої торгівлі товарами в Україні. Інвестиції: практика та досвід. 2012. № 10. С. 85–87. Волошенко А.В. Корупційні ризики в оборонній сфері: природа, чинники та шляхи мінімізації. Актуальні проблеми економіки. 2015. № 10. С. 95–105. 7Бакуменко В.Д. Формування державно-управлінських рішень: проблеми теорії, методології, практики : монографія / редкол. : В.М. Князєв, П.І. Надолішній, М.І. Мельник та ін. Київ : Вид-во УАДУ, 2000. 328 с. 77 national economic development. Social instability and tension in society, dramatic differentiation between income and wealth status of the population, which is exacerbated by the imperfection of social security mechanisms for vulnerable social groups, promotes corruption growth. It is expedient to divide scholarly views of corruption according to the directions:  the first direction stipulates the integration of international and national mechanisms of qualification, detection and counteraction of corruption; it is based on the regulation of international legal acts, which are set out in the decisions and resolutions of international organizations. In fact, it refers to a certain generalization of the concept “corruption”, standardization and regulation of official activity, procedures of the functioning of administrative institutions, etc.; – the second direction is based on the determination of institutional characteristics of corruption; it prescribes a combination of political, socio- economic and legal components. At the present stage, that kind of a list should be supplemented by a societal aspect; – the third direction is based on a modern comprehension of the concept of “good governance” as an exercise of the human right to good governance. In the context of this direction, the impact of corruption on the effectiveness of social governance and the ability of administration systems to counter corruption is studied; – the fourth direction is based on the study of the impact of corruption on the observance of human rights and freedoms in the system of public administration. Moreover, the third and fourth directions exist in an integrated form quite often; at the same time, they are complemented by a modern understanding of the principle “non-discrimination”. Effectiveness of efforts to overcome such a negative socio-political phenomenon as corruption mainly depends on the implementation of political as well as state-legal reform and its components: administrative, parliamentary, municipal and judicial and legal reforms; a clear legal definition of the powers and functions of political institutions and their officials; the introduction of democratic principles of public affairs administration, creation of conditions for comprehensive development of structures of civil society, implementation of an effective mechanism of social control over government institutions. It should be noted the imperfection of the available legal regulatory concepts and the need to develop new legal acts regulating the fight against corruption the conceptual basis of which should not be documenting the consequences of this negative socio-political phenomenon but creating conditions that exclude the possibility of corruption manifestations, guaranteeing and ensuring the right of citizens to join political

78 parties and public organizations to protect their rights and freedoms and to satisfy their own interests. Researches of modern scientific schools on the institutional definition of corruption make it possible to mark the following widely considered methodological approaches: 1) according to the decisions and resolutions of international organizations, corruption is a complex, multidimensional phenomenon that is manifested not only in specific actions but also in the deviation of officials’ behavior from the social and cultural values of society; 2) corruption is specifically criminal activity in politics or public administration, and some identify it with bribery; 3) corruption is a complex socio-political phenomenon which is more complicated formation than a set of criminal manifestations; foremost, this is a socio-political phenomenon the key feature of which is the use of rank by officials of legislative, executive and judicial power as well as non- governmental associations, institutions and business entities of all forms of ownership to obtain tangible assets, services or benefits for themselves or third parties; 4) corruption is a social deformation which, under certain political and legal realities, acts as a socially acceptable form of interaction between social groups, the state and citizens; 5) corruption is an institutional deformation which triggers the destruction of institutional interaction, causes a change in the social paradigm.

2. Modernization of the national anti-corruption policy in the context of European vector of the development of Ukraine: theoretical aspect In the process of shaping anti-corruption policy, for the short term, it is necessary to choose such measures which, on the one hand, would have a high practical effect (hindering the growth of corruption and reducing it) and on the other – have no less promotion effect (that increases the popularity of its use among authorities). Despite a similar nature of these goals (especially in the context of a long-run period) they differ. The anti-corruption policy has to combine both the above approaches – as measures with a high practical effect as promotional, educational and preventive measures primarily designed to increase the rating of political power. In this context, it is expedient to point out the provisions of the Law of Ukraine “On the Principles of State Anti-Corruption Policy in Ukraine (the Anti-Corruption Strategy) for 2014–2017” adopted in 2014. However, the text of the Strategy does not define national (state) anti-corruption policy at the level of legislative regulation, but it is rather the concept of its formation. Thus,

79 the target of the Strategy is to create in Ukraine a decision-making system on anti-corruption policy based on the results of the analysis of reliable data on corruption and the factors causing it, including statistical observations, monitoring of the implementation of the decisions and their impact on the situation of corruption prevention by independent specialized body involving representatives of civil society as well as forming of public support for combating corruption. At the same time, the main measures include: 1) a legislative determination of the principles of organization and activity of specially authorized anti-corruption body responsible for a set of measures for the formulation and implementation of anti-corruption policy; 2) working out a draft act of the Cabinet of Ministers of Ukraine on approval of the national methodology for assessing the level of corruption following the UN standards; to conduct annual researches with the involvement of the community on corruption perception and public confidence in bodies responsible for corruption prevention, the willingness of the population to take measures to prevent corruption, dispersion and models of corruption behaviour, corruption risks in the relevant areas; 3) carrying out annual hearings in the Verkhovna Rada of Ukraine towards the national report on the status of corruption prevention which is prepared by a specially authorized body on anti-corruption policy; to publish the report together with the conclusions and recommendations of the parliamentary hearings; 4) maintenance of the implementation of international standards of cooperation between government and the public in decision-making in anti- corruption policy, including those enshrined in the Code of Good Practice for Civil Participation in the Decision-Making Process adopted by the Council of Europe Conference of International Non-Governmental Organizations on 1 October 2009, and move towards new types of cooperation – dialogue and partnership; 5) conducting regular campaigns which are aimed at eliminating a tolerant attitude towards corruption, increase the level of cooperation between the authorities and citizens in the fight against corruption8. In general, the issue of combating corruption has traditionally been one of the topical in the politics of any country. However, the effectiveness of anti- corruption measures in different countries varies. The European Union

8Кальман О. Правове забезпечення, запобігання та протидія корупції в Україні. Прокуратура. Людина. Держава. 2005. № 5. С. 39–40. Ковальов Є.В. Корупційна загроза економічній безпеці України. Право і Безпека. 2011. № 2. С. 268–272. Соловйов В. Теорія «раціонального злочину» як підґрунтя для антикорупційної політики. Вісник Національної академії державного управління при Президентові України. 2011. № 4. С. 39–48. 80 annually determines the level of corruption in the Member States. The lowest rate is in the countries of the so-called old democracy – West European. The highest figures are in the counties of Eastern Europe, Bulgaria, and the Balkans – in that part where the fight against corruption has the shortest history. Experts believe that the experience of these countries is the most fitting for Ukraine. The causes of corruption for each country may differ, but the main among them are as follows: ineffectual system of public administration (or non-complete reforms in the system of public administration), the lack of professionalism of senior executives in the country, specifically imperfect judicial system, political corruption in the parliament, lack of political will of the national leaders towards effective combating corruption – first and foremost political corruption, and the weakness of civil society institutions. The authors notice that from the perspective of legal drafting methodology, it is essential to mark that such sort of rulemaking in the formation of fundamentals of state anti-corruption strategy is ineffective. V. Soloviov generalizing the definition marks that “corruption” is a complex, multi-level organized social phenomenon that combines different components, in particular: administrative, political, economic, legal, social, moral and ethical, etc.; corruption is a negative social phenomenon that constantly and actively influences citizens’ consciousness and their personal views, lays down venal immoral values, greets corruption subculture in society, destroys social relations, diminishes resources, undermines confidence in the state, causes political instability; it covers the upper (elite), middle and lower levels of government penetrating all spheres and subsystems of public life degrading its quality; it violates the rights, affects the interests of all social groups and segments of the people; it may be political, economic, administrative and petty, and it may originate in an organized way or spontaneously; it created a corruption ethic that became an alternative to moral and ethical standards in Ukraine. The implementation of legal recommendations of the international community in Ukraine towards the improvement of the effectiveness of combating corruption requires taking into account the historical realities and special aspects of the national legal system. Given the above, further fundamental researches concerning a nature, causes and forms of corruption manifestations as well as experience in the direction concerned are relevant. Strict compliance and unconditional implementation of the laws is a general principle of the anti-corruption policy of Ukraine. Crime prevention and, in particular, official misconduct in activities of law enforcement agencies in modern conditions is considered as one of the priority areas of activity of the state policy of Ukraine. Clear aspiration of Ukraine to become an equal 81 member of the international community, the formation of the foundations of a legal, social and democratic state requires the guarantee of an adequate level of law and order that, in turn, necessitates a profound study and implementation of the foreign experience of building of civil society, political and economic, social, legal mechanisms operating in those sorts of countries to combat organized crime and corruption as its kind. Such an experience is diverse as it depends on a considerable number of interrelated factors and takes into account social conditions, level of economic development, political culture, and public administration. At the same time, there are country-specific principles and approaches. Principally, it is an understanding of the negative corruption effects, its dangerous impact on development processes and the comprehensive support of political, social and economic human rights. The formation of a system of anti-corruption bodies and the development of national legislation, the study of the experience of full time institutions under presidents, governments, parliaments, which have been established in several countries, is of great importance for the post-totalitarian society. Studies of international legal acts and the experience in combating corruption in individual countries make it possible to determine the main levers of bringing national legislation of Ukraine into line with international law. It is necessary to highlight a complex of research tasks:  first, it is important to systematize scientific approaches to the formation of the national system of public administration in the context of the establishment and development of organizational and legal foundations of administration, institutionalization of the main subjects of the NACP;  secondly, it is necessary to specify (update) the available periodization of the formation of the NACP, determine the substantial characteristics of such a policy in the context of social transformations and, relying on the required information, to cover the theoretical and methodological foundations of the NACP implementation in the public administration system taking into account foreign experience;  thirdly, it is necessary to clear up the internal content of the NACP, which is constantly being refined, to determine the essence and legal nature of public administration reform taking into account the elaboration and implementation of the NACP, to substantiate the authors’ research methodology for the analysis of anti-corruption policy as a basis for rational state formation theoretically;  fourthly, it is important to develop modern methodological approaches to the formation of a complex algorithm of analysis and implementation of foreign experience in the implementation of the NACP and to outline promising directions of scientific research on this subject-matter;

82  fifthly, it is necessary to substantiate the authors’ theoretical concept of the NACP implementation on the basis of the interdependent influence of factors (components) of public administration reforming – reform of the system of law enforcement agencies, judicial bodies, reform of the system of territorial administration, emerging the role of public organizations;  sixthly, it is important to find out the essence of the current tendencies of formation of the institutional foundations of the NACP and, relying on it, to propose a set of anti-corruption standards of public administration;  seventhly, the main task of the anti-corruption system should be aimed at the formation of effective institutions of social control in society. The processes of decentralization, the implementation of the principle of subsidiarity, the competitive environment, rise of the level of human demands for the diversity and quality of services, increase of human influence on the government led to the search for new models of construction and administration of public law institutions taking into account the modern management paradigms based on legal norm, the rule of law and the regulation of the activities of public servants.

CONCLUSIONS Public administration stipulates the functioning of the universal organizational-legal mechanism for discovery, harmonization and implementation of public needs and interests based on the use of different legal means, the formation of rights and obligations of participants of public processes, adjusting of their relations and relations into specific legal relations. The achievement of high efficiency and quality of any type of management activity is to improve the efficiency and quality of legal support for such activities, it is the public-legal regulation of the behavior of entities and administration objects, which is carried out through organizational and legal regulation, can ensure the coherence and purposefulness of their activities focused on meeting public needs and interests which are objectively available at a particular stage of social development. The task of ensuring transparency in the activity of governmental institutions contributes to the solution of three extremely important tasks by the authorities through the implementation of the directions of the NACP: 1) it restores citizens’ confidence in the public authorities; 2) it creates unfavourable preconditions for corrupt practices in society; 3) it guarantees the implementation of civil-constitutional rights in the information sphere (arts. 32 and 34 of the Constitution of Ukraine). For this very reason, when developing a state anti-corruption strategy and relevant anti-corruption mechanisms, it should be borne in mind that this is a complex phenomenon caused not so much by the imperfection of human

83 behaviour as by management of governmental mechanisms, primarily in the public administration of the economy, by total government control and state regulation of most aspects of social and economic life, by a large state apparatus, by the prevalence of the distribution function. Since corruption is a complex socio-political phenomenon, it can be overcome following not only legal but also political, social, economic, organizational, managerial and even cultural factors are taken into account.

SUMMARY In accordance with the constitutional principles and fundamentals of state building, modern public administration as an open system provides organizational and regulatory influence of the state on socio-political processes in order to ensure stable predictable development of all subjects of relations of power and compliance with democratic norms of relations between the government institutions in society. For this very reason, in the context of development of theoretical-methodological fundamentals of the formation and implementation of the NACP, it is essential to shape a complex of tasks of the science of public administration: 1) development of humanization principles of public policy and public administration, which exclude (minimize) the corruption component in government); 2) analysis and implementation of international standards of anti-corruption policy on the basis of prevalence of universal values in all spheres of life, priority of the principle of the rule of law; 3) adoption of the concept of sustainable development optimal for the society of the XXI century, which envisages the formation of a policy of human civilization development through the combination of general principles of administration with the principles of good governance; 4) formation of effective national legal policy as a component of system reforms policy within which a new paradigm of modern administration “New public management” is formed; 5) the development of interstate relations based on the principles of international law, including the generally recognized principles of corruption prevention; 6) formation of supranational mechanisms of cooperation in combating corruption as a basis for improving the NACP. There is a methodological misbalance in the finding of modern researches and needs of the science of public administration which is conditioned by: 1) the dichotomy of legal and political science approaches to the definition of the nature and essence of corruption; 2) absolute priority is given to foreign experience in preventing corruption; 3) indirect nature of the conclusions of scientific developments on anticorruption issues and uncertainty of the needs of real governance in perfect anticorruption methods. Researchers ignored the practical aspects of the modern anti-corruption trend in public administration: special aspects of adaptation of European governance principles, specifics of

84 formation of legal fundamentals in corruption prevention, subjectivity of anti- corruption policy, conceptual principles of public administration in NACP. In the context of the research, an important aspect is an analysis of transformation of anti-corruption policy into the direction of implementation of state reforms, consolidation of the NACP as a top-priority task for the implementation of the Strategy for Sustainable Development “Ukraine – 2020”, which directly defines a new type of social development. The initial idea of the paper is based on the point that the ideology of the NACP provides an understanding of the nature and essence of such a policy, characterizes the model of perception of the NACP by different social groups and external management entities. In fact, within the framework of the proposed methodological concept of formation and implementation of the NACP, it is defined the real need of the society in anti-corruption public administration activities as a vector of social development, and the NACP has objective nature.

REFERENCES 1. Невмержицький Є.В. Корупція в Україні: причини, наслідки, механізми протидії : монографія. Київ : КНТУ, 2008. 364 с. 2. Серьогін С.С. Механізми попередження та протидії корупції в органах публічної влади. Університетські наукові записки. 2009. № 4. С. 284–289. 3. Соловйов В.М. Запобігання і протидія корупції в державному управлінні України: теоретичний аспект : автореф. дис. ... докт. наук з держ. упр. : 25.00.01 / Ін-т законодавства Верховної Ради України. Київ, 2013. 35 с. 4. Філоненко С. Нові кроки проти корупції. Віче. 2011. № 23. С. 34–35. 5. Філоненко С. Поки не зміниться суспільство, корупція процвітатиме. Віче. 2011. № 13. С. 10–13. 6. Федорчак Х.Ю. Механізми реалізації державної політики запобі- гання та протидії корупції на регіональному рівні. Ефективність держав- ного управління : збірник наукових праць / за заг. ред. В.С. Загорського, А.В. Ліпенцева. Львів : ЛРІДУ НАДУ, 2014. Вип. 40. С. 269–276 7. Предборський В.А. Інституційні особливості корупційних процесів в Україні. Формування ринкових відносин в Україні. 2011. № 12. С. 16–22. 8. Сушинський О. До питання про суб’єкти відповідальності за корупційні правопорушення. Актуальні проблеми державного управління : збірник наукових праць. Одеса : ОРІДУ УАДУ, 2002. Вип. 11. С. 122–132. 9. Побережний В.В. До питання про сучасну державну політику у сфері запобігання корупції. Університетські наукові записки. 2010. № 4. С. 271–275.

85 10. Побережний В.В. Механізм обмеження корупційних дій державного службовця. Університетські наукові записки. 2011. № 3. С. 424–428. 11. Василевська Т. Сучасні тенденції розвитку етики державного службовця в Україні. Збірник наукових праць НАДУ / за заг. ред. О.Ю. Оболенського, С.В. Сьоміна. Київ : Вид-во НАДУ, 2006. Вип. 2. С. 16–27. 12. Вишинська Т.Л. Корупція як експліцитний чинник іллегалізації зовнішньої торгівлі товарами в Україні. Інвестиції: практика та досвід. 2012. № 10. С. 85–87. 13. Волошенко А.В. Корупційні ризики в оборонній сфері: природа, чинники та шляхи мінімізації. Актуальні проблеми економіки. 2015. № 10. С. 95–105. 14. Бакуменко В.Д. Формування державно-управлінських рішень: проблеми теорії, методології, практики : монографія / редкол. : В.М. Князєв, П.І. Надолішній, М.І. Мельник та ін. Київ : Вид-во УАДУ, 2000. 328 с. 15. Кальман О. Правове забезпечення, запобігання та протидія корупції в Україні. Прокуратура. Людина. Держава. 2005. № 5. С. 39–40. 16. Ковальов Є.В. Корупційна загроза економічній безпеці України. Право і Безпека. 2011. № 2. С. 268–272. 17. Соловйов В. Теорія «раціонального злочину» як підґрунтя для антикорупційної політики. Вісник Національної академії державного управління при Президентові України. 2011. № 4. С. 39–48.

Information about authors: Novak A. M., Candidate of Economic Sciences, Vice Director of the National Anti-Corruption Bureau of Ukraine 3, Vasylia Surykova str., Kyiv, Ukraine

Bashtannyk V. V., Doctor of Science in Public Administration, Professor, Professor at the Department of Law and European Integration Dnipropetrovsk Regional Institute for Public Administration of the National Academy for Public Administration under the President of Ukraine 20, Ezhen Potie st., Kyiv, Ukraine

86 CONCEPT, TYPES AND METHODS OF SETTLEMENT OF CONFLICTS OF INTERESTS IN PUBLIC ADMINISTRATION ACTIVITY

Pastukh I. D.

INTRODUCTION Public trust in public administration is a necessary element of the functioning of a democratic rule-of-law state. Ukraine has a high level of corruption, which is negatively perceived by society and requires decisive action. The results of a researches on the state of corruption in Ukraine conducted by the National Agency of the Prevention of Corruption in 2017 indicate that corruption perceived by the general public and business environment at the level of 3.98 and 3.47 points out of five respectively. At the same time, 40% of the adult population of Ukraine does not have corruption experience. People consider the most corrupted healthcare, education, contacts with state, local self-government and courtauthorities1. Therefore, anticorruption reform, the main purpose of which is a significant reduction of corruption in Ukraine, reduction of losses of the state budget and business due to existing corruption, as well as raising Ukraine’s positions in international ratings assessing the level of corruption, is recognized by the Ukraine-2020 Sustainable Development Strategy approved by a decree of the President of Ukraine dated January 12, 2015, № 5/2015, one of the priorities. The success of economic, social, municipal, law enforcement, administrative and other reforms depends on solving the problem of counteracting corruption in the public service system. To this purpose, the state takes anti-corruption measures, which must have an integrated, systematic, targeted orientation, based on the use of prevention measures, the creation of a situation of unfavorable corruption behavior. Such measures include: declaring the property status of public servants, checking the integrity of employees and monitoring their lifestyle, increasing criminal and administrative measures for offenses, and limiting the co-operation of close people, and measures to prevent and settleconflicts of interest. A person entering the public service undertakes to comply with the requirements, restrictions and prohibitions related to the peculiarities of its passing. One of these requirements is the obligation to take measures to prevent conflicts of interest. Although the definition of a conflict of interest is constantly changing (in the national legislation it doesn’t exists), it is the

1Проект Закону «Про Антикорупційну стратегію на 2018–2020 роки» № 8324 від 26 квітня 2018 р. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63942 (accessed 23 July 2019). 87 situation when an employee has private interests that may have an adverse effect on the realization of his official duties. Conflicts of interest set central place in more global issue of corruption in general, so the creation of a legislation that meets the requirements of legal certainty and aimed at settlementof conflicts of interest is an important part of counteracting corruption in general. Accordingly, society expects the public administration to perform its duties fairly and impartially. In order not to allow a conflict of interests on their part, it is first of all necessary to understand its content and scope, which seems difficult due to the lack of legally established terms “conflict of interests”, “official powers”, “representative powers”. In the absence of a general definition of a conflict of interests, the legislator presented only its types (potential and real), the content of which does not fully reveal their features, time of occurrence, actions for settlement, etc., which leads to a superficial understanding and as a result of arbitrary treatment of conflict situations bythe officials and specially authorized bodies in the field of combating corruption and their officials. Insufficient attention in the legal literature is devoted to the problem of the division of conflicts into types, which makes the process of their study unfinished. The task of this research is to determine new scientific and practical approaches to the content of conflict of interests, determination of its types and ways of regulation in the activities of public administration.

1. Content of the conflict of interest In order to form a clear understanding of the order of preventing and settlement a conflict of interests, it is first of all required to disclose the nature and scope of the conflict of interest. As already noted, the current Law of Ukraine “On Prevention of Corruption” (hereinafter – the Law) does not contain a general definition of a conflict of interests, and its content is disclosed through the types of conflicts – potential and real2. In Art. 1 of the Law of Ukraine “On the Principles of Prevention and Counteraction of Corruption” (ultimately expired on September 1, 2016), this conflict was defined as a contradiction between personal property, non-property interests of a person or persons close to him and his official authority, the presence of which may affect objectivity or impartiality of decision-making, as well as the commission or non-enforcement of actions in the course of the performance of the authority given to it3. In assessing this definition, we need to point out

2Про запобігання корупції : Закон України від 14 жовтня 2014 р. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 3Про засади запобігання і протидії корупції : Закон України від 07 квітня 2011 р. Відомості Верховної Ради України. 2011. № 40. Ст. 404. 88 the precautionary regulation of the phenomenon under consideration through the prism of a potential conflict. A similar definition of the term “conflict of interest” is contained in the manual of the Organization for Economic Cooperation and Development (OECD) on conflict resolution issues in the civil service. In 2003, the OECD, recognizing the need to identify conflicts of interest in the public sector, developed the first international benchmarking tool for reviewing Member States’ public conflicts of interest regimes. In its report entitled Managing Conflict of Interest in the Public Service, the OECD developed a simple and pragmatic definition of conflict of interest. It states that a conflict of interest is “a conflict between the public duty and private interest of public officials, in which public officials have private-capacity interests which could improperly influence the performance of their official duties and responsibilities”4. But here the focus is only on the ability to influence the performance of official duties. We can find similar definitions in conflict of interest legislation across the globe. Although the wording may vary, the general concept is widely recognized. There is no single approach to conflicts of interest in domestic science. It is defined as a system of norms governing the conflict of interests in the public service system (special legal understanding)5, a legal situation in which the party, by concluding an agreement, can potentially benefit, perform actions and cause damage to the other party6; the contradiction between the private interests of a public servant and the interests of the service, the presence of which may affect the objectivity or impartiality of decision-making, as well as the commission or non-commissioning of actions in the course of his official activity7; a conflict of state interests within the competence of the public service and the private interests of the person in charge of this post8; situations in which the personal material or other interests of an employee or his dependence on other citizens or organizations can prevent or hinder the proper performance of official duties of a state or municipal official9;

4Recommendation of the OECD Council on Guidelines for Managing. Conflict of Interest in the Public Service. URL: http://www.oecd.org/dataoecd/ 13/22/2957360.pdf (accessed 23 July 2019). 5Милушева Т.В., Касаева Т.В. Конструкция «конфликт интересов»: вопросы правового регулирования. Юридическая техника. 2013. № 27. Ч. 2. С. 488. 6Лук’янець Д.М. Реформа регулювання професійної етики публічних службовців в Україні. URL: http://crps.sumynews.com/policydevelopment/rules-of-professional-ethics-in-public-service-and-conflict- ofinterest/item/5-regulyuvannya-profesijnoyi-etyky-publichnyx-sluzhbovcziv.html (accessed 23 July 2019). 7Витвицький Б. Корупція у публічному секторі: методи попередження та протидії. Буковинський вісник державної служби та місцевого самоврядування. 2009. № 1. С. 7. 8Михальченко А. Конфлікт інтересів та шляхи його врегулювання в процесі державної служби. Казна України. Київ : ТОВ «Піраміда». 2013. № 5. С. 8. 9Кудашкин A.B., Козлов Т.Л. Конфликт интересов на государственной и муниципальной службе: объект, предмет, субъекты. Актуальные проблемы экономики и права. 2010. № 3. С. 157. 89 particular dispute between the public-law obligations and the private interests of an authorized officer10. The more correct in this context is the definition, enshrined in Art. 13 Model Code of Conduct for Civil Servants: “A conflict of interest arises in a situation where a civil servant has a personal interest that affects or may affect the impartiality and objectivity of his duties”11. It is precisely from this position that definitions of conflicts of interest in the national anti-corruption legislation are provided. A potential conflict of interest is defined as the presence of a person’s private interest in the sphere in which it performs its official or representative powers, which may affect the objectivity or impartiality of its decisions, or the commission or non-execution of actions in the performance of these powers. A real conflict of interest takes place in the situation of a conflict between the private interest of the person and his official or representative powers, which affects the objectivity or impartiality of the decision-making, or the commission or non-execution of actions in the performance of these powers (Part 1 of Article 1 of the Law). An analysis of these concepts provides an opportunity to reveal the components of the conflict (real or potential), in the presence of which it may take place, as well as the sphere of its occurrence. They are: 1) private interest; 2) official or representative powers; 3) the contradiction between private interests and powers that may affect (or affect) the impartiality of the performance of these powers. Private interest is defined by the Law as any property or non-property interest of a person, including those caused by personal, family, friendly or other non-governmental relationships with individuals or legal entities, including those arising from membership or activity in social, political, religious or other organizations (paragraph 1 of Article 12). As indicated in the Methodological Recommendations on the Prevention and Settlement of the Conflict of Interest, “practically this means that each employee, while performing his powers, must take into account the entire spectrum of his not only legal, but also social (private) relations that predetermine the emergence of property or non-property interest. In this case, only such private interest in the sphere of official or representative powers that may affect or affect the objectivity or impartiality of decision-making or the commission or non-execution of actions in the performance of these

10Луговий В.О. Адміністративно-правовий механізм запобігання правопорушенням, пов’язаним з корупцією, що вчиняються поліцейськими : дис. … канд. юрид. наук : 12.00.07 / Національна академія внутрішніх справ. Київ, 2019. 281 с. URL: http://http://elar.naiau.kiev.ua/jspui/bitstream/123456789/ 14329/5/dysertatsiia_luhovyi1.pdf (accessed 23 July 2019). 11Рекомендація No R (2000) 10 Комітету Міністрів державам-членам Ради Європи щодо кодексів поведінки державних службовців. URL: http://crimecor.rada.gov.ua/komzloch/control/uk/publish/ article;jsessionid=ADD 49945492AB4622122873FCCB7BD8D?art_id=48082&cat_id=46352 (accessed 23 July 2019). 90 powers entails a real or potential conflict of interest. The law does not impose any prohibitions or restrictions on the existence of private interests as such. It is about observance of the rules of an official’s ethical behavior and an appropriate assessment of private interests in the light of their possible negative impact on the objectivity of decision-making or actions of an official in the performance of his official or representative powers”12. Private interest is much harder to define exhaustively. In the context of conflict of interest laws, what constitutes a “private interest” has shifted over time. Historically, a private-capacity interest was conceived of as something objective, almost invariably referring to financial interests such as shareholdings or a directorship position in a corporation. It has been argued, however, that the concept of “private interest” has expanded over time to recognize that subjective private interests informed by ideological, personal, and political matters may improperly influence public duties13. For example, Canada’s Conflict of Interest Act contains a “preferential treatment” provision that can capture situations in which an official’s private interest is not objectively ascertainable, but it is nonetheless clear that an individual or organization has received preferential treatment from the official on the basis of their identity14. However, it can be difficult to determine when, and to what extent, a private-capacity interest is present. While interests that are quantifiable in financial terms (e.g., the prospect of personally gaining a significant amount of money as a result of a project approval being made) are relatively clear-cut, more abstract interests may be more difficult to identify and measure15. It is possible to capture the entire sphere of private employee’s interest. It is also not advisable to derive an official relationship that arises in connection with activities in public or other organizations in a separate group, since all are non-governmental. In this context, the definition of private interest needs to be corrected. The next element of conflict of interest is official or representative authority. The law does not give the concept and content of representative

12Про затвердження Методичних рекомендацій щодо запобігання та врегулювання конфлікту інтересів. Рішення Національного агентства з питань запобігання корупції № 839 від 29 вересня 2017 р. / Національне агентство з питань запобігання корупції. URL: https://nazk.gov.ua/metodychni- rekomendaciyi (accessed 23 July 2019). 13Rose-Ackerman, S. Corruption and Conflicts of Interest. Corruption and Conflicts of Interest: A Comparative Law Approach / E. Elgar, J.-B. Auby, E. Breen, Th. Perroud (eds.). 2014. P. 3. 14Conflict of Interest Act, SC 2006. Enacted by section 2 of chapter 9 of the Statutes of Canada, 2006, in force July 9, 2007. 15Global Corruption Law, Theory and Practice : An Open Access Coursebook on Legal Regulation of Global Corruption under International Conventions and under US, UK and Canadian Law. Vancouver, BC, CA : International Centre for Criminal Law Reform and Criminal Justice Policy, Gerry Ferguson, 2017. Chapter 9. P. 7. 91 powers. Their list is defined, as a rule, in the relevant laws defining the legal status of the relevant authorities and the persons authorized by them. Thus, the representative body of local self-government is an elective body (council), which consists of deputies and is empowered in accordance with the law to represent the interests of a territorial community and to take decisions on its behalf. The powers of the respective councils and deputies are disclosed in Chapter II of the Law of Ukraine “On Local Self-Government in Ukraine”16. The President of Ukraine represents the state in international relations, manages the foreign policy activities of the state, negotiates and concludes international treaties of Ukraine; decides on the recognition of foreign states; accepts credentials and diplomas from diplomatic representatives of foreign states, etc. Thus, representative powers enable the relevant officials to settle a certain range of problems and act in the interests of such persons in accordance with the law on their own behalf and / or on behalf of authorized agents (for example, a territorial community, a subject of authority). The content and scope of official authority in the legal literature are determined differently. It should be noted that at the legislative level this concept is not fixed. Its content, as a rule, is disclosed through the prism of service crimes: abuse of power or official position; excess of authority or official authority by an official of a law enforcement body (Article 364–365 of the Criminal Code of Ukraine), etc., which are mainly committed by official persons, who permanently, temporarily or through special powers carry out functions of representatives of the government or local self-government, as well as permanently or temporarily occupy positions of public authorities, local self-government bodies, state or communal enterprises, institutions or organizations associated with the performance of organizational-administrative or administrative-economic functions, or perform such functions under special powers, which a person is empowered by the competent authority of state power, a body of local self-government, a central body of state administration with a special status, a plenipotentiary body or a plenipotentiary of an enterprise, institution, organization, court or law17. It means that the circle of such persons is limited to subjects of authority, officials of state or communal enterprises, institutions or organizations, as well as those who perform such functions under special powers. The authors of the Scientific and Practical Commentary of the Law of Ukraine “On Prevention of Corruption” believe that “official authority is a complex of officially assigned specific servants with specific functional

16Про місцеве самоврядування в Україні : Закон України від 21 травня 1997 р. Відомості Верховної Ради України. 1997. № 24. Ст. 170. 17Кримінальний кодекс України від 05 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25–26. Ст. 131. 92 responsibilities, as well as powers granted only for the effective performance of these duties. Any rights other than human and civil rights are not available to officials. The official authority of state authorities and local self- government bodies must be provided for by the constitution, the international treaty, the law, as well as issued in their development and their execution by a decree, statute, regulations, rules, instructions, etc., other state bodies – may be determined by a decree, statute, regulations, rules, instructions, etc., and private sector employees are any act of corporate law”18. The ambiguity of this position is the statement that “any rights other than human and civil rights, officials do not have”, which it is difficult to agree with, since entering the public service, officials are given additional rights inherent only to them, for example, the assignment of the next rank, early retirement, and more. As it is correctly stated in the Methodological Recommendations on the Prevention and Settlement of the Conflict of Interest, “the range of official authority is defined in job descriptions, labor contracts, sometimes – in assignments, etc. At the same time, instructions and other documents determine only the direct authority of a particular official, while a law or other normative legal act may additionally determine the scope of both direct and general service powers”19. But in this case it is a question of officials only. According to the Law, the range of persons subject to the requirements for the prevention and settlement of conflicts of interest is wider and goes beyond the scope of official authority. In accordance with Part 1 of Art. 28 these are persons specified in clauses 1 and 2 of part one of Article 3 of this Law, namely: persons authorized to perform functions of the state or local self- government (item 1) and persons who for the purposes of this Law equate to the specified persons (persons who are not civil servants, officials of local self-government but provide public services (auditors, notaries, private executives, appraisers, as well as experts, arbitration administrators, independent intermediaries, labor arbitration tribunals, arbitrators other persons specified by the law), and, secondly, representatives of public associations, scientific institutions, educational institutions, experts of the relevant qualification, and other persons who are members of the commissions formed in accordance with the Law Ukraine “On State Service”, the Law of Ukraine “On the Service in Local Self-Government Bodies”, the Public Council of Integrity, formed in accordance with the Law of Ukraine

18Науково-практичний коментар до Закону України «Про запобігання корупції» / наук. ред. М.І. Хавронюк. Київ : Ваіте, 2018. С. 60. 19Про затвердження Методичних рекомендацій щодо запобігання та врегулювання конфлікту інтересів. Рішення Національного агентства з питань запобігання корупції № 839 від 29 вересня 2017 р. / Національне агентство з питань запобігання корупції. С. 60. URL: https://nazk.gov.ua/ metodychni-rekomendaciyi (accessed 23 July 2019). 93 “On the Judiciary and Status of Judges”, public councils, councils of public control, formed by states their bodies and participate in the preparation of decisions on personnel issues, preparation, monitoring, evaluation of the implementation of anti-corruption programs, while not being officials of legal entities of public law (p. 2). Let’s consider their status and authority. According to Art. 3 of the Law of Ukraine “On Notary”20, a notary is a person authorized by the state, which carries out notarial activity in a state notary office, a state notary archive, or an independent professional notarial activity, in particular, certifies rights, as well as facts of legal significance, and performs other notarial acts actions prescribed by law in order to give them legal certainty. It should be noted that in the area of prevention of corruption, the notary is only forbidden to use its powers in order to obtain an unlawful benefit or accept a promise or offer of such benefit to themselves or others, as well as to engage in entrepreneurial, advocacy, to be the founder of advocacy associations, to be in state service or service in local self-government bodies, in the state of other legal entities, and also perform other paid work, except for teaching, scientific and creative activity. The fact that he is forbidden to perform notarial acts in a conflict of interest is only partially noted. The sphere of private interest in such cases are the husband or wife of the notary, his (her) and his relatives (parents, children, grandchildren, grandparents, grandparents, brothers, sisters), as well as employees of this notary’s office and employees who are in labor relations with private notary public. Such a provision is enshrined in Art. 16 of the Law of Ukraine “On bodies and persons engaged in enforcement of court decisions and decisions of other bodies”21, which states that a private executor may be a citizen of Ukraine, authorized by the state to engage in compulsory execution of decisions in accordance with the procedure established by law and is a person of independent professional activity. The conflict of interests concerns situations where a private executor is prohibited from executing a decision if: 1) the debtor or collector is the performer himself, the person close to him; 2) related persons – legal entities and / or individuals whose relations may affect the conditions or results of their activities or activities of the persons they represent, taking into account the following criteria: the performer directly and / or indirectly (through the persons possessing the corporate rights of a legal entity that is a party to enforcement proceedings, or jointly with a legal entity and / or individual person who is a party to enforcement proceedings,

20Про нотаріат : Закон України від 02 вересня 1993 р. Відомості Верховної Ради України. 1993. № 39. Ст. 383. 21Про органи та осіб, які здійснюють примусове виконання судових рішень і рішень інших органів : Закон України від 02 червня 2016 р. Відомості Верховної Ради. 2016. № 29. Ст. 535. 94 holds the corporate rights of any legal entity; the performer has the right and / or authority to appoint (elect) an individual executive body or a collegial body of the executive body / the composition of the supervisory board of the said legal entities. Other areas of private interest due to personal, friendly or other relations are not mentioned. According to Art. 3 of the Law of Ukraine “On Audit Activity”22 such activity is recognized as an entrepreneurial activity, which includes organizational and methodological provision of audit, the practical implementation of audits (audit) and the provision of other audit services. The audit is carried out by independent persons (auditors), audit firms, authorized by the subjects of management for its conduct. By analogy with the aforementioned laws, the prohibitions of the audit relate to direct family relationships and personal property interests (Article 20). Statutory consolidation of the status and restrictions related to the pursuit of professional activities can be extended by appraisers, experts, arbitration managers, representatives of public associations, etc. The analysis of the relevant normative and legal acts shows that these persons are not official and do not perform official powers in accordance with the current legislation, and carry out independent professional activity representing the sphere of private law. At the same time, the scope of their private interest, enshrined in the law, is much narrower than that declared in the Law “On the Prevention of Corruption”. However, this does not contradict the fact that such persons are endowed with certain rights and duties, which collectively constitute their non-official powers. In this regard, the achievements of academic lawyers regarding the meaning of the concepts of authority and official authority should be cited. They relate to each other as general and partial. Powers should be defined in the rules of law both at the legislative and sub-legislative levels. Its content is a system of rights and obligations acquired in a legitimate way by the state, local self-government, state bodies and local self-government bodies, their officials, other subjects of legal relations in order to provide opportunities, needs and interests of a person and a citizen, separate social groups and society as a whole”23. The criminal law, which provides for certain standards of responsibility for them in Art. 365-2, highlights as a separate non-official category the powers of auditors, appraisers, notaries. Abuse of authority by persons providing public services, 368-4. Bribing a person who provides public services24.

22Про аудиторську діяльність : Закон України від 22 квітня 1993 р. Відомості Верховної Ради України. 1993. № 23. Ст. 243. 23Голосніченко Д.І. Теорія повноважень: вітчизняний та зарубіжний досвід їх формування : монографія. Київ : Видавець Голосніченко А.М., 2009. 356 с. 24Кримінальний кодекс України від 05 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25–26. Ст. 131. 95 Proceeding from the above-mentioned legislative definitions of a real and potential conflict of interest, one can conclude that such conflicts may occur only in the performance of official powers, which greatly narrows the scope of their occurrence and means that the conflict of interests in the activities of the persons providing public services, representatives of public organizations, etc. cannot be due to the fact that they are endowed with other (non-official and non-representative) powers, which arenot covered by the provisions of the legislation in the scope of prevention corruption. The last element of the conflict of interest is contradiction (its objective possibility of onset) between private interest and official authority or representative powers of a person. This circumstance has a double meaning: firstly, for the timely identification of the potential (objective possibility of offensive) and real (impact on the objectivity) of the conflict of interests, and secondly, to establish the composition of the corresponding offense in the event of violation of the established procedure of preventing and the settlement of a conflict of interests, which should be set separately for each case of the performance of powers by comparing them with private interests, with further determination of the possibility of its influence on objectivity or impartiality on decision committing acts officer and others. This element presents some interpretive difficulty for two main reasons. First, it requires that we determine what constitutes proper performance of an official’s duties and responsibilities in the public interest. Although in some circumstances this determination will be black and white, there will be many cases in which the official finds him or herself in a gray area. Secondly, it requires that we make an assessment as to whether private interests could affect the proper performance of those duties and responsibilities. This task can be considered speculative in certain circumstances where the potential impact of the private interest is not easily verified. Generally speaking, these interpretive problems have been dealt with through the use of explicit prohibitions and aspirational, norm-generating provisions in legislation, policy instruments, codes of conduct and guidelines. Indeed, scholars have argued that, in contrast to the increasingly “subjective” element of the “interest” element, the “conflict” conceptualization has shifted from being understood as purely subjective to something that can be objectively verified, at least in law, through analysis based on a set of indicia25. The analysis of normative legal acts regulating public relations in the sphere of prevention and settlement of conflicts of interest indicates the following: 1) in the national legislation, there is no legal definition of the conflict of

25Rose-Ackerman, S. Corruption and Conflicts of Interest. Corruption and Conflicts of Interest: A Comparative Law Approach / E. Elgar, J.-B. Auby, E. Breen, Th. Perroud (eds.). 2014. P. 10. 96 interests, and its content and structure is revealed through the prism of legally defined types of conflict of interests – potential and real; 2) the constituent elements of the conflict of interests, based on the content of its types, are: a) private interest; b) official or representative powers; c) the contradiction between private interest and official authority, which affects (may affect) the impartiality of their performance. At the same time, the concept and content of official and representative powers are not legally defined and relates mainly to the notions of anofficial person, a representative body; 3) the requirement to prevent conflicts of interest extends not only to officials but also to other entities who do not have official authority. All this suggests that the legislative definition of conflicts of interest, which is associated exclusively with the performance of official authority, does not apply to the specified circle of persons who are not endowed with such powers; 4) the special laws regulating the activities of the such persons, the range of private interests in the performance of professional activities related to the provision of public services is reduced mainly to family relationships, which does not fit the requirements of legislation in the scope of prevention and counteraction to corruption. All these gaps and inconsistencies require appropriate legal intervention.

2. Types of conflicts of interest The distribution of various phenomena is carried out on various grounds, which characterize their internal content. In legal literature it is also called a criterion. In the etymological sense the criterion is defined as a characteristic sign of the phenomenon26. Therefore, not every criterion can beused as a basis for classification, but only one that has a significant meaning. Often in legal literature, the source of a classification is called the basis, sometimes – a criterion. The question of their choice in the classification of various legal phenomena, including conflicts of interest, is important. In this regard, the importance of classification criteria that are not significant should not be exaggerated. In the conceptual framework, the classification contributes to the scientific understanding of all types of conflicts of interest. In practice, it helps to identify problems in the work of officials, peculiarities of conflicts of interest, and how to settle them in situations where there is a need. The classification method is often used in scientific research. The correct classification, on the one hand, summarizes the results of the previous development of a certain sphere of knowledge, on the other hand, is the starting point for a new stage of its development, which allows predicting the

26Словник української мови : в 11 т. (1970–1980) / за ред. І.К. Білодіда. Київ : Наук. думка. Т. 4. С. 450. 97 existence of previously unknown objects or revealing new relationships and interdependencies between those already known. Classification is a powerful tool in the methodology of the theory of law, which allows to arrange all the plurality of legal phenomena and processes according to certain criteria, to identify the essential and, conversely, secondary, subjective in these phenomena and processes. Unfortunately, only a few attempts at a comprehensive approach to the classification of conflicts of interest have been implemented in domestic science. In the Law “On Prevention of Corruption”, the division of conflicts of interest is made on the criterion of the ability of the private interest to impact on the performance of official duties: a) a potential conflict of interest – a situation in which an official has a private interest in the field of performance of his official authority, that only can affect the objectivity of its decisions, actions; b) a real conflict of interests – a situation in which the influence of the official’s private interest on the impartiality of the official decision or action occurred. As noted at the beginning of this article, these definitions only superficially reveal the content and peculiarities of conflicts, the moment of their occurrence, which, in turn, complicates the further process of choosing the correct way of settlement them. It should also be noted that foreign law also distinguishes the third type of conflict of interests – imaginary (apparent), when it seems that the private interests of an official can negatively affect the performance of his functions, although in reality it is not, his actions are negatively evaluated in the minds of people. As O. Polishchuk rightly points out, “the introduction of such a term and phenomenon as an apparent conflict of interests should have encouraged the subjects of power to strive for maximum ethical conduct, taking into account the assessment of society. However, such an idea was not supported by the Ukrainian legislator. It seems that our worldview is not yet ready to accept such, on the one hand, high, and on the other – simple philosophical and vital matters”27. Several criteria for the division of conflicts of interest in his dissertation on “Preventing and settlement conflicts of interest as a way of fighting corruption” was presented by S. Rivchachenko28. Without diminishing the importance of the role of this scientific work, it should be noted that some of the proposed criteria are not fully disclosed, others were left out of the attention of researchers.

27Поліщук О. Конфлікт інтересів. Що треба знати, щоб не вчинити правопорушення. Ліга. Блоги. 2018. URL: https://blog.liga.net/user/ opolischchuk/article/31497 (accessed 23 July 2019). 28Рівчаченко С.В. Запобігання та врегулювання конфлікту інтересів як спосіб протидії корупції : дис. … канд. юрид. наук : 12.00.07 / Запорізький національний університет. Запоріжжя, 2017. 192 с. URL: http://phd.znu.edu.ua/page/dis/07/Rivchachenko_diss.pdf (accessed 23 July 2019). 98 For example, according to the subjects of prevention and settlement of conflict of interests S. Ryvchachenko distinguishes such conflicts of interests which are prevented and solved by: public authorities, local self-government bodies, other legal entities of public law, public councils formed under state bodies and involved in the preparation of decisions on personnel issues, preparation, monitoring, evaluation of the implementation of anti-corruption programs29. It is unlikely that this list of subjects can be considered exhaustive, since it does not cover the activities of other state bodies that are not part of the system of state authorities (National Bank of Ukraine, National Anti-Corruption Bureau, prosecutor’s offices and others), officials and relevant public entities of the private sphere activities (auditors, notaries, private executives, appraisers, etc.). Similar clarifications can be offered regarding the author’s division of conflicts by the subjects in which it arose: officials of state authorities, local self-government, and other legal entities of public law (the question is: why such a conflict may arise only from officials of public administration, because the list of relevant subjects is not limited to them?), persons providing public services, members of public councils with state bodies. It should be admitted that they are partly in line with the proposed S. Rychchachenko’s criterion (status of legal entity, in such a kind of conflict as “a conflict of interest that arose in public councils formed by state authorities and involved in the preparation of decisions on personnel issues, preparation, monitoring, evaluation of the implementation of anti-corruption programs”30, since these councils do not become status a legal entity is formed on a voluntary basis to ensure transparency and civil control over the activities of the relevant authorities. Artificial also appears to be a “conflict of interest that arises in a legal entity formed by the association of persons providing public services”. In this regard, and in general, it should be noted that conflicts of interest do not arise in a legal entity, but take place in the activities of its individual employees. Somewhat illogical is the proposed classification based on a conflict of interest. The author, based on the legal definition of private interest, distinguishes conflicts of interest “caused by personal relationships, family relationships, friendly relations, other non-servitude relationships, as well as relationships arising from membership or activity in public, political,

29Рівчаченко С.В. Запобігання та врегулювання конфлікту інтересів як спосіб протидії корупції : дис. … канд. юрид. наук : 12.00.07 / Запорізький національний університет. Запоріжжя, 2017. 192 с. URL: http://phd.znu.edu.ua/page/dis/07/Rivchachenko_diss.pdf (accessed 23 July 2019). C. 32. 30Рівчаченко С.В. Запобігання та врегулювання конфлікту інтересів як спосіб протидії корупції : дис. … канд. юрид. наук : 12.00.07 / Запорізький національний університет. Запоріжжя, 2017. 192 с. URL: http://phd.znu.edu.ua/page/dis/07/Rivchachenko_diss.pdf (accessed 23 July 2019). С. 33. 99 religious, or other organizations”31. It seems that the attempt to enumerate all possible manifestations of the private interest of an official in a conflict of interest is such that he is doomed to be incomplete, since covering all the property and non-property interests of such a person, his external service is almost unreal. It is also not entirely appropriate to derive an official relationship arising from membership or activity in public or other organizations beyond the scope of a non-contractual relationship, since they do not relate to the performance of official or representative authority. All of the above relationships are and should be non-service. Similar remarks can be made about the following classification of conflicts of interest for the measures of their settlement by: 1) removing a person from performing a duty, committing an act, taking a decision or participating in its adoption in the conditions of a real or potential conflict of interests; 2) the use of external control over the performing of a particular task, actions or making decisions; 3) restriction of access of a person to certain information; 4) review of the scope of official authority of the person; 5) conflict of interests, which is solved by transferring a person to another position; 6) dismissal of a person. Again, note that this listing is not exhaustive. At the very least, it does not cover the possibility of an independent conflict resolution of interests, provided for in Part 2 of Art. 29 of the Law of Ukraine “On Prevention of Corruption”, as well as actions to settle conflicts of interest among persons who are part of a collegial body (Part 2, Article 35 of the Law) and some others. Of course, one of the first attempts by the researcher to apply complex classification method to conflicts of interest is a certain scientific interest, but does not reveal legally significant grounds for classification. The ambiguous nature of conflicts of interest covering not only the sphere of activity of state and municipal bodies, but also the sphere of private business, requires a constructive approach to their classification, which does not exclude the study of this phenomenon in conjunction with other social conflicts. Consequently, when searching for criteria for classifying conflicts of interest in public-law relations, it is necessary to take into account classifications of a more general level – conflicts of interest in general. The reasons and mechanisms of the emergence and development of conflicts, as well as the principles and technologies of management of them, are the subject of such a system of knowledge as conflictology, whose representatives investigate the various patterns and manifestations of conflict social interaction, as well as practical management of them. The conflict is

31Рівчаченко С.В. Запобігання та врегулювання конфлікту інтересів як спосіб протидії корупції : дис. … канд. юрид. наук : 12.00.07 / Запорізький національний університет. Запоріжжя, 2017. 192 с. URL: http://phd.znu.edu.ua/page/dis/07/Rivchachenko_diss.pdf (accessed 23 July 2019). С. 32–33. 100 considered as an aggravation of contradictions and the opposition of two or more parties in solving their problem, accompanied by negative emotions. However, the type of conflict of interest we are considering has its own specifics: it takes place in the field of public-legal relations, is mainly unilateral in the absence of counteraction or struggle and one that is rarely accompanied by negative emotions. Therefore, not every demonstration of such a conflict can be covered by the object of conflictology, and therefore requires a special study. It should be noted that due to general insufficient research of the theory of conflicts of interest in public-legal relations, the only developed classification of such conflicts does not exist. The objective difficulties of their scientific justification are that they themselves represent a category beyond the generally accepted approaches to their essence and nature. At the same time, the classification of conflicts of interest is rational because they are characterized by constant features, content and structure. To suggest the concept of classifying conflicts of interest is relevant both from a scientific and a practical point of view, as this will contribute to widening the limits of their understanding, peculiarities of demonstration and order of settlement. The corresponding criteria of classification, which allow to relate certain conflicts of interest to a particular group, have different character. In this article, we will draw attention to legally significant criteria for classification. Conflicts of interest are quite diverse. Considering the conflict of interest as a special situation in the field of public relations, the following criteria for their division into types: 1) the degree of power in relations between the parties to the conflict: a) subordinational (arising in connection with the performance of powers of the head – subordinate, for example in the case of direct subordination between relatives); b) reordinational (take place in the absence of subordination relations); 2) the quantitative composition of subjects: a) one-sided (for example, in connection with the presence in the person of enterprises or corporate rights); b) multilateral; 3) the duration of time: a) one-time (most often occurs when an official performs an individual act or decision-making such as drawing up acts, conducting measurements, certifying facts, etc., are characterized by situational emergence); b) short-term (for example, within the framework of proceedings for consideration of a citizen’s request regarding which an official has a private interest, bringing a person to liability); c) long-term (characterized by constant, continuous character, often occur during the

101 performance of the authority of the head of the body or unit, to which the person close to him directly submits). Based on the classification of the qualitative composition of the subjects of conflict of interest, two criteria can be distinguished. The first is related to persons who may have conflicts of interest and represent: a) state bodies; b) local self-government bodies; c) state enterprises, institutions, organizations; d) communal enterprises, institutions, organizations; e) areas of public service provision; e) people involved in the officials in the procedures for the formation of a public service, the performance of their supervisory and control powers, and others like that. The second one is connected with the entities authorized to settle conflicts of interest: a) heads of state bodies, local self-government bodies, state and communal enterprises, institutions, organizations, and their divisions; b) collegial bodies alone or with the participation of the representative of the National Agency for the Prevention of Corruption; c) the National Agency for the Prevention of Corruption; d) public associations; e) persons who have a conflict of interest. Logical continuation of this classification is a criterion for choosing a way to settle the conflict: a) external (the settlement is carried out by the authorized person, the authority regarding the person who has a conflict); b) self-dependent (the settlement is carried out by a person who has a conflict of interests by own actions without the involvement of outsiders). Depending on the type of legal regulation, the settlement of conflict of interests can be divided into: a) general (carried out in accordance with the procedure established by the Law of Ukraine “On the Prevention of Corruption”); b) special (it has its own specifics, is determined by the laws regulating the status of officials and the principles of organization of the relevant bodies, for example, the head of state, people’s deputies, members of the government, heads of state services, agencies and inspectorates, judges, chairmen of local councils, etc.). In order to provide a clearer practical understanding of the essence and consequences of conflicts of interest by the criterion of their wrongfulness, we can distinguish the following conflicts: a) a perspective conflict of interest – the situation of the so-called “almost conflict”, in which the official has a private interest in the field of the performance of his duties, which can in the future to affect on the objectivity of making decisions or actions. The two main components of this conflict of interest (official authority and private interest) as track rails go in parallel with each other and do not overlap. The law in such a situation is not violated and such a conflict, with proper behavior of the official, will remain positive (incomplete);

102 b) a retrospective conflict of interests – a completed conflict situation in which an official, despite the presence of his private interest in the sphere of his performance, takes actions that affect their objectivity and impartiality. In this case there is a violation of the legislation in the field of prevention of corruption and the guilty person may be prosecuted. The possibility, and not the obligation to prosecute, in this case, is due to the fact that anti-corruption legislation contains provisions that allow officials to perform power in a conflict of interest. This situation is stipulated in Art. 33 of the Law of Ukraine “On Prevention of Corruption” in the form of performing the authority of an official under external control. Such an exclusive external form of conflict resolution is used in cases where it is impossible to take other measures to settle the conflict, including the transfer of a person to another post or his dismissal. For example, an official informs the supervisor about potential conflict of interest in the conduct of an expert research in connection with the existing private interest, but the manager cannot transfer the performance of this work to another person due to a lack of specialists, nor grounds for the transfer or dismissal of this person. The research must be completed. The supervisor issues an order for the use of external control in the form of verification by the determined manager of the worker of the results of the performed research (control form) or obliges the person to conduct a research in the presence of another employee, which is also determined by the manager (the “tandem” form). Despite the steps taken by the supervisor, the official performs his work in a conflict of interest, which does not disappear, as well as the private interest of the person does not disappear. However, this conflict occurs in the legal scope and is accompanied by control measures, determined by the supervisor in accordance with the current legislation. Similarly, in the situation of a conflict of interest will act the person who works in the collegial body where as a form of external control has been used the participation of the authorized representative of the National Agency for the Prevention of Corruption in the status of observer without the right to vote in the work of this body. Despite the participation of an independent representative, a person votes in a conflict of interest, but, as in the first case, it occurs in the legal field. Similar situations are described in other laws. For example, a deputy or chairman of the local council in accordance with Art. 59-1 of the Law of Ukraine “On Local Self-Government in Ukraine”32 has the right to take part in the consideration and decision-making by a council in which they have a private interest in case of independent public announcement about it during a

32Про місцеве самоврядування в Україні : Закон України від 21 травня 1997 р. Відомості Верховної Ради України. 1997. № 24. Ст. 170. 103 meeting of the council. That is, such an announcement is a legitimate basis for voting in a conflict of interest, but again – legal. Otherwise, the actions of a deputy or chairman of the local council will be considered illegal, for which administrative responsibility is provided. All this allows to distinguish such subtypes of a retrospective conflict of interests as legal and illegal. Of course, the sphere of conflicts of interest is very voluminous due to a large number of subjects in which it may arise, as well as acts that regulate it, and therefore the criteria for their classification can be distinguished more. It is obvious that within each type of conflict it is possible to further classify them.

3. Conflict of interest settlement In accordance with Clause 1. Art. 28 of the Law of Ukraine “On Prevention of Corruption” to public administration entities (in particular, persons authorized to perform functions of the state or local self-government, and persons equal to them) are subject to the requirements, first, to take measures to prevent the emergence of a conflict of interest, secondly, to inform the supervisor or other person in the way prescribed by law about the potential or real conflicts of interests, and, thirdly, not to take actions and not make any decisions until measures for settlement the conflict are taken. How to settle the conflict is stated in Art. 29 of the Law – these are measures of external and non-dependent settlement. From their content, it follows that a conflict of interest can be settled in two ways, firstly, independently, by a person who has a conflict of interest without the involvement of officials, and secondly, by external influence from other authorized persons (its directors, the NSC, other bodies and officials designated by law). The measures of external conflict of interest settlement are defined: 1) removal of a person from performing a task, committing an action, taking a decision or taking part in its adoption in the conditions of a real or potential conflict of interests; 2) the use of external control over the execution of a particular task by a person, the commission of certain actions or decision-making; 3) restriction of access of a person to certain information; 4) review of the scope of official authority of the person; 5) transfer of person to another post; 6) dismissal of a person. Specific measures for the self-settlement of a conflict of interests do not include the article under consideration, but it is indicated that the result of their application should be the deprivation of the relevant private interest of the person who became one of the causes of the conflict. Depending on the type of legislative regulation of ways to settle conflicts of interest, they can be divided into: a) general (stipulated by the Law of Ukraine “On the Prevention of Corruption”); b) special (they have their own specifics, are determined by the laws regulating the status of individuals and

104 the principles of organization of the relevant bodies, for example, the head of state, people’s deputies, members of the government, heads of central executive bodies, judges, chairmen of local councils, their deputies, etc.). Given this, the list of measures for the external and independent settlement of conflicts of interest envisaged by Article 29 of the Law is not exhaustive and may vary depending on the peculiarities of the service, the employment of the persons concerned, and the specifics of the organization of the activities of the relevant bodies, enterprises of the institutions and organizations. The above list of measures for the external conflict of interests’ settlement is also not a certain sequence of their application or choice. The choice of a specific measure depends on a number of factors: the type of conflict (potential or real), its duration (temporary or permanent), the subject, which it emerged (officials of state bodies, local self-government, employees of other legal entities of public law, persons providing public services, etc.), subjects authorized for its settlement (heads of state bodies, bodies of local self- government, state and communal enterprises, institutions, organizations of their divisions, collegial bodies directly or with the participation of the representative or the NACC body, public associations), the presence (absence) of the consent of the person to apply for a particular measure, the form of settlement (oral or written), etc. Let’s consider them in more detail. Despite the fact that the rules of Part 1 of Art. 29 of the Law does not specify the kind of conflict of interest to which external measures will be applied (although they are mentioned in the following articles of the Law), it should be emphasized that the purpose of their application – the settlement – can be reached on a potential conflict with the absence of the influence of private interest in the objectivity or impartiality of decision-making, or in the commission or non-execution of duties during the performance of official authority. Otherwise, there is a violation of conflict of interest law, and the settlement measures will be aimed at preventing the emergence of potential or real conflicts of interest in the future. Conflicts of temporary (one-time) nature are regulated by such a measure as eliminating a person from performing a task, committing an action, taking a decision or taking part in its adoption in a conflict of interest (Article 1, part 1, Article 29 of the Law). Those conflicts that have a permanent nature are settled by other measures envisaged in paragraphs 3–6 of Part 1 of Art. 29 of the Law. Conflicts of both temporary and permanent nature can be settled by an external control over the performing of a particular duty by a person (clause 2, part 1, Article 29). Specificity of the subject, who has a conflict of interest, causes the choice of the authorized person action to settle it. Such measures as the transfer of a

105 person to another position, as well as his dismissal, shall be applied only by the head of the body, enterprise, institution or organization. The decision on the application of other measures of external regulation may also be taken by the direct supervisor of the person. The decision to remove a person from performing a task, committing an action, taking a decision or participating in its adoption in a real or potential conflict of interest may be taken both verbally and in writing. Decisions on the application of other measures of external settlement are taken in writing. The election of a measure of an external conflict resolution of interests should be carried out objectively, taking into account the interests of the person in which it arose, the specifics of its official powers, in order to prevent violations of rights, freedoms and legitimate interests of individuals and legal entities. In any case, the election of a measure should be sufficient to settle the conflict of interests (that is, streamlining the activities of the persons concerned) and, at the same time, minimally possible interference with the performance of their official or representative powers33. An external conflict of interest settlement is the area of responsibility of the manager, other authorized person or body, the level of which allows and obliges to take measures to settle the conflict of interest. Violation of legislation should recognize supervisor’s decisions, instructions to the person about the need for an independent settlement of the conflict if it provides the application of measures of external regulation. Part 2 of Art. 29 of the Law sets a requirements for the independent settlement of a conflict of interests: 1) a person settles a real or potential conflict of interests; 2) measures to settle the conflict are committed by a person who has a conflict; 3) a person who has a conflict can solve it independently; 4) the settlement is carried out by depriving the relevant private interest; 5) deprivation of private interests shall exclude any possibility of its concealment: 6) providing the direct supervisor with confirming documents for deprivation of the relevant private interest. Despite the fact that the concrete measures of such a way of settlement are not defined by law, their example is the transfer from official to another person management the enterprise and corporate rights in the manner prescribed by law (Article 36 of the Law). Let’s consider more specifically the measures of external conflict of interest settlement. The removal from the performance of a task, commission, decision-making or participation in its adoption consists in the transfer of authority to make a decision or to act from another person in conflict. It is

33Науково-практичний коментар до Закону України «Про запобігання корупції» / наук. ред. М.І. Хавронюк. Київ : Ваіте, 2018. C. 122. 106 used in the aggregate of the following conditions: 1) to a real or potential conflict of interest; 2) the conflict of interests is exclusively temporary; 3) applied by the decision of the head of the relevant body, enterprise, institution, organization or head of the relevant structural unit in which the person works; 4) there is the possibility of engaging in the decision or action that created the conflict situation, another employee of the appropriate body, enterprise, institution or organization, regarding the fourth condition, it should be noted that the list of such persons should be expanded in the Law with the decision-maker person (supervisor), who can settle the conflict by making a decision or performing conflicting actions by himself. The supervisor’s decision can be taken both verbally and in writing. The choice of the appropriate form depends on how the employee was assigned duties that caused a conflict of interest. If the conflict arose as a result of the receipt of oral instructions from the head or the current performance of official authority, the decision to remove and engage another employee may be taken orally, of course, it does not preclude the use of written form. In cases where the conflict was reported to the head of the writing, the performing of the authority is entrusted to the employee by an administrative act (for example, an order to carry out an audit of the enterprise, inclusion in the certification committee, other written order, etc.), then the decision of the relevant head of the considered an external settlement should be taken in writing. Restrictions on access to information as an external conflict resolution measure have many features in common with the previous one – it is used in the event of a potential or real conflict of interest, upon the decision of the head of the relevant body or the head of the relevant structural unit in which the person works, there is the possibility of engaging in work with the corresponding information that creates a conflict situation for another employee. Distinctive features are, firstly, the type of conflict (only a long- term, permanent nature, in cases where the conflict has a one-time character, it is necessary to apply such a measure as the removal from the execution of the assignment, the commission of actions), and, secondly, there is the possibility of continuing the duty performance by the person whose access to information was limited. The law does not establish the type of such information. According to Art. 1 of the Law of Ukraine “On Information”34, information is any information and / or data that can be stored on physical media or displayed in electronic form. Therefore, the restriction of access is applied to the information, not the document that contains it.

34Про інформацію : Закон України від 02 жовтня 1992 р № 2658-XI. Відомості Верховної Ради України. 1992. № 48. Ст. 650. 107 In our case, it is the information with the limited access. Even if a person at the time of performing his dutieshas an access to certain information by using an official digital signature or key, but such information may be obtained from open registers or databases (for example, the Unified State Register of Legal Entities, individuals-entrepreneurs and public formations, the Electronic System for Disclosure of Stock Market Participants, etc.), the restriction of access to such information does not settle the conflict of interest. Access should be restricted to the official information contained in documents, internal correspondence, memos related to the performance of supervisory powers, decision-making, or collected in the course of investigative activities or other activities that are not assigned to state secrets. In this case, the work of a person must be permanently connected with access to a particular type of information that is the sphere of his private interest. Therefore, the decision of the manager to restrict the access of a person to certain information should include: a justification for the application of this measure; a specific list of restricted access information and an indication of the means by which it will be implemented (for example, the removal of an electronic key); limitation period (until the conflict of interest loses relevance); data about the person entrusted with work with the relevant information. It means that the decision should be made in writing. The goalof the scope of authority review is to exclude (replace to others) from the employee functional duties the powers – reasons of a conflict of interest. It can be applied only with a whole set of the following conditions: 1) whenthe conflict of interest is real or potential; 2) if the conflict of interest is permanent and is related to the specific powers of the person; 3) applied by the decision of the head of the body, enterprise, institution, organization or corresponding structural unit in which the person works; 4) review of the duties does not exclude the possibility of continuing the performing other powers of the person; 5) other officials of the body, enterprises, institutions and organizations may be assigned powers that were excluded from the person. This measure of external control should be distinguished from: limiting access to information (Article 31 of the Law), transferring a person to another post (Article 34 of the Law); changing essential conditions of civil service (Article 43 of the Law “On Civil Service”); transfer to another job, change essential conditions of work (Article 32 of the Labor Code). The decision to review the scope of the authority of the person is taken in writing. Transfer, dismissal of a person due to the existence of a conflict of interest. The common features of these external conflict resolution measures are: they are applied to a real or potential conflict of interest with a permanent nature; decision-maker isthe head of the body, enterprise, institution or organization.

108 The decision to transfer a person to the other position is taken in cases where other measures of conflict settlement cannot be applied, while the other position is free and corresponds to the personal and professional qualities of the person. As we see, the Law does not specify what type of post the person should be transferred to. The answer to this question is contained in the legislation that determines the particularity of a certain type of service or employment. Thus, persons whose work is regulated by the Law of Ukraine “On Civil Service” may be transferred without compulsory holding of the contest for another equivalent or lower vacancy in the same or another state body, including in another location. The post of civil service belonging to one group of remuneration, taking into account the jurisdiction of the state body, is equally recognized. Accordingly, a lower position should be considered a post belonging to the lower wage group, as well as a post with a lower level of jurisdiction, albeit within the same group of remuneration. If a civil servant was appointed to a position without a contest, he cannot be transferred to a higher post without a contest. The law also states that the transfer of a person to another post can only take place with his consent. Dismissal from the position of the person who caused the conflict of interest is the most severe measure of the external conflict of interest settlement, which, in addition to the above general conditions, applies when the conflict cannot be settled in any other way, including because of the lack of consent of the person to the transfer for another post, the absence of such posts or the reluctance to get rid of the private interest that has become the cause of the conflict. The transfer and dismissal of a person are most often used in cases where the conflict of interest relates to direct subordination relations between close relatives or other persons related to private interest. As with previous measures for conflicts of interest settlement, the form of the decision is not defined by law. Of course, it should be written. Performingduties under external control is a special measure of external conflict of interest settlement. This feature is basedon the fact that the employee, despite his private interest, makes a decision and acts in a potential conflict of interest, but by the decision of the head in the form of control he has defined. The main purpose of this measure is to exclude the influence of a person’s private interest on the objectivity or impartiality of decision-making, or taking action. It is applied in the aggregate of the following conditions: 1) when the conflict of interest is real or potential; 2) the conflict of interests has a temporary character, and in certain cases it can be permanent; 3) it is impossible to apply such measures to settle the conflict of interests as removal

109 of a person from performing a task, restriction of access to information and reviewing his / her official authority; 4) there are no reasons for the transfer of a person to another post or for his dismissal. Article 33 of the Law does not specify who is authorized to decide on the use of external control. Therefore, it can be decided by the head of the body, enterprise, institution, organization, and the head of the relevant structural unit in which the person works. Proceeding from the content of this measure and requirements for its formalization, it is advisable to make such decision by the supervisor of the level not lower than the head of an independent structural unit, in which the person works. The choice of a specific form of external control, as defined by the Law, is carried out taking into account the peculiarities of the conflict of interests that arose, the decision and / or action to be taken, the competence of the persons involved in the control, the requirements for the quality of the performing work, the employee work experience, etc. Thus, the checking of the condition and results of the person task performing, the commission of its actions, the content of decisions or draft decisions, adopted or developed by him or the relevant collegiate body on issues related to the subject of conflict of interest, by another employee, chosen by supervisor, consists in the following (retrospective) control of decisions or actions taken by the person, who reported about conflict of interests, on the subject of their objectivity, legality, compliance with other requirements. This form of control can also be applied to check the activities of a collegial body, except when a non-participation of a person who has a conflict of interest would lead to the loss of the authority of such a body. Such a form of control as the performing the task, actions, the consideration of cases, preparation and adoption of decisions by a person in the presence of the employee appointed by supervisor consists in current (operational) controlling, direct observation of the actions and decisions taken in “real-time” (in tandem with designated employee) for the purpose of prompt detection and timely termination of violations that may arise as a result of the influence of private interest on actions and decisions objectivity or impartiality. The last form of external control is the participation of the authorized person of the National Agency for the Prevention of Corruption in the work of the collegial body in the status of an observer without the right to vote. It applies in cases where the non-participation of the person (who reported about conflict and is a member of the collegial body) in decision making by this body will lead to the loss of its authority. The decision to apply this form is taken by the relevant collegiate body. The decision defines only the form of external control, which is

110 reported to the National Agency for the Prevention of Corruption, that identifies an authorized person to participate in the work of the collegial body as an observer. Although the participation of such a person in the voting is excluded, during the work of the collegial body it may be found violations of legislation in the field of prevention and counteraction to corruption. The legislator has defined the main requirements for the content of the decision on the implementation of external control. It defines the specific form of control authorized to carry out the control of the employee, as well as the responsibilities of the person in connection with the use of external control over the performance of the task, the commission of its actions or decision- making. Taking into account this, the most optimal form of the decision taken by the head of the decision on the use of external control should be written regulations, which has a certain procedure of preparation and registration.

CONCLUSIONS Activity of public administration and its officials in the performance of their powers are accompanied by a number of professional and personal interests that can lead to conflicts between them. However, such situations should not cause problems if they are promptly disclosed and properly settled. In this article, based on the analysis of the current legislation, the legal opinion, the content of the conflict of interests is disclosed, its types and settlement methods in the activities of public administration are determined. It indicates the relevant shortcomings of the current legislation in this area, and suggests ways to settle them. In particular, as the first priority measures to eliminate these problems, it is proposed: a) in the legislative concepts of a potential and real conflict of interests, the “official or representative powers” should be changed to “official, representative or other powers” and determined; b) the special laws regulating the activities of the entities providing public services should be supplemented by the norms that stipulate that the abovementioned persons are subject to the requirements for the prevention of conflicts of interest envisaged by the Law of Ukraine “On Prevention of Corruption”. Within the framework of this collective monograph, current classifications of conflicts of interest are analyzed, their main features and disadvantages are indicated, the main problems of approaches to their division into species are described. As a result of significant features of the conflict of interests analyses, has been made an attempt to allocate new ones of their scientific and practical significance and to contribute to a deeper understanding conflicts of interest nature and diversity (subordinational and reordinational, general and special, perspective and retrospective, legal and illegal), which allowed

111 disclosing the features of a conflict, to determine the legal consequences and the appropriate procedures for their settlement. Despite the broad legal framework and the interpretation of external and non-dependent conflict of interest settlement, there are practical problems with their application, due to gaps in detailing such measures, determining the forms of managerial decisions, requirements for the organizational level of such a supervisor, etc. The decision to eliminate a person from performing a task, committing an act, taking a decision or taking part in its adoption in a real or potential conflict of interest should be foreseen in oral or written, for others – only written. For such type of settlement as aremoval from the performing of a task, action, decision-making or participation in its adoption, it should be foreseen that a leader, regardless of the presence / absence of another employee, should personally make decisions or perform actions that underlie the conflict. It is advisable to foresee that the decision to perform powers under external control has to make a leader of the level not lower than the head of an independent structural unit, in which the person works.

SUMMARY This section of the collective monograph covers the approaches of legislators, scientists on the problems of determining the content, types and ways of conflicts of interestsettlement in the activity of public administration. The elements of such conflict are revealed, their characteristics and features are given. Attention was paid to the division of conflicts of interest into types, their main features and disadvantages of existing classifications. Attention is drawn to the importance of the scientific and practical classification of such conflicts, proposed new criteria for their division and types (subordination land reordinational, general and special, perspective and retrospective, legal and illegal), which allowed to reveal the peculiarities of a conflict, to determine the legal consequences and appropriate procedures for their settlement. The approaches of the legislator on ways to settleconflicts of interest in the public administration activity are revealed. The order and grounds for using the measures of external and non-dependent conflict of interest settlement are explained. It is noted that the election of a concrete measure of an external conflict of interest settlement should be carried out objectively, taking into account the interests of the person who has a conflict, the specifics of its official powers, in order to prevent violations of the rights, freedoms and legitimate interests of individuals and legal entities. Methods of their application, taking into account the type of conflict, its duration, the person, who has a conflict, the person authorized to settle it, the form of settlement are detailed. Attention is drawn to the gaps in the relevant legislation, concrete proposals for their

112 elimination are determined by means of legislative consolidation of the form of the decision of the head of the settlement of the conflict, requirements regarding its organizational level. For such a settlement as a removal from the task, it is proposed to provide the head of the person to make a decision or take actions that formed the basis of the conflict.

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Information about author: Pastukh I. D., Candidate of Juridical Sciences, Associate Professor, Professor of the Department of Public Management and Administration of the National Academy of Internal Affairs 1, Solomianska sq., Kyiv, Ukraine

115 SOCIAL AND LEGAL ASPECTS AS A FACTOR WITH REGARD TO THE REDUCTION OF CORRUPTION IN THE AGRARIAN SECTOR OF UKRAINE

Piddubna D. S.

Introduction The agrarian sphere of Ukraine can be characterized as a special one, which is related to the quantity and quality of land resources. In turn, land resources consist of corresponding lands, which are distributed according to the main and target destination. Of particular interest is this category of land as agricultural land, consisting of agricultural land and non-agricultural land. It was on these lands that a private property form was established that was implemented through land reform. It was the process of its implementation and included a number of existing problem areas, which were associated with specific aspects of its implementation. First of all, the agrarian sector in Ukraine is considered a subsidy industry, therefore, it does not foresee the possibility of applying market-based regulation mechanisms to emerging social relations. In the future, the direct holding of land reform, when it was determined by the relevant regulatory act of decommissioning (those land plots that were in state ownership, were transferred to collective ownership and then clearly identified persons, namely, members of collective agricultural enterprises, persons who were not excluded from their number, as well as pensioners of collective agricultural enterprises – members of the KSP, got the opportunity to get land plots (units) of the corresponding area into private ownership. The procedure will be received The land plot (share) provided for the submission of an application, the acceptance of participation in the designated location of the land plot (share) (by consent or by drawing lots), the passage of the relevant procedures and, ultimately, the receipt of a state act on the right to private property), which was fixed at the level of the normative-legal acts the right of a person to receive a land plot (share) in private ownership. However, by consolidating the right to receive a land plot (share), the mechanism was foreseen only in 2004 through the adoption of a special law. Accordingly, the period from 1990 to 2004 determined the right, but was not accompanied by an appropriate mechanism for implementation. However, the practical side of life reflects that there were individuals who still applied for the exercise of their rights. At the same time, the procedure for the transfer of land plots from state to collective ownership was carried out. As a result, there already existed collective agricultural enterprises, from which further members of the latter came from obtaining land plots in kind. 116 At the same time, the petition of the people to the officials of district state administrations, for example, was based on a personal decision of the head of the land resources department, which could be resolved either with an element of corruption, whether to wait for the appearance of the mechanism, or to try to find a compromise solution through the use of analogy the law, or the analogy of the law. A rather specific situation, which is a consequence of an imperfect mechanism of dispersal, is the situation with unsubsidized and unallocated land plots (share), which were then rented out in violation of the requirements of the structure of the contract, which also contains elements of corruption. This fact caused a fairly significant number of appeals to the court of successors, or even those who had the right to such a plot of land (share). As a result, as a result of a court session, it turns out that there are two acts for the right of private ownership of the same land parcel (share) in different persons. This is a clear example of the manifestation of corruption in the agrarian sector. These examples can determine the set. Describing the manifestations of corruption in the historical aspect, it is possible to point out that the present will not undergo extremely positive changes. It is quite a well-known fact that different decisions of various representatives of state executive authorities on the right of ownership, the right to property, on the establishment of boundaries in kind, on the provision of a lease and the state registration of a land lease agreement or, according to the current requirements of normative legal acts – registration of the right to lease, etc., as well as judicial authorities regarding the establishment of owners, successors, recognition of the validity of the lease agreements, the establishment of the validity of the lease agreements that were concluded with violation of timely requirements etc. The next position, which determines the presence of corruption in the agrarian sector, is still market-oriented, despite its consolidation as a subsidy industry. Accordingly, the interest of individuals in obtaining in private ownership of land plots, including land plots (shares) in any way increases. With the introduction of a cadastral number on land plots and indicating that land owners can obtain it at their own will, we have the position of assigning different cadastral numbers to the same site for different owners. Electronic systems crash, which does not provide the opportunity to restore information about land owners. Archives of collective agricultural enterprises on the ground, as well as regional land-related archives, also suffered from burning. In addition to these aspects, for today, profitable for the international and European level is the implementation of organic farming, since such products are more expensive abroad than in Ukraine. That is why the owner is an obstacle to a large agrarian business, and one of the elements to eliminate it,

117 one can determine the presence of corruption, which can be explained by a number of positions, including through the socio-legal characteristics. Additionally, the issue of corruption is being solved by commonly defined legal acts, which also needs to be analyzed and studied for the purpose of a clear understanding of the application.

1. Social aspect as a factor in the manifestation of corruption in the agrarian sector of Ukraine The settlement of any social relations should be based on the application of the analysis method. What is directly in mind? The analysis should include the feasibility of developing a rule of law that will be relevant when it is possible to apply. Accordingly, the development of the rule of law may be determined by the need to resolve emerging new relationships that have not yet had a place in public life or those relations that take place due to the inability to implement it at all or through partial application, which may be explained by its imperfection and its subsequent the need for change or improvement. Thus, in order to address the question of the social characteristics of corruption in the agrarian sector, it is first of all necessary to analyze the existing moments. The social sphere is the consideration of various aspects, which we can include the economic side, price policy, consciousness, culture, human relations, life security, living standards, etc. Thus, by referring to some elements, in Ukraine today it is possible to identify negative indicators in terms of economic feasibility for carrying out activities in the agrarian sector. However, for the sake of comprehensive coverage of the social characteristics of corruption, it is necessary to speak not only about the subjects of agrarian economy, but also about officials in those structures that are directly related to the formation or creation of the basis for economic activities. Such entities may include: local governments, united territorial communities, rayon state administrations, regional administrations, the State Service of Ukraine for Geodesy, Cartography and Cadastre, territorial departments for registration of real rights to real estate at the Ministry of Justice of Ukraine. It is these structures and their officials who are directly involved in the formation of the object composition of the relations in the agrarian sector. In particular, by taking the appropriate decision, approving it, forming a land allocation project, allocating a land plot in kind, assigning a cadastral number to a land plot, registering ownership of a land plot, issuing a corresponding supporting document.

118 Identifying precisely such positions and subjects provide grounds for practical experience in the agrarian sector, as well as the existing highlights of the media. Thus, in the Sumy oblast, extortion of funds for solving land issues from the side of an official of the district state administration was established in conjunction with the former head of the district department of the State Geocadaster regarding a positive decision on the approval of the design documentation for the acquisition of land in private ownership1. A similar situation can be found in the Dnipropetrovsk region, where the head of the regional department of the State Geocodraw and his deputy, together with the technical officer of the district production department of the Dnipropetrovsk regional branch of the State Enterprise Center of Land State Cadastre, decided to make additional assistance regarding the preparation of land-building documentation and the establishment of the boundaries of the site in in nature2. It is informed that “the officials of the State Service of Ukraine for Geodesy, Cartography and Cadastre” were detained in the Dnipropetrovsk region while receiving unlawful benefits of $11,0003. Obstacles are created not only in the process of obtaining land plots and their registration, the development of relevant documents, but also during direct activities. In particular, “an official along with an accomplice demanded money from the director of the agro enterprise. Over 500 thousand UAH perpetrators promised not to create a local agrarian businessman artificial obstacles in the course of his economic activities and in the future to act contrary to the interests of the communal institution in litigation. Law enforcers arrested an official and accomplice after receiving part of the bribe in the amount of 450 thousand UAH at the cash desk of one of the banks in the center of Kherson”4. Agrarian sphere of activity has a certain feature, which is not only in the use of natural resources, but also related to the issue of trade relations through the use of various transport logistics, and especially if there is international

1Чиновник из Сумской области требовал деньги за решение земельных вопросов. 2019. URL: https://bizagro.com.ua/chinovnik-iz-sumskoj-oblasti-treboval-dengi-za-reshenie-zemelnyh-voprosov/?fbclid= IwAR2xIRrEunUXLx_4FB5udKt3dFi0Iyf-ad1Wy7lhbCbSTs_3PZrK-6tGPtA (дата звернення: 10.07.2019). 2Вчера при получении взятки в размере 7 тысяч долларов США задержан руководитель районного отдела Госгеокадастра. 2019. URL: http://www.litsa.com.ua/show/a/47174?fbclid=IwAR2QWU obBGVx7gaOyDuQ8g5 TouwcOsZrtlk6mQdLp38AeO91se2uKcVoRUI (дата звернення: 10.07.2019). 3Двох чиновників Січеславщини затримали на хабарі в 11 тисяч доларів. 2019. URL: https://dniprograd.org/2019/07/04/dvokh-chinovnikiv-sicheslavshchini-zatrimali-na-khabari-v-11-tisyach- dolariv_79750 (дата звернення: 10.07.2019). 4СБУ викрила на хабарі у 500 тисяч грн власника агрофірми. 2019. URL: https://agronews.ua/node/134119?fbclid=IwAR1fZOEU7Uai-40G3Rm-w7YUPjoIrNl6Zp3qWw-51FtQMc HsOzyzmk3EgtM (дата звернення: 10.07.2019). 119 trade in agricultural products or raw materials. Accordingly, there is another cluster of barriers and possible corruption. And this position finds its confirmation in the practical part and characterizes both the direct use of public funds not for the purpose, and from the side of speeding up the execution of documents, the loading of containers, cars, cars, etc. In particular, “law enforcement officers discovered millions of thefts of state funds by officials of the Sea Commercial Port of Southern Region in the Odessa region”5. Immediately about the activities of the customs it is possible to state: “The situation of stopping the customs clearance of cargoes by the EBA is explained by the fact that customs officers have received new risk criteria for determining the average value of customs value in the system of ASAUR (automated system of analysis and risk management) and now delay the goods that have the lowest declared At the same time, the customs inspectors do not have the technical ability to reconcile the customs value based on the documents provided (application of the first method of determining the customs value ones), if triggering risk analysis for indicative prices. DFS says, the situation is the fact that now improved risk profiles ASAUR to combat smuggling and gray import”6. In order to take office in state executive bodies, including for agrarian purposes, the persons concerned are ready to pay, which also undergoes practical confirmation: “the deputy chairman of the State Archival Service has promised for 10 thousand dollars of employment in the Fund state property”7. The question of corruption in the agrarian sphere can be directly determined by the facts of the relevant violations on the part of people’s deputies8, which is connected with their direct activity in the part of the implementation of voting for the adoption of the relevant normative and legal acts, in particular the implementation of lobbying decisions through the receipt of an appropriate payment or as a result of the activity of close relatives in this area.

5СБУ виявила у порту Південний мільйонні розкрадання. 2019. URL: http://ukrreal.info/ua/ regioni/186896-sbu-viyavila-u-portu-pivdenniy-milyonni-rozkradannya?_utl_t=fb&fbclid=IwAR3-_qXoJs WTnP_XVPVpelrB_ 1GHA5xxoIBTaLMwo9-Nud_b4r0Gl6uDuD0 (дата звернення: 10.07.2019). 6На митниці зупинено більшість вантажів. 2019. URL: https://agronews.ua/node/113481?fbclid= IwAR2-xYAsTfdN5AUcPlVMYCa-oYcn0qcLUeLfs2yhQXFhiYfRQo5h3Zg0-Xs (дата звернення: 10.07.2019). 7НАБУ: посадовець за 10 тисяч доларів обіцяв посаду у Фонді держмайна. 2019. URL: http://ukrreal.info/ua/koruptsiya/187698-nabu-posadovets-za-10-tisyach-dolariv-obitsyav-posadu-u-fondi- derzhmayna (дата звернення: 10.07.2019) 8Майже 75 мільйонів гривень. НАЗК оприлюднило топ-10 порушників антикорупційних законів червня (ІНФОГРАФІКА). 2019. URL: http://ukrreal.info/ua/koruptsiya/187438-mayzhe-75-milyoniv- griven-nazk-oprilyudnilo-top-10-porushnikiv-antikoruptsiynikh-zakoniv-chervnya- (дата звернення: 10.07.2019). 120 Quite often it is possible today to hear questions about the implementation of insurance of crop insurance, life insurance, vehicle insurance, accident insurance (weather conditions), and the like. Undoubtedly, for the agrarian sector, life insurance and harvest are a very relevant aspect due to the possibility of harvesting due to weather factors, as well as the possibility of harming health and direct loss of life. In addition, the agrarian sphere is characterized also from the standpoint of the collection of corn, namely, to protect from arson, which can occur both through intent and through negligence, but the subject of economic activity indicates significant losses. It is precisely on this motivation that insurance in the agrarian sector is a very important aspect. In particular, over a storm in the Chernivtsi region was destroyed more than 800 hectares of crop <...> injured crops of sunflower, rape, wheat and soy9. In Vinogradiv district damaged greenhouse of flood10. These positions once again characterize the general social status of economic protection of subjects of the agrarian sphere. Where the role of the state in such cases, which creates a pricing policy at such a level that working in an extraordinary amount, individuals do not have enough funds to postpone resources in similar cases. And this position is characteristic of each type of economic agrarian activity. Another example may be the price policy for grain: “At the end of last week, Euronext rape prices rose with support from soybean quotes in Chicago. The August futures rose by 3.5€ / t to 364.75€ / t. The market supported According to the estimates of the German Farmers’ Union (DBV), the rape harvest will be lower than the average due to drought in the fall of 2018, which fell during the sowing of winter rape, due to which the crop area under it fell by almost 1/3 to 337 thousand hectare. The yield of winter rape will not exceed 3.1 million tons, which will reach 600 thousand tons in 2018. In Ukraine this week, currency prices for canola dropped in the port by $3–4 per tonne to $396–397 per tonne. As a result of the strengthening of the UAH from 26.2 to 25.8 UAH / S, the UAH prices lost another 150–160 UAH / t, and in general, during the week, they dropped by 300–400 UAH / t to 12,100–12,200 UAH / tonne. Currently, the harvest is ongoing. The average yield of rapeseed is 2 t / ha. Spring drought in the southern regions has reduced the yield of canola. Rapeseed production in Ukraine is increasing as the demand from processors intensifies and exports to the EU increase, which, compared with last year, will increase imports by 1.5–2 million tons in order to load processing capacities while reducing its own production”11.

9У Чернівецькій області природна стихія знищила понад 800 га врожаю. 2019. URL: https://agronews.ua/node/135545 (дата звернення: 10.07.2019). 10Закарпатські фермери виїхали на заробітки, щоб компенсувати збитки від паводку. 2019. URL: https://agronews.ua/node/135486 (дата звернення: 10.07.2019). 11У ЄС ріпак дорожчає, в Україні – дешевшає. 2019. URL: https://www.growhow.in.ua/u-yes-ripak- dorozhchaie-v-ukraini- deshevshaie/?fbclid=IwAR1vU6yJSYIAuZd5foe71XivUMC6vSghyxdeSRgg2dHfzj55ZU yoR4P2se0 (дата звернення: 10.07.2019). 121 At the same time in the USA as a result of deterioration of the state of corn crops, its growth is increasing12. Economic positions also form social characteristics. It can be confirmed by the mass exodus of the peasants to the wages: “the total population is 42.1 million permanent residents, 31.1% of them are rural residents. If we take the figures in 2018, in fact, for 10 years, the number of rural population decreased by about 16% The population of the economically active rural population from 15 to 70 years is now 5.6 million people. The employment rate of the rural population in the 1st quarter of 2019 was 62.2%, of the urban population was 68.2%, the total number of employed in agriculture was 2.9 million people. The unemployment rate among these the population of Ukraine is 10.9%, among the urban population is 9%, and the share of self-employed and unemployed workers among those employed in agriculture is 79.5%. Another impressive figure is the volumes of labor migration. If according to official data, the number of labor migrants is about 7% of the socially active population, according to unofficial estimates, the number of migrant workers from the countryside reaches 2 million people. If the number of active rural population is 5.6 million people, then 2 million migrant workers are a lot of”13. Such indicators are impressive and critical for the administrative-territorial indicators of the country, and in accordance with the agrarian direction, a complex of urgent actions is determined in all positions, including corruption, through the use of an economic lever. Regarding insurance companies, data is provided on which, managers of insurance companies, instead of providing adequate payments, make the assignment of insurance premiums14. In addition, other available examples, although not directly related to the agrarian sphere, may be mentioned, but they can, in a priori, be manifested in part of the investigated direction. In particular, it was determined that the major police demanded $ 8,000 from the head of the commercial structure for the influence on the decision to close the criminal proceedings for the loss of property15. In addition to the designated officials of the relevant state authorities, it is worth noting and taking into account the activities of such actors as notaries (state and private), state executives, judges of the respective levels. Thus,

12Погіршення стану посівів у США сприяє подорожчанню кукурудзи на світових ринках. 2019. URL: https://www.growhow.in.ua/pohirshennia-stanu-posiviv-u-ssha-spryiaie-podorozhchanniu-kukurudzy- na-svitovykh-rynkakh/ (дата звернення: 10.07.2019). 13Вражаючі цифри: селяни масово виїжджають на заробітки. 2019. URL: https://agronews.ua/node/ 135639?fbclid=IwAR1ikCFLrz-k7xssGDDeE7Wcao8jSwwK_qSp_90Y8S9B9AXqJImGyERqWoA (дата звернення: 10.07.2019). 14Глава страховой компании присвоил 40 миллионов средствк лиентов – СБУ. 2019. URL: http://ukrreal.info/ua/koruptsiya/187385--glava-strakhovoy-kompanii-prisvoil-40-millionov-sredstv-klientov- sbu (дата звернення: 10.07.2019). 15Поліцейський вимагав 8 тисяч доларів за закриття кримінального провадження. 2019. URL: http://ukrreal.info/ua/regioni/187667-politseyskiy-vimagav-8-tisyach-dolariv-za-zakrittya-kriminalnogo- provadzhennya-foto (дата звернення: 10.07.2019). 122 “Baryshivsky department of Boryspil local prosecutor’s office sent to court an indictment on charges of a man in the use of deliberately fake documents, that is, in the commission of a crime (criminal offense) provided for in Part 4 of Article 358 of the Criminal Code of Ukraine and in the possession of someone else’s property and the acquisition of the right to property by means of deception (fraud) committed by a group of persons in a large scale, that is, in the commission of a crime (criminal offense) provided for by Part 3 of Article 190 of the Criminal Code of Ukraine. It was arranged that the 33-year- old man, together with other persons, committed illegal sale of land plots, causing actual owners of pecuniary damage in excess of UAH 200,000 for this purpose, they have drawn up a notary in the town of Baryshivka forged power of attorney on behalf of the two owners by name the accused, according to which he had the right to dispose of two plots in the Brovarsky district with an area of 0.15 hectares each, for the construction and maintenance of a dwelling house, economic buildings and structures. Subsequently, the intruder sold them by arranging purchase and sale contracts at a private notary in Brovary”16. As already mentioned above about the participation of relevant state bodies in the business of assistance, including agrarian, it is possible to bring the following information: “actually, business seizure occurred when it came time to harvest the crop, because of the raider action with nothing remained and the shareholders. The director of the agro enterprise Yatseslav Palamarchuk said that he was forced to disengage with force and that the work of the Prosecutor General’s Office was considered guilty of a raider attack. About all law enforcement agencies, but the investigation is on the spot, and all because of the alleged involvement of the Deputy Head of the General Prosecutor’s Office of Ukraine, Anatoly Gamunok, is allegedly involved. According to farmers, an official has an agrarian business, although in fact he is registered as a wife. At the moment, in the scandalous case, there are protracted courts. In Vinnitsa police, in official statements of farmers, the crime was not found and the proceedings did not open”17. The next interesting fact is a court decision made by the court of first instance without involving in the court session of the state represented by the Main Department of the State Service of Ukraine on issues of geodesy, cartography and cadastre in the Dnipropetrovsk region, the court made a decision on the transfer of eighteen plots of land for private peasant farming,

16Група шахраїв продавали чужі земельні ділянки. 2019. URL: https://agronews.ua/node/ 129199?fbclid=IwAR20gq4vCMRDSR5UtNIARVZJQGHBuvnMtNTMFXlU4p34ev_Rm2vwthdiEIw (дата звернення: 10.07.2019). 17На Вінниччині фермери звинувачують співробітника прокуратури у рейдерстві. 2019. URL: https://agronews.ua/node/135090?fbclid=IwAR1GmaW11e7QOH3NkOTJuDGuT7J-sCRffoflYA3BOCEt OL0RtJ3 imG0GQjE (дата звернення: 10.07.2019). 123 at the request representatives of the prosecutor’s office, the Dnipro Court of Appeal quashed the decision of the court of first instance18. Obtaining of any state support is also carried out through the appropriate procedure, which involves the direct appeal of the subject, the provision of the necessary documents, verification by the official of their loyalty and the decision to grant state assistance. The question arises as to how it is possible to get state aid for a fictitious farm19. Moreover, it is precisely the young farmer who has set up a farm to receive subsidies for young farmers, which does not address the issue of corruption or improper performance by the official of his immediate responsibilities, which has led to the decision to provide funds. Corruption does not go away and officials of communal ownership structures. So in Zhytomyr region, the chairman of a garden company for a certain amount of money determined assistance in the allocation of 0.15 hectares for gardening20. In Ukraine, in recent years, the phenomenon of raider hijacking is quite common. For various reasons, it is divided into “black”, “gray”, “white”, etc., but it is possible to state that raidering is being implemented through obtaining the corresponding legal documents from officials of state authorities, judges’ judgments, or certificates of relevant documents by notaries. According to law enforcement officers, a 38-year-old woman may be involved in up to 20 episodes of criminal offenses committed on the territory of the Dnieper and the region, including interference and the introduction of a criminal offense. Changes in the state registers for the owners of the enterprises and the use of deliberately fake documents. The objects of the crime were the farm, a number of enterprises, a service station and a residential building in Dnipro21. Among those involved in corruption, there are also representatives of the National Police of Ukraine, directly “in Novomoskovsk was arrested a local

18Облпрокуратура: через судпытались вывести из госсобственности участки на 100 млн грн. 2019. URL: http://www.litsa.com.ua/show/a/47220 (дата звернення: 10.07.2019). 19Фермер створив фіктивне господарство для отримання державної допомоги. 2019. URL: https://agronews.ua/node/125976?fbclid=IwAR07CiUVylKUUnbtYZGuQpL32zu0gqhiYLxzhuyQMYtwGd rcUPpMpTirkiA (дата звернення: 10.07.2019). 20На Житомирщині викрили голову садового товариства, який вимагав 1600 доларів США неправомірної вигоди. 2019. URL: https://agronews.ua/node/134619?fbclid=IwAR2obsTn-ayPZmIy TSMLBpaV5cSSeNS--7sCP1JCLtLzNIrIx-W0Wk2NF5c (дата звернення: 10.07.2019). 21Поліція затримала чиновницю, причетну до ряду рейдерських захоплень на Січеславщині. 2019. URL: https://dniprograd.org/2019/04/08/politsiya-zatrimala-chinovnitsyu-prichetnu-do-ryadu-reyderskikh- zakhoplen-na-sicheslavshchini_77544?utm_source=dlvr.it&utm_medium=facebook&fbclid=IwAR07lwaKB FZnsfNl_5ZapHk2wVIlQp7raJRKHpA0UqQImhR-tzzbJVV9Pk4 (дата звернення: 10.07.2019). 124 police officer who was engaged in extortion from local entrepreneurs”22. In this situation, it is possible to add cases involving the sale of agricultural products by its producer in villages and settlements, in which the police often try to implement the position of the norm of the article on the sale of products in cities, that is, the distinction between “city” and “place” from employees there is no police, but for not drafting a protocol that contains ignorance and responsibility of the police officer, gratitude is noted. The next position covers the social aspect, namely, the participants in the antiterrorist operation and the determined right to receive a land plot. Despite all the complexity of the moral and social side, there were officials who landed land without the knowledge of such participants, and then, in the event of their inquiry, a certain fee was offered23. Such actions were carried out with the participation of the leaders of the joint territorial communities and the local farmer. The aforementioned aspect defines the “positivity” of the creation of united territorial communities, the transfer of agricultural land to their jurisdiction, and the absence of control over their activities. Certain positivity, if this is not a fake news or a consequence of the variability of the state helper, according to the date of the information placement, there is a change in the receipt, that is, on the direct mechanism of state support24. Although the state support in the agrarian sector is not supported, while the position of maintaining in the agrarian sector of market relations, the implementation of activities at its own risk, which can be defined as a further prospect of reform, is upheld, but today, the simplification of the mechanism and the reduction of corruption in obtaining state aid is positive the moment. Guided by practical elements, as well as the developed theoretical positions on the classification of corruption, its types, grounds, consequences, we consider it necessary to agree with the positions of certain scientists regarding the classification of negative consequences of corruption (V.M. Garaschuk, A.O. Mukhataev): “ineffective use state funds and resources; ineffective external and internal economic policy of the state is geared up for clan interests, not interests of the state; loss of taxes and other revenues to the state

22На Січеславщині затримали поліцейського за вимагання хабара з підприємців. 2019. URL: https://dniprograd.org/2019/06/23/na-sicheslavshchini-zatrimali-politseyskogo-za-vimagannya-khabara-z- pidpriemtsiv_79539 (дата звернення: 10.07.2019). 23На Днепропетровщине бойцам АТО давали в аренду землю без их ведома. 2019. URL: http://www.litsa.com.ua/show/a/45214?fbclid=IwAR3LK2- WSSPMBIgxFJ3G7As1L1Or8yYqFASUd5Z2ElTs Xv3euUlvpuy0b4E (дата звернення: 10.07.2019). 24Відсипати грошей: журналісти розпитали фермерів та експертів про корупцію в розподілі аграрних дотацій. 2019. URL: https://agroday.com.ua/ 2018/12/20/zhurnalisty-rozpytaly-fermeriv-ta- ekspertiv-pro-koruptsiyu-u-rozpodili-agrarnyh- dotatsij/?fbclid=IwAR15jTKYA54wAj3pyl0QcKWKfa6lpv1BiehFPEEvn3fz4 NnGR221lSZzFjY (дата звернення: 10.07.2019). 125 budget through their direct expansion giving up or “coordinated” deficiency, inhibition by establishing false barriers to business development, slowing down the efficiency of the state apparatus as a whole; ineffective use of knowledge and skills of a person who, instead of dealing with business, are forced to overcome artificial bureaucratic obstacles; lowering the quality of managerial services (in including through the creation of artificial barriers; lower investment, slower economic growth, the ruin of private entrepreneurs; the intensification of organized crime, which is often “resolved” by corrupt high-ranking officials; growth of social inequality; reduction of public morality”25. However, there are indicators from the list, which can be determined not only by the consequences of corruption, but also as elements that generate it. In particular: the ineffective foreign and domestic economic policy of the state is adjusted to clan interests, not interests of the state; inhibition by establishing false barriers to business development; reduction of investments, slowing down of economic growth; the ruin of private entrepreneurs; growth of social inequality; the reduction of public morality. Why do these elements determine the basis for creating a ground for the development of corruption in the country? Thus, the first position is explained by the above example regarding the implementation of agrarian management and its subjective composition; the second position is characterized by the fact that a number of obstacles on the part of the state authorities, starting with price policy, the removal of the state in terms of assistance to receive real income by actors who may be losing due to the economic situation, weather factors, etc. (such support exists in almost every country), as well as the lack of a supply market, while in the domestic market, the so-called buyer, who does nothing, without any costs as a result of the sale of agrarian products or raw materials abroad, such as increased revenue at as close a business entity. In the future, Ukraine did not enter a long time of investment, which means the absence of competition in the market and the maintenance of a monopoly position of certain entities. Due to significant taxes, bureaucratic mechanisms, the lack of solvency of the population, small and medium businesses do not develop, which also affects the formation of the next criterion – social inequality. After all, if we analyze the state of Ukraine’s population today, it is possible to determine the classes of the rich and the classes of the poor, the middle class, as it is in a small percentage of its availability. Additional confirmation is also the statistical data in this direction. And the most problematic part of the generation of corruption is the aspect of morality. In these elements, it is necessary to determine its double branching, which

25Поняття, види та форми корупції. URL: http://kpnu.edu.ua/wp-content/uploads/2015/05/ zapobigannya-ta-viyavlennya-koruptsiyi.pdf (дата звернення: 10.07.2019). 126 will be at first when the officer requires funds for the performance of his official duties, and another manifestation is a person who comes with a position that needs to be paid to obtain the corresponding result. It is precisely in the latter position that the biggest problem is manifested, since the “give- take” creates even greater obstacles to the fight against corruption. The population has to form a position, each performs its work in accordance with the positions and functional responsibilities. And for such a realization, the state must already provide adequate wages that will not even create an opinion on an official before receiving a bribe, which will necessarily have a loss of work place, which has a high economic and social standard of living. It is correct to consider corruption as “not only social but also psychological and moral phenomenon, because it does not exist separately from people – their behavior, activity. Corruption is a way of thinking that determines the way of life <...> where corruption is widely spread, corrupt relations are increasingly displacing legal, ethical relations between people, corruption from a social anomaly gradually turns into a rule and acts as a habitual way of solving life problems, becoming the norm of functioning of power and a way of life of a significant part of society”26. It is successful to highlight the position of the scientist, according to which “life shows that the situation cannot be changed by purely forceful measures. The fight against corruption requires a systematic approach and the application of a set of scientifically grounded measures, in the process of implementation of which one of the main directions of activity, in our opinion, active work on the definition, promotion and introduction into practice of the moral and ethical principles of the functioning of the civil service as an institution providing management services to citizens and legal entities”27. Thus, corruption really has a social impact on the development of the state as a whole and emerging social relations. Turning to the position of legal review of corruption, we can state that “corruption is a concept not so much legal, but social and moral. From the point of view of etymology, the term “corruption” was formed from the combination of Latin words “Soggei” – the parties of the parties regarding a single subject and As a result, there is an independent term – “Soggitrege”, which involves participation in the activities of several people whose purpose is “damage”, “damage” to the normal course of the trial or management of affairs In general, corruption can be defined as a social phenomenon that covers the whole set of acts related to the unlawful use by individuals of the

26Акімов О.О. Психологічні аспекти проявів корупції в державному управлінні. URL: http://academy.gov.ua/ej/ej19/PDF/23.pdf (дата звернення: 11.07.2019). 27Козленко В.Г. Юридична характеристика корупції як соціального явища. URL: http://vjhr.sk/archive/ 2015_4_1/14.pdf (дата звернення: 11.07.2019); Кушнарьов І.В. Причини та умови корупції. Вісник ХНУВС. 2013. № 1 (60). С. 88–96. 127 authority and authority granted to them in order to satisfy the personal interests or interests of third parties, as well as other offenses that create conditions for committing corrupt acts or concealing them. The essence of corruption lies in the fact that it has a social conditionality, affects all spheres of public life, is characterized by transnational character, economic, political, legal, psychological and moral aspects and the ability to constant mimicry”28.

2. Legal regulation of corruption from the point of view of its application for its eradication in the agrarian sector of Ukraine Without recourse to the International Conventions, which introduced the introduction of the terminology of “corruption”, we will consider the current legal and regulatory framework on corruption in Ukraine. It is worth noting that in recent years in Ukraine there has been some reformation in order to eradicate such a phenomenon as corruption. In particular, the regulatory framework was amended, the Supreme Anticorruption Court was created, and requirements for the development and ongoing implementation of Anti- corruption programs were created for all elements that are considered to be subject to their activities to possible corruptions. However, the question does not find until its reduction. At the same time, we consider it necessary to take into account the historically created statement: you want to reduce the attention to the problem – give it an overview. Let’s hope that this does not happen in the fight against corruption in Ukraine. First of all, it is necessary to turn to the existing legal framework in the field of corruption. The Law of Ukraine “On Prevention of Corruption” of 2014 defines its focus on the legal and organizational principles of the functioning of the system of prevention of corruption in Ukraine, the content and procedure for the application of preventive anti-corruption mechanisms, the rules for the elimination of the consequences of corruption offenses, and directly the law begins with the characteristics of the terms using, we have clearly defined conceptual understandings. For the purpose of comparison, it is necessary to first note the understanding defined by the Law of Ukraine “On the Principles of Prevention and Counteraction of Corruption” of 2009, which expired on January 5, 201129. Thus, corruption was seen as “the use by a person of the authority and powers associated with her in order to obtain an unlawful gain or acceptance of the promise / offer of such benefit to themselves or others or, accordingly, the promise / offer or provision of unlawful benefit to such person

28Корупція. 2014. URL: http://www.solor.gov.ua/info/19/7246 (дата звернення: 11.07.2019). 29Про засади запобігання та протидії корупції : Закон України від 11 червня 2009. № 1506-VI. Втрата чинності від 05 січня 2011 р. URL: https://zakon.rada.gov.ua/laws/show/1506-17/ ed20110105/find?text=%CA%EE% F0%F3%EF%F6%B3%FF (дата звернення: 11.07.2019). 128 or at his request other physical or legal persons in order to persuade this person to misuse the authority and the powers attached to her”30. In the meantime, corruption is viewed from a slightly changed position, namely, the use of a “or” instead of past “and” communicator”, has expanded the range of relationships and practices that could fall under signs of corruption. In particular, corruption is currently considered to be “the use of a person given to her by the authority or the related capabilities in order to obtain the wrongful benefit or accept such a benefit or accept a promise / offer of such benefit to themselves or others or, accordingly, the promise / offer or provision of unlawful the benefits to the individual or, upon his request, other natural or legal persons, in order to incline the person to the unlawful exercise of the powers vested in him or the related facilities”31. Directly the name of a special legal act in the field of corruption has undergone its generalization in comparison with the earlier one. In addition, the concept of “close relatives” and “family members” is interesting to the analysis. Thus family members are defined as “married persons, as well as their children, including adults, parents, persons under guardianship and care, other persons living together, associated with common life, have mutual rights and obligations, including persons who are living together but not married”32, and close relatives – “persons who live together, are associated with a common life and have mutual rights and obligations with the subject, including persons who are living together but not married, and – regardless of the specified conditions – husband, wife, father, mother, stepfather, stepmother, son, daughter, stepchild, stepchild, brother, native sister, grandfather, grandmother, great-grandfather, great-grandfather, grandchild, granddaughter, great-grandson, grandmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, fat-dog, in-law, adopter or adopter, guardian or caretaker, person under guardianship or care of the subject”33. However, if we compare the terms used, so that the difference in the location of the words is available, but the content is absent, the question arises of the feasibility of using such a design. It is also possible to note that the understanding of “family members” has been moved from the Law of Ukraine “On the Principles of Prevention and Counteraction to Corruption” in literal terms with a change only at the beginning of the definition of the preposition “at” to “in”. It is also interesting that if you open the Law of Ukraine “On Prevention of Corruption” directly on the website of the

30Термін «Корупція». URL: https://zakon.rada.gov.ua/laws/term/ 13666:2278 (дата звернення: 11.07.2019). 31Про запобігання корупції (Терміни в документі). URL: https://zakon.rada.gov.ua/laws/term/1700-18 (дата звернення: 11.07.2019). 32Ibid 33Ibid 129 Verkhovna Rada of Ukraine34 and to refer to the definition of “close relatives” we will have a somewhat refined position than directly referring to the same Law on the website of the Verkhovna Rada of Ukraine, but within the terms “defined” the concept of “close relatives” and a number of other terms. The question arises as to what is possible at all, and most importantly, it will not create obstacles for an average citizen in clarifying, even for himself, a certain understanding. The above positions should be eradicated, and the guiding principle when developing regulations is the position of “maximum understanding for citizens who do not have legal education, that is, first of all it should be affordability, clarity and clarity”. In the future, it is necessary to establish the subject structure, since this will depend on the possibility of bringing the person concerned to responsibility for corruption. According to Article 3 of the Law of Ukraine “On Prevention of Corruption”, the entities subject to the said Law are determined. In particular: “1) persons authorized to perform functions of the state or local self- government: a) the President of Ukraine, the Chairman of the Verkhovna Rada of Ukraine, his First Deputy and Deputy, the Prime Minister of Ukraine, the First Vice Prime Minister of Ukraine, the Vice Prime Ministers of Ukraine, ministers, other heads of central executive bodies who are not members of the Cabinet of Ministers of Ukraine and their deputies, the Head of the Security Service of Ukraine, the Attorney General, the Chairman of the National Bank of Ukraine, the Chairman and other members of the Accounting Chamber, the Ombudsman of the Verkhovna Rada of Ukraine, the Chairman of the Verkhovna Rada of the Autonomous Republic Rome, Prime Minister of Crimea; b) people’s deputies of Ukraine, deputies of the Verkhovna Rada of the Autonomous Republic of Crimea, deputies of local councils, village, town and city mayors; c) civil servants, local self-government officials; d) military officers of the Armed Forces of Ukraine, the State Service for Special Communications and Information Protection of Ukraine, and other military formations formed in accordance with the laws, except for servicemen of temporary military service, cadets of higher military educational institutions, cadets of higher educational institutions that are in their staff military institutes, cadets of faculties, departments and military training departments;

34Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII у ред. від 06 червня 2019 р. URL: https://zakon.rada.gov.ua/laws/ show/1700-18 (дата звернення: 11.07.2019). 130 e) judges, judges of the Constitutional Court of Ukraine, Chairman, Vice-Chairman, members, inspectors of the High Council of Justice, officials of the secretariat of the High Council of Justice, Chairman, Deputy Chairman, members, inspectors of the High Qualifications Commission of Judges of Ukraine, officials of the secretariat of this Commission, officials The State Judicial Administration of Ukraine, jurors (while performing their duties in court); f) persons of ordinary and commanding members of the state criminal- executive service, tax militia, persons of the commanding staff of civil protection bodies and units, the State Bureau of Investigations, the National Anti-Corruption Bureau of Ukraine; g) officials and officers of the Prosecutor’s Office, the Security Service of Ukraine, the State Bureau of Investigations, the National Anti-Corruption Bureau of Ukraine, the diplomatic service, the state forest protection, the state protection of the nature reserve fund, and the central executive authority, which ensures the formation and implementation of the state tax policy and state policy in the field of state customs; h) members of the National Agency for the Prevention of Corruption; i) members of the Central Election Commission; j) the police; k) officials and officers of other state bodies, authorities of the Autonomous Republic of Crimea; l) members of state collegial bodies; 2) persons who, for the purposes of this Law, are equated with persons authorized to perform functions of the state or local self-government: a) officials of legal entities of public law who are not specified in paragraph 1 of part one of this article, persons who are members of the supervisory board of a state bank, state enterprise or state-owned organization with a view to receiving profit; b) persons who are not civil servants, officials of local self-government but provide public services (auditors, notaries, private executors, appraisers, as well as experts, arbitration managers, independent intermediaries, members of labor arbitration, arbitration judges while performing them functions, other persons, determined by law); c) representatives of public associations, scientific institutions, educational establishments, experts of the relevant qualification, other persons who are members of the commissions formed in accordance with the Law of Ukraine “On Civil Service”, the Law of Ukraine “On Service in Local Self- Government Bodies”, Public Council of Integrity, formed in accordance with the Law of Ukraine “On the Judiciary and Status of Judges”, public councils,

131 councils of public control, formed by state bodies and involved in the preparation of decisions on personnel issues, preparation, monitoring, evaluation of the implementation of anti-corruption programs, while not being persons referred to in paragraph 1, subparagraph (a) of paragraph 2 of part one of this article; 3) persons permanently or temporarily holding positions related to the implementation of organizational, regulatory or administrative duties, or specifically authorized to perform such duties in legal entities of private law, regardless of organizational form, as well as other persons who are not civil servants and who perform work or render services in accordance with an agreement with an enterprise, institution, organization – in cases stipulated by this Law”35. Thus, giving preliminary characteristics of the practical situations that arise during the implementation of the mechanism for obtaining the corresponding rights and obligations of actors in the agrarian sector, it is possible to state the characteristics of the grounds that provide an opportunity to assert the relevant persons who by special regulatory and legal an act in the field of corruption, falls within its scope. Immediately in view of the realization of the right to engage in agricultural activity or obtaining title documents within the agrarian sphere, it is possible to identify the following potential actors of corruption: deputies of local councils, village, settlement, city mayors; civil servants, local government officials; judges; officials and officers of other state bodies, authorities of the Autonomous Republic of Crimea; Persons who are not civil servants, officials of local self-government but provide public services (auditors, notaries, private performers, appraisers, as well as experts, arbitration managers, independent intermediaries, labor arbitration tribunals, arbitrators when performing these functions, other persons specified by law); persons permanently or temporarily holding positions related to the implementation of organizational, administrative or administrative duties, or specifically authorized to perform such duties in legal entities of private law, regardless of the legal form, as well as other persons, who are not civil servants and who carry out work or provide services in accordance with an agreement with the enterprise, institution, organization, in cases stipulated by the Law. If it is possible to identify the subjects from the point of view of their protection and protection of the rights and obligations of economic entities or land plot owners in the agrarian sector, it is possible to identify the following subjects: ministers, other heads of central executive bodies that are not included in the composition of the Cabinet of Ministers of Ukraine, and

35Ibid. 132 their deputies, the Head of the Security Service of Ukraine, the Attorney General, the Ombudsman of the Verkhovna Rada of Ukraine; judges of the Constitutional Court of Ukraine, Chairman, Deputy Chairman, members, inspectors of the High Council of Justice, officials of the secretariat of the High Council of Justice, Chairman, Deputy Chairman, members, inspectors of the High Qualifications Commission of Judges of Ukraine, officials of the secretariat of this Commission, officials of the State Judicial Administration of Ukraine, jurors (while performing their duties in court); persons of the chief of the organs and units of civil defense, the State Bureau of Investigations; officials and officers of the Prosecutor’s Office, the Security Service of Ukraine, the State Bureau of Investigation, the National Anti- Corruption Bureau of Ukraine, the State Forest Protection, the State Protection of the Nature Reserve Fund, and the central executive authority, which ensures the formation and implementation of state tax policy and state policy in the field of state customs business; police. Within the framework of the formation of a state policy in the agrarian sector, the following may be identified by the subjects: the President of Ukraine, the Chairman of the Verkhovna Rada of Ukraine, his First Deputy and Deputy, the Prime Minister of Ukraine, the First Vice Prime Minister of Ukraine, Vice- the minister of Ukraine; people’s deputies of Ukraine. Somewhat interesting is the established norm on the protection of the disclosure, since it is not at all clear which person should be understood under the accuser. And given that the law and its norms are common, they apply accordingly to any situation that is associated with the detection of the violation of corruption, and accordingly applies to the agrarian sphere. However, if the perpetrators are understood not as a party to the relationship providing the relevant information, but as the person who allegedly became aware of the fact of corruption, we can create so-called “informers”, and given the moral and psychological attitude of such persons, we will have constant messages about corruption, but which in fact will not have any foundation for themselves. Implementation of all provisions of the Law, it is possible to ascertain generally about the prediction of all possible mechanisms to ensure detection, investigation and prosecution. However, we believe that, nevertheless, attention should be paid separately to actions for the elimination of corruption, which should have social activities taking into account the social aspect, as well as taking into account the positions of psychology that will enable not only to prevent corruption but also to form a public opinion or public attitude towards corruption.

133 Positive point is also the definition of positions on the rules of ethical behavior of civil servants and officials of local self-government36. However, the question arises: why exactly the rules of ethical behavior of civil servants and local self-government officials should have been subject to additional regulation? In addition, a number of individuals, including notaries, private and public executives, who also play a significant role in the process of committing corruption and violating the legitimate rights and interests of citizens or business entities, are directly identified by potential subjects of corruption. . The familiarization with the said Order does not provide the opportunity to speak about any special attachments in the part of the rules of ethical conduct, since such requirements exist in special legal acts, such as the Law of Ukraine “On Civil Service”37, “On Local Self-Government in Ukraine”38, in which, in comparison with the content of the Order, they are more expanded to cover such moments, except for a single position, namely: “A public servant and an official of local self-government when communicating during the performance of official duties shall observe the following rules: 1) provide information indicating the data confirming it; 2) to provide in due time in accordance with the legislation to other civil servants and officials of local self-government the information necessary for the performance of their official duties; 3) to provide informative materials and messages clearly, concisely and consistently for their unambiguous perception of”39. Another interesting point is the position: “civil servants and officials of local self-government must adhere to the established protocol in relations with representatives of the authorities of foreign countries, international organizations, foreign institutions”40, which seems to be understandable without additional normative consolidation, as there are other normative legal acts in which the regulation of relations with foreign states takes place. Without going into a

36Про затвердження Загальних правил етичної поведінки державних службовців та посадових осіб місцевого самоврядування : Наказ Національного Агентства України з питань державної служби від 05 серпня 2016 р. № 158. URL: https://zakon.rada.gov.ua/laws/show/z1203-16#n13 (дата звернення: 11.07.2019). 37Про державну службу : Закон України від 10 грудня 2015 р. № 889-VIII у ред. від 01 січня 2019 р. URL: https://zakon.rada.gov.ua/laws/show/889-19 (дата звернення: 13.07.2019). 38Про місцеве самоврядування в Україні : Закон України від 21 травня 1997 р. № 280/97-ВР у ред. від 01 травня 2019 р. URL: https://zakon.rada.gov.ua/laws/show/280/97-%D0%B2%D1%80 (дата звернення: 13.07.2019). 39Про затвердження Загальних правил етичної поведінки державних службовців та посадових осіб місцевого самоврядування : Наказ Національного Агентства України з питань державної служби від 05 серпня 2016 р. № 158. URL: https://zakon.rada.gov.ua/laws/show/z1203-16#n13 (дата звернення: 11.07.2019). 40Ibid. 134 more detailed analysis of the established norms of law, we can state the accumulation of normative legal acts, the complexity of their perception and use in practical work, which again confirms the expediency of change, namely simplification and clear fixation in a single legal act, that will reduce the need for application of the blanket nature of the law. In the way of ensuring counteraction to corruption and taking into account the ongoing judicial reform, Ukraine also appeared in the Highest Anticorruption Court, which is defined as a permanent high specialized court in the system of judicial system of Ukraine41, and its tasks are defined: the administration of justice in accordance with the principles and procedures established by law with the purpose of protecting the person, the society and the state from corruption and related crimes and judicial control over the pre-trial investigation of these crimes, observance of the rights, freedoms and interests of persons in the criminal proceedings. The highest anti-corruption court: carries out justice as the court of the first and appellate instances in criminal proceedings concerning crimes attributed to its jurisdiction (jurisdiction) by the procedural law, as well as by means of execution of judicial control over the observance of rights, freedoms and interests in cases and in accordance with the procedure established by the procedural law. persons in such criminal proceedings; analyzes court statistics, examines and summarizes judicial practice in criminal proceedings assigned to its jurisdiction, informs about the results of the generalization of judicial practice, the Supreme Court, and provides him with proposals for conclusions on draft laws relating to the organization and activities of the Supreme Anticorruption Court, special requirements for judges this court and the guarantees of their activities, as well as publish them on their official website. All this is a rather positive development of the judicial system in the field of prevention of corruption and its counteraction, but it is necessary to pay attention also to the established positions on the formation of the court and ensuring its activity directly. The Law clearly states that the number of judges of the Supreme Anticorruption Court is determined in accordance with the Law of Ukraine “On the Judiciary and Status of Judges” within the limits of the expenditures envisaged in the State Budget of Ukraine for the maintenance of this court and with separate establishments within the limits of the number of judges of the Supreme Anticorruption Court, the number of judges of the Appeals Chamber of the Supreme Anticorruption Court. In order to exercise judicial control over the observance of the rights, freedoms and interests of persons in criminal proceedings, assigned to the jurisdiction of the Higher Anti-Corruption

41Про вищий антикорупційний суд : Закон України від 07 червня 2018 р. № 2447-VIII. URL: https://zakon.rada.gov.ua/laws/show/2447-19/print (дата звернення: 13.07.2019). 135 Court, one of the judges of this court is elected investigating judges for one year without the right to re-election an investigating judge for two consecutive years. The Appeals Chamber of the Supreme Anticorruption Court and the Chambers of the Supreme Anticorruption Court for the administration of justice in the first instance cannot be located in the same building. The Supreme Anticorruption Court, its chambers and apparatus cannot be located in the same building together with other courts, state bodies, their territorial, structural subdivisions, representations, local self-government bodies, institutions and organizations. The Supreme Anticorruption Court is the main spending unit of the State Budget of Ukraine on financial support for its activities. Expenditures for the maintenance of the Appellate Chamber of the Supreme Anticorruption Court are defined in the State Budget of Ukraine on a separate line. The following is a certificate of a number of requirements for ensuring the work of the court, namely the separate premises and the corresponding structural formation, as well as the issue of ensuring social protection. According to USAID studies, in Ukraine, only 1.9% of Ukrainians sent requests for corruption to government agencies where these cases were detected42. Thus, given the complexity of budget formation, taking into account the need to pay the money received from international organizations, the question arises of the feasibility of such introduction and reform, the creation of the accumulation of courts, the need for judges and ensuring their proper payment, providing a number of social security package, accommodation in individual buildings and all of this is about the work of the Higher Anti- Corruption Court. Leading changes in government, of course, also determine the variability of the approach to a number of facts. At present, the President of Ukraine submitted to the Verkhovna Rada of Ukraine a bill on the clarification of the jurisdiction of the Higher Anti-Corruption Court of Ukraine, according to which “the institution will focus on criminal proceedings brought in the Unified Register of Pre-trial Investigations from the day of commencement of the work of this court or until the day it commenced, if pre-trial investigation carried out or carried out by detectives NABU and completed by the prosecutors of the CAP”43.

42USAID_ВзаємоДія. URL: https://www.facebook.com/ChargeAgainstCorruption/?__tn__=kCH- R&eid=ARB4NaqJf5emZCLGxNmHaP9j2jiTe8NUKLXXa7t7ei9o8seVJR2vWYXX6hY5-Mo3QkJtyTgox Bh5-WM5&hc_ref= ARSNwgLt7oLe-qZesaetRXEe4cQ77zhdLVHd_nr06Cc8VENYZgzYGmmIcwYjnb RWxls&fref=nf (дата звернення: 13.07.2019). 43Корупціонерам Кінець! Зеленський подав новий законопроект! Ось як ловитимуть «Велику Рибу»! 2019. URL: http://www.dzherelonews.pp.ua/ koruptsioneram-kinets-zelens-ky-j-podav-novy-j- zakonoproekt-os-yak-lovy-ty-mut-vely-ku-ry- bu/?fbclid=IwAR1TNkL5cz5FVwS4B_KXxm2yXLibxTbNZxuDMFKft_vYv3uE1z YzO9f-OU4 (дата звернення: 13.07.2019). 136 Similarity is determined with respect to the creation of the National Agency for the Prevention of Corruption. In particular, its structure: Chairman of the National Agency for the Prevention of Corruption; Member of the National Agency for the Prevention of Corruption; Member of the National Agency for the Prevention of Corruption; Member of the National Agency for the Prevention of Corruption; Management of the apparatus; Department for Anti-Corruption Policy Coordination: Anti-corruption Policy Analysis and Implementation Unit; Department of regulatory support for the implementation of anti-corruption policy; Department of organization of anti- corruption training; Department of international cooperation and protocol events; Department of organization of work on prevention and detection of corruption: Department for the development and monitoring of the implementation of anti- corruption programs; Department of interaction with authorized departments (persons) on prevention and detection of corruption; Department of Defense Policy; Department for Corruption Reporting; Department for Monitoring the Compliance of Legislation on Conflict of Interest and Other Restrictions on Prevention of Corruption: The First Department (Kyiv); Second division (eastern region); Third Division (Central Region); Fourth Division (Southern Region); Fifth Division (Western Region); Department of Declaration Verification and Lifestyle Monitoring: Department of Full Audit; Lifestyle Monitoring Department; Department of conducting special inspections; Department of control over the timely submission of declarations; Department of analytical and explanatory work; Department for the Prevention of Political Corruption: Department for work with political parties receiving state funding for statutory activities; Department of work with political parties not receiving state funding for statutory activities; Department for monitoring the activities of political parties and accompanying violations detected; Department of analytical and informational support; Office of the Organizational and Administrative Support: Department for ensuring the work of members of the National Agency for the Prevention of Corruption; Department of organization of meetings of the National Agency for the Prevention of Corruption; Department of resource supply and operation; Public Procurement Sector; Office of Information and Analytical Systems and Information Protection: Department for the maintenance of the state registers of the National Anti- Corruption Agency; Department of information security in information and telecommunication systems; Department of information and technical support and information resources maintenance of the National Agency for the Prevention of Corruption; Management of planning and financial activity,

137 accounting and reporting: Department of accounting and reporting; Planning and Finance Department; Office of Documentary Support and Control: Department of processing and registration of incoming correspondence; Department of processing and registration of outgoing correspondence; Department of control and archives; Sector on access to public information; Personnel Management: Personnel Department; Personnel Development and Planning Department; Department of Legal Support: Department of Regulatory Expert Work; Department of law enforcement and judicial representation; Department of Information Policy and Media Relations44. Such an impressive structure does not at all fit into the understanding of the current situation of mass migration abroad for young people and the working population, scanty salaries, the complexity of economic activity and its “crushing” due to significant tax burdens, which leads to massive reduction and closure, the absence of any what kind of real-life social guarantees, etc., but to keep such a staff of the National Agency for the Prevention of Corruption, which does not produce anything, does not bring into the country’s gross product, but only e has a staff of people who provide in the country control over those who produce, etc., and for such persons, who carry out activities, including in the agrarian sector, increase taxes, increase requirements to ensure the maintenance of these persons. Therefore, state policy should be based on the reduction of public, budget employees and the focus on small and medium-sized businesses. After all, the number of employees who are unable to maintain the number of controlling or so-called budget employees. Another normative legal act is the Decree of the President of Ukraine № 505/2019 On Measures to Counteract Smuggling and Corruption During the Customs Clearance of Goods45, which is a positive direction in promoting the right to entrepreneurial activity, increasing the level of business confidence in state bodies, as well as by providing for a number of measures, namely: provision of opportunities through the electronic databases, including the Single Web portal of executive authorities, to make declarations goods of a large number of items imported into the customs territory of Ukraine by one party; open data of depersonalized information on the customs value of goods transiting through the customs border of Ukraine; to take measures, in the established manner, aimed at introducing the possibility of exchanging information in real time with relevant information systems of other states

44Структура. URL: https://nazk.gov.ua/uk/pro-nazk/symvolika/ (дата звернення: 13.07.2019). 45Про заходи щодо протидії контрабанді та корупції під час митного оформлення товарів : Указ Президента України № 505/2019. URL: https://www.president.gov.ua/documents/5052019-27993 (дата звернення: 13.07.2019). 138 regarding the customs clearance of goods moving across the customs border of Ukraine; To take measures up to January 1, 2020, to ensure the proper interaction between the guarantors issuing financial guarantees for the payment of customs payments and the revenue and fee bodies in accordance with the requirements of the Customs Code of Ukraine through electronic means. It also defines “the creation of a telephone trust in the Office of the National Security and Defense Council of Ukraine for reports of cases of smuggling and corruption during the customs clearance of goods, as well as about actions that have signs of evasion of payment of customs duties”. In this aspect, as appropriate, in the future, also enter an electronic mailbox on which, each person has the right to send a letter stating the fact of the violation and appoint a responsible person (department) to work with such information, including to ensure the transfer of information for further investigation into relevant structures. According to the Decree, the positive element is to recommend the General Prosecutor’s Office of Ukraine, the Security Service of Ukraine, the National Police of Ukraine to take measures, in accordance with the established procedure, to prevent the authorities from providing revenues and fees for carrying out inspections (re-surveys) of goods, vehicles for commercial use, except for sending orders in accordance with the established a form of criminal proceedings. I am convinced that it is the General Prosecutor’s Office of Ukraine, the Security Service of Ukraine and the Ministry of Internal Affairs of Ukraine to be those authorities that ensure the observance of the rights and freedoms of citizens, including on the issue of corruption, including corruption in the agrarian sector. In addition, such a conviction may be explained by the fact that these structures have been operating for a long time, they have their own structures, premises, states, etc., that part does not need to find ways to ensure their activities, in addition, their direct purpose includes issues, which are related, including corruption. The only thing that needs to be done to ensure that their work is more effective is the question of having a real responsibility and a sense of their security in the immediate exercise of their assigned functional responsibilities. The next element that should be removed from the work of the representatives of these bodies is the so-called planning or target indicators coming from the executives to the executives, and for the purpose of retaining them at work, such employees carry out the plans, which results in: the person is not guilty, but we need to complete the plan, draw up a protocol. On the way, an interesting proposal is that: “The DFS has to report monthly on the number of orders from each law enforcement agency and their effectiveness (not only the amount of fines imposed or the value of seized property, but also

139 the amount of actual revenues to the state budget”46, however, in this case, it is necessary to further elaborate what is meant by “the number of orders from each of the law enforcement agencies”. The state vector should not be the implementation of a “plan”, but a real solution to emerging violations.

Conclusions Having reviewed the practical situation that exists in Ukraine with regard to corruption; determining the aspects of its availability during the course of economic activity or realization of the right to private ownership of a land plot, including a land plot (share) in the agrarian sector; Having analyzed the social aspects on the way of promoting corruption in Ukraine; having studied its legal regulation, taking into account even existing proposals; Guided by practical requirements, it is possible to state the following positions as conclusions: 1. The need to improve understanding of corruption and to eliminate the similarity of terms that currently exist in a special regulatory act on corruption. 2. Responsible authorities in the field of corruption and its counteraction should identify three structures: the General Prosecutor’s Office of Ukraine, the Security Service of Ukraine and the Ministry of Internal Affairs of Ukraine, which clearly stipulate within the limits of functional responsibilities. All other structures that are trying to create and have accordingly expanded states are subject to eradication. 3. In order to restore economic and social balance-stability in Ukraine, it is necessary to implement the principle of reducing budget employees, including by directing them into economic activity in the context of a small and medium business entity; simplification of normative legal acts, ensuring their comprehensiveness, clarity, and above all, the possibility of unambiguous practical application. 4. On the way of combating corruption and its prevention, including in the agrarian sector, to determine the electronic security of obtaining various permits, registration, obtaining the necessary information, etc., but such implementation should be ensured through the mechanism of registration of subjects in order to clearly be It is visible who is calling, where, what answer gets. 5. To provide a road map for the formation of public awareness about corruption, which should include not general slogans and terms, which not always and the lawyer will understand, not to mention the average citizen, and

46Як Президент пропонує боротися з контрабандою і корупцією на митниці, – Указ. 2019. URL: https://legalhub.online/opodatkuvannya/yak-prezydent-proponuye-borotysya-z-kontrabandoyu-i-koruptsiyeyu-na- mytnytsi-ukaz/?fbclid=IwAR0Wj_vhfm_vVGLiQmctrF4P3WBjb9n3eNhLQBDLqTvXDNhuKQAllBPgP5I (дата звернення: 13.07.2019). 140 in an accessible, understandable language to cover, characterize what corruption is, who generates it, where to apply in cases of its manifestation, and so on. 6. To this work, also the sectors of selection of the territorial units of the National Police of Ukraine should be included, which, in cooperation with the youth, should also provide information, explanation, etc. in this direction. 7. Directly for economic entities in the agrarian sector at the level of the Ministry of Justice of Ukraine should be developed a memorial with steps of action that should include their rights for all categories and purpose of land parcels, as well as for all possible types of economic activities in the agrarian sector, with the disclosure of the stages on which corruption may arise. For example: the function of the state registrar, which was previously performed by utilities (such as the Bureau of Technical Inventory), was transferred to state registrars accredited by the Ministry of Justice; accrediting too many companies, individuals and giving them the authority to register land plots – there are cases of significant abuses (including during the re-registration of apartments and land plots that for a long time belonged to the elderly); since 2012, there is the State Land Cadastre (previously the land was registered in the land registers of land resources departments at city executive committees and administrations), in connection with the conversion and amendment of a number of legislative acts, land plots, which are indicated in the land registers, were not reflected in electronic registry, which may result in dual ownership of one land plot; the question of obtaining land from the lands of the reserve; the question of obtaining land from the category not claimed and undistributed; provision of land for private peasant farming; provision of land plots in companies, etc. 8. In view of realization of the right to engage in agricultural activity or obtaining title documents within the agrarian sphere, it is possible to identify the following potential subjects of corruption: deputies of local councils, village, settlement, city mayors; civil servants, local government officials; judges; officials and officers of other state bodies, authorities of the Autonomous Republic of Crimea; Persons who are not civil servants, officials of local self-government but provide public services (auditors, notaries, private performers, appraisers, as well as experts, arbitration managers, independent intermediaries, labor arbitration tribunals, arbitrators when performing these functions, other persons specified by law); persons permanently or temporarily holding positions related to the implementation of organizational, administrative or administrative duties, or specifically authorized to perform such duties in legal entities of private law, regardless of the legal form, as well as other persons, who are not civil servants and who

141 carry out work or provide services in accordance with an agreement with the enterprise, institution, organization, in cases stipulated by the Law. If it is possible to identify the subjects from the point of view of their protection and protection of the rights and obligations of economic entities or land plot owners in the agrarian sector, it is possible to identify the following subjects: ministers, other heads of central executive bodies that are not included in the composition of the Cabinet of Ministers of Ukraine, and their deputies, the Head of the Security Service of Ukraine, the Attorney General, the Ombudsman of the Verkhovna Rada of Ukraine; judges of the Constitutional Court of Ukraine, Chairman, Deputy Chairman, members, inspectors of the High Council of Justice, officials of the secretariat of the High Council of Justice, Chairman, Deputy Chairman, members, inspectors of the High Qualifications Commission of Judges of Ukraine, officials of the secretariat of this Commission, officials of the State Judicial Administration of Ukraine, jurors (while performing their duties in court); persons of the chief of the organs and units of civil defense, the State Bureau of Investigations; officials and officers of the Prosecutor’s Office, the Security Service of Ukraine, the State Bureau of Investigation, the National Anti-Corruption Bureau of Ukraine, the State Forest Protection, the State Protection of the Nature Reserve Fund, and the central executive authority, which ensures the formation and implementation of state tax policy and state policy in the field of state customs business; police. Within the framework of the formation of a state policy in the agrarian sector, the following may be identified by the subjects: the President of Ukraine, the Chairman of the Verkhovna Rada of Ukraine, his First Deputy and Deputy, the Prime Minister of Ukraine, the First Vice Prime Minister of Ukraine, Vice- the minister of Ukraine; people’s deputies of Ukraine. 9. Judicial protection on corruption should be determined at the level of the general judicial system, namely local, appellate, cassation with distinction, to identify the positions and competent judges for dealing with cases of corruption-related issues, so that there is no fact that is currently available in the courts as a result of judicial reform, where one judge considers both criminal and civil and administrative cases, then we talk about labor, quality, etc. Such a position is dictated by the possibility of providing more public access to protection against corruption her, and the lack of need for a new structure. The relevant structural units should be established both in the appellate and the relevant chamber in the cassation instance. 10. Through the mass media, translate corruption into an accessible understanding for every person living in the country that will make it possible to change the minds and attitudes of citizens, as well as such a reflection will

142 provide a positive climate for investment, since all economic entities provide monitoring of the political, social and, above all, economic atmosphere in each country, which they define as possible for conducting their business. 11. The direction of state policy should be to ensure the economic security of every worker in the country, as well as to ensure social guarantees – every non-working citizen of the country. Such guarantees cannot be lower than in leading international economic countries, otherwise – the country’s demographic crisis.

SUMMARY The scientific work highlights the relevance of the research, identifies the issues that arise during various actions and mechanisms of realization of the right of citizens to private ownership of land plots, including land plots (shares), obtaining land from stock, from categories of uncalled and unallocated lands. A significant number of violations that have occurred due to corruption in relation to the allocation of land in kind, the registration of lease agreements, the assignment of a cadastral number to a land plot; on the production of land management documentation. The issues related to the sale of agricultural products or raw materials through seaports and customs are described. The characteristic of agricultural production, which can be affected by human actions and natural events, is presented, in connection with which insurance issues, which today also contain elements of corruption, need to be provided. The corruption in the agrarian sphere from the bodies of local self- government and ending with people’s deputies, the President of Ukraine and a number of special departmental bodies has been characterized. All of these positions characterize the need for a more detailed study of the social and legal aspects in the agrarian sector with a view to counteracting and preventing corruption. It was formed that the general positions of the legal base are applied to the issue of corruption in the agrarian sector, therefore, after conducting the relevant analysis, a number of positions for change are formed. In particular, changes in the consciousness of the population through a series of systemic actions, changes in the structure of coordination of issues of corruption, the feasibility of the introduction of a special court and agency. To ensure greater efficiency of the work of the relevant structures – the General Prosecutor’s Office of Ukraine, the Security Service of Ukraine, and the Ministry of Internal Affairs of Ukraine, the issue of ensuring real responsibility and feeling of their security during direct execution of the assigned functional responsibilities should be ensured. The directions of social positions that have to be implemented in the country on the way of combating corruption, including in the agrarian sphere, have been formed.

143 The social sphere is the consideration of various aspects, which we can include the economic side, price policy, consciousness, culture, human relations, security of life, living standards, as well as the willingness to work “on their own” independently, and others like that.

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Information about author: Piddubna D. S., Candidate of Juridical Sciences, Head of the Department of Civil Law Disciplines of Donetsk Law Institute of the Ministry of Internal Affairs of Ukraine 24, District 7th Zarichny, Kryvy Rih, Dnipropetrovsk region, Ukraine

148 LUSTRATION AS ONE OF FACTORS OF THE FIGHT AGAINST CORRUPTION: NATIONAL AND INTERNATIONAL PRACTICE

Podorozhna T. S., Barabash O. O.

INTRODUCTION People have been fighting against corruption since ancient Rome. Today, corruption erodes such important constitutional principles of our society consolidation as a principle of social justice, prevents from forming the middle class both as a basis for internal political stability in the country and a tool for executive power supervision, and connives power abuse and criminality. Not only does it slow down progressive development of the whole society but also it puts under question the prospects of its dynamic democratic development. Corruption danger and the necessity to fight against it were recognized in our country long ago. However, there has been no political will at the top power level until recently. Nevertheless, the problem of fight against corruption has to take nearly the first place in the activity of state power bodies, which is of primary importance for the establishment of Ukraine as a civilized law-governed state. As commonly known, it is the law-governed state that is based on developed civil society. The experience of civilized countries shows that only developed civil society can resist corruption, restrict it, and successfully fight against it. Moreover, in this aspect the main and most important tool is an established law-governed state having a principle of inviolability, guarantee and reality of fundamental rights and freedoms of a person and a citizen as a basic principle. This principle means that the state not only recognizes, but really ensures (must ensure represented by state power bodies and their officials) human rights and freedoms recognized by the world society as natural belonged to a person from birth, and, thus, unbreakable undeniable by state power. One should not forget about the fact that deformation of civil development begins where priorities are shifted, the state as a self-sufficient value is put on the first place and people have the second one. The trend in priority shift in the state-personality relations inevitably leads to totalitarian regime establishment where, in particular, corruption arises.

1. Legal framework for the fight against corruption Foreign authors have a priority in the scientific research of the issue on fight against corruption (R. David, L. Stan, N. Nedelsky, H. Wesch, A. Opalinska, P. Gzhelak, Y. Volensky, P. Zhachek, J. Holinsky, P. Blazek, 149 G. Schwartz, etc.). Among national scientists, such as V. Deynichenko, S. Denisyuk, N. Minenkova, A. Porayko, A. Rudenko, O. Sakhno, O. Stepa- nenko, Y. Turchin, S. Shevchuk considered corruption issues in the context of their research. However, most of national authors’ works have a publicistic nature, or they are devoted to separate aspects of the problem, indicating that there are no scientific works that would not only reveal the content of the means for fight against corruption but also reveal the peculiarities of their practical implementation as a factor of democratization of Ukrainian political system under the conditions of the modern transformation process after the 2014 events. Thus, the vast majority of studies are reduced either to the historical legal analysis of anti-corruption processes in Eastern Europe (N.N. Minenkova, S. Karstedt, R. David), or limited to the analysis of the European model impact of fight against corruption on the institutions of national law of Ukraine: criminal law and procedure (K.P. Zadoia), constitutional law (V.V. Knysh), the institute of civil service (A. Porayko) and others. Taking into account there are few theoretical developments devoted to corruption as a legal phenomenon, therefore, a single approach to the understanding of its legal nature has not yet been chosen, there is no single teleological understanding of the essence of corruption, the place of the term in a conceptual categorical apparatus is not defined. Therefore, it is important to analyze the origins of anti-corruption processes, to clarify the essence of “corruption” concept and to identify the main directions of overcoming this negative phenomenon in Ukrainian society, in particular through lustration procedures. International cooperation in the field of criminal justice should become an effective process and, by eliminating bulky and lengthy official formal procedures, transform into an immediate process of interaction between authorized persons. In Ukraine one of the important aspects of modern state legal policy is the reform of the system of prevention and counteraction to corruption. At the international level, a range of documents have been adopted that should be taken into account in the process of harmonizing national legislation with EU legislation: the United Nations Convention against Corruption, signed on behalf of Ukraine on 11.12.2003 in Merida (the United Mexican States) and ratified in accordance with the Law of Ukraine on 18.10.2006 № 251-V; Criminal law convention on corruption, signed on behalf of Ukraine on 27.01.1999 in Strasbourg and ratified according to the Law of Ukraine on 18.10.2006 № 252-V; Civil law convention on corruption signed on behalf of Ukraine on 04.11.1999 in Strasbourg and ratified in accordance with the Law of Ukraine on 16.03.2005 № 2476-IV; Model Code of Conduct for Civil Servants (approved by the Recommendation of the

150 Committee of Ministers to member states of the Council of Europe on codes of conduct for civil servants № R (2000) 10, adopted on May 11, 2000). Legal (institutional) aspect of corruption counteraction is determined by the establishment of constitutional-legal framework aimed at detection and elimination of corruption mechanisms in the current legislation as well as implementation of practical measures of anti-corruption policy. Due to the globalization of this issue, anti-corruption organizational and legal measures are applied not only at the national but also international level. A number of acts of the Ukrainian state are aimed at achieving success, in particular: the Law of Ukraine “On Prevention of Corruption”1 (This Law determines the legal and organizational principles for the functioning of the system of corruption prevention in Ukraine, the content and procedure for the implementation of preventive anti-corruption mechanisms, rules for the elimination of consequences of corruption offences; effective from April 24, 2015); the Law of Ukraine “On the Principles of State Anti-Corruption Policy in Ukraine (Anticorruption Strategy) for 2014–2017” as of October 14, 2014, № 1699-VII2; Decree of the President of Ukraine “On the Strategy of Sustainable Development “Ukraine – 2020” on January 12, 2015, № 5/20153; the Law of Ukraine “On the National Anti-Corruption Bureau of Ukraine”4, which created the National Anti-Corruption Bureau. The most recent important steps in this area are the adoption of the Laws of Ukraine “On the National Agency of Ukraine on Detection, Investigation and Management of Assets Obtained from Corruption and Other Crimes” on October 10, 2015, № 772-VIII5 and “On the State Bureau of Investigations” on November 12, 2015 № 794-VIII6. On September 22, 2015, by the Order of the General Prosecutor of Ukraine the Specialized Anti-Corruption Prosecutor’s Office

1 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. База даних «Законодавство України» / ВР України. URL: http://zakon3.rada.gov.ua/laws/show/1700-18 (дата звернення: 25.07.2019). 2 Про засади державної антикорупційної політики в Україні (Антикорупційна стратегія) на 2014–2017 роки : Закон України від 14 жовтня 2014 р. № 1699-VII. База даних «Законодавство України» / ВР України. URL: http://zakon5.rada.gov.ua/laws/show/1699-18 (дата звернення: 25.07.2019). 3 Про Стратегію сталого розвитку «Україна – 2020» від 12 січня 2015 р. № 5/2015. База даних «Законодавство України» / ВР України. URL: http://zakon5.rada.gov.ua/laws/show/5/2015 (дата звернення: 25.07.2019). 4 Про Національне антикорупційне бюро України : Закон України від 14 жовтня 2014 р. № 1698-VII. База даних «Законодавство України» / ВР України. URL: http://zakon2.rada.gov.ua/ laws/show/ 1698-18 (дата звернення: 25.07.2019). 5 Про Національне агентство України з питань виявлення, розшуку та управління активами, одержаними від корупційних та інших злочинів : Закон України від 10 жовтня 2015 р. № 772-VIII. База даних «Законодавство України» / ВР України. URL: http://zakon3.rada.gov.ua/laws/show/772-19 (дата звернення: 25.07.2019). 6 Про Державне бюро розслідувань : Закон України від 12 листопада 2015 р. № 794-VIII. База даних «Законодавство України» / ВР України. URL: http://zakon5.rada.gov.ua/laws/show/794-19 (дата звернення: 25.07.2019). 151 was formed in the structure of the General Prosecutor’s Office of Ukraine. Another important step in the context of changes to the Constitution of Ukraine is the creation of a new body of judiciary governance, namely, the High Council of System of Justice (through the reorganization of the High Council of Justice) as an independent body responsible for the establishment of an independent, highly professional judiciary staff capable of professional, fair and impartial justice on professional basis, as well as of making decisions regarding violations of the incompatibility requirements by judges and prosecutors and, within the limits of their competence, on their disciplinary liability. All the above mentioned indicates that the considerable work is being done to ensure the normative and legal basis of the law-governed state as well as to strengthen the law order. Over the last two years the creation of a new police force was also one of positive changes in strengthening the law order in the country. Due to the considerable efforts of the Ministry of Internal Affairs, active assistance of international partners and civic activists a number of important steps towards a truly radical change in one of the most discredited and corrupt force structures have been taken. During 2015, the normative and legal basis for the functioning of the National Police was created (the main normative act that radically changed the vector of the activity of law enforcement bodies is the Law of Ukraine “On National Police” on July 2, 2015, № 580-VIII7, defined the legal framework of the organization and activities of the National Police of Ukraine); the necessary structural changes and personnel appointments were made. The newly established units of the patrol force in Kyiv and other Ukrainian cities managed to significantly change the situation with the total distrust of the society in law enforcement bodies in a rather short time. However, as scientists mention, despite the large number of scientific studies and adopted normative documents, effective state anti-corruption policy has not been developed yet due to the following factors: 1) the latest socio-political processes; 2) the economic crisis; 3) the initiated process of modernization of legislation, including anti-corruption field8. Therefore, the main directions of harmonization of Ukrainian legislation on fight against corruption should be the following: ratification and implementation of the Criminal Law Convention on Corruption, the Additional Protocol there to and the UN Convention against Corruption; support for the effective functioning of the special body responsible for the fight against corruption; the

7 Про Національну поліцію : Закон України від 02 липня 2015 р. № 580-VIII. База даних «Законодавство України» / ВР України. URL: http://zakon3.rada.gov.ua/laws/show/580-19 (дата звернення: 25.07.2019) 8 Марчук М.П. Основні напрямки державної політики щодо протидії корупції в Україні. Молодий вчений. 2016. № 3 (30). С. 470–474. 152 implementation of a new anti-corruption strategy aimed at reducing corruption significantly in line with the recommendations of the Council of Europe experts; cooperation with non-governmental organizations, in particular Transparency International and the public, including with business community, to ensure effective fight against corruption; final establishment of the system of specialized anti-corruption bodies responsible for anti- corruption policy and prevention of corruption; the beginning of active anti- corruption activities of the relevant state bodies and the implementation of their preventive measures; monitoring of the state anti-corruption policy implementation to ensure the availability of an independent institution for complaints and initiating prosecution for ineffective governance and corruption in management bodies. Among the problems that have already been started to solve are the abolition of the immunity of people’s deputies and judges, instead of consolidating the Institute of Functional Immunity of a judge, according to which judges cannot be held liable for acts committed in connection with the administration of justice, except for cases of adoption deliberately unlawful judicial decision, violation of the oath of a judge or the commission of a disciplinary offence (due to the fact that this decision requires the amendment of the Basic Law, the Verkhovna Rada of Ukraine referred to the Constitutional Court of Ukraine the draft Law of Ukraine “On Amendments to the Constitution of Ukraine” (regarding the inviolability of people’s deputies of Ukraine and judges)” on January 16, 2015, № 1776. According to the conclusion of the Constitutional Court of Ukraine on June 16, 2015, this draft law was recognized as such that does not contradict the Constitution of Ukraine. However, the remarks have been made which if not taken into account can lead to unjustified restriction of freedom and the right to judge’s free movement in case of the necessity to apply either home or administrative arrest to him or her)9. However, the fight against corruption has a reverse side. Thus, in March 2017, the Verkhovna Rada introduced scandalous changes to the Law of Ukraine “On Prevention of Corruption”. Innovation involves the compulsory submission of an electronic declaration by activists conducting anti-corruption activities. Subjects of the declaration are obliged to fill the declaration annually before April 1 on the website of the National Agency for the Prevention of Corruption (NAPC) for the previous year. The declaration

9 Висновок Комітету Верховної Ради України з питань правової політики та правосуддя щодо відповідності проекту Закону про внесення змін до Конституції України (щодо недоторканності народних депутатів України та суддів) від 16 січня 2015 р. № 1776 вимогам антикорупційного законодавства. Офіційний веб-портал Верховної Ради України. 2015. 04 лютого. URL: http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=53602 (дата звернення: 25.07.2019). 153 consists of 16 sections, including information on the subject of declaration, family members, property, income, etc. (in detail – in Article 46 of the Law “On Prevention of Corruption”)10. Right before the end of term when the activists had to submit a declaration for the first time (April 1, 2018), the European community tried in every way to condemn such a decision of the parliament. Emphasizing that it contradicts the Association Agreement with the EU and the European aspirations of Ukraine (which, at the same time, the Verkhovna Rada consolidated in the Constitution on February 7 of this year), the European Commissioner appealed to the people’s representatives not to lose common sense and to cancel the adopted changes to the Law and to oblige only state officials to submit declarations. However, the deputies did not hear these appeals or did not want to hear – not any action was taken. Applications for consideration of this issue were “political noise” and had no consequences for themselves. Indeed, what is the point of considering cancellation of activists’ declaration right after the deadline for submitting these declarations? Definitely, such a resonance event did not remain without the public response. One hundred and seventeen public organizations declared protection of activists and declared their intentions to raise the question of the constitutionality of amendments to the Law of Ukraine “On Prevention of Corruption” in the Constitutional Court11. Indeed, the new rules of e- declaration contradict the fundamental rights and freedoms enshrined in the Basic Law: equality before the law, non-discrimination, non-interference in private life, and prohibition of restrictions on the rights to belong to a public organization. Innovation provides for the activists’ gaining of the status of administrative and criminal liability subjects. And politically motivated persecution of individual actors may be the consequence of such norms.

2. Lustration as an effective means of fight against corruption We emphasize that the problem of fighting against corruption in Ukraine is, first of all, the problem of the functioning of state power bodies12. In this area, the adoption in 2014 of the Law of Ukraine “On Cleanup of Power” (on lustration) was an important step13.

10 Гартвіг Д. Е-декларування активістів: боротьба з корупцією чи порушення конституційних прав? ЦППР. 2019. 21 лютого URL: http://www.pravo.org.ua/ua/news/20873542-e-deklaruvannya- aktivistiv-borotba-z-koruptsieyu-chi-porushennya-konstitutsiynih-prav (дата звернення: 25.07.2019). 11 Там само. 12 Подорожна Т.С. Правовий порядок: теоретико-методологічні засади конституціоналізації : монографія. Київ : Юрінком Інтер, 2016. С. 216. 13 Про очищення влади : Закон України від 16 вересня 2014 р. № 1682-VII. База даних «Законодавство України» / ВР України. URL: http://zakon4.rada.gov.ua/laws/show/1682-18 (дата звернення: 25.07.2019). 154 Indeed, the recent events in Ukraine pointed to the ineffectiveness of the state management system, the institutes of which appeared to be the most vulnerable to the backslide of the old Soviet regime, the revival of those socio-political phenomena and trends that contradicted the content of democratic transformations, the principles of the supremacy of law, observance of human rights and freedom of speech, power decentralization, development of party pluralism, etc. The mechanism of overcoming the above mentioned problems can be lustration, and not political but managerial, which prohibits to hold positions in public authorities for all those who held them in the previous regime. The concept of “lustration” has a Latin origin and originally reflected the processes that took place in the Roman Republic in the 1st century BC. During this period, the word “lustratio” meant the prohibition for officials occupying important posts in the army and the Senate under the dictator Sulla (Marius, Pompey, Caesar, etc.) to keep them in the future. In other words, it was a kind of repression by following the elite of the previous one, however, excluding persecution and murder. In general, lustration provided for the removal of representatives of certain political elite from power with the prohibition to hold positions because they represented a political regime, convicted in crimes against people14. The modern interpretation of this concept is as follows: lustration (from Latin lustratio – purification through sacrifice) means the cleaning of power from the old staff, the prohibition of former government officials to hold positions in the state apparatus, be elected to representative bodies, be judges, sometimes even be engaged in teaching activities, etc.15. Lustration was one of the main requirements of EuroMaidan. Citizens had great hopes for it, not only about the renewal of power, the return of trust in it, but also the restructuring of the entire political system of the state. However, statistics shows that a quite narrow circle of judges are subject to “lustration” – mostly those judges who took the decision to bring the participants of “Maidan” events to justice in the period from November 21, 2013 to April 11, 2014. Hence, trust in the Ukrainian judicial system was significantly undermined. In political sense, lustration involves the personnel cleanup from the officials of the previous regime by the new government, who are prohibited

14 Костеж С. Люстрация: политические чистки за ширмой реформ. 112.ua. URL: https://112.ua/statji/lyustraciya-politicheskie-chistki-za-shirmoy-reform-52164.html (дата обращения: 25.07.2019). 15 Костюченко С. Люстрація – це не війна з минулим, це боротьба за майбутнє. Газета ВО «Свобода». 2011. № 108. URL: http://www.tyahnybok.info/dopysy/dopysy/005425 (дата звернення: 25.07.2019). 155 from working in public management bodies, to conduct legal proceedings, to be elected to representative bodies, etc. It is not necessarily carried out in a clear legal framework, because, first of all, it serves as an ideological confrontation between the old and the new ruling elites. Therefore, lustration laws do not belong to the field of criminal law, but they are aimed at restructuring the bureaucratic apparatus of the state, involving those to its work who contribute to the establishment of a democratic regime. However, legal side remains an important aspect of lustration. According to the second concept of lustration, distinguished by I.А. Bezkluby, I.V. Kochkodan, lustration constraints are in essence sanctions, an element of the mechanism of person’s liability for one or another act. It is obvious that in the process of lustration mechanisms of various types of liability are used – first of all, legal liability, since sanctions – lustration restrictions – have legal nature16. Such approach, according to scientists, puts forward a number of requirements, the non-compliance of which puts into question the legitimacy of lustration measures. Thus, an act for which a person is subject to sanctions in the form of restrictions must violate the norms of law in force at the time of its commission, since the law establishing liability does not have a retroactive effect in time. Moreover, lustration restrictions must comply with all the principles of legal liability – first of all, the principle of individual liability17. We agree that legal liability is one of the types of lustration measures, but we do not consider the principle of legality of legal liability and obligation determined by it to comply with the relevant criteria and requirements, as encumbrance or disadvantage of this approach to the understanding of lustration. German professor S. Karstedt also considers lustration as a mechanism of person’s liability, and distinguishes two of its elements or “two types of public proceedings”: firstly, it is a criminal prosecution of representatives of the elite and officials of authorities that were top management in the system of public management of previous regime, and secondly, it is a procedure for mass investigations against those who voluntarily collaborated with previous regime, party members or government officials (e.g. police, security services) of middle and lower rank in the bureaucratic hierarchy18. The attention also deserves the view of V.V. Knish of lustration as “a modern, special form of constitutional and legal liability”. According to the author, lustration (cleanup of power), in addition to the actual cleaning of

16 Безклубий I.А., Кочкодан I.В. Поняття, сутність та правова природа люстрації. Бюлетень Міністерства юстиції України. 2009. № 8. С. 32–40. 17 Безклубий I.А., Кочкодан I.В. Поняття, сутність та правова природа люстрації. Бюлетень Міністерства юстиції України. 2009. № 8. С. 32–40. 18 Karstedt S. Coming to Terms with the Past in Germany after 1945 and 1989: Public Judgements on Procedures and Justice. Law and Policy. 1998. № 20. P. 16. 156 power at this stage, also has a nature of preventive (prophylactic) form of liability aimed at preventing the creation of a corrupt authority in the future19. Therefore, the analysis of sources shows that lustration as a legal phenomenon is characterized by certain features, in particular, the existence of a legal basis (as we have already noted in Ukraine and other European states at the time normative-legal acts were adopted on the cleaning of power, etc.); availability of basic criteria for selecting subjects who are subject to lustration; the lustration process is the cleaning of all branches of power from corrupt subjects on a legal basis; it is a personified phenomenon, since the names of officials of different levels, who are prohibited to work in public authorities, are clearly defined; availability of the established rating scale for determining the degree of criminal activity during the entire period of regime existence; laws on lustration (cleanup of power) are adopted in relation to the officials of the authoritarian and anti-human regime. However, it should be noted that everyone who falls under lustration should have the right for protection; everyone should have the right to appeal to the court and appeal against the decision. At the same time it is necessary to observe the presumption of innocence. This means that before the decision is taken, a person cannot be accused of unlawful actions and cannot be lustrated. Thus, lustration as a legal phenomenon is one of the means of ensuring transitional justice for so-called transit societies, which have given their preference to democratic values in the state organization. The lustration measures must be in line with the supremacy of law and fundamental freedoms, the conceptual principles of democracy, and must also be accompanied by certain guarantees that will make it impossible to use lustration to settle political and personal scores with its opponents. In Ukraine, lustration is introduced as an institution of transitional justice, and although the establishment of drawbacks of this institute and the prospects for its implementation deserve a separate study, it is now possible to state that such approach of the Ukrainian lawmaker to the understanding of lustration is not relevant to the circumstances and conditions existing in the Ukrainian social and political life and will not be effective in cleaning of the power. We believe that it is necessary to develop a model of lustration for Ukraine, taking into account the features of the national legal system, political and legal situation and socio-economic problems. As a legal institution, lustration is a system of legal norms determining the procedure of the implementation of lustration measures, that is, restrictions

19 Книш В.В. Методологічні засади розуміння сутності та ознак конституційно-правової відповідальності суб’єктів конституційних правовідносин. Науково-інформаційний вісник. 2014. № 10. С. 92–97. 157 which, by their nature, are elements of the mechanism of person’s liability for one or another act. In the process of lustration, mechanisms of different types of liability are used, especially legal ones, since lustration restrictions have legal nature20. The reasonability of lustration is also seen in the need to strengthen a new democratic society, as well as respect for human rights and principle of the supremacy of law. The main motive for lustration is the fight against corruption, an idea that actually serves as a wide unifying platform for Ukrainian society. It is overcoming corruption that is taken as a compulsory and main precondition for change in the domains of politics, economics, education, etc. However, such lustration, which, definitely, should not be regarded as a panacea and a complete guarantee from corruption, should only be carried out on the basis of laws adopted by the new government and, first of all, by the state body specifically authorized for it, for which specialized institutions may be used. Managerial lustration helps to clear public authorities from corruption and is the most effective means for further implementation of a complex of institutional measures necessary for preventing corruption. In fact, interest in lustration is connected with the necessity for a transition to democracy and provision of the supremacy of law principle. The lustration measures must be in line with the supremacy of law principle and fundamental freedoms, the conceptual principles of democracy, as well as they should also be accompanied by certain guarantees that will make it impossible to use lustration to settle political and personal scores with the opponents. Lustration in a certain sense is also a peculiar national idea, the core around which a society is united, which seeks to transform, to reform and break the existing public system. At the same time, the experience of post- Soviet countries has shown that lustration can be used as a means of political struggle or the possibility of power abuse. Under such circumstances, it is a real threat to democratic transformation, as it leads to even more stagnation of the state and society, where corruption is established instead the supremacy of law, an oligarchy instead of democracy, organized crime instead of human rights, and a totalitarian regime instead of democracy order. According to G. Schwartz, the American researcher of the lustration process, lustration initiators often do not take into account the correspondence between guilt and punishment, too. Therefore, the scholar notes that in some countries, in particular in Bulgaria, Albania, Czechoslovakia, lustration laws were appealed in constitutional courts by the opponents of communist ideology,

20 Бусол О. «Про відновлення довіри до судової системи» не є законом про люстрацію та потребує доопрацювання. Громадська думка про правотворення. 2014. № 8. С. 11–20. 158 who were feared not without any reason that such radical measures could lead to a split in society and provoke significant human upheavals21. In order to prevent these negative phenomena, the basic principles and mechanisms of lustration are consolidated in a number of international acts. In particular, in 1996, the Parliamentary Assembly of the Council of Europe adopted Resolution 1096 “On Measures to Overcome the Consequences of the Past Communist Totalitarian Systems” aimed at preventing the violation of human rights by representatives of totalitarian communist regimes that were still in positions of power in the designated period and could significantly impede transformational reformations. For the countries of transitional type, the Assembly recommended that the totalitarian rudiments of the institutional system be eliminated by demilitarization, decentralization, demonopolization and privatization, and the de-bureaucratization of society, which should lead to a change in the general social mentality in the long run22. The Parliamentary Assembly also emphasized that laws on lustration and similar administrative measures would meet the requirements of a law- governed state, focus on the protection of human rights and the process of democratization. The key provisions of resolution 1096 are governed by the Guiding Principles for ensuring compliance of lustration laws and similar administrative measures with the requirements of a state based on the supremacy of law. The main purpose of lustration is considered to be the protection of young democracies, and not the punishment of guilty people, which falls within the competence of criminal law. The lustration process is proposed to be implemented in accordance with a number of principles, namely: lustration is carried out by specially created independent commissions, which include competent citizens, proposed by the head of state and approved by the legislative body; lustration can be used solely with the aim to eliminate or reduce the danger that a lustration object may cause as a result of the establishment and functioning of free democracy; lustration cannot be used for punishment, requital and revenge, etc.23. After the “Revolution of Dignity” in Ukraine lustration was widely discussed as well. For the first time, this question was raised in the early

21 Шварц Г. Постановления новых конституционных судов в странах Центральной Европы относительно люстрации. URL: http://www.2.gwu.edu/~nsarchiv/rus/EasternEuropeProblems/EEP43- 44.html (дата обращения: 25.07.2019). 22 Резолюція ПАРЄ із вживання заходів з метою викриття комуністичних тоталітарних систем. Українська Гельсінська спілка з прав людини: офіційний веб-сайт. 2010. 12 березня URL: https://helsinki.org.ua/2010/03/rezolyutsiya-pare-iz-vzhyvannya-zahodiv-z-metoyu-vykryttya- komunistychnyh-totalitarnyh-system/ (дата звернення: 25.07.2019). 23 Шевчук С. Люстрація як ретроактивна справедливість: європейські стандарти захисту прав людини при переході до демократичного правління. Юридичний журнал. 2006. № 2. URL: http://www.justinian.com.ua/ article.php?id=2140 (дата звернення: 25.07.2019). 159 90’s of the last century, but at that time it did not even reach the discussion of drafts in the Verkhovna Rada. The issue of lustration became relevant immediately after the events of the “Orange revolution” for the second time – three draft laws were prepared, but the law was never adopted. Thus, this is the third attempt of lustration in Ukraine, and it is the most productive than the previous, in particular, the law has been adopted, the procedure of “cleaning of power” has been initiated. At the same time, it should be noted that along with the relevance of the issue, it often lacks clear answers to key questions, in particular, what the lustration is, what kinds of lustration can be, how it is associated with the processes of system transformation? And this is hardly a complete list of questions that need to be answered. Moreover, this problem has “overgrown” with myths and prejudices about lustration in general, and even more in the context of Ukrainian events of recent years. Instead, in our opinion, it is worth noting the positive effect of the introduction of the lustration process in Ukraine, which will have a positive effect on the activities of state power bodies and their officials in the future. However, today the provisions of the Laws of Ukraine “On Cleaning of Power” and “On restoring trust in the judicial power in Ukraine” are far from being considered perfect and capable of objectively approaching this urgent problem. Today it is necessary to continue developing new provisions of the legislation in this field; lustration should have legal, fair and objective nature, for which the corresponding mechanisms should function.

3. The norms of international anti-corruption legislation in the field of fight against corruption In the modern world corruption as a kind of deformation in political and socio-economic relations has transformed from a local problem into a transnational one and has gained a global dimension. Total corruption processes jeopardize the national security of the countries, since they destroy the economic and social domains, distort the state and municipal apparatus, and also negatively affect the state of the moral and psychological climate in society. Corruption, as a rule, is associated with the growth of organized crime and shadow commercial activity in the production and sale of prohibited goods and services that generate super-profit. (Trafficking of drugs, weapons, people). Corrupt offences lead to significant socio-economic disproportions, adversely affect the state of society as a whole: the creation of artificial deficit of state and local budgets due to theft; decision-making does not correspond to the national interests of the country, but to a narrow circle of individuals or legal entities; outflow of funds abroad; deepening of social stratification; discredit and fall of the political image of state power. Therefore, in case of

160 large-scale corruption, measures to eliminate its causes are of primary importance, and only then – the fight against concrete manifestations (the first steps have already been taken since an electronic declaration has been introduced). Moreover, it is worth drawing attention to the question whether the terminology of anti-corruption legislation is in line with international standards. Thus, for most legal systems, the use of the phrase “fight against corruption” is not common. The states of the world usually establish in the law “the principles of offence prevention”. Unfortunately, the rules of fight against corruption have had a minimal impact on the level of fraud in political circles due to the weak supremacy of law and the lack of adequate application. Ukraine requires new, more rigorous changes in anti-corruption legislation to accelerate accession to the European Union. The situation in the state requires the best efforts of all branches of power and local self-government bodies, the implementation of necessary national measures aimed at improving anti-corruption legislation24. In this aspect, the activity of the Group of States against Corruption (GRECO), having the status of one of the most competent international organizations in the field of developing and monitoring compliance with anti-corruption standards, is demonstrative. The norms of international anti-corruption legislation are reflected in the national legislation of the leading countries of the world (the United Nations Convention was ratified by 167 countries of the world). Some countries have already approved a set of measures, which have norm-making (development of preventive measures for norm-making and functional substantial content) as well as organizational nature (specialized agencies, organizations whose purpose is to develop an appropriate strategy and tactics are created) to bring the national legislation into line with the requirements of the Convention mentioned. For example, in Sweden, high ethical standards have been developed for officials of state power bodies that the state has forced to perform. In a few years, honesty has become a norm among civil servants. In addition, public management was built on incentives – through taxes, privileges and subsidies, and not through prohibitions and permits received in one or another authority25. Within the area of bringing national legislation to the requirements of international standards, the complex of organizational- legal and other measures at the national level should also be revised in order to improve them and intensify anti-corruption activities.

24 Задирака Н., Кабанець Р. Світовий досвід запобігання та протидії корупції: до питання про інтеграцію законодавства України до права Європейського Союзу. Віче. 2014. № 10. С. 27–29. 25 Борьба с коррупцией – зарубежный опыт: от Швеции до Сингапура. Аргумент. URL: http://argumentua.com/stati/borba-s-korruptsiei-zarubezhnyi-opyt-ot-shvetsii-do-singapura (дата обра- щения: 25.07.2019). 161 One of the main reasons connected with the imperfection of the anti- corruption process is the low efficiency of the system of current legislation, overloaded with numerous corruption risks and the lack of personal liability of an official for the exercise of powers delegated to him or her. In view of this, the fight against corruption still has a formal, imitative nature26. The economic aspect of counteracting corruption is determined by the creation of conditions for fair competition and equal relations between business entities, as well as de-bureaucratization and demonopolization of the economy in order to prevent the concentration of power and ownership in the hands of a few, the fight against poverty and unemployment. Moreover, corruption, as a rule, is connected with the growth of organized crime and shadow commercial activity in the development and implementation of prohibited goods and services that bring super-profits (trafficking of drugs, weapons, and people). The emergence and growth of corruption is facilitated by systemic social transformations in countries where there is no effective state and public supervision. The social aspect of preventing corruption involves identifying the potential of civil society in fighting it: the organization of social partnership; carrying out public supervision measures; formation of anticorruption component in the public consciousness; promotion of the collective and individual civil society subjects’ activity, including non-profit and human rights organizations, on the formation of anticorruption policy. Political corruption, widespread in power structures, is associated with a violation of the mechanism of feedback between people and authorities, inefficient spending of material resources, and the use of administrative resources for private purposes, including election campaigns. The consequence of political corruption is the discrediting of democratic values and the growth of public distrust in state authorities. Any manifestation of political corruption threatens the stability of the national economy. Corruption as a systemic problem in Ukraine, demoralizing society, generates such a negative phenomenon of legal consciousness as legal nihilism in the social environment. This is manifested not only in the open neglect of moral norms and democratic procedures of preventive policy, but also by manipulating the legal and political activity of legal relation subjects, which leads to the destruction of the legal space of the country, to the destruction of the normative and value legitimacy of state power.

26 Подорожна Т.С. Правовий порядок: теоретико-методологічні засади конституціоналізації : монографія. Київ : Юрінком Інтер, 2016. С. 289. 162 CONCLUSIONS The fight against corruption is the management through a developed network of social institutions created on the basis of “participatory democracy”, that is, the interaction of personality, society and state on the principles of social partnership. This concept refers to a complex of political relations and technologies, which establishes public supervision over the activities of state authorities. At the same time, the latter requires a political will to fight against corruption, the legislative provision of this fight and the strict implementation of the adopted legislative acts. The main task for the civil society structures in the fight against corruption is the implementation of public participation in the process of preparing, discussing, adopting and monitoring the implementation of power decisions. Therefore, the strategy of fight against corruption should include: participation of all civil society institutions in it; goals must be clearly defined in terms of changing the legislation and implementing these changes in life; the presence of a result that should be higher than political declarations dictated by the current situation. At present, the issue of corruption is relevant both for the society and for the state. The course on socio-economic and political modernization of the country provides for the fight against corruption in all domains of society life, which forms the basis for the establishment of legal democracy, whose effectiveness is measured by the ability to overcome social pathologies and the construction of a social state. Thus, in order to fight against corruption effectively, efforts are required not only from the “top”, that is, from the state part of the political system, but also from its non-state subjects – political parties, trade unions, public organizations, mass media, churches, etc. The strategy of fighting against corruption should be comprehensive: the regulation of the actions of officials, the elimination of the ambiguity of laws, adherence to the supremacy of law principle as well as equality of all before the law, observance of ethical standards. This way, in order to gain a victory over corruption, the state requires one thing – the will and the desire.

SUMMARY The article analyzes the main conditions by having which the state is able to fight against corruption. The preconditions and means of fight against corruption are determined; the results of their implementation in life are considered based on the examples of some countries, namely, availability of effective legislation, political will of the state, specialized bodies of fight against corruption, the establishment of civil society. It is noted that the fight against corruption is the management through a developed network of social

163 institutions created on the basis of “participatory democracy”, that is, the interaction of personality, society and state on the principles of social partnership. This concept refers to a complex of political relations and technologies, which establishes public supervision over the activities of state authorities. At the same time, the latter requires a political will to fight against corruption, the legislative provision of this fight and the strict implementation of the adopted legislative acts. The main task for the civil society structures in the fight against corruption is the implementation of public participation in the process of preparing, discussing, adopting and monitoring the implementation of power decisions. Corruption as a systemic problem in Ukraine, demoralizing society, generates such a negative phenomenon of legal consciousness as legal nihilism in the social environment. This is manifested not only in the open neglect of moral norms and democratic procedures of preventive policy, but also by manipulating the legal and political activity of legal relation subjects, which leads to the destruction of the legal space of the country, to the destruction of the normative and value legitimacy of state power. The economic aspect of counteracting corruption is determined by the creation of conditions for fair competition and equal relations between business entities, as well as de-bureaucratization and demonopolization of the economy in order to prevent the concentration of power and ownership in the hands of a few, the fight against poverty and unemployment. The social aspect of preventing corruption involves identifying the potential of civil society in fighting it: the organization of social partnership; carrying out public supervision measures; formation of anticorruption component in the public consciousness; promotion of the collective and individual civil society subjects’ activity, including non-profit and human rights organizations, on the formation of anticorruption policy. Political corruption, widespread in power structures, is associated with a violation of the mechanism of feedback between people and authorities, inefficient spending of material resources, and the use of administrative resources for private purposes, including election campaigns.

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Information about authors: Podorozhna T. S., Doctor of Juridical Sciences, LLD, Associate Professor, Head of Department of Public Law Chernivtsi National University 2, Kotsiubynskoho st., Chernivtsi, Ukraine

Barabash O. O., Doctor of Juridical Sciences, Senior Lecturer of Department of Administrative and Informational Law of the Institute of Jurisprudence and Psychology of the National University “Lviv Polytechnic” 12, Stepan Bandera st., Lviv, Ukraine

167 DEFINITION OF CORRUPT CRIMES AND PRACTICE OF APPLICATION OF SOME ARTICLES OF CRIMINAL CODE OF UKRAINE IN CORRUPTION COUNTERACTION

Politova A. S., Akimov M. O.

INTRODUCTION Problems concerning so dangerous social phenomenon as corruption belong to those having massive global character and unfortunately are quite widespread on modern phase of society development. All countries are confounded by this ignominious social phenomenon to a greater or lesser degree. But in Ukraine this problem is arising today more and more hardly and incisively. According to the Transparency International data during few last years our country was ranked 120th from 180 countries in the world in 2018, 130th from 180 in 2017, 130th from 168 in 2016 and in 2015, 142nd from 175 in 2014. Being analyzed these data prove that according to 2018 index Ukraine is belonging to the states that are willing to combat corruption and counteraction to this phenomenon has established itself as a leading. This is due to the fact that nowadays corruption is a threat to law and order, democracy, human rights; it is shattering public management, honesty and social fairness, interfering competition and economical development, menacing democracy institutions’ stability and moral grounds of society1. But are the measures applied to it effective, meaningful and resultative? It is stressing in the preamble to Criminal Law Convention on Corruption dated from January 27th, 1999, on urgent common criminal policy aimed at the protection of society against corruption, including the adoption of appropriate legislation and preventive measures2. Implementation of corrupt crimes definition in Criminal Code (hereinafter referred to as CC) of Ukraine became one of such measures. It should be emphasized that several researches by such academicians as Mykola Melnyk, Evhen Nevmerzhytskyi, Volodymyr Osadchyi, Andrii Savchenko etc. are devoted to issues of corruption counteraction. Some peculiarities of criminal responsibility for corrupt crimes were studied in dissertations for Candidate and Doctor of Legal Sciences degree by such Ukrainian scientists as Mykola Melnyk (“Criminological and criminal legal

1 Савченко А.В. Корупційні злочини в Україні: проблеми кримінально-правового розуміння. Науковий вісник Національної академії внутрішніх справ. 2015. № 3. С. 14. 2 Кримінальна конвенція про боротьбу із корупцією від 27 січня 1999 р. URL: https://zakon.rada.gov.ua/laws/show/994_101 (дата звернення: 25.07.2019). 168 problems of corruption counteraction”, 2002 р.), Sergii Cherniavskyi (“Theoretical and practical grounds of methods of financial fraud investigation”, 2010), Vladyslav Lishchenko (“Proving on pre-trial stages of criminal proceedings in the cases of bribery”, 2011). Scientific literature analysis allows us to acknowledge that most of native scientists in the field of criminal law support actively the point of view concerning pinning the definition of corrupt crimes in the criminal legislation of Ukraine (taking into account such pinning in some international legal acts). However there is another concept among these matters’ researchers. That’s why the aim of this article is to make theoretical and practical analysis of criminal legislation provisions that regulate the definition of corrupt crimes and stipulate responsibility for such crimes as well as analysis of practical use of CC of Ukraine’s articles on corrupt crimes that have an effect on level of corruption crimes recession and on responsibility for criminals.

1. Corrupt crime definition From our point of view, before starting to analyze current approaches to definition of terms “corrupt crime”, “corrupt offence”, “offence related to corruption”, their regulation and present scientific judgment on it, it is necessary to define the term “corruption”. According to Art. 1 of the Law of Ukraine “On prevention of corruption” № 1700-VII dated from October 14th, 2014, corruption is defined as “using powers delegated to person specified in Part 1 of Art. 3 of this Law or possibilities related thereto with the purpose to receiving improper advantage, or acceptance of such advantage, or acceptance of suggestion / promise of such advantage personally or for other parties, or respectively suggestion / promise or providing of improper advantage to a person specified in Part 1 of Art. 3 of this Law or under this person’s demand to other individuals or legal entities with the purpose to persuade this person to unlawful use of delegated powers or possibilities related thereto”3. Two types of unlawful behavior focused on corruption are also identified in this Law – corrupt offences and offences related to corruption. With regard to the content of terms defined in the Law criminal responsibility is envisaged for committing such offences among other kinds of liability. Taking into consideration that from January 1st, 2020, according to the Law of Ukraine “On amendments to some legal acts of Ukraine concerning simplifying on pre-trial investigation of separate categories of criminal offences” dated from November 22nd, 2018, the term “criminal offence” will

3 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення 25.07.2019). 169 appear in CC of Ukraine; it is divided into crime and criminal misconduct. It can be fair to say that criminal corrupt offence is also divided into corrupt crime and corrupt criminal misconduct. Most international anti-corruption acts are operating with term “corrupt crime”. For example, Criminal Law Convention on Corruption dated from January 27th, 1999, envisage imposition of criminal responsibility for such types of acts of corruption: 1) bribery (committed in public service and in private sector); 2) improper influence; 3) money laundering (legalization of incomes) from offences related to corruption; 4) financial crimes in national legislation of contracting parties4. Corrupt crimes according to Chapter IIІ of the UN Convention against Corruption dated from October 31st, 2003, are: 1) bribery of national public officials; 2) bribery of foreign states and intergovernmental organizations officials; 3) embezzlement, misappropriation or other misuse of property by public official; 4) improper influence; 5) abuse of power; 6) unlawful enrichment; 7) bribery in private sector; 8) embezzlement in private sector; 9) money laundering (legalization of illegal incomes)5. Crimes related to corruption are also mentioned in Criminal Law Convention on Corruption dated from January 27th, 1999, and thus “corrupted acts” – in Civil Law Convention on Corruption dated from November 4th, 1999. However, it is pointed out in Art. 8 “Criminalization of corruption” of the UN Convention Against Transnational Organized Crime dated from November 15th, 2000, on necessity to establish as criminally punishable the following acts being committed intentionally: a) promise, offering or giving to a public official, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties;

4 Кримінальна конвенція про боротьбу із корупцією від 27 січня 1999 р. URL: https://zakon.rada.gov.ua/laws/show/994_101 (дата звернення: 25.07.2019). 5 Конвенція Організації Об’єднаних Націй проти корупції від 31 жовтня 2003 р. URL: http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi?nreg=995_c16 (дата звернення 25.07.2019). 170 b) solicitation or acceptance by a public official, directly or indirectly, of an undue advantage, for the official himself or herself or another person or entity, in order that the official act or refrain from acting in the exercise of his or her official duties6. Consequently, analysis of some provisions of international anti-corruption acts allows to establish that most of them are not giving the definition “corrupt crime” (“crime related to corruption”), but only specified relevant acts. This is leading to the conclusion that implementation of term “corrupt crime” into national legislation is quite sound and necessary measure7. Scientists have repeatedly pointed on the necessity of legal definition of corrupt crimes. Specifically Mykola Melnyk, in determination of corrupt crimes essence identified several specific spheres of social relations in which these crimes are most possible to be committed – public and local governance, abuse of power, embezzlement, misappropriation or other misuse of property in the interests of public official or third parties. Person who is empowered to execute state functions is a special subject of such crimes; with regard to current criminal legislation this is public official of the body of state or local power8. Summing up, the researches stated that corrupt crimes are crimes consist in use (namely misuse) of power given to public officials of bodies of state or local power either in their own interests or in the interests of third parties9. Vitalii Kuts and Yana Tryniova have another way of looking. They consider corrupt crime as socially dangerous act stipulated by Special Book of Criminal code of Ukraine which carries signs of corruption and corrupt misconduct10. Similar to this is position expressed by Mykola Karpenko and Volodymyr Pashkovskyi. In support to this they are pointing out that “unfortunately there is no definition of corrupt crime in criminal legislation of Ukraine but it is developed in the theory of criminal law. It should be taken into account clarifying it that it is based on legal definition of crime (part 1 of Art. 11 of Criminal code of Ukraine), corruption and corrupt offence (part 1 of Art. 1 of the Law of Ukraine “On the grounds of corruption prevention and counteraction” dated from April 7th, 2011). Based on their content arguably

6 Конвенція Організації Об’єднаних Націй проти транснаціональної організованої злочинності, Прийнята резолюцією 55/25 Генеральної Асамблеї від 15 листопада 2000 р. URL: https://zakon.rada.gov.ua/laws/ show/995_789 (дата звернення 25.07.2019). 7 Савченко А.В. Корупційні злочини (кримінально-правова характеристика) : навчальний посібник. Київ : Центр навчальної літератури, 2016. С. 12. 8 Мельник М.І. Корупція – корозія влади (соціальна сутність, тенденції та наслідки, заходи протидії) : монографія. Київ : Юридична думка, 2004. С. 128. 9 Мельник М.І. Корупція – корозія влади (соціальна сутність, тенденції та наслідки, заходи протидії) : монографія. Київ : Юридична думка, 2004. С. 128. 10 Куц В., Триньова Я. Поняття корупційних злочинів та їх види. Вісник Національної академії прокуратури України. 2012. № 4. С. 33. 171 corrupt crime means socially dangerous act stipulated by Special Book of Criminal code of Ukraine which carries signs of corruption and corrupt misconduct”11. Vasyl Skulysh notices that corrupt crimes are offences in the field of public service that definitely have lucrative motive and are highly socially dangerous for state and society in the form of considerable material and (or) moral damage12. Natalia Kalugina thinks corrupt crime is unlawful and socially dangerous using person’s public status, or unlawful granting of material / non-material profits, or unlawful granting of profits either to a person with public status or to his or her relatives, business partners etc.13. Viktor Grigoriev and Volodymyr Doroshin define corrupt crime as stipulated by criminal legislation socially dangerous unlawful using person’s public status or unlawful granting of profit to a person with public status committed with direct intention and with the propose to receive profit for himself / herself or for relatives14. From the point of view of Ruslan Zakomoldin corrupt crimes are intentional unlawful acts committed by public officials, or by managing officials from commercial or other organizations acting on behalf or in the interests of legal entity (as well as in non-commercial organizations which are not bodies of state / local / municipal power or institution) in connection with their service position and lucrative motive15. There is also a frame of reference that any intentional crime committed by body of state or local power’s official using powers delegated to him or her, with lucrative or other personal motives or in the interests of third parties could be considered as corrupt crime. Herewith only part of such crime is indisputably corrupt and other part – just while some circumstances are present16. By the reference to different points of view on the definition of corrupt crime, it is worth mentioning that most scientists are naming as those crimes

11 Карпенко М.І., Пашковський В.В. Сучасні ознаки корупційної злочинності та їх зміст. Юридична наука. 2013. № 5. С. 57. 12 Скулиш В.Є. Співвідношення корупційних проступків та корупційних злочинів у сфері службової діяльності. Науковий вісник Дніпропетровського державного університету внутрішніх справ. 2013. № 4. С. 217. 13 Калугина Н.Г. К вопросу о понятии коррупционного правонарушения. Административное и муниципальное право. 2010. № 6. С. 56. 14 Григорьев В.А., Дорошин В.В. Коррупционная преступность в налоговой полиции. Вестник Академии налоговой полиции. Москва, 2003. Вып. 3. С. 363. 15 Закомолдин Р.В. Служебные преступления : учебное пособие. Самара : Самар. гуманит. акад., 2013. С. 7 16 Поняття корупції та корупційних злочинів. URL: http://www.belozerka.just.ks.ua/zapobigannya- proyavam-koruptsiyi/ponyattya-koruptsiyi-ta-koruptsiynih-zlochiniv.html (дата звернення 25.07.2019). 172 in the field of public service activity and professional activity in public service delivery. As relating to consolidation legal definition of corrupt crime in CC of Ukraine it is ought to remember that first such attempt was made in 2005 by group of people’s deputies on the initiative of their colleague Anatolii Moroz17. A draft of the Law of Ukraine “On amendments of Criminal code of Ukraine (concerning characteristics of corrupt crime)” № 8195 dated from September 23rd, 2005, was prepared with the purpose to implement Art. 111 “Definition of corrupt crime” in Criminal code of Ukraine which stated the following: “Art. 111 Definition of corrupt crime 1. Corrupt crime is complex dangerous action committed by special subject (public official) in connection with executing his or her powers. 2. Complex dangerous is action stipulated by this Code which is instantiated by encroachment on several objects of criminal legal protection with the use of public service resource. Explanatory note. Corrupt crimes are crimes stipulated by Art. 191, 357, 362, 364, 368, 410, 423, 424 of this Code”18. It was stated in the conclusion of Main Scientific Expert Department onto mentioned draft that it is lacked of real mechanisms of improving of criminal responsibility for corrupt crimes and shall not facilitate using of criminal legal norms aimed at corrupt crimes combating19. Alongside this it is not only draft to define the term “corrupt crime (offence)” and these crimes’ types. As analysis of the relevant drafts shows measures are implemented on legislative level at length to improve criminal responsibility for crimes in the field of public service activity and professional activity in public service delivery. Just during 2014–2015 there were 32 drafts on corruption prevention registered at Verkhovna Rada’s Committee on Legal Regulation of Law Enforcement Activity, for example: “On amendments to Criminal code of Ukraine (on strengthening responsibility for offences related to corruption)” № 2614 dated from April 9th, 2015 (by people’s deputies Maksym Polyakov, Denys Sylantiev, Hennadii Kryvosheya, Yurii

17 Пропозиція була підготовлена авторським колективом: народним депутатом ІV скл. А.М. Морозом, народним депутатом ІV скл. І.Ф. Шаровим, народним депутатом ІV скл. М.П. Нощенко, О.М. Охотніковою, Л.М. Мірошниченко, представником Київського національного університету ім. Т.Г. Шевченка В.О. Беньківським. 18 Про внесення доповнення до Кримінального кодексу України (щодо визначення характеристик корупційного злочину) : Проект Закону від 23 вересня 2005 р. № 8195. URL: http://w1.c1.rada.gov.ua/ pls/zweb2/webproc4_1?pf3511=25536 (дата звернення 25.07.2019). 19 Про внесення доповнення до Кримінального кодексу України (щодо визначення характеристик корупційного злочину) : Проект Закону від 23 вересня 2005 р. № 8195. URL: http://w1.c1.rada.gov.ua/ pls/zweb2/webproc4_1?pf3511=25536 (дата звернення 25.07.2019). 173 Makedon)20. It was offered in the latter to stipulate restated Art. 191 “Embezzlement”, 364 “Abuse of power or authority”, 366 “Service forgery”, 367 “Service negligence”, 368 “Offering, promising or receiving of improper advantage by a public official”, 3682 “Unlawful enrichment”, 369 “Offering, promising or giving of improper advantage to a public official”, 3692 “Abuse of influence” of Criminal code of Ukraine as well as to amend Paragraph 2 of Part 1 and Paragraph 2 of Part 3 of Art. 365 “Stretch of authority or service powers by a law enforcement official”. Firstly legal definition of corrupt crime was adopted by the Law of Ukraine “On National Anti-Corruption Bureau of Ukraine” № 1698-VII dated from October 14th, 2014. It is stated in item 2b of Chapter ІІ of its Final Provisions: “Explanatory note. Corrupt crimes according to this Code are crimes stipulated by Part 2 of Art. 191, Part 2 of Art. 262, Part 2 of Art. 308, Part 2 of Art. 312, Part 2 of Art. 313, Part 2 of Art. 320, Part 2 of Art. 357, Part 2 of Art. 410 in the case of their committing by the way of abuse of authority, and also crimes stipulated by Art. 354, 364, 364-1, 365-2, 368-370 of this Code”21. This legal definition of corrupt crime triggered an enormous discussions and criticism to its content. For example, Natalia Yarmysh analyzing “corrupt crime” definition goes to conclusion “to declare explanatory note to Art. 45 of CC of Ukraine is not in line with the Law of Ukraine “On Corruption Prevention”. It is possible to foresee that this circumstance open a wide field of opportunities for defence counselors to prove that crime committed by their client (even being declared as corrupt according to Criminal code) quite literally is not that. With regard to grave consequences for a person being found guilty in corrupt crime and taking into account global principle of interpretation of all doubts in favor to defendant, these counselors will have big chances to win the case”22. In the light of criminal law scientists’ criticism as well as practice of application of articles on corrupt crimes, abovementioned explanatory note to Art. 45 of CC of Ukraine was amended by the Law of Ukraine “On amending of some legal acts of Ukraine concerning regulation of activity of National Anti-Corruption Bureau of Ukraine and National and National Agency for Prevention of Corruption” № 198-VIII dated from February 12th, 2015. According to amendments it was rephrased as follows: “Explanatory note.

20 Про внесення змін до Кримінального кодексу України (щодо підвищення відповідальності за порушення, пов’язані з корупційною складовою) : Проект Закону від 09 квітня 2015 р. № 2614. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=54747 (дата звернення 25.07.2019). 21 Про Національне антикорупційне бюро України : Закон України від 14 жовтня 2014 р. № 1698-VII. URL: https://zakon.rada.gov.ua/laws/show/1698-18 (дата звернення 25.07.2019). 22 Ярмиш Н.М. Щодо відповідності поняттю корупційного правопорушення злочинів, передбачених ст. 45 Кримінального кодексу України. Юридичний вісник. 2015. № 36 (3). С. 161. 174 Corrupt crimes according to this Code are crimes stipulated by Art. 191, 262, 308, 312, 313, 320, 357, 410, in the case of their committing by the way of abuse of authority, and also crimes stipulated by Art. 210, 354, 364, 364-1, 365-2, 368–369-2 of this Code”23. We consider these amendments into criminal legislation of Ukraine not only make impossible the definition of corrupt crime and disclosing of its main features nor yet identify peculiarities of unlawful behavior of the subject of crime concerning act of corruption committed. That’s why it is not possible to agree that in full view of usefulness and inevitability of current lawmaking the orientation of state efforts on criminal legislation improvement is not supposed to be combined with continuality of this process. Repeatedly adopting yet another amendments to CC of Ukraine (even if every of it is driven by the need to solve certain social challenging situation) has cast a pall due to destruction of legislative system created during codifying process, has put acceptance of dynamic (not stable) legislation into consciousness; codified criminal legislative act being considered flawed during amendments’ substantiation is losing its weight24. We suppose it is not necessary to implement namely “corrupt crime” definition in CC of Ukraine because it is derivate from such terms as “corrupt offence” and “offence related to corruption” which are defined in the Law of Ukraine “On Corruption Prevention” № 1700-VII dated from October 14th, 2014. It would be sound to create a separate Chapter “Corrupt crimes” in the Special Book of CC of Ukraine and put all articles which are aligned to legal nature of this phenomenon according to international anti- corruption acts.

2. Practice of application of some articles of CC of Ukraine referred to corrupt crimes Norms on corrupt crimes according to definition given in explanatory note to Art. 45 of CC of Ukraine are situated in different chapters of its Special book. These encroachments are stipulated by 19 articles of CC of Ukraine and this list is exhaustive. At the same time the list of corrupt crimes stipulated by CC of Ukraine is at variance with the list of unlawful corrupt offences defined by international

23 Про внесення змін до деяких законодавчих актів України щодо забезпечення діяльності Національного антикорупційного бюро України та Національного агентства з питань запобігання корупції : Закон України від 12 лютого 2015 р. № 198-VIII. URL: https://zakon.rada.gov.ua/laws/show/ 198-19 (дата звернення 25.07.2019). 24 Михайленко Д.Г. Теоретичні аспекти трансформації інституту корупційних злочинів. Актуальні проблеми держави і права : збірник наукових праць / редкол. : С.В. Ківалов, В.М. Дрьомін, Ю.П. Аленін та ін. ; МОН України; НУ ОЮА. Одеса : Юрид. л-ра, 2014. Вип. 74. С. 340. 175 anti-corruption acts. For example, stealing, embezzlement, extortion of firearms, ammunition, explosives or radioactive materials or their acquisition by fraud or abuse of power (Art. 262) or violations of rules concerning narcotic drugs, psychotropic substances, their analogues and precursors handling (Art. 320) are in it whereas not mentioned in the UN Convention against Corruption dated from October 31st, 2003. Also, as it was already stated previously by us, with regard to the definition of corrupt crimes it is not possible to emphasize such their features as social danger, unlawfulness, presence of act of corruption, committing by special subject, committing only intentionally, punishability. However some scientists are still trying to do this. Namely Volodymyr Tyutyugin and Kateryna Kosinova specify the following features common for those acts: 1) committed always in connection with using of person’s power, authority or opportunities resulting from it; 2) not just using of authority, but abusing of it is typical for corrupt crimes; 3) only intentional psychological attitude to act committed thisness to all crimes indicated in the explanatory note to Art. 45 of CC of Ukraine; 4) indisputably corrupt crimes in their absolute majority related to receiving or giving (including offering and promising of such deeds) of bribe; 5) subject of committing is the character feature of corrupt crimes – mostly there are public officials of public or private law as well as persons engaged in public service delivery; 6) list of corrupt crimes stipulated by Art. 45 of CC of Ukraine is all-inclusive and is not applicable for broad interpretation25. Also they stress on exceptions in every of the features listed. But from our point of view it is hard to give them a point in this because the lawmaker united crimes in certain groups with distinct common features which are permanent or fundamental, e.g. common object of crime. According to the Law of Ukraine “On Corruption Prevention” № 1700-VII dated from October 14th, 2014, bodies of prosecutor’s offices, National Police, National Anti-Corruption Bureau, National agency for Prevention of Corruption are specially empowered subjects in the field of corruption counteraction. Analysis of Joint Register of Pre-Trial Investigations shows that during first half of the year 2019 12,160 criminal offences qualified as corrupt were accounted, but only 3,174 were. Situation of the few last years is depicted in the Table.

25 Тютюгін В.І., Косінова К.С. Поняття та ознаки корупційних злочинів / Нац. юрид. ун-т ім. Ярослава Мудрого, Всеукр. громад. орг. «Асоц. кримін. права». Вісник Асоціації кримінального права України. Харків, 2015. Вип. 1 (4). С. 388–396. URL: http://nauka.nlu.edu.ua/wp-content/uploads/ 2015/07/4_26.pdf. (дата звернення 25.07.2019). 176 Table 1 Data from year 2013 till first half of the year 2019 on the quantity of accounted corrupt criminal offences and results on their investigation Quantity of cases Quantity of accounted criminal Year taken to the court offences qualified as corrupt with indictment 2013 22,613 10,248 2014 18,636 7,249 2015 18,625 5,757 2016 18,866 5,416 2017 20,727 6,817 2018 20,662 7,894 First half of 2019 12,160 3,174

Thus from the analysis of Joint Register of Pre-Trial Investigations data it is possible to conclude that quantity of accounted criminal offences qualified as corrupt is approximately three times larger than taken to the court with indictment. This goes to prove the inferior quality of evidence gathered as well as low professionalism of specially empowered subjects in the field of corruption counteraction during pre-trial investigation. If, for example, the activity of National police is to be analyzed, it is worth to mention that Department on Corruption Prevention and Lustration Realization was founded in its structure in 2017. This Department is tasked to: 1) organize and control measures of corruption prevention in National Police; 2) provide methodological and consulting support on issues of anti-corruption legislation observation in National Police; 3) take part in informational and scientific research provision of measures of corruption prevention and exposure in National Police (as well as in international cooperation in this field); 4) realization of measures of conflict of interests exposure, supporting of its resolution and control of realization of relevant legislation; 5) uncover risks in National Police personnel activity auspicious for corrupt offences committing and advise its leadership on such risks mitigation; 6) support National Police personnel in filling out declarations of persons empowered to execute state or local power functions; 7) organize the special background check of person applying for positions of responsibility, special responsibility or higher corrupt risks in National Police; 8) coordinate the activity of National Police’s central body of management structural units, local units and elements, enterprises and

177 agencies on realization of measures of corruption prevention and exposure; 9) develop and provide measures of corruption prevention in National Police26. Having such wide specter of authority and performing actively in prevention of corrupt crimes among National Police personnel, a negative tendency of committing such unlawful acts namely by police officers ought to be remarked. For example, Kateryna Titunina and Fedir Kirilenko note that personnel of the bodies of internal affairs committing most of corrupt crimes. Specifically 268 persons were put to responsibility in 2016, 203 in 2015, 157 in 2014. Quantity of police officers exposed as committing corrupt crimes is on the same level as general quantity of public and local officials and is even higher in some years27. The research made by Kateryna Titunina and Fedir Kirilenko is also interesting with regard to the activity of bodies of power existed before the anti-corruption reform. Data given by them proves that in years 2011–2015 most corrupt crimes were exposed by personnel of bodies of internal affairs (averages 1,463 crimes in each year) whereas 297 were exposed by prosecutors’ offices, 337 – by Security Service, 25 – by tax police. The same situation is in 2016: 1115 corrupt crimes were exposed by personnel of National Police, 503 – by Security Service, 328 – by National Anti- Corruption Bureau, 196 – by prosecutors’ offices, 46 – by tax police28. Meanwhile studying the data on corruption counteraction in 2018 given by Ministry of Internal Affairs of Ukraine we found that following crimes were accounted as corrupt: racketeering (Parts 2, 3 and 4 of Art. 189 of CC of Ukraine), embezzlement (Parts 2, 3, 4 and 5 of Art. 191 of CC of Ukraine), counteraction of legal entrepreneurial activity (Part 3 of art. 206 of CC of Ukraine), divulgation of commercial or banking secrets (Art. 232 of CC of Ukraine), stealing, impropriation, racketeering of firearms, ammunition, explosives or radioactive materials or its acquisition by fraud or abuse of authority (Parts 2 and 3 of Art. 262 of CC of Ukraine), fraudulent imposition of authority of public official (Art. 353 of CC of Ukraine), forging of documents, stamps, noteheads, notepapers, sales or using of forged documents, stamps, noteheads (Parts 2 and 3 of Art. 358 of CC of Ukraine), abuse of power or authority (Art. 364 of CC of Ukraine), abuse of authority of official of private law legal entity of any organizational form (Art. 3641 of CC

26 Уповноважений підрозділ з питань запобігання корупції в НПУ. Національна поліція : веб-сайт. URL: https://www.npu.gov.ua/about/ zapobigannya-korupcziji/ypovnovazhenui-pidrozdil-z-putan.html (дата звернення 25.07.2019) 27 Тітуніна К.В., Кіріленко Ф.О. Боротьба Національної поліції з корупцією в Україні. Правовий часопис Донбасу. 2017. № 2 (60). С. 158. 28 Тітуніна К.В., Кіріленко Ф.О. Боротьба Національної поліції з корупцією в Україні. Правовий часопис Донбасу. 2017. № 2 (60). С. 155–156. 178 of Ukraine), stretch of authority or service powers (Art. 365 of CC of Ukraine), stretch of authority of official of private law legal entity of any organizational form (Art. 3651 of CC of Ukraine), abuse of authority by person in public service delivery (Art. 3652 of CC of Ukraine), service forgery (Part 2 of Art. 366 of CC of Ukraine), bribery (Art. 368 КК of CC of Ukraine), unlawful enrichment (Art. 3682 of CC of Ukraine), commercial bribery of official of private law legal entity of any organizational form (Art. 3683 of CC of Ukraine), bribery of person in public service delivery (Art. 3684 of CC of Ukraine), abuse of influence (Art. 3692 of CC of Ukraine), provocation of bribery (Art. 370 of CC of Ukraine), adjudgement of deliberately wrongful sentence, decision, resolution or ruling by judge (judges) (Part 2 of Art. 375 of CC of Ukraine), stealing, impropriation, racketeering of firearms, ammunition, explosives or other military materials, means of transportation, military or special equipment or other military issues or its acquisition by fraud or abuse of authority committed by military personnel (Part 2 and 3 of Art. 410 of CC of Ukraine), abuse of power or authority by military official (Art. 423 of CC of Ukraine), stretch of authority or service powers by military official (Part 1 and 3 of Art. 424 of CC of Ukraine) and other corrupt offences. Is that right? Maybe the central body of executive power is disregarding in that way the letter of the law, e.g. explanatory note to Art. 45 of CC of Ukraine, where the definition of corrupt crimes and list of relevant articles is given? We consider referring the articles which were considerably amended as far back as 2011 (such as Art. 368 and 370 in which the term “bribe” was changed into “improper advantage”) to be inappropriate as well. Taking given point of view of Ministry of Internal Affairs of Ukraine into consideration, we think in necessary to analyze some bodies of crime which were defined by the lawmaker as corrupt and estimate whether such essentiality is really irrevocable. According to explanatory note to Art. 45 of CC of Ukraine body of crime stipulated by Art. 357 of CC of Ukraine is considered as corrupt. This article is making punishable stealing, impropriation, racketeering of documents, stamps, noteheads or its acquisition by fraud or abuse of authority or their damage. With regard to the acts stipulated in Part 1, 2 or 3 of Art. 357 of CC of Ukraine the crime consists of attempt of unlawful taking, destroying or damaging of documents, stamps, noteheads. Such necessary condition of corrupt offence as receiving of improper advantage is not mentioned at all in the article; only lucrative motive or other personal document is named. But without purpose of receiving of improper advantage we find it impossible committing such unlawful act as corrupt. Whereas the lawmaker considers

179 reasonably necessary (not taking into account the purpose of offender’s aim) to presume it as corrupt only by the term “abuse of authority” used. It is also worth to pay attention to Art. 3682 “Unlawful enrichment” of CC of Ukraine as well as relevant judicial practice. An initiative of implementing this article into Criminal code of Ukraine was fostered by our country’s ratification of Criminal Law Convention on Corruption and the UN Convention against Corruption which took place on October 18th, 2006. Introduction of legal construction “Unlawful enrichment” was made specifically for simplifying to procedure of putting persons empowered to execute the state or local government functions to responsibility for latent corrupt offences consist of impropriation, use or disposition of considerable amount of assets legitimacy of appropriation grounds of which is not confirmed by evidence. That’s why CC of Ukraine was complement with Art. 3682 “Unlawful enrichment” according to Law of Ukraine “On amendment of some legal acts of Ukraine concerning responsibility for corrupt offences” № 3207-VI dated from April 7th, 2011. This norm was included by the lawmaker to Chapter XVII “Crimes in the field of public service activity and professional activity in public service delivery” of Special book of CC of Ukraine. But with regard to practice of use of this norm by courts our analysis of sentences proves that prior 2011 criminal attempts of unlawful enrichment were mostly qualified as receiving of bribe (Art. 368 of CC of Ukraine) or embezzlement (Art. 191 of CC of Ukraine). Studying of Joint Register of Pre- Trial Investigations from year 2011 till year 2016 shows that during this period 19 sentences in the cases of unlawful enrichment were carried out by courts of first instance. Meanwhile more detailed analysis of convictions of unlawful enrichment demonstrates that 14 sentences on Part 2 or 3 of Art. 368 of CC of Ukraine, 4 sentences on Art. 3683 of CC of Ukraine and only 1 sentence on Art. 3682 of CC of Ukraine were classified as belonging to this category of cases. In 2 sentences acts of accused persons were qualified as cumulative crimes – on Art. 366 and 190 of CC of Ukraine. It is also worth to stress that 65% of sentences were confessions of judgment, and Art. 75 of CC of Ukraine was used by court in every case. When it comes to year 2018, according to data of Office of General Prosecutor of Ukraine only in January – April 39 crimes on Art. 3682 of CC of Ukraine were registered; in the process 7 such proceedings were dropped – all under Parts 1, 2, 4, 6 of Art. 284 of Criminal Procedural code of Ukraine, and 2 persons were convicted under Art. 3682 of CC of Ukraine.

180 Constitutional court of Ukraine on February 26th, 2019, found Art. 3682 of CC of Ukraine as unconstitutional29. From this moment unlawful enrichment was decriminalized which means dropping of relevant criminal proceedings and relieving accused persons of criminal responsibility (if only they will be not found guilty of other crimes first of all corrupt). Before long several drafts on restoring of criminal responsibility for unlawful enrichment were registered at Verkhovna Rada of Ukraine namely № 10110 dated from February 28th, 2019 (by President Petro Poroshenko)30, № 10103 dated from February 28th, 2019 (by Yulia Tymoshenko)31, № 10110-1 dated from March 1st, 2019 (by Sergii Kaplin)32, № 10110-2 dated from March 5th, 2019 (by Viktor Chumak and Natalia Novak)33, № 10110-3 dated from March 5th, 2019 (by Mustafa Nayem)34, № 10110-4 dated from March 6th, 2019 (by Yurii Derevyanko)35. Let’s have a look at their peculiarities. Thus in the draft “On amendments to Criminal and Criminal Procedural codes of Ukraine on responsibility for unlawful enrichment” № 10110 dated from February 28th, 2019 (introduced by President Petro Poroshenko) it is offered to consider unlawful enrichment as acquisition by person empowered to execute state or local government functions the considerable amount of assets without any legal grounds and in the absence of signs of abuse of power or authority or signs of accepting an offer, promise or receiving of improper advantage by a public official as well as transfer of such assets to any other person.

29 Рішення Конституційного Суду України у справі за конституційним поданням 59 народних депутатів України щодо відповідності Конституції України (конституційності) ст. 368-2 Кримінального кодексу України від 26 лютого 2019 р. № 1-р/2019. URL: http://www.ccu.gov.ua/ dokument/1-p2019 (дата звернення 25.07.2019). 30 Про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення : проект Закону України від 28 лютого 2019 р. № 10110. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65587 (дата звернення 25.07.2019). 31 Про внесення змін до Кримінального кодексу України щодо відповідальності особи, уповноваженої на виконання функцій держави або місцевого самоврядування за набуття у власність активів у незаконний спосіб : проект Закону України від 28 лютого 2019 р. № 10103. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1? pf3511=65577 (дата звернення 25.07.2019). 32 Про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення : проект Закону України від 01 березня 2019 р. № 10110-1. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65603 (дата звернення 25.07.2019). 33 Про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення : проект Закону України від 05 березня 2019 р. № 10110-2. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65634 (дата звернення 25.07.2019). 34 Про внесення змін до Кримінального кодексу України щодо відповідальності за незаконне збагачення : проект Закону України від 05 березня 2019 р. № 10110-3. URL: http://w1.c1.rada.gov.ua/ pls/zweb2/ webproc4_1?pf3511=65635 (дата звернення 25.07.2019). 35 Про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення : проект Закону України від 06 березня 2019 р. № 10110-4. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65638 (дата звернення 25.07.2019). 181 In the alternative draft № 10110-1 dated from March 1st, 2019 (introduced by people’s deputy Sergii Kaplin disposition of Art. 3685 “Unlawful enrichment” of CC of Ukraine is offered to restate as follows: “Acquisition by person empowered to execute state or local government functions the considerable amount of assets without any legal grounds including considerable increase of assets which surpass his or her legal revenues in the absence of signs of abuse of power or authority or signs of accepting an offer, promise or receiving of improper advantage by a public official as well as transfer of such assets to any other person”. So the analysis of article on unlawful enrichment made by us allows for the conclusion on necessity to restore criminal responsibility for this crime. But subjects of lawmaking initiative until introduce any offers to supplement current criminal legislation should study the practice of use of the relevant norm by courts to establish factors of its ineffectiveness and to avoid requalification of acts of suspects from one article to another. Consequently as the highest level of latency is inherent to corrupt crimes statistics in the possession is only mirroring the “desired” transformations and confirmed the point of view on total imitation of corruption combating. That’s why existence of specialized anti-corruption bodies of power and standards of ethics for public officials are not relevant as representative factors of corrupt offences prevention. There is a direct correlation between level of economy development of the state and level of corruption in the country – so much the former so less the latter. And criminal responsibility for corrupt offences is a compulsory factor of counteraction to this phenomenon in all countries.

CONCLUSIONS Draw up the results of our research of definition of corrupt crimes and practice of use of certain articles of CC of Ukraine on corruption counteraction it may be deduced that: 1. Problem of corruption counteraction continue to be relevant for Ukraine and is of most studied by native scientists. Alongside this being latent it is rather complicated and even impossible to imagine the real scale of corruption in the activity of bodies of power as well as private sector of the economy of our state. Even the list of corrupt crimes being precisely defined in CC of Ukraine comes to nothing in counteraction of this negative phenomenon. 2. Despite prolonged discussion on the necessity to introduce the definition of corrupt crimes in criminal legislation of Ukraine we have justified that there is no vital necessity of such separate definition existence. 3. Wrong elucidation of the list of corrupt crimes named in the explanatory note to Art. 45 of CC of Ukraine by some specially empowered subjects in the

182 field of corruption counteraction leads to data tampering on criminal corrupt offences exposed and court decisions onto them. 4. It is necessary to review the list of crimes considered as corrupt by the lawmaker given the fact that some of them according to international anti- corruption acts are not these crimes, and committing the crime by public official is hardly an evidence to treat it as corrupt. 5. Criminal responsibility for unlawful enrichment has to be in CC of Ukraine. For really efficient mechanism of unlawful enrichment counteraction it is necessary to formulate more concrete the relevant criminal legal norm wherefore a working group should be created involving researchers who studied this problem. Otherwise there is high probability that this norm will not be used effectively and once more become a subject of examination by Constitutional court of Ukraine. 6. We offer during new version of Criminal code of Ukraine creation or during amending and supplementing of current one stipulate the chapter “Corrupt crimes” in its Special book, where in accordance with international anti-corruption acts articles relevant to legal nature of this phenomenon should be placed.

SUMMARY This article is concerning on problems of criminal legal intendment of corrupt crimes in Ukraine. With regard to provisions of international anti- corruption acts, national legislation on corruption counteraction and views of scientists the definition of corrupt crimes has been disclosed. An output on inexpedience of regulative introduction of corrupt crimes definition in CC of Ukraine has been made. It was offered to stipulate in Special book of CC of Ukraine the separate chapter “Corrupt crimes” and place in it where in accordance articles about crimes referred in international anti-corruption acts as corrupt. The practice of use of certain articles of CC of Ukraine on corruption counteraction has been analyzed. Data from year 2013 till first half of year 2019 on quantity of registered corrupt crimes and results of their investigation have been adduced. It has been mentioned that quantity of registered criminal offences which bear the signs of corrupt crimes is approximately three times more than taken to the court with indictment. It has been noticed that wrong elucidation of the list of corrupt crimes named in the explanatory note to Art. 45 of CC of Ukraine by some specially empowered subjects in the field of corruption counteraction leads to data tampering on criminal corrupt offences exposed and court decisions onto them. Consequently, from one side, they are not all corrupt, and from the

183 other side, some crimes that could be corrupt being committed with certain purpose are absent in it. The list of crimes considered as corrupt by lawmaker has been suggested to revise.

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186 Information about authors: Politova A. S., Candidate of Juridical Sciences, Associate Professor of Criminal Legal Sciences and Forensic Examinations Department of № 1 Faculty of Donetsk Law Institute of Ministry of Internal Affairs of Ukraine 24, District 7th Zarichny, Kryvy Rih, Dnipropetrovsk region, Ukraine Akimov M. O., Candidate of Juridical Sciences, Associate Professor, Associate Professor of Criminal Law Department of National Academy of Internal Affairs 1, Solomianska sq., Kyiv, Ukraine

187 PECULIARITIES OF ANTI-CORRUPTION POLICY AND COMPETENCE OF ANTI-CORRUPTION AUTHORITIES IN UKRAINE

Popova L. M., Popova S. M., Kraіnуk Н. S.

INTRODUCTION In today’s conditions, shadow economic relations are becoming a factor that really affects the level of state security. One of the main factors that poses a threat to our country’s security is corruption, which has occupied all levels of power and permeates all spheres of our country, which significantly impedes socio-economic transformations and adversely affects the image of the country as a whole. Corruption is recognized as one of the most significant global issues. The most well-known indicator of corruption worldwide (CPI) that published annually by the international organization Transparency International, shows that corruption remains a serious challenge for all regions of the world. It undermines the society’s belief in the democratic nature of state processes and causes significant damage to the economy as a whole, as well as to the entrepreneurial activity of individual entities in particular. According to Transparency International, in the country’s annual ranking of corrupt countries, Ukraine remains among the low-performing countries (30 points from possible 100 points in 20171, 32 points from possible 100 points in 2018)2. Empirical evidence shows that corruption causes: ineffective formation and use of funds of financial resources of public finances; insufficient filling of state and local budgets due to abuse of employees in the administration of taxes and fees; loss of time due to interference, reduction of the efficiency of the state apparatus as a whole; the inability to develop medium and small businesses; lack of investment in production, slowing down of economic growth; low quality of administrative services provided to individuals and legal entities; growth of social inequality; development of organized crime; the decline of political legitimacy of power; low level of citizens’ confidence in authorities, and so on3. Therefore, the issues of combating corruption are urgent and require the immediate implementation of effective measures.

1 Річний звіт Transparency International Україна, 2017. URL: https://ti-ukraine.org/wp- content/uploads/2018/ 08/Richnyi-zvit-TI-Ukraina-2017.pdf. 2 «Індекс сприйняття корупції»: Україна дещо зміцнила позиції. URL: https://www.radiosvoboda.org/ a/29735869.html. 3 Антикорупційні засади діяльності органів влади : науково-практичний посібник / за заг. наук. ред. А.В. Роздайбіди. Харків : Вид-во ТОВ «Друкарня Мадрид», 2014. С. 7. 188 1. Research of the concept of “corruption”, tasks and principles of anti-corruption policy in Ukraine Corruption refers to “the use of a person by the authority given to her or the related capabilities in order to obtain an unlawful benefit or the adoption of such a benefit or the acceptance of a promise / offer of such benefit to himself or others or, accordingly, a promise / offer or an unlawful benefit to a person or her claim to other individuals or legal entities in order to persuade the person to misuse her authority or the opportunities attached to her”. Undue advantage include cash or other property, benefits, privilege, services, intangible assets, any other advantages of immaterial or non-monetary nature, which promise, offer, grant or receive without legal justification4. Given the negative impact of corruption on society, we can formulate such a definition of corruption. Corruption is an unlawful act for the purpose of obtaining unlawful benefits, which are deliberately carried out by officials who are empowered, which adversely affects the activity of the authorities and exerts a disorganization influence on society. Corruption can be manifested in the form of receiving unlawful benefits (money, property etc) by blackmail, provocation, extortion etc. The subjects of the commission of corruption offenses may be: 1) persons authorized to perform functions of the state or local self- government; 2) persons who are equal to persons authorized to perform state or local government functions (public law officials who receive wages at the expense of the state or local budget; persons who are not civil servants but who provide public services (auditors, notaries, appraisers, etc.), officials of foreign states, officials of international organizations); 3) persons permanently or temporarily holding positions related to the implementation of organizational and administrative tasks or administrative and economic duties, or persons specially authorized to perform such duties in legal entities of private law, regardless of organizational and legal form; 4) officials of legal entities, individuals – in case of receipt from them by the persons specified in clauses 1 and 2 or with the participation of these persons by other persons of undue advantage5. When researching the notion of corruption, one should take into account that:  a socially dangerous act that does not exist separately. This phenomenon is unacceptable, but it exists in all countries of the world and is an integral

4 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: http://zakon.rada.gov.ua/laws/show/1700-18. 5 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: http://zakon.rada.gov.ua/laws/show/1700-18. 189 part of public authority. Representatives of the state power of any state try to fight corruption and to implement anti-corruption programs in all spheres of life. The difference between the anti-corruption measures of different states lies in the size and rate of corruption, as well as its impact on economic, social, political and other processes; – a concept that in the course of study includes a set of interrelated administrative, criminal, disciplinary, civil-law violations. Among the main factors that generate and nourish corruption are the following: economic; legislative; activity of the authorities and management; personnel support6. An important factor in preventing corruption is the personnel issue. Thus, the subjects of responsibility for corruption offenses are forbidden to use their official powers and related capabilities in order to obtain unlawful benefits for themselves or other persons, including: 1) unlawfully assist legal entities or individuals in carrying out their business activities, receiving subsidies, subventions, grants, loans, obtaining privileges, concluding contracts (including for the purchase of goods, works and services, especially for state funds); 2) improperly promote the appointment of certain persons; 3) it is unlawful to give preference to certain individuals or legal entities in connection with the preparation of projects, publication of normative legal acts and decision-making, approval of conclusions7. A person who claims to hold office in state authorities, including in local self- government bodies, is subject to verification by the head of the relevant body, where the said person plans to occupy a vacant position. In the case of a special examination of a person applying for a post in state authorities (local self- government), in addition to the head of the state authority (local government), specially authorized subjects are involved in the fight against corruption, and, if necessary, other representatives of central executive authorities. Information relating to such verification is confidential except in cases where it contains information about state secrets. In the event of a person’s refusal to accept the corresponding position, she may appeal this decision in court. If a person who was appointed to office in authority of state power (local self-government) committed an offense related to corruption, then subjects who were obliged to check such a person at the time of taking up their duties are personally liable.

6 Попова Л.М. Боротьба з корупцією як один з напрямів підвищення економічної безпеки України. Фінансова система України в умовах трансформації соціально-економічних відносин : матеріали Міжнародної науково-практичної конференції (м. Харків, 14 квітня 2016 р.). Харків : Харк. нац. ун-т будів. та архіт., 2016. Ч. 1. С. 59–62. 7 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: http://zakon.rada.gov.ua/laws/show/1700-18. 190 An important element of corruption remains the powerful bureaucracy, which is constantly increasing in our country instead of the reduction of the number of civil servants, as foreseen by the administrative-legal reform. Despite the tough demand for the unification of remuneration in all, without exception, state-owned structures, there are dozens of different schemes and hundreds of different systems of employee bonuses. Therefore, in order to have a real effect from anti-corruption measures held by the state, it is necessary that the state policy be transparent and open to all segments of the population of the country. After all, the social and legal status of an official person in any sphere grants her the right to use his powers for personal purposes, and an open and transparent policy at the state level will encourage such a person to refrain from corruption offenses, understanding the consequences of the committed corruption act. The basis for the lawful conduct of any person should be the understanding that corruption offenses are not only a violation of the current legislation, but above all a violation of the rights, freedoms and interests of a person and a citizen, provided by the Constitution of Ukraine as the main value, an attack on public goods. It is here that should be emphasized, considering the fight against corruption as a long-term strategic task. After all, corruption destroys both the political, social and economic system of any country. Therefore, all forms of corruption must be confronted with a strong state of law, which is controlled by civil society. One of the tasks of the rule of law is to ensure the rights of suspects, accused and convicted persons who have committed corruption offenses. But this category of Ukrainian citizens has in many cases been less protected in legal terms. And these are thousands of people who are forced to fight for their rights, because today’s legislation in many cases does not really provide them. Today the rights, legitimate interests of victims of corruption crimes require legislative consolidation. The economy remains the most vulnerable to corruption. First, because of its scale and its consequences, and secondly, of the particular complexity of the disclosure of crimes in the economic sphere, and thirdly, that it is precisely from this that corrupt people are mainly drawing up funds and means for their existence and the bribery of others, armaments and technical equipment, as well as for the organization and conduct of violent actions. Therefore, the achievement in practice of the effectiveness of the fight against corruption at all levels requires the implementation of an effective state policy aimed at establishing joint actions of all state bodies in the development of anti-corruption measures, alignment of benchmarks and plans for further cooperation with international partners, improvement of the

191 investment climate, etc. All the above mentioned measures should be carried out with strict observance of human and citizen’s rights and freedoms in accordance with the current legislation8. Anticorruption policy is a complex of legal, economic, educational, educative, organizational and other measures aimed at creating a system for preventing and combating corruption and eliminating its causes. The purpose of anti-corruption policy is to eliminate corruption in the state and to ensure the protection of the rights and legitimate interests of citizens and society from its negative consequences, that is, the transition to a transparent system of governance. The subjects of anticorruption policy include the specially authorized bodies (persons) on anti-corruption policy, bodies of state power and local self-government, institutions, organizations, enterprises irrespective of the form of ownership, citizens and their unions9. The principles of anticorruption policy are:  the rule of right and law, the priority of human and civil rights and freedoms;  equality of all before the law;  openness and transparency of activity of state authorities and local self- government bodies;  effective interaction between the legislative, executive and judicial branches of power and the state with the public;  inevitability of responsibility for the commission of a corruption offense;  the only state policy in the field of prevention and counteraction to corruption;  cooperation with foreign states and international organizations, in particular with the Council of Europe Group of States against Corruption (GRECO);  targeted budget financing of the activities of state authorities and local self-government bodies for carrying out tasks of anticorruption policy;  access to information about committed corruption offenses, corruption factors and measures to prevent and counter corruption10. At the same time, in our opinion, the violation of the principle of the inevitability of liability for the commission of a corruption offense is the establishment of limitation periods for bringing criminal liability in Art. 49 of the Criminal Code of Ukraine. On this occasion, a proposal was made to

8 Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : монографія. Харків : Майдан, 2018. С. 404–405. 9 Засади антикорупційної політики : додаток до Розпорядження Кабінету Міністрів України від 08 грудня 2009 р. № 1688-р. URL: https://www.kmu.gov.ua/ua/npas/243284567. 10 Засади антикорупційної політики : додаток до Розпорядження Кабінету Міністрів України від 08 грудня 2009 р. № 1688-р. URL: https://www.kmu.gov.ua/ua/npas/243284567. 192 amend the article. 49 of the Criminal Code of Ukraine, in order not to set deadlines for corruption crimes11. The legal basis for anticorruption policy in our country is the Constitution of Ukraine, the United Nations Convention against Corruption, and the Organization for Economic Co-operation and Development’s (OECD) Istanbul Action Plan on Combating Corruption. In addition, decisions on anti- corruption policy in Ukraine should be based on the international standards and recommendations of the Group of States of the Council of Europe against Corruption (GRECO). The main objectives of the anti-corruption policy are: 1) improvement of the national legislation by:  harmonization of legislation of Ukraine and the European Union;  analysis of legislation in order to identify shortcomings that contribute to the commission of corruption offenses and to prepare proposals for its improvement;  conducting anti-corruption expertise of draft legal acts;  introduction of a legal mechanism for preventing the bribing of persons authorized to perform functions of the state or bodies of local self- government, as well as citizens during referendums and elections;  development and introduction of curricula for students of educational institutions and civil servants on the prevention and counteraction of corruption; 2) institutional reform by:  adoption of the Administrative Procedural Code of Ukraine;  improvement of the system and structure of public authorities and local self-government bodies, determination of the mechanism of public control over their activities;  formation of units in the bodies of state power on questions of prevention and counteraction to corruption;  developing a procedure for conducting an assessment of the effectiveness of detection and prevention of corruption risks in state authorities;  improvement of the civil service system;  abolition of parliamentary immunity;  transparency of financing of political parties;

11 Крайник Г.С. Чи потрібні строки давності, щоб корупціонери в Україні й далі уникали кримінальної відповідальності (ст. 49 Кримінального кодексу України)?. Актуальні проблеми кримінального права, процесу, криміналістики та оперативно-розшукової діяльності : тези Всеукраїнської наук.-практ. конф. (м. Хмельницький, 03 березня 2017 р.). Хмельницький : Вид-во НАДПСУ, 2017. С. 263–266. 193  creation of the Unified State Register of persons who committed corruption offenses;  transparency of financing of political parties; 3) reform of the law-enforcement and judicial system:  formation of specialized bodies that will contribute to the prevention, detection, termination and investigation of corruption acts;  ensuring access to court decisions and judicial statistics; 4) increasing the effectiveness of interaction between public authorities and local self-government with the public through:  conducting public anti-corruption expertise of draft legal acts;  ensuring the availability of information about identified corruption offenses; 5) holding analysis:  corruption offenses and the reasons for their occurrence;  indicators of the spread of corruption, which characterize volumes, intensity, structure, dynamics, territorial distribution and those who committed them;  experience of foreign states and international organizations on the prevention and counteraction of corruption12. Anti-corruption policy tasks are funded in the following areas: providing an effective mechanism for financial control of the public service; compensation for damage caused to natural or legal persons; creation and maintenance of the Unified State Register of Persons who committed Corruption Offenses; ensuring the implementation of the powers of the special authorized body (person) on issues of anti-corruption policy.

2. Anticorruption authorities, specially created to counteract corruption at the national level, their powers The fight against corruption at the national level is a complex issue, the solution of which requires the consolidation of efforts of the legislative and executive authorities, the law-enforcement system and the Ukrainian society as a whole13. However, the main role in solving this problem belongs to specially created bodies of state control and other law-enforcement bodies. These include, in particular: Supreme Anti-Corruption Court, Specialized

12 Засади антикорупційної політики : додаток до Розпорядження Кабінету Міністрів України від 08 грудня 2009 р. № 1688-р. URL: https://www.kmu.gov.ua/ua/npas/243284567. 13 Попова Л.М. Обмеження тіньового сектору економіки України в умовах її інтеграції у Європейський Союз. Актуальні проблеми правової науки і державотворення в Україні в контексті правової інтеграції : збірник матеріалів ІХ Міжнародної науково-практичної конференції (м. Суми, 21–22 травня 2016) / Сумська філія Харківського національного університету внутрішніх справ. Суми : Видавничий дім «Ельдорадо», 2016. С. 297–299. 194 Anti-corruption Prosecutor’s Office, National Anti-Corruption Bureau of Ukraine, National Agency on Corruption Prevention, National agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes (Asset recovery and management agency), State Bureau of Investigations. The powers of the Supreme Anti-Corruption Court include: 1) the administration of justice as a court of the first and appellate instance in criminal corruption proceedings concerning the unlawful seizure of the property of an enterprise, institution, organization (Article 206-2 of the Criminal Code of Ukraine (CCU); legalization (laundering) of proceeds from crime (Article 209 of the CCU); publication of regulatory acts that reduce revenues to the budget or increase budget expenditures in contravention of the law (Article 211 of the CCU), if the crime is committed by:  the President of Ukraine whose powers have been terminated, the people’s deputy, the Prime Minister of Ukraine, a member of the Cabinet of Ministers, etc;  a civil servant whose position belongs to the category “A”;  a deputy of the Verkhovna Rada of the Autonomous Republic of Crimea, a deputy of the regional council, city council of cities of Kyiv and Sevastopol, an official of local self-government, whose position is classified in the first and second categories; 2) analysis of judicial statistics, studying and generalization of judicial practice in criminal proceedings attributed to his jurisdiction, informing about the results of the generalization of the court practice of the Supreme Court and providing him with proposals for drafts of laws on the organization and activities of the Supreme Anti-Corruption Court, special requirements to the judges of this court and guarantees of their activities, as well as their disclosure on their organizational web-site14. The person who applies for the position of judge of the Supreme Anti- Corruption Court of Ukraine shall be required by the legislation. Such person should have: a) the necessary knowledge and skills in the field of justice in relation to issues related to corruption; b) a degree in law and at least seven years of experience in the field of law; c) аt least five years of seniority as a judge; d) аt least seven years of experience in the professional activity of a lawyer, including implementation of representation in court and / or protection from criminal prosecution. In addition, appointment to the post of judge of the Supreme Anti-Corruption Court should take place on the basis of a competition, which creates a special body – the Public Council of

14 Про вищий антикорупційний суд : Закон України від 07 червня 2018 р. № 2447-VIII. URL: http://zakon.rada.gov.ua/laws/show/2447-19. 195 International Experts. The said council investigates and evaluates information about existing candidates applying for the position of a judge of the Supreme Anti-Corruption Court and transfers all information to the High Qualifications Commission of Judges of Ukraine. The legislation of Ukraine also establishes requirements for persons who cannot be appointed to the post of judge of the Supreme Anti-Corruption Court. Such persons include: 1) persons who worked (served) for ten years in the organs of the prosecutor’s office, internal affairs, the National Police, etc; held political positions, had a representative mandate; 2) who, during the last five years, were in contractual relations or were members of the governing bodies of a political party; 3) information about which is entered into the Unified Register of persons who committed corruption offenses; 4) who were deprived of the right to occupy certain positions in accordance with the court judgment15. In connection with the exercise of their powers, judges of the Supreme Anti-Corruption Court are granted additional guarantees to ensure their personal security and safety of their families and the preservation of their property. The Supreme Anti-Corruption Court and its apparatus cannot be located in the same building with other courts, state bodies and their territorial units. Given the current state of detection of corrupt acts, the scale of corruption offenses, the importance of anticorruption control authorities in Ukraine, the need for administrative and legal regulation of their activities should be noted. The authorities of anti-corruption control are the executive authorities, whose activities are regulated by the relevant normative and legal acts on the prevention, detection, termination and disclosure of corrupt acts. The administrative and legal status of these authorities is a set of certain rights and obligations, enshrined in the norms of administrative law, the realization of which is provided by the specified guarantees16. Specialized Anti-corruption Prosecutor’s Office is an independent structural unit of the General Prosecutor’s Office of Ukraine. The main tasks and functions of the Specialized Anti-corruption Prosecutor’s Office are:

15 Про вищий антикорупційний суд : Закон України від 07 червня 2018 р. № 2447-VIII. URL: http://zakon.rada.gov.ua/laws/show/2447-19. 16 Попова С.М. Адміністративно-правові засади діяльності органів антикорупційного контролю. Актуальні проблеми правової науки і державотворення в Україні в контексті правової інтеграції : Матеріали XІ Міжнародної науково-практичної конференції (18–19 травня 2018 р.). Суми : Видавничий дім «Ельдорадо». 2018. С. 69–72. 196 1) supervision over observance of laws during conducting operative-search activity, pre-trial investigation by the National Anti-Corruption Bureau of Ukraine; 2) fulfillment of the requirements of the law when accepting, registering, reviewing and resolving applications and notifications of criminal offenses, timely entering information into the Unified Register of Pre-trial Investigations; 3) to ensure prompt, complete and impartial investigation by the National Anti-Corruption Bureau of Ukraine of criminal offenses and appeal of illegal court decisions at the stage of pre-trial investigation and judicial review; 4) keeping the prosecution in court in criminal proceedings investigated by the National Anti-Corruption Bureau of Ukraine; 5) provision within the limits of the competence of compensation for damages caused by criminal offenses; 6) ensuring the application of the due legal procedure to each participant in criminal proceedings; 7) representation of the interests of the state in cases stipulated by the Law of Ukraine “On Prosecutor’s Office” and related to corrupt or corruption- related offenses; 8) implementation within the framework of the functions of the Specialized Anti-Corruption Prosecutor’s Office of international cooperation17. Specialized Anti-corruption Prosecutor’s Office in accordance with the tasks assigned to it provides a number of functions:  participation in the planning of the work of the General Prosecutor’s Office of Ukraine and control over the timely and qualitative execution of the planned activities;  preparation of materials for the consideration of meetings, organization and control over the implementation of decisions taken on matters that fall within the competence of the Specialized Anti-corruption Prosecutor’s Office;  training within the authority of orders and other organizational and administrative documents;  carrying out analytical and methodical work;  working out of projects, laws and other normative-legal acts, making suggestions on improvement of the current legislation;  providing access to public information and secrecy, keeping information with limited access;

17 Про затвердження Положення про Спеціалізовану антикорупційну прокуратуру Генеральної прокуратури України : Наказ Генеральної прокуратури України від 12 квітня 2016 р. № 149. URL: http://zakon.rada.gov.ua/rada/show/v0149900-16. 197  consideration and resolution of appeals of citizens, inquiries and appeals of people’s deputies of Ukraine, representatives of state, non-governmental organizations, other persons, as well as complaints of participants in criminal proceedings on actions and decisions of prosecutors;  fulfillment of the requirements of the law on the inevitability of liability for a criminal offense committed in connection with corruption;  prevention of unlawful prosecution and unjustified application of the person, measures of procedural coercion;  implementation of measures to restore the violated rights of citizens and legitimate interests of the state etc.18. The appointment of prosecutors of the Specialized Anti-Corruption Prosecutor’s Office is carried out by the head of the Specialized Anti- Corruption Prosecutor’s Office on the basis of an open competition. The competition is organized and conducted by a competition commission. The competition is held publicly with the free access of media and journalists at a commission meeting and with the provision of real-time broadcasting. National Agency on Corruption Prevention (hereinafter – NACP) is a central executive body with a special status that ensures the formation and implementation of state anti-corruption policy. The NACP consists of five members nominated on a competitive basis by the Cabinet of Ministers of Ukraine for a term not exceeding four years. A citizen of Ukraine, not younger than thirty-five years old, who has the state language, has a higher education and, according to his / her business and moral qualities, educational and professional level, may be elected to the position of a member of the National Agency, and the state of health is capable of performing the relevant duties of the service. The same person cannot occupy the position for more than two consecutive terms. The main form of the NACP is the meeting, which is held at least once a week. The agenda is approved by such an agency. The powers of the NACP include: 1) analysis of the state of prevention of corruption in Ukraine, the activities of state authorities and local self-government in the field of prevention and counteraction to corruption; statistical data, research results and other information on corruption; 2) the elaboration of the Anti-corruption Strategy and State Program for its implementation, monitoring, coordination and evaluation of the effectiveness of the implementation of the Anti-Corruption Strategy;

18 Про затвердження Положення про Спеціалізовану антикорупційну прокуратуру Генеральної прокуратури України : Наказ Генеральної прокуратури України від 12 квітня 2016 р. № 149. URL: http://zakon.rada.gov.ua/rada/show/v0149900-16. 198 3) preparing and submitting to the Cabinet of Ministers a draft national report on the implementation of the principles of anti-corruption policy; 4) organizing studies on the study of the situation regarding corruption; formation and implementation of anticorruption policy, drafting normative acts on these issues; 5) coordination and provision of methodological assistance in identifying the corruption risks of state bodies and bodies of local self-government in their activities and implementation of their measures for their elimination, including preparation and implementation of anti-corruption programs; 6) monitoring and monitoring the implementation of legislation on ethical conduct, prevention and settlement of conflicts of interest in the activities of persons authorized to perform functions of the state and persons equal to them; 7) control and verification of declarations of persons authorized to perform functions of the state or local self-government, storage and publication of such declarations, monitoring of lifestyle of such persons; 8) the exercise of state control over compliance with restrictions on the financing of political parties, legitimate and purposeful use by the parties of budget funds, the timely submission by parties of income and expenditure reports, the external audit report of the parties’ activities and the reliability of the information included therein; 9) approval of the distribution of budget funds for financing statutory activities of political parties; 10) approval of anticorruption programs and development of a typical anti-corruption program of a legal entity; 11) involvement in the formation and monitoring of anti-corruption policy; 12) cooperation with state bodies, non-governmental organizations of foreign states within its competence; exchange of information with the competent authorities of foreign states and international organizations etc.19. The NACP has the following rights in order to fulfill its powers: 1) receive from the state authorities and economic entities and their officials the necessary information; 2) to involve scientists and employees of state bodies in carrying out certain work; 3) to accept, for matters falling within its competence, obligatory for performance of regulatory acts; 4) to carry out inspections of work organizations for the prevention and detection of corruption;

19 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: http://zakon.rada.gov.ua/laws/show/1700-18. 199 5) make provisions on violations of the requirements of legislation on ethical conduct and conflict resolution of interests; 6) initiate an official investigation, taking measures to bring to justice the perpetrators of corruption offenses; 7) to draw up protocols on administrative violations, assigned by law to the competence of the National Agency and apply the measures provided for by law to ensure conducting of cases on administrative corruption offenses20. Once every two years, the control over the expenditure of the NACP is carried out by the Accounting Chamber through an audit. Unlike the NACP, the National Anti-Corruption Bureau of Ukraine (NABU) is a “state law enforcement agency, which is responsible for preventing, detecting, terminating, investigating and disclosing corruption offenses that fall under its jurisdiction, as well as preventing the commission of new ones”. NABU’s mission is “counteracting a criminal corruption offense committed by senior officials authorized to perform state or local government functions and posing a threat to national security”21. These include people’s deputies, government members; Head of the National Bank of Ukraine, Secretary of the National Security and Defense Council (hereinafter – NSDC) and their deputies; judges are members of the High Qualifications Commission of Judges and the High Council of Justice; employees of the General Prosecutor’s Office of Ukraine and the leadership of the regional prosecutor’s offices; management of the State fiscal service of Ukraine and the Ministry of Internal Affairs of Ukraine; the highest officer of all paramilitary formations; employees of local self-government bodies and deputies of regional councils22. A citizen of Ukraine, who, according to the current legislation, has passed the test and is enlisted for the position of the commanding staff of NABU for the first time, must take an oath of allegiance to the Ukrainian people. The duties of NABU include: 1) execution of operational-search facilities for the purpose of prevention, detection, termination and disclosure of criminal offenses, assigned by law to its jurisdiction; 2) pre-trial investigation of criminal offenses; 3) taking measures for the search and seizure of funds and other property that may be subject to confiscation or special confiscation in criminal

20 Про запобігання корупції : Закон України від 14 жовтня 2014 р. № 1700-VII. URL: http://zakon.rada.gov.ua/laws/show/1700-18 21 Про Національне антикорупційне бюро України : Закон України від 14 жовтня 2014 р. № 1698-VII. URL: http://zakon.rada.gov.ua/laws/show/1698-18. 22 Про Національне антикорупційне бюро України : Закон України від 14 жовтня 2014 р. № 1698-VII. URL: http://zakon.rada.gov.ua/laws/show/1698-18. 200 offenses, the conduct of activities related to the storage of funds and other property that has been seized; 4) carrying out informational and analytical work in order to identify and eliminate the causes and conditions conducive to the commission of criminal corruption offenses; 5) provision of confidentiality and voluntary cooperation with persons who report corruption offenses; 6) implementation of international cooperation within the limits of its competence23. During the performance of their duties, the staff of the NABU have the right to take measures of physical influence, as well as to use special means and firearms if necessary. The control over NABU activities is carried out by a committee of the Verkhovna Rada of Ukraine, whose subject matter is the fight against corruption and organized crime. National agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes (Asset recovery and management agency – ARMA) is a “central executive body with a special status that ensures the formation and implementation of state policy in the field of detection and tracing assets that may be subject to arrest, and / or asset management that is seized or confiscated in a criminal proceeding <...>”, as well as “assets that are seized or are subject to recovery in the proceeds of the state in actions for the recognition of unfounded assets and their claims”24. In addition, ARMA’s tasks are: 1) implementation of international cooperation in the field of detection, tracing and asset management; 2) participation in ensuring representation of rights and interests in foreign jurisdictional bodies in cases related to the return of assets derived from corruption and other crimes in Ukraine. ARMA in accordance with the tasks assigned to it: 1) generalizes the practice of applying legislation that falls within its competence and develop proposals for the improvement of such legislation; 2) conducts analysis of statistical data, research results and other information on detection, tracing and asset management; 3) ensures the execution of appeals of the investigator, detective, prosecutor on the issues of detection and search of assets, as well as pre-trial investigation,

23 Про Національне антикорупційне бюро України : Закон України від 14 жовтня 2014 р. № 1698-VII. URL: http://zakon.rada.gov.ua/laws/show/1698-18. 24 Про Національне агентство з питань виявлення, розшуку та управління активами, одержаних від корупційних та інших злочинів : Закон України від 10 листопада 2015 р. № 772-VIII. URL: http://zakon.rada.gov.ua/laws/show/772-19. 201 prosecutor’s office, court for the search for assets, interacts with the said authorities for the purpose of seizing such assets and confiscating them; 4) interacts with the bodies of pre-trial investigation, the prosecutor’s office and the court on issues related to the transfer of assets subject to arrest in the conduct of criminal proceedings in the management of ARMA, as well as facilitates the search for premises and sites for the storage of such assets, which are imposed arrest and for which ARMA management is not carried out; 5) establishes and maintain a single state register of assets subject to arrest; 6) provides clarification, methodological and advisory assistance to investigators, prosecutors and judges on issues related to prosecution, valuation and asset management; 7) performs the selection of valuation entities, legal entities that carry out the execution of arrested assets, asset managers, banks and other persons who can provide ARMA services necessary for the performance of its tasks; 8) concludes with civil and legal agreements with legal entities and individuals on issues of valuation and asset management, including on their storage, protection, insurance; 9) controls the effectiveness of asset management transferred to ARMA; 10) monitors and keep records of court decisions on confiscation, satisfaction of claims in favor of the state in criminal proceedings in which ARMA manages assets; 11) interacts with the Ministry of Justice of Ukraine during execution of court decisions on confiscation, collection of state revenue in cases of recognition of unjustified assets and their claims; 12) carries out international cooperation with bodies of foreign states, whose competence includes the identification, tracing and asset management etc.25. Cases related to corruption (which are not within the competence of NABU) are investigated by the State Bureau of Investigations (hereinafter – the SBI), which is analogous to the US Federal Bureau of Investigation (FBI). The powers of the DBR include investigating crimes related to the activities of criminal organizations committed by law enforcement officers, as well as particularly grave violent crimes26. Unfortunately, the Law of Ukraine “On the State Bureau of Investigations”27 because of a technical error does not have a post of operational employee, and

25 Про Національне агентство з питань виявлення, розшуку та управління активами, одержаних від корупційних та інших злочинів : Закон України від 10 листопада 2015 р. № 772-VIII. URL: http://zakon.rada.gov.ua/laws/show/772-19. 26 Про державне бюро розслідувань : Закон України від 12 листопада 2015 р. № 794-VIII. URL: http://zakon.rada.gov.ua/laws/show/794-19. 27 Про державне бюро розслідувань : Закон України від 12 листопада 2015 р. № 794-VIII. URL: http://zakon.rada.gov.ua/laws/show/794-19. 202 this does not allow to announce a competition for such a post, appoint workers and start functioning units28. Other counterparts of the Ministry of Internal Affairs of Ukraine and the Security Service of Ukraine, ministries and funds are involved in combating corruption in Ukraine. At the same time, the current legislative framework needs to be improved in the issues of prevention and counteraction of corruption in public life for the further effective operation of all interested authorities and administrations, organizations and institutions. In fact, the government attempts to counteract corruption only through administrative measures, by creating new bodies, committees and bureaus whose efficiency is very low. Thus, in the Report on the results of the activities of the National Anti- Corruption Bureau of Ukraine for the first half of 2018, it is noted that the amount of losses and damage caused by criminal offenses for the previous year, classified as NABU, amounted to 196,613.2 million UAH, and their amount of compensation is 360, 4 million UAH, including 107.1 million UAH in the first half of 2018. At the same time, the cash expenses of the National Bureau for the first half of 2018 amounted to UAH 287.4 million29. This means that the coefficient of effectiveness of the anti-corruption structure created in our country is not justified. That is why, in recent years, on the basis of current legislative and other normative legal acts on issues of financial control, as well as the prevention and counteraction of corruption, entrepreneurs develop their own Anti- corruption programs for their enterprises (institutions, organizations). The compliance of the provisions of such a Program is controlled by the special official of the enterprise – the Commissioner responsible for the prevention of corruption. This program examines the essence of anticorruption strategy and anti-corruption measures, standards, procedures, establishes the procedure for their implementation, defines the rights and responsibilities of employees of the enterprise and the authorized person responsible for preventing corruption, describes the procedural moments of protection of employees who reported information about corruption or related to corruption offenses, and informing the Commissioner of the emergence of a real or potential conflict of interest, the procedure for resolving the revealed conflict.

28 Попова С.М. Функції правоохоронних органів у боротьбі з корупцією. Правоохоронна функція держави: теоретико-методологічні та історико-правові проблеми дослідження : Матеріали міжнародної науково-практичної конференції (Харків, 17 травня 2019 р.). URL: http://univd.edu.ua/general/publishing/ konf/17_05_2019/pdf/85.pdf. 29 Про внутрішнє та зовнішнє середовище України у 2018 році : Послання Президента України до Верховної Ради України від 20 вересня 2018 р. URL: https://www.president.gov.ua/news/poslannya- prezidenta-ukrayini-do-verhovnoyi-radi-ukrayini-pr-49726. 203 The development and implementation of such an anti-corruption program by all subjects of entrepreneurial activity will allow state financial control bodies and other law-enforcement bodies to timely identify officials of enterprises and related officials who use powers for illicit enrichment. All offenders risk not only being dismissed but also being brought to administrative or criminal responsibility. A guarantee of adherence to the principle of transparency in the process of the functions of anti-corruption authorities should be the publication of plans and reports of their work, which would clearly and transparently reflect the results of their anti-corruption activities, and from this would have an economic effect (the principle of effectiveness).In the absence of an economic effect, anti-corruption control activities are inefficient and inappropriate, which is why the principle of efficiency, which is rather indirectly referred to in national regulatory acts, is an important principle of control. In this regard, it is advisable to develop a Methodology for assessing the effectiveness of the control of anti-corruption authorities (where the criteria for evaluating the activities of such bodies should be formulated)30. To date, an Anti-Corruption Program NACP for 2018, which deals with the Methodology for Assessing Corruption Risks in the Activities of Authorities, is presented31, and Methodical recommendations on the preparation of anti- corruption programs32. The methodology for evaluating corruption risks in the work of the authorities determines a set of rules and procedures for assessing corruption risks in the activities of the authorities. At the same time, corruption risk is defined as the probability that an event of a corruption offense or offense related to corruption will occur, which may negatively affect the achievement of the authority’s stated goals and objectives33. The methodical recommendations for the preparation of anti-corruption programs are intended for use by the subjects of the approval of anti- corruption programs. However, there is a need to develop a Methodology for assessing the effectiveness of anticorruption controls on the performance of all created anti-corruption authorities, taking into account their tasks and

30 Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : дис.. … докт. юрид. наук : 12.00.07 / Міжрегіон. акад. управл. персоналом. Київ, 2018. С. 388. 31 Методологія оцінювання корупційних ризиків у діяльності органів влади : рішення Національного агентства з питань запобігання корупції від 02 грудня 2016 р. № 126. URL: http://zakon.rada.gov.ua/laws/ show/z1718-16. 32 Методичні рекомендації щодо підготовки антикорупційних програм : Рішення агентства з питань запобігання корупції від 19 січня 2017 р. № 31. URL: https://nazk.gov.ua/sites/default/files/ rishennya_vid_19.01.2017_no_31.pdf. 33 Методичні рекомендації щодо підготовки антикорупційних програм : Рішення агентства з питань запобігання корупції від 19 січня 2017 р. № 31. URL: https://nazk.gov.ua/sites/default/files/ rishennya_vid_19.01.2017_no_31.pdf. 204 functions.In addition, it is appropriate to highlight certain criteria by which the effectiveness of anti-corruption bodies’ activity can be assessed, namely: 1) the number of violations of legislation by anti-corruption authorities; 2) the amount of money allocated for anti-corruption measures and the amount of money spent on purpose / purpose misappropriation; 3) the quantity and quality of expert research used in anti-corruption measures etc.34. In order to obtain an economic effect from the activities of anti-corruption authorities, it is expedient to develop the Regulations on the interaction of anti-corruption authorities with other authorities of control for the exchange of information on controlled entities, effective methods of carrying out anti- corruption control measures etc. It is also necessary to oblige anti-corruption authorities at the end of each year to present the results of their activities in a consolidated table in order to have an idea of the overall results of their activities35. Anticorruption authorities need to monitor and submit proposals on the timely adoption of legislative acts on the Anti-Corruption Strategy for relevant years. In order to ensure the principles of legality and responsibility, as well as in order to protect and eliminate the violation of the rights of controlled entities, it is advisable to formulate in normative acts defining the legal status of anti- corruption authorities, norms of appeal and, accordingly, the annulment of the administrative act of the anticorruption authority in the court regarding the conduct of anticorruption control measures.In the normative acts regulating the peculiarities of planning anti-corruption measures in the field of entrepreneurship, it is necessary to consolidate the following: if at the planning stage, when collecting information about the controlled object (subject of entrepreneurship), it will be found that there are no grounds for conducting anticorruption control measures at the request of the relevant subject (even when such anti-corruption control measures are planned etc)and the applicant will be informed, the representative of the anti-corruption authority should refuse such a conduct, while making the necessary changes to the work plan and noting them in the next report of this work. It is also advisable to define the types of offenses that may be committed by representatives of anti-corruption authorities at the planning and anti- corruption stage and determine the responsibility for such offenses, which should include: 1) issuing a regulatory act on an anti-corruption measure in contravention of applicable law; 2) concealment by persons who form the

34 Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : дис.. … докт. юрид. наук : 12.00.07 / Міжрегіон. акад. управл. персоналом. Київ, 2018. С. 388–389. 35 Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : дис.. … докт. юрид. наук : 12.00.07 / Міжрегіон. акад. управл. персоналом. Київ, 2018. С. 389. 205 plan of an anti-corruption measure and the composition of the group that will carry out anticorruption verification of the subject under control, circumstances that may affect or affect the objectivity of the content of the event; 3) concealment by the employees (officials) of the anti-corruption authority, which they plan to contribute to the working group, circumstances that may affect the objectivity of anti-corruption control; 4) interference in the process of planning and implementation of an anti-corruption measure by third parties, which may adversely affect its objectivity; 5) not publishing on the official website of the anti-corruption authority an anti-corruption measures plan and a report on its implementation; 6) failure to use the measures taken by the head of the anti-corruption authority to prevent unlawful interference by third parties in the planning and implementation of anti-corruption measures36. Disciplinary and administrative measures should be applied to the head of the anticorruption authority, his employees (officials) in case of commission of the offenses, and third parties should be brought to administrative responsibility.

CONCLUSIONS The notion of corruption is given in Art. 1 of the Law of Ukraine “On Prevention of Corruption” of October 14, 2014 № 1700-VII. Given the negative impact of corruption on society, we can formulate such author’s definition of corruption. Corruption is an illegal act in order to obtain an unlawful benefit (personal benefits – previously) that are deliberately committed by officials with authority, which adversely affects the activities of the authorities and exerts a disorganization influence on society. An exhaustive list of the principles of anti-corruption policy is given in the Principles of Anticorruption Policy (Annex to the Order of the Cabinet of Ministers of Ukraine) of December 8, 2009, № 1688-р. These principles include, in particular: the rule of law and law, the priority of human and civil rights and freedoms; equality of all before the law; openness and transparency of activity of state authorities and local self-government bodies; effective interaction between the legislative, executive and judicial branches of power and the state with the public; the inevitability of liability for the commission of a corruption offense; the only state policy in the field of prevention and counteraction to corruption etc. In our opinion, violation of the principle of the inevitability of liability for the commission of a corruption offense, is the establishment of limitation periods for bringing to criminal liability in Art. 49 of the Criminal Code of Ukraine.

36 Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : дис.. … докт. юрид. наук : 12.00.07 / Міжрегіон. акад. управл. персоналом. Київ, 2018. С. 390. 206 On this occasion, the proposal to amend the Art. 49 of the Criminal Code of Ukraine, in order not to set deadlines for corruption crimes. Specially created bodies of state control of law enforcement agencies that counteract corruption in Ukraine include: Supreme Anti-Corruption Court, Specialized Anti-corruption Prosecutor’s Office, National Anti-Corruption Bureau of Ukraine, National Agency on Corruption Prevention, National agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes (Asset recovery and management agency), State Bureau of Investigations. There is a need to develop a Methodology for assessing the effectiveness of anticorruption control over the performance of all created anti-corruption authorities. It is also advisable to define the types of offenses that may be committed by representatives of anti-corruption authorities at the planning and anti-corruption stage and determine the responsibility for such offenses

SUMMARY The authors investigate the concept of “corruption”, tasks and principles of anti-corruption policy in Ukraine, define the legal basis for anticorruption policy in our country (the Constitution of Ukraine, the United Nations Convention against Corruption, Istanbul Action Plan on Combating Corruption etc.). The authors investigate the competence of specially created anti-corruption authorities (Supreme Anti-Corruption Court, Specialized Anti- corruption Prosecutor’s Office, National Anti-Corruption Bureau of Ukraine, National Agency on Corruption Prevention, National agency of Ukraine for finding, tracing and management of assets derived from corruption and other crimes, State Bureau of Investigations), and explore ways to improve the anticorruption policy of these authorities.

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208 15. Про державне бюро розслідувань : Закон України від 12 листопада 2015 р. № 794-VIII. URL: http://zakon.rada.gov.ua/laws/show/794-19. 16. Попова С.М. Функції правоохоронних органів у боротьбі з корупцією. Правоохоронна функція держави: теоретико-методологічні та історико-правові проблеми дослідження : Матеріали міжнародної науково-практичної конференції (Харків, 17 травня 2019 р.). URL: http://univd.edu.ua/general/publishing/konf/17_05_2019/pdf/85.pdf. 17. Про внутрішнє та зовнішнє середовище України у 2018 році : Послання Президента України до Верховної Ради України від 20 вересня 2018 р. URL: https://www.president.gov.ua/news/poslannya-prezidenta- ukrayini-do-verhovnoyi-radi-ukrayini-pr-49726. 18. Попова Л.М. Адміністративно-правові засади контролю в сфері підприємницької діяльності : дис.. … докт. юрид. наук : 12.00.07 / Міжрегіон. акад. управл. персоналом. Київ, 2018. 524 с. 19. Методологія оцінювання корупційних ризиків у діяльності органів влади : рішення Національного агентства з питань запобігання корупції від 02 грудня 2016 р. № 126. URL: http://zakon.rada.gov.ua/laws/show/ z1718-16. 20. Методичні рекомендації щодо підготовки антикорупційних програм : Рішення агентства з питань запобігання корупції від 19 січня 2017 р. № 31. URL: https://nazk.gov.ua/sites/default/files/rishennya_ vid_19.01.2017_no_31.pdf.

Information about authors: Popova L. M., Doctor of Juridical Sciences, Candidate of Economic Sciences, Associate Professor of Department of Finance and Credit Kharkiv National University of Construction and Architecture 40, Sumska st., Kharkiv, Ukraine

Popova S. M., Doctor of Juridical Sciences, Candidate of Economic Sciences, Professor of Department of Law Enforcement and Police Studies Kharkiv National University of Internal Affairs 40, Sumska st., Kharkiv, Ukraine

Kraіnуk Н. S., Candidate of Juridical Sciences, Assistant of Department of Criminal law № 1 Yaroslav Mudryi National Law University 77, Pushkinska st., Kharkiv, Ukraine

209 PUBLIC FIGURE AS A KEY SECTOR OF CORRUPTION RISKS AND RISKS OF CORRUPTION INCOME LAUNDERING

Protsiuk T. B., Skrynkovskyy R. M.

INTRODUCTION While determining a level of corruption in the country, a great significance is attributed to the agenda of building a national framework for prevention and counteraction of laundering of corruptive assets and its efficient performance. The said framework is pretty well-developed which is confirmed by the fact that in late 2014, as part of the anti-corruption package of reforms, a new law was adopted in this field, namely the Law of Ukraine “On Anti-Money Laundering and Counteracting Terrorism Financing and Financing of the Spread of Mass Destruction Weapons”. Priority being taken for the purpose of prevention of corruption and corruptive actions of politically exposed persons are: first, elaboration of an efficient framework of economic and financial means of control and anti-money laundering; second, introduction, in parallel with generic norms, of special norms that procure liability for commitment of specific corruptive actions and also actions and impede, which commitment the fight against corruption. On the global arena, the agenda of fighting corruption and anti-money laundering is especially acute. This is addressed by two such influential international organizations, as GRECO and FATF. It is they that elaborate international standards for combating these phenomena and directly or through regional organizations assess the states in terms of compliance with these standards. Ukraine is also assessed in this regard from time to time, and, as such experience shows, links between money laundering and corruption are traced on the theoretical, regulatory, and practical levels. The Ukrainian legislation has identified a large number of preventive due diligence measures that are applied by financial and non-financial intermediaries with regard to politically exposed persons. At that, it should be noted that the international standards employ the term “politically exposed” for these persons, while the Law calls them “publicly exposed”. In terms of their meaning, these words are not synonyms and undoubtedly differ, since the category of “publicly exposed persons” is wider than that of “politically exposed persons”. Activities of PEP’s are based on wide powers and authorities allowing control over substantial financial flows within the state and taking part in 210 money laundering schemes (budget fund embezzlement, bribery and so called “kickbacks”) for further personal enrichment. During financial investigations, a number of schemes were detected, but all of them had the same trait – cash, which complicates the process of discovering the origin of funds and allows integrating illicit gains into the real economy sector. Therefore, the Ukrainian regulation is more rigid compared to the international requirements in terms of establishing an approach to measures of control over financial transactions of persons who have higher corruptive risks. The most vulnerable to corruption is the sphere of state procurement that is expressed in bribery taking for winning bidders, embezzlement of budget funds through signing of fictive contracts by the officials, provision of benefit to the affiliated persons through unjustified revoke of competitive bids for other potential vendors. The most widespread corruption phenomenon is so-called “trade” with the official powers, i.e. use by the officials of their official position for receiving economic benefits. Those funds from implementation of the corruption schemes are further used for purchase of luxury real estate, VIP-class cars, yachtes, precious metals and stones, antiques, securities, luxury rest, investment in business and other personal needs. At the moment, formation of the unified system of measures and efforts to be used by state authorities for anti-corruption efforts is the question of present interest for Ukraine and key for development of the effective state. International experience shows that anti-corruption efforts are effective only under conditions of complex settlement, definition of clear priorities when corruption penetrates into various spheres of state life, when anti-corruption efforts are taking on a regular basis and controlled both by government and society.

1. Determination of public figure in the system of prevention of corruption, money laundering and terrorist financing In the world of financial monitoring the term “politically exposed persons” (PEP) plays an important role. This definition is used for individuals who are (or have been) endowed with significant public functions in a particular state (heads of state or government, major politicians, senior government officials, etc.). International standards for work with PEP are reflected in FATF Recommendation 12. Until 2014, the Ukrainian legislation did not have a clear definition of PEP; this client category was distinguished only by the “daughters” of foreign

211 banking groups, guided by internal standards. The specifics of work with such clients include the following areas: definition of real beneficiaries of corporate structures; identification of funds, with high probability received in doubtful way or as a result of accumulation of resources for possible illegal actions; clearing operations of a dubious nature. The aforementioned notion in the form of the expression “public figures” was reflected in the Law of Ukraine “On Prevention and Counteraction to the Legalization (Laundering) of the proceeds of crime, terrorist financing, and financing proliferation of weapons of mass destruction” adopted on October 14, 2014 (hereinafter – the “Law”) (requirements for PEP came into force in February 2015)1. It contains the division of public figures into the following categories: foreign, those who perform significant functions in an international organization, national. Also related categories are “close persons” (relatives, persons connected with common life and a number of other close relationships) and “related persons” (consultants, trustees, representatives, etc.). The definition of the term “national politically exposed persons” is given in clause 25 of part one of Article 1 of the Law2. National politically persons shall mean individuals who perform or have performed the specified public functions in Ukraine, namely:  President of Ukraine, Prime Minister of Ukraine, members of the Cabinet of Ministers of Ukraine;  First deputies and deputies of ministers, heads of other central executive authorities, their first deputies and deputies;  Members of the Ukrainian Parliament; Governor and members of the Board of the National Bank of Ukraine, members of the Council of the National Bank of Ukraine;  Chairperson and judges of the Constitutional Court of Ukraine, the Supreme Court of Ukraine, and the higher specialized courts;  Members of the Higher Council of Justice, members of the Higher Qualification Commission of Judges of Ukraine, members of the Qualification and Disciplinary Commission of Prosecutors;  Ukrainian Prosecutor General and his/her deputies;  Head of the Security Service of Ukraine and his/her deputies;

1 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/ show/1702-18 (дата звернення: 25.07.2019). 2 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення 25.07.2019). 212  Chairperson of the Anti-Monopoly Committee of Ukraine and his/her deputies;  Chairperson and members of the Accounting Chamber;  Members of the National Council of Ukraine for TV and Radio Broadcasting;  Ambassadors extraordinary and plenipotentiary;  Chief of the Headquarters – Commander-in-Chief of the Armed Forces of Ukraine, Commanders of the Land Forces, Air Forces, and Naval Forces of Ukraine;  Civil servants whose offices are categorized as offices of categories one and two;  Heads of regional bodies of the central executive authorities, regional bodies of prosecution, the Security Service of Ukraine, chairpersons and judges of courts of appeal;  Heads of administrative, management or supervisory bodies of state- owned and fiscal enterprises, economic partnerships with a share of more than 50% in the statutory capital owned by the state;  Chairpersons of governing bodies of political parties and members of their central statutory bodies. The term “foreign politically exposed persons” is defined in clause 19 of part one of Article 1 of the Law3. Foreign PEPs shall mean individuals who perform or has performed, in the course of the last three years, the defined public functions in foreign states, namely: head of state, head of the government, ministers and their deputies; members of the parliament; governor and members of the boards of the central banks; members of the supreme court, the constitutional court or other judicial bodies, which decisions are beyond appeal, except for appeals based on extraordinary circumstances; ambassadors extraordinary and plenipotentiary, charges d’affaires and heads of national military authorities; heads of administrative, management or supervisory bodies of state-owned enterprises of strategic importance; chairpersons of management bodies of the political parties represented in the parliament. It should be noted that the list of foreign PEPs is by far narrower than the one on national PEPs. At that specific monitoring for transactions of foreign PEPs in Ukraine, as a contrast to national PEPs or actors who perform political functions in international organizations, has been introduced back by

3 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 213 the Law of Ukraine “On Anti-Money Laundering and Counteracting Terrorism Financing” (of 2010)4. The term “actors who perform political functions in international organizations” is defined in clause 13 of part one of Article 1 of the Law5. Actors who perform political functions in international organizations shall mean officials of international organizations, who hold or have held, in the course of the last three years, management positions in such organizations (directors, heads of the boards or their deputies) or perform any other management functions on the highest level, particularly in international intergovernmental organizations, members of international parliamentary assemblies, judges and management officials of international courts. 1. Officials of international organizations who: – hold or have held, in the course of the last three years, management positions in such organizations (directors, heads of the boards or their deputies); – perform any other management functions on the highest level, particularly in international intergovernmental organizations. According to Article 2 of the Law of Ukraine “On International Treaties of Ukraine”, an international organization is an international intergovernmental organization. International intergovernmental organizations (IIGOs) are most often associated with the term “international organizations” as an association of three or more independent states, their governments, and other intergovernmental organizations, which seeks to address certain common issues or arrange for projects. The governments act on behalf of their states and represent their interests, while paying respect to their sovereignty. International intergovernmental organizations are often called international organizations, although the latter may also be the term for international non- governmental organizations (INGOs), such as international non-for-profit organizations, or multinational corporations. International intergovernmental organizations are an important subject within international public law, which starts acting upon signing of a mutual agreement ratified by member states. 1. Members of international parliamentary assemblies. 2. Judges and management officials of international courts. Related parties are persons with whom family members of national, foreign PEPs, and actors who perform political functions in international organizations

4 On Making Amendments to the Law of Ukraine “On Anti-Money Laundering and Counteracting terrorism Financing”: Law of Ukraine, dated May 18, 2010 No. 2258-VI. Holos Ukrayiny. 2010. Issue No. 93. 5 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 214 have business or personal connections, and also legal entities whose final beneficiary owners (controllers) are such actors or their family members or persons with whom such actors have business or personal relations. For example, under clause 28 of part one of Article 1 of the Law of Ukraine “On Financial Services and State Regulation of Financial Services Market”6, the head of a financial institution, member of the supervisory board of a financial institution, of (its) executive body, head of an internal audit unit; head of a legal person, which has a qualifying holding in a financial institution; head, controller of the related party of a financial institution; head, controller of the related party of a financial institution; members of the family of an individual who is the head of a financial institution, member of the supervisory board of a financial institution, of (its) executive body, head of an internal audit unit, head, controller of the related entity of a financial institution, head, controller of an affiliated entity (members of the family of an individual are considered to be his/her husband (wife), children or parents both of the individual and his/her husband (wife), and also the husband (wife) of any of the children or parents of the individual); a legal entity in which family members of the individual who is head of a financial institution, member of the supervisory board of a financial institution, of (its) executive body, head of an internal audit unit, head, controller of the related party, head, controller of an affiliated entity are heads or controllers. In accordance with part two of Article 1 of the Law, the term “close associates” shall be used with the meaning ascribed thereto by the Law of Ukraine “On the Fundamentals of Corruption Prevention and Counteraction”7. However, as of now, said norm of the Law is not pertinent because on October 14, 2014, the Ukrainian Parliament passed the Law of Ukraine “On Prevention of Corruption”8, following which the Law of Ukraine “On the Fundamentals of Corruption Prevention and Counteraction” lost its force and effect. The provisions of part one of Article 8 of the Civil Code of Ukraine9 entail that if civil relations are not settled by that Code, other acts of civil legislation or a contract, they are regulated by legal norms of that Code, other acts of civil legislation which regulate civil relations that are similar in nature

6 On Financial Services and State Regulation of Financial Services Market : Law of Ukraine, dated July 12, 2001, No. 2664-III. Holos Ukrayiny. 2001. Issue No. 150. 7 On the Fundamentals of Corruption Prevention and Counteraction : Law of Ukraine, dated April 7, 2011, No. 3206-VI. Holos Ukrayiny. 2011. Issue No. 107. 8 On Prevention of Corruption : Law of Ukraine, dated October 14, 2014, No. 1700-VII. Holos Ukrayiny. 2014. 206. 9 Civil Code of Ukraine : Law of Ukraine, dated January 16, 2003, No. 435-IV. Holos Ukrayiny. 2003. 45. 215 (analogy by law). That said, in the current context one should be guided by norms of the new Law of Ukraine “On Prevention of Corruption”. Paragraph four of part one of Article 1 of the Law of Ukraine “On Prevention of Corruption” entails that close associates are persons who live together, are related through common households and have mutual rights and obligations with a subject specified in part one of Article 3 of that Law (expect for persons whose mutual rights and obligations with the subject are not of family nature), including persons who live together but are not married, and also, irrespective of the stated conditions, a husband, wife, father, mother, stepfather, stepmother, son, daughter, stepson, stepdaughter, blood brother, blood sister, grandfather, grandmother, grandson, granddaughter, grand- grandson, grand-granddaughter, son-in-law, daughter-in-law, fathers-in-law, mothers-in-law, adoptive parent or adopted child, guardian or care-giver, person under guard or care of the said subject. The subject specified in part one of Article 3 of that Law is: 1) persons authorized to fulfill functions of the state or local self- government: a) President of Ukraine, Speaker of the Ukrainian Parliament, its First Vice-Speaker and Vice-Speaker, Prime Minister of Ukraine, First Vice Prime Minister of Ukraine, Vice Prime Ministers of Ukraine, ministers, other heads of the central executive authorities that are not a part of the Cabinet of Ministers of Ukraine and their deputies, head of the Security Service of Ukraine, Ukrainian Prosecutor General, Governor of the National Bank of Ukraine, Chairperson of the Accounting Chamber, Ukrainian Ombudsperson, Speaker of the Parliament of the AR of Crimea, Chair of the Council of Ministers of the AR of Crimea; b) members of the Ukrainian Parliament, members of the Parliament of the AR of Crimea, members of local councils, heads of villages, towns and cities; c) civil servants, officials of local self-government; d) military officials of the Armed Forces of Ukraine and other military formations established under the law, except for military officials under active military; e) judges of the Constitutional Court of Ukraine, other professional judges, members, disciplinary inspectors of the Higher Qualification Commission of Judges of Ukraine, staff of the secretariat of the said Commission, Chairperson, Deputy Chairperson, secretaries of sections of the Higher Council of Justice, and also other members of the Higher Council of Justice, jurors and lay judges (while they discharge their functions); f) rank-and-file and command staff of interior bodies, the state criminal executive service, State Service of Ukraine for Special Communication and

216 Data Protection, tax police, command staff of bodies and units of civil defense; g) officials and officers of bodies of prosecution, the Security Service of Ukraine, diplomatic service, state forest guard, state guard for natural reserves, central executive authority which ensures development and implementation of state tax policy and state policy in the field of state customs affairs; h) members of the National Agency for Corruption Prevention; i) members of the Central Electoral Commission; j) officials and officers of other public bodies and public bodies of the AR of Crimea; 2) persons who, for the purpose of this Law, are equalized to the persons authorized to fulfill functions of the state or local self-government: a) officials of legal entities of public law which are not specified in clause 1 of part one of this Article; b) persons who are not civil servants, officials of local self-government, but provide public services (auditors, notaries, appraisers, and also experts, bankruptcy commissioners, independent intermediaries, members of labor arbitration, court of arbitration, when they perform these functions, and other persons specified by the law); 3) persons who on a permanent or temporary basis hold offices associated with performance of organizational, managerial or administrative obligations, or are specially designated for performance of such obligations in legal entities of private law, irrespective of organizational patterns, as well as other persons who are not officers and have labor relations with enterprises, institutions, organizations – in the cases provided for by this Law. In addition, the issue of related persons to PEP should be seen in the context of a situation where it acts ultimate beneficial owner (controller) of legal entity. The conditions under which the subjects of initial financial monitoring conduct the identification, verification and contemplation of the client, as a PEP, and a list of identification data is established by Article 9 of the Law10. Identification, verification and contemplation of a PEP, usually include the following activities: – the initial identification and verification at the time of establishment of the business relationship;

10 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 217 – in-depth verification of information about a PEP, in case of doubt as to the accuracy or completeness of the provided information; – clarification of identification data and other available information about a PEP if they change or expiration of the documents on the basis of which identification was carried out, verification, contemplation. During the studying of a PEP, the entity of initial financial monitoring is recommended: – to explore the content of its activities; – to assess its financial condition; – to analyze the financial transactions according to the specifics of its activities; – to determine whether the category of PEPs or related persons; – to find out all the data relative to the address of the place of residence or his place of residence (temporary stay) in Ukraine; – to set the purpose of the business relationship. Based on the analysis of the identity of a PEP, other available data and information about him and his activities, the entity of initial financial monitoring assesses risk based on the risk criteria. Taking into account the peculiarities of the activity and by-laws of the entities of state financial monitoring, the entities of initial financial monitoring in accordance with Article 9 of the Law in the documents on financial monitoring (rules and program of financial monitoring) can set individual (specific) internal mechanisms for the identification of public officials, which may include11: – the employees of the entity of initial financial monitoring, responsible for the identification, verification, valuation of financial condition and clarify information about the PEPs; – the procedure of identification, verification concerning the PEPs; – the implementation of measures for information and/or documents to establish whether a PEP of the ultimate beneficial owner (controller), a beneficiary under financial transactions, including a list of relevant procedures, including the requested information and/or documents; – the procedure of the in-depth identification of a PEP; – the order of storage of documents and information on issues of financial monitoring and other precautions.

11 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 218 PEPs are clients whom a primary financial monitoring entity is obliged to categorize as high-risk (part four of Article 6 of the Law)12. The requirement for high-risk categorization of a PEP is a novelty under the Law. That is, if a client is a PEP, this means that subsequent to findings of assessment of his/her risks, a primary financial monitoring entity is very likely to be used for money laundering and/or terrorism financing. High risk is attributable to: a) national, foreign PEPs; b) national, foreign PEPs; c) actors who perform political functions in international organizations, d) persons related to PEPs, when a primary financial monitoring entity ascertained the fact that a client or a person acting on their behalf relates to them. Parties related to PEPs are persons with whom family members of national, foreign PEPs, and actors who perform political functions in international organizations have business or personal relations, and also legal entities, which final beneficiary owners (controllers) are such PEPs or their family members or persons with whom such PEPs have business or personal relations. Under the said norm, a primary financial monitoring entity categorizes as high-risk a legal entity being a client which final beneficiary owners (controllers) are national, foreign PEPs, and actors who perform political functions in international organizations. The said norm has been brought about by objective circumstances. In some cases, a PEP (civil servant) who collects huge amounts of money through corruption is more vulnerable than other criminals. A drug trafficker lays his/her hopes with his/her ability to stay anonymous with a large amount of money; a PEP starts attracting an undesired attention, once his/her name becomes associated with large amounts of funds from unidentified sources. Therefore, vulnerability of corrupted PEPs enables public bodies engaged in the framework of anti-money laundering, counter- terrorism financing, and counter-corruption to apply sanctions. Back in 2009, FATF’s operational monitoring revealed that PEPs are deemed as one of the largest categories of high-risk clients for money laundering; they have access to large government’s cash flows, and also are in possession of knowledge and ability to control the budget, state-owned companies and government contracts.

12 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 219 Corrupted PEPs can use these knowledge and ability to have contracts in exchange for personal financial benefits or just to set out schemes for pumping money out of the national treasury. It should be noted that the Law provides for a three-year term on the assignment of individuals to a national PEP. In practice, in many cases, the influence held by prominent public officials and close associates outlasts the term in office by years, even decades. In view of this, the entities of initial financial monitoring is recommended to apply the specified norm of the Law with regard to the risk-based approach (including beyond the three-year limit, and to be guided by an individual approach to the operations of PEPs. Additional due diligence measures that are taken by primary financial monitoring entities with regard to PEPs are set out by clause 2 of part five of Article 6 of the Law13. The said norm of the Law entails five extra measures that are taken by a primary financial monitoring entity with regard to national, foreign PEPs, and actors who perform political functions in international organizations, their close associates or related parties: 1. Detecting, in accordance with internal documents on financial monitoring, whether a client or a person acting on his/her behalf belongs to the said category of clients while carrying out identification, verification or in the process of servicing them, and also, whether they are final beneficial owners (controllers) or managers of legal entities. While carrying out identification and verification, and servicing, a primary financial monitoring entity, in accordance with internal documents on financial monitoring, detects the following: – whether a client belongs to the mentioned category of clients; – whether a person acting on behalf of the client belongs to the mentioned category of clients; – if they are final beneficiary owners (controllers) or managers of legal entities. It should be noted that a primary financial monitoring entity is obliged to ascertain the above-mentioned facts and account for them also, while conducting other due diligence measures with regard to these persons in fulfillment of further sub-clauses (b through e) of clause 2 of part five of Article 6 of the Law, namely in: establishment of business relations upon

13 Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/ 1702-18 (дата звернення: 25.07.2019). 220 permission from the manager; conducting of primary financial monitoring for high-risk clients; itemization of information about such clients. 2. Establishing business relations with such persons upon permission from the manager of a primary financial monitoring entity. According to clause 12 of part one of Article 1 of the Law, business relations are relations between a client and a primary financial monitoring entity which emerged on the basis of a financial or other services contract (including public one). The Law requires that establishment of business relations with PEPs, their close associates or related parties should be done exclusively upon permission of the manager of a primary financial monitoring entity. 3. Taking measures (before or during establishment of business relations) for identification of sources of funds of such persons on the basis of documents received therefrom and/or information from other sources, if such information is public (open), which confirm sources of their assets, rights to such assets, etc. The Law entails that, before or during establishment of business relations, a primary financial monitoring entity takes measures for identification of sources of funds (assets, rights thereto, etc.) of PEPs, their close associates or related parties on the basis of the following: – documents received therefrom; and/or – information from other sources, if such information is public (open). Documents that confirm sources of funds of a client are defined by the legislation depending on the legal execution of transactions, their type and essence. For instance, under the Ukrainian law, there are various ways for a person to acquire the ownership right for funds: income received from the sales of manufactured products and delivered services, the sales of property owned by this person, inheritance, a lottery prize, acquisition of the right for treasure trove, etc. In each particular case, documents that confirm the person’s ownership rights for received funds will be different. Therefore, sources of funds which (details) are shared by persons with primary financial monitoring entities should be confirmed with relevant documents: for example, financial statements that contain information about the types and amount of received income, payment/settlement documents that evidence revenues received for services rendered, an income declaration, documents on inheritance, payment of insurance proceeds under an insurance contract, etc. 4. Conducting primary financial monitoring of financial transactions which participants or beneficiaries are such persons under the procedure specified for high-risk clients, with due regard to recommendations of the relevant state

221 financial monitoring entity which performs, under the Law, the functions of state regulation and supervision over a primary financial monitoring entity. Under clause 31 of part one of Article 1 of the Law, primary financial monitoring is a totality of actions that include, among other things, conducting of mandatory and internal financial monitoring. Such monitoring is conducted with due regard to recommendations of the relevant state financial monitoring entity which performs, under the Law, the functions of state regulation and supervision over a primary financial monitoring entity. 5. Itemizing information about a client at least once a year. In accordance with clause 44 of part one of Article 1 of the Law, itemizing information about a client is updating data on a client, including identification details, through documented confirmation of presence (absence) of changes therein. Part seventeen of Article 9 of the Law entails that the state financial monitoring entities may establish specific features of itemization of information about clients for relevant primary financial monitoring entities depending on specifics of their activity and/or clients’ risks. Annual itemization of information about a PEP is a specific requirement for monitoring of the activity (transactions) of PEPs as high-risk clients, which is a novelty under the Law.

2. Practical issues of the use of the concept of “public persons” in order to prevent corruption manifestations One of the principles of building a democratic society is that business must be separate from politics. Accordingly, there are legislative instruments designed to distinguish between these two areas. One such fundamental instrument is the restriction on the exercise by officials of their corporate rights – that is, the rights to own, manage and manage the business. The current Law of Ukraine “On Prevention of Corruption”14 from 2014 contains a ban on entrepreneurial activity, but does not limit the right of officials to own corporate rights. Thus, today, any person authorized to perform state or local government functions may own corporate rights and act as the ultimate beneficiary of any company. Conscious of the unconstitutionality of the prohibition of corporate rights, the legislator decided to go the other way – to limit the possibility of using them. Thus, in the current Law of Ukraine “On Prevention of Corruption”, a separate issued Article 36 was entitled “Prevention of conflict of interests in connection with the presence of individuals or corporations”.

14 Про запобігання корупції : Закон України від 14 жовт. 2014 р. № 1700-VII. Дата оновлення: 16.07.2019. URL: https://zakon.rada.gov.ua/laws/main/1700-18 (дата звернення: 25.07.2019). 222 According to this Article of the Law of Ukraine “On Prevention of Corruption”15, all persons authorized to perform functions of the state or local government, as well as officials of legal entities of public law and persons who are members of the supervisory board of a state bank, enterprise or profitable organization, are obliged within 30 days after appointment (election) to the post to transfer their respective enterprises and corporate rights to the management of another person. Within 1 day after the implementation of such a transfer, a person must notify the NACP in writing, providing a notarized copy of the concluded agreement. Along with the obligation to pass, the Law also specifies the possible ways of such a transfer. When it comes to a unitary enterprise (such as that created by one founder), its transfer to management should be done by concluding an agreement on management of property with the subject of entrepreneurial activity. Corporate rights can be transferred to management in one of the following ways16:  Conclusion of an agreement on securities management, other financial instruments and cash intended for investing in securities and other financial instruments. A securities trader with a relevant license from the NSSMC should act as a steward here. This method of transmission is relevant in the case of stock company stock.  Conclusion of an agreement on the creation of a venture unit investment fund for the management of the transferred corporate rights with an asset management company, which has a corresponding license of the NSSMC. The transfer of corporate rights as a payment for the value of securities of a venture unit investment fund is carried out after the registration of the NSSMC by the issue of securities of such a joint investment institution. Taking into account the low level of development of the Ukrainian stock market and the complexity of the procedure for the establishment of a joint investment institution, this elegant way of transfer is the most burdensome for an employee. The Law does not allow individuals to pass on management of their respective enterprises and corporate rights in favor of family members, as well as to conclude the contracts with the entities in which their family members work. The term “family member” is used here in the meaning of Art. 1 of the Law and Clause 1.1.4 of the Methodological Recommendations on the Prevention and Settlement of the Conflict of Interest, approved by the NACP Decree from September 29, 2017, No. 83917. Thus, to the family

15 Ibid 16 Науково-практичний коментар до Закону України «Про запобігання корупції» / Наук. ред. Хавронюк М.І. Київ : Ваіте, 2018. 472 с. 17 Ibid 223 members of a person that is authorized to perform functions of the state or local self-government, under any circumstances wife or husband is included. For the purposes of the Law, other persons (children, parents, etc.) are considered as family members only in the presence of a combination of such features as (1) the common residence with a person, (2) the connection with a common life, and (3) the existence of mutual rights and obligation that have the family character. Also, one of the practical measures of identification of PEPs is the introduction of the Unified State Register of Declarations of persons authorized to perform functions of the state or local self-government. Provides maintenance of the Unified State Register of Declarations of persons authorized to perform functions of the state or local self-government in accordance with paragraph 9 of part one of Article 11 of the Law of Ukraine “On Prevention of Corruption” by the NACP. According to Article 47 of the Law of Ukraine “On Prevention of Corruption”18 (registration and disclosure of duplications), the NACP provides open-access round-the-clock access to the Unified State Register of Declarations of Persons Authorized to Perform State or Local Government Functions on its official website. Information on a person in the Unified State Register of Declarations of persons authorized to perform functions of the state or local self-government shall be kept throughout the entire period of performance of this person by the functions of the state or local self-government, as well as within five years after the termination of the fulfilment of these functions, in addition to the last declaration filed a person who is kept indefinitely. In accordance with the foregoing to a written communication from the NACP on the transfer of corporate rights to management, such a transfer must also be correctly reflected in the electronic declaration. Interestingly that the Law needs to declare information about the person-keeper of securities (p. 4 of Part 1 of Art. 46 of the Law)19, but does not contain a similar direct obligation to declare managers of other types of corporate rights, in particular, shares in LLC. It is also significant that the interface of the electronic declaration in the section “Corporate Rights” does not contain a separate graph “Administrator”. At the same time, while completing the declaration, recommend to transfer any corporate rights to the management – for this purpose, in the section “Rights to this object”, the owner of such rights should be identified

18 Про запобігання корупції : Закон України від 14 жовт. 2014 р. № 1700-VII. Дата оновлення: 16.07.2019. URL: https://zakon.rada.gov.ua/laws/main/1700-18 (дата звернення: 25.07.2019). 19 Ibid 224 separately, after which additionally “Other right for use” should be chosen, the word “Management” should be written in the next line on your own and the manager’s information should be specified. For non-compliance with the requirements of Art. 36 of the Law of Ukraine “On Prevention of Corruption”20 on Transfer of Corporate Rights to Management there is administrative or criminal liability provided. At the moment, the only possible form of liability that a person may incur for violating the requirements of Art. 36 of the Law is a disciplinary responsibility. In case of detection of a violation by the official of Art. 36 of the NAPC, the Law of Ukraine “On Prevention of Corruption”21 gives the head of the body, enterprise, institution or organization, where the violator works, a statement on the elimination of violations of the law, conduct of official investigation and bringing such a person to liability. Upon receipt of the NACP prescription, the head of the body complies with all his requirements and imposes a fine for disciplinary action. The type of such a penalty depends on the person of the offender – for example, if he is an employee of a state- owned enterprise, he may be subject to reprimand or dismissal (Article 147 of the Labor Code), if the civil servant may be a remark, reprimand – a warning about incomplete official liability or dismissal ( Article 66 of the Law “On Civil Service”). If the supervisor has not complied with the prescription and within 10 working days from the date of receipt of the order has not informed the NACP about its execution, he is brought to administrative liability under Art. 188-46 CUAO. In this context, one more thing of any corruption-related offense should be remembered. Even in the case of imposition of the most mild measure of disciplinary enforcement, the offender in accordance with Art. 59 of the Law is still entered into the open Unified State Register of Persons who committed corrupt offenses. Any person can check the presence of an official in the Register that creates additional reputational risks for him. Moreover, the presence of a personal record in the Register may significantly impede his career advancement in public authorities or cause a refusal during a competitive selection for some positions. Lack of administrative and criminal liability under Art. 36 of the Law of Ukraine “On Prevention of Corruption”22 is a significant disadvantage of the Law – yes, certain categories of persons may not transfer their corporate

20 Про запобігання корупції : Закон України від 14 жовт. 2014 р. № 1700-VII. Дата оновлення: 16.07.2019. URL: https://zakon.rada.gov.ua/laws/main/1700-18 (дата звернення: 25.07.2019). 21 Ibid 22 Про запобігання корупції : Закон України від 14 жовт. 2014 р. № 1700-VII. Дата оновлення: 16.07.2019. URL: https://zakon.rada.gov.ua/laws/main/1700-18 (дата звернення: 25.07.2019). 225 rights to management and thus remain unpunished. For example, people’s deputies are not officials and do not have heads, and therefore they can not apply disciplinary measures. All that remains in this case is political responsibility. Deputies of local councils belong to persons authorized to perform functions of the state or local self-government, and therefore under the law they are also obliged to transfer their corporate rights to management. At the same time, unlike the people’s deputies and the absolute majority of civil servants, members of local councils exercise their powers on a voluntary basis “without breaking the production or service activities” (Article 6 of the Law “On the Status of Deputies of Local Councils”). This leads to a paradoxical situation: a deputy of a local council has the right to engage in entrepreneurial activity and work in commercial structures, but at the same time is obliged to transfer his corporate rights to management. In fact, in 2014–2015, banks did not exercise due control over PEPs. Initially, the delay was justified by the absence of the relevant regulatory framework of the NBU. Methodical recommendations on identifying public figures, placed on the official site of the SIM, are of a recommendatory nature and do not specify the procedures for work with the PEP. After the provision of the National Bank of Ukraine on the implementation of financial monitoring by banks (Resolution No. 417 of June 26, 2015), which established a 3-month time limit for bringing PEP procedures in accordance with the legislation, the situation did not radically improve. During this period, the formality of the implementation of the normative requirements regarding the PEP in banking institutions took place. Taking into account the passions surrounding the e-declaration, the necessity of conducting the NBU’s supervision of the analysis of individual banks has risen in the light of the current and constantly updated list of PEPs. Important points of this analysis should be the following: concentration of funds of such depositors in obligations, the nature of their political and business relations with shareholders of banks, the availability of personal guarantees PEP and pledge their property on loans, the logic of payment transactions involving the PEP, their operations with securities and with foreign currency. The responsibility for this should be relied on by the Department of Financial Monitoring, which will formulate and update it for use by employees of banking supervision. The content of the analysis and the clarifying information should be accompanied by the stamp “BS” (bank secrecy). The urgency of developing such procedural moments is confirmed by a number of examples (in advance, we apologize for inexperienced bank nuances of readers). For example, a bank supervisor uses a report form for large lenders

226 to analyze the bank (form 625; for deposits exceeding UAH 2 million), which does not reflect the names of individual lenders. There is information about their identification codes only. As for other lenders (corporate structures, non- residents, legal entities, banks), such information is displayed without restrictions. The Office of Curators (NBU staff sent to banks for day-to-day on- site monitoring) in the Banking Supervision Department is also a bottomless source of information about PEP, and their operations are practically online. That’s just the practice of the regulator, which shows that the potential of such surveillance instruments, with a high probability, is not used to its fullest. First of all, due to poor regulation of banking supervision. The international standards relating to financial institutions and designated non financial businesses (DNFBs) relationships with PEPs are set by the Financial Acton Task Force (FATF). The standards are expressed in the FATF’s 40 Recommendations23 and expanded upon in the Interpretative Notes to the recommendations. Best practice for financial institutions and DNFBs, collectively referred to hereafter as Reporting Entities (REs), in establishing and maintaining financial relationships with PEPs has been established by countries in legislation and regulatory requirements, but considerable guidance has been provided by the FATF itself, international organizations, and others such as Wolfsberg Group, the Bank of International Settlements, the Basel Institute for Governance and the Egmont Group of Financial Intelligence Units (The Egmont Group). A particularly useful and informative source of information on PEPs and anti-corruption measures generally is the Stolen Asset Recovery (StAR) Initiative, a joint initiative of the World Bank and the United Nations Office on Drugs and Crime (UNODC). A PEP is defined by the FATF as “an individual who is or has been entrusted with a prominent public function”. The FATF recognizes that, due to their status and influence, many PEPs are in positions that can be platforms for committing money laundering and related predicate offences, particularly corruption related offences. These include corrupt practices and bribery, as well as conducting activity related to the financing of terrorism. Consequently, the FATF Recommendations require the application of additional customer due diligence to business relationships with PEPs due to the potential risk associated with PEPs. It must be emphasized that these measures are preventive in nature. The FATF emphasizes that it should not be automatically inferred that all PEPs are involved in criminal activity or that they are, by default, involved in corrupt practices.

23 Financial Action Task Force 40 Recommendations. URL: http://www.fatf-gafi.org/topics/ fatfrecommendations/documents/fatf-recommendations.html. 227 Addressing the risks associated with PEPs requires the effective implementation of FATF Recommendations 10, 12 and 22, amongst others. Recommendation 12 is specific to PEPs and sets out Anti Money- Laundering/Counter-Terrorism Financing (AML/CTF) measures applicable to reporting entities that engage in or enter into a business relationships with PEPs. Recommendations 10 and 22 are general customer due diligence requirements for financial institutions and DNFBs respectively. International standards and best practices require that due diligence measures be applied to each PEP, whether the PEP is a customer or beneficial owner, or beneficiary of a wire transfer, insurance policy, trust etc.24 Such measures are also to be applied to his/her immediate family members and close associates however defined by the individual jurisdiction. In addition to performing normal customer due diligence measures, reporting entities must as a minimum apply the following enhanced due diligence measures:  have appropriate risk-management systems to determine whether the customer or the beneficial owner is a PEP, or immediate family member or close associate of a PEP;  obtain senior management approval before establishing, or continuing, the business relationship;  take reasonable measures to determine the source of wealth and source of funds; and  conduct enhanced on-going monitoring of the business relationship. Reasonable measures should be taken to determine whether a customer or beneficial owner is a foreign or domestic PEP or a person who is or has been entrusted with a prominent function by an international organization. The requirements for PEPs must also be applied to immediate family members and close associates of such PEPs. The key to the effective monitoring of a business relationship with a PEP is for reporting entities to always adopt a risk-based approach and to strictly apply “know your customer” principles as set out in the FATF 40 Recommendations and Guidance Notes. Determining whether customers or beneficial owners are PEPs and/or finding out who are their family members and close associates can be challenging, particularly when dealing with foreign PEPs for whom current information may not be readily available. Another implementation issue is determining whether existing clients of financial institutions and DNFBPs have become PEPs since the business relationship began.

24 FATF Guidance – Politically Exposed Persons (Recommendations 12 and 22), paras 32–35. URL: http://www.fatf-gafi.org/topics/fatfrecommendations/documents/peps-r12-r22.html. 228 International standard setters and others have suggested a range of measures that can be applied in dealing with PEPs or possible PEPs. These are summarized below. Almost all of the reference materials listed at the end of this section contain some guidance on best practices for the determination of PEPs and others associated with them. The FATF stresses that customer due diligence is the key source of information for the purpose of determining that a customer is a PEP, as required by FATF Recommendations 10 and 12.  Ensuring that client CDD information is up to date.  Employees – FATF Interpretative Note to Recommendation 18 requires internal control policies to include ongoing employee training programs.  Internet and media searches – while general searches on the larger search engines can prove difficult because of the number of “hits” that would require reviewing, free search tools are offered through AML-specific websites that would be more targeted. In addition, searching focused sources that could be linked to the customer may assist in locating relevant information, for example, social media websites in the customer’s country of origin. Internet searches can also assist in retrieving general relevant country information. For example, for a financial institution or DNFBP it is relevant to know which countries prohibit certain PEPs (such as elected officials) from maintaining bank accounts abroad.  Commercial databases – there are a variety of commercial databases available which may assist in the detection of PEPs. Use of these databases is not required by the FATF Recommendations, and is not sufficient for compliance with Recommendation 12. Financial institutions, DNFBPs and competent authorities can acquire access to such databases through the payment of a subscription.  Government issued PEPs lists. Some governments do issue lists of PEPs but it is rare and it is generally recognized that they are often of limited value because they usually only include lists of names. There are varying opinions on the value of such lists, most of them negative. The FATF favors a list of government positions and appointments rather than one containing names and makes it clear in its guidance that simply checking a list compiled by a government agency does not satisfy customer due diligence requirements. A list of positions and appointments, the incumbents and former incumbents of which would fit the definition of a PEP, provides reporting entities with a direct point of reference and is much easier for governments to keep up to date and therefore accurate. This is the approach favored by the FATF.  In-house databases and information sharing within financial groups or countries.  Asset disclosure systems.  Customer self-declarations. 229 CONCLUSIONS The analysis of modern national and international law testifies to the use of different concepts in the system of prevention of corruption and AML/CFT. The use a “public figure”, “public person”, “political figures”, can mislead and complicate procedure of authentication and verification of client the subjects of the primary financial monitoring. Use in the national legislation of category a “public figure” is more wider, than the concept “political figure”, that is used in international standards. Accordingly, requirements in obedience to the Ukrainian legislation to them are harder comparatively with international requirements. But it, in turn, does not facilitate work at the application of control measures after the financial operations of persons, that have to increase corruption risks. Control complication consists in the possibility of verification of belonging of a person to PEPs. Official register of PEPs now it is not had in Ukraine. There are various commercial bases and bases that develop public organizations that help to carry out verification of persons and search of intercommunication from PEP. But they can contain subjective information and fully to trust it is impossible in them. Also to the persons, functions of the state or organs of local self-government, that to setting carried on entrepreneurial activity, authorized on implementation, it is not forbidden to have in-property corporate laws and to come forward as an eventual beneficiary of any companies. The legislation does not allow to the persons to pass in management the proper to them enterprises and corporate laws in behalf on family members, and also to enter into the mentioned contracts with subjects, their family members work in that. But here again, questions appear with the application of category “family members”. Thus, application of national and international legislation in relation to authentication of PEPs, control after realization by them financial operations and others like that, has substantial changes. But from realization of measures of prevention of corruption and washing of money is required by the improvement of existent legal norms.

SUMMARY It is reflected concept “public figure”, “public person”, “near persons” and “constrained persons”. The modern national and international legislation of prevention of corruption and counteraction of washing of profits, financing of terrorism is analyzed. The different fixing of terms in normatively-legal acts can mislead and complicated the procedure of authentication and verification of client the subjects of the primary financial monitoring. Taking into account, that a term “public person” is wider, than the concept “political person”, that is used in international standards, and accordingly, requirements in obedience to the Ukrainian legislation are harder comparatively with international.

230 Investigated, except the concept vehicle of PEPs, practical questions of realization of authentication of PEPs, requirements in relation to the corporate laws of the authorized persons that execute the functions of the state or local self-government and others like that. The complication of financial control is reduced, in particular, consists of difficulties of verification of belonging of a person to PEP. The official registry of PEP at the moment Ukraine has not. Application of national and international legislation on the identification of probes, monitoring of their conduct of financial transactions and the like, has significant changes. But with the implementation of measures to prevent corruption and money laundering requires improvement of existing legal norms.

REFERENCES 1. Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансу- ванню розповсюдження зброї масового знищення : Закон України від 14 жовт. 2014 р. № 1702-VII. Дата оновлення: 24.11.2018. URL: https://zakon.rada.gov.ua/laws/show/1702-18 (дата звернення: 25.07.2019). 2. Про запобігання корупції : Закон України від 14 жовт. 2014 р. № 1700-VII. Дата оновлення: 16.07.2019. URL: https://zakon.rada.gov.ua/ laws/main/1700-18 (дата звернення: 25.07.2019). 3. Звіт про проведення Національної оцінки ризиків у сфері запо- бігання та протидії легалізації (відмиванню) доходів, одержаних злочин- ним шляхом, та фінансуванню тероризму. URL: http://www.sdfm.gov.ua/ content/file/Site_docs/2016/20161125/zvit_ukr.pdf (дата звернення: 25.07.2019). 4. Науково-практичний коментар до Закону України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення» / Чубенко А.Г., Лошиць- кий М.В., Бичкова С.С., Котляревський Я.В. Київ : Ваіте, 2015. 816 с. URL: https://finmonitoring.in.ua/wp-content/uploads/2017/02/komentar.pdf (дата звернення: 25.07.2019). 5. Збірка актів законодавства з питань запобігання та протидії легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення (з коментарями та роз’ясненнями) / Укладачі: Бичкова С.С., Котляревський Я.В., Лошицький М.В., Павлов Д.М., Удовик М.С. Київ : Ваіте, 2017. 1052 с. URL: https://finmonitoring.in.ua/ wp-content/uploads/2017/02/zbirka_npa.pdf (дата звернення: 25.07.2019).

231 6. Термінологічний словник з питань запобігання та протидії легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму, фінансуванню розповсюдження зброї масового знищення та корупції / Чубенко А.Г., Лошицький М.В., Павлов Д.М., Бичкова С.С., Юнін О.С. Київ : Ваіте, 2018. 826 с. URL: https://finmonitoring.in.ua/wp-content/uploads/2018/12/terminologichnij- slovnik_finmonitoring.pdf (дата звернення: 25.07.2019). 7. Звіт за результатами п’ятого раунду взаємної оцінки України був затверджений MONEYVAL у ході його 55-го Пленарного засідання (м. Страсбург, 5–7 грудня 2017 року). URL: https://finmonitoring.in.ua/wp- content/uploads/2018/03/zvit_ukr.pdf (дата звернення: 25.07.2019). 8. Відмивання доходів, отриманих від корупційних діянь: типологічне дослідження. Київ, 2016. URL: http://www.sdfm.gov.ua/ content/file/Site_docs/2016/20161230/Tipologia_2016.pdf (дата звернення: 25.07.2019). 9. Методичні рекомендації щодо виявлення публічних діячів та забезпечення проведення фінансового моніторингу їх фінансових операцій (оновлено та актуалізовано станом на 26 січня 2016 року). Київ, 2016. URL: http://www.sdfm.gov.ua/content/file/Site_docs/2016/20160127/ recomendacii.pdf (дата звернення: 25.07.2019). 10. Науково-практичний коментар до Закону України «Про запо- бігання корупції» / Наук. ред. Хавронюк М.І. Київ : Ваіте, 2018. 472 с. 11. FATF Guidance politically exposed persons (recommendations 12 and 22). URL: http://www.fatf-gafi.org/media/fatf/documents/recommendations/ Guidance-PEP-Rec12-22.pdf (дата звернення: 25.07.2019).

Information about authors: Protsiuk T. B., Candidate of Juridical Sciences, Associate Professor, Head of the Training Center for Public Authorities and International Cooperation Academy of Financial Monitoring 24, Biloruska st., Kyiv, Ukraine

Skrynkovskyy R. M., Candidate of Juridical Sciences, Associate Professor, Associate Professor of the Department of Business Economy and Information Technology Lviv University of Business and Law 99, Kulparkivska st., Lviv, Ukraine

232 IDEOLOGY OF POLITICAL PARTIES IN UKRAINE: POPULISM, CORRUPTION OR “NATIONAL IDEA”?

Rogova O. H.

INTRODUCTION It is well known that the Constitution of Ukraine (Article 15) stipulates that “Public life in Ukraine is based on the principles of political, economic and ideological diversity. No ideology can be recognized by the state as obligatory”1. This norm of the Constitution of Ukraine has become the legal basis for the creation and operation of a significant number of political parties, which are the main “providers” of political interests of citizens. In accordance with Art. 2 of the Law of Ukraine “On Political Parties in Ukraine” (hereinafter – the Law), “political party is a voluntary association of citizens who are adherents of a national social development program, registered in accordance with law and whose purpose is to promote the formation as well as expression of citizens political will. A political party participates the elections and other political events”2. Leaving beyond the scope of our study the achievement of European partology and the existing classifications of political parties (sufficiently thoroughly described by V.B. Kovalchuk3), we note that in the modern state of Ukraine, a consistent approach is being implemented, according to which: 1) political parties are considered to be an essential element of the public legal order; 2) these are voluntary organizations – mechanism of realization of political rights of citizens; 3) the ability and willingness of parties to participate in democratic procedures is obligatory; 4) the presence in political parties of a certain national program of social development is presumed. Thus, political parties as components of civil society should be the expressions of the political interests of citizens while everyone has his own private interest. Meanwhile, political parties have to become the founders and executors of a certain nationwide program. It means becoming a speaker of public interest. “Political parties must have a program. The political party

1 Конституція України. Науково-практичний коментар / редкол.: В.Я. Тацій (голова редкол.), О.В. Петришин (відп. секретар), Ю.Г. Барабаш та ін.; Нац. акад. прав. наук України. 2-ге вид., переробл. і допов. Харків : Право, 2011. 1128 с. 2 Про політичні партії в Україні : Закон України від 5 квітня 2001 року № 2365-III. Дата оновлення: 01.10.2018. URL: https://zakon.rada.gov.ua/laws/show/2365-14 (дата звернення: 23.07.2019). 3 Ковальчук В.Б. Правові принципи функціонування політичних партій в процесі демократичної легітимації. Часопис Національного університету «Острозька академія». Серія «Право». 2012. № 1(5). URL: http://lj.oa.edu.ua/articles/2012/n1/12kvbpdl.pdf (дата звернення: 10.07.2019). 233 program is an outline of the goals and objectives of this party, as well as the ways to achieve them”4. The principle of public legal order – to guarantee the activities of political parties as elements of civil society – also grounds the fundamental civil rights of persons as well. It is important to say, the Law (Art. 5) defines only “negative boundaries” of a public legal order whose violation is unacceptable for political parties. These boundaries are “…the interests of national security and public order, public health or the protection of the rights and freedoms of others, as well as in other cases stipulated by the Constitution of Ukraine”5. In fact, the Law sets certain “fuses” against extreme political phenomena (right оr left). At the same time, applying the generally permissible principle of regulating the activities of political parties, the state does not impose strict restrictions on the content of their programs and statutory documents. Reflecting on challenge to democracy, R. Bellamy and W. Merkel believe that “First, let’s be reminded that all extreme right phenomena – from neo- Fascists to radical Islam – are part of civil society; there is also dark civil society. Second, the central place of political parties in representative democracy has a complex role. They move up the ladder from identity politics into interest-representation into interests’ aggregation, into ideology formation and set of policies for implantation”6. Taking into account that the main purpose of the policy and its most important actors – political parties – should be the formation, articulation and realization of public (national) interests it is important to understand the role of ideology in the activities of modern political parties.

1. Іdeology In our country, at the constitutional level, the prohibition of the recognition of a single ideology is mandatory. It is quite clear that the said norm of the Constitution of Ukraine is the result of a rethinking of the previous historical period of national history, when the domination of party mono-ideology was destructive for all spheres of society’s life. At the same time, in our opinion, a somewhat simplified understanding of the essence of ideology or its radical interpretation leads to the impairment of the phenomenon of ideology in the eyes of society as an axiological basis for the development of the state.

4 Про політичні партії в Україні : Закон України від 5 квітня 2001 року № 2365-III. Дата оновлення: 01.10.2018 URL: https://zakon.rada.gov.ua/laws/show/2365-14 (дата звернення: 23.07.2019). 5 Ibid 6 Richard Bellamy, Wolfgang Merkel. Chapter 14 – Inequality as a Challenge to Democracy. International Panel on Social Progress. URL: https://comment.ipsp.org/sites/default/files/pdf/chapter_14_-_ inequality_as_a_challenge_to_democracy_ipsp_commenting_platform.pdf (дата звернення: 23.07.2019). 234 Today in the scientific discourse you can find a lot of convincing research that justifies the concept of “ideology – is a trap for pluralism and democracy in general”. On the other hand, there is an opposite position: it is hardly possible to imagine a political system without ideology. “It is no coincidence that the crisis of all civilizations and social systems is at the root of the ultimate ideological crisis, but any social rebirth also begins with the purification and renewal of social ideals, from the approval of a new system of values”7. The crisis of party ideology associated with the collapse of the Communist Party monopoly in the Soviet period of Ukrainian history in the first years of independence led to “attempts to mass deideologization, the rejection of the need for ideology at all”8. In our opinion, the formation of the political system of independent Ukraine took place simultaneously with the gradual depreciation of ideology as a national value in the public consciousness. Тhat is why the domestic concept of the role and purpose of political parties developed “from the opposite” – not through the affirmation of certain unifying values for society, but by denying and deprecating the ideas of the previous historical period. That is why programs of political parties often do not have meaningful connection with slogans declared for voters, do not have systemicity and integrity, and the parties do not bear any responsibility for changing their political course. Ukrainian parties ideologies are characterized by mostly declarative populist slogans that consider to be absolutely not binding. After the communist ideology collapse the formation of Ukrainian statehood was accompanied by the declared commitment of the political leadership of the country to liberal European legal values – the rule of law, rights and freedoms of man and citizen, political pluralism. In practice, for the most part, there was an “imitation of respect” for these values, which gradually led to a mass disillusionment with the newly declared ideology. From a moral, ethical and legal point of view, there was an absolutely cynical situation: against the backdrop of social impoverishment and poverty of most of the population due to unprofessional reforms and corruption, the political leadership of the state continued to confidently proclaim the irreversibility of the reformist course, covering its corrupt activities with beautiful slogans of the ideology of European liberalism. The study of political relations and the development of ideologies in Ukraine from the time of gaining state independence to the present has shown the failure of any of the declared ideological models for a long time to unite

7 Дьоміна О.С. Політична ідеологія як духовний регулятив суспільно-політичного розвитку. Грані. 2015. № 12/1 (128). С. 19. 8 Риженко Є.С. Інтегративна ідеологія як чинник консолідації українського суспільства : автореф. дис. ... канд. політ. наук : 23.00.02. Київ, 2008. С. 14. 235 Ukrainian society and give it an impetus for sustainable socio-political development. This failure led to ideological fragmentation and to the awareness of the need to form new unifying ideas. However, the formation of an integrative ideology is now in its original state9. The lack of a holistic ideology capable of uniting society has also affected the political views of ordinary Ukrainians. In our opinion, in the most general form, this situation can be described as political confusion, that is, the lack of its own political identity, as well as misunderstanding of the most important trends in the development of the political system of society and the role of political players. On the other hand, under the conditions of the crisis of traditional (classical) ideologies it is hardly possible to expect from ordinary citizens a high level of political consciousness and awareness. Today, scientists are discussing questioning “the narrowing, and in some cases – the actual disappearance of ideological differences between key political actors (first of all the parties)”10. According to sociological surveys of the Razumkov Center, which characterize the attitude of Ukrainian citizens to various aspects of political parties’ activity in 1990–2017, less than half (47%) of respondents were able to choose an ideological and political direction that is consistent with their convictions. Among respondents who were able to choose a certain ideological and political direction, 53% indicated that among Ukrainian parties there is one whose activities correspond to it. 31% noted that there is no such party (in November 2014, such respondents were 62%)11. As M. Prymush rightly points out, in the Ukrainian research environment a common view is that the ideology of political parties acts as a formal, optional phenomenon, developed only for the classification and polarization, depending on the spectrum of political forces. Such an opinion was respected, in particular, by Y. Shveda, F. Kirilyuk, M. Obushny12. Ukrainians had the opportunity to make sure that even the parties that came to the public authorities repeatedly changed their political courses depending on the political situation. The aforementioned tendencies reminiscent of a children’s

9 Риженко Є.С. Інтегративна ідеологія як чинник консолідації українського суспільства : автореф. дис. ... канд. політ. наук : 23.00.02. Київ, 2008. С. 15. 10 Примуш М. Проблеми формування ідеологій українських політичних партій на сучасному етапі. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова. 2017. С. 373. 11 Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова, 2017. C.172, 176. 12 Примуш М. Проблеми формування ідеологій українських політичних партій на сучасному етапі. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова. 2017. С. 375. 236 game in hide and seek, when the parties hide from voters for socially attractive populist programs, for the sole purpose of gaining power at any cost. The next stage is “disclosure of faces”, and voters are aware that they have again fallen victim to mass deception. By substituting concepts and systemic manipulations for public consciousness, there is a substitution of public interests by group or narrow corporate the ones. In practice, this leads to a chain reaction of politically significant events: 1) not having in the general public the experience and high culture of political activity, the society (its part), whose consciousness establishes the associative connection between certain political slogans (ideology) of a political party, has legitimate expectations regarding the definition and implementation of the said ideology in the case of the election of members of the political party to parliament; 2) casting their vote for a certain political party, citizens are persuaded that in the parliament, the faction of this political party will work hard to implement the declared public interests; 3) observing the events in the parliament and assessing the effectiveness of their work, citizens feel frustrated and disillusioned with the election process and the results of political power in general. It can be said that the existence of double rules of the game causes the cynical situation of the commercialization of the electoral process. It’s a shame to admit that the price issue here is the formation of the highest bodies of public power, which are responsible for choosing a strategic course for the development of the entire state and society. One of the most popular in Ukrainian expert and journalistic environments is based on the idea that the ideology of a political party is actually viewed as a pre-election commodity, or, in the language of business, “a unique trade offer”13. In our opinion, the greatest danger to the values of democracy is the possibility of systematic manipulation and populist speculation on the most significant problems for society (for example, prevention of corruption, economic recovery and creation of new jobs, energy independence, “European choice”, etc.). On the varied political spectrum of modern Ukraine, we can hardly find a party that would not formally agree to support the above- mentioned strategic directions of state development. These “most painful” problems for society, as well as the potential for their solution in the future, create in the eyes of the society (electorate) an attractive image for any political force that declares its commitment to such public interests and willingness to implement them. It can be argued that the political, economic

13 Примуш М. Проблеми формування ідеологій українських політичних партій на сучасному етапі. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова. 2017. С. 380. 237 and social problems of society are becoming a “background” for the formation of certain “electorally attractive” public interests, which in fact act only as external attributes, “decorations” for political forces that seek to get to the elected bodies. As of the beginning of 2018, 352 political parties were registered in Ukraine. However, the majority is rather political projects, which form programs based on sociological research with problems of relevance to society. On their basis, the parties offer simplistic but often unrealistic solutions14.

2. Populism and political corruption Despaired of the legal and moral capabilities of party ideologies (or rather, quasi-ideologies as formal attributes of the electoral process), citizens consciously or subconsciously become supporters of legal nihilism. At present, the “attractiveness” of legal nihilism in the eyes of ordinary citizens is, in our opinion, in its negative potential – in fact, legal nihilism as quasi- ideology justifies disrespect for law and the state, manifests itself in unlawful (but often effective actions), in including corruption. It is interesting to note that “Anti-corruption and good governance” has become an often-repeated slogan in the development community and some people treat good governance and the absence of corruption as equivalents. Yet they are very different: a squeaky-clean bureaucracy can still be incompetent or ineffective in doing its job, while corrupt ones can provide good services”15. Practice shows that – no matter how cynical this conclusion looks like – corruptive ties, and especially political corruption, can be quite effective. The main problem with such efficiency is that the beneficiary of such effective actions or services receives them contrary to the law and contrary to the general public interests. Disappointed with the long-term promise of classical ideologies, adherents of legal nihilism call for effective political technologies “here and now”, often outside the law. Populism – regardless of what kind of definition of populism we have chosen – is fed from the origins of legal nihilism and its related concept of finding simple solutions to complex social problems (regardless of objective tendencies and requirements of legal norms). The main reason for modern populist tendencies is the coincidence of two conditions: 1) the collapse of the usual social order; 2) the loss of a society’s

14 Кучинський О. За все хороше, проти поганого: популізм у програмах українських партій. Вибори. URL: https://vybory.pravda.com.ua/articles/2018/02/14/7149567/ (дата звернення: 20.07.2019). 15 Френсіс Фукуяма: Що таке корупція? Збруч. URL: https://zbruc.eu/node/52257 (дата звернення: 23.07.2019). 238 belief in the ability of traditional institutions of the political system to restore it. These tendencies are what can be observed today in Ukraine16. An influential factor in the emergence and spread of populism was corruption and the most dangerous phenomenon – political corruption. The main ideological basis of populism was the conviction of the corruption of the political elite, which enabled the populist parties to use the rhetoric of the opposition of “demos – power” in vain. In the broad sense, political corruption can be defined as abuse of power for political purposes (at least, such goals should be prioritized over others). The following main objectives are: 1) getting a power; 2) its maintenance, strengthening or increase (extension of powers)17. In a context of a sharp fall in citizens’ confidence in the institutions and political elite of their countries, populism fills the political vacuum. That is, we see the lack of an effective party system. The most influential political parties hold on their leaders and represent “clubs of support”18. The ZMINA Human Rights Center’s analysis of political party programs shows that many of the provisions of these programs are frankly populist, declarative or manipulative; the topic of human rights is used for its own political benefit (“Opposition Platform – For Life”). For example, the “Civil Position” program, updated in June 2019, begins with Ukraine’s vision of “a peaceful country with rich and prosperous people”. The party, which at the very beginning promises to make people happy, rather belongs to populist and those who do not have a clear ideology19. And the program of the political party “Opposition Platform – For Life” unites many promises of parties of different directions, which shows the lack of a clear ideology. The program has elements that are inherent to both the right and the left parties, which may mean taking into account popular opinions among the population, which in turn, relates this program to populist ones. At the same time, most promises have no clear lines of implementation, and this suggests that the party does not plan to fulfill them. According to experts, the program of the Batkivshchyna Party looks like a rather dangerous populism: many promises

16 Власенко Д. Загроза популізму. Конституційний аспект. Права людини в Україні. Інформаційний портал Харківської правозахисної групи. URL: http://khpg.org/index.php?id=1550479414 (дата звернення: 10.07.2019). 17 Мельник М. Політична корупція: сутність, чинники, засоби протидії. Укр. юридичне товариство. URL: http://justice.org.ua/politika-i-pravo-podiji-fakti-komentari/politichna-koruptsiya- sutnist-chinniki-zasobi-protidiji (дата звернення: 20.07.2019). 18 Власенко Д. Загроза популізму. Конституційний аспект. Права людини в Україні. Інформаційний портал Харківської правозахисної групи. URL: http://khpg.org/index.php?id=1550479414 (дата звернення: 10.07.2019). 19 Аналіз виборчих програм через призму прав людини: партія «Громадянська позиція». Центр інформації про права людини. URL: https://humanrights.org.ua/material/analiz_viborchih_program_ cherez_prizmu_prav_ljiudini_partijia_gromadjianska_pozicijia (дата звернення: 5.07.2019). 239 can not be a priori implemented because of the fact that they put in place approaches of a socialist state, rather than countries with a market economy and minimal interference and regulation of the state20. It can be argued, that in spite of all the political manifestations and differences, political parties in Ukraine are formed around charismatic leaders (model of leaderist parties) who unconditionally use populist rhetoric. And this practice is inherent not only in Ukraine. By the end of 2017, the populist parties were present in the parliament of seven EU countries, including two of them (Hungary and Poland) the populists are in power. And this trend is gaining more and more menacing momentum every day. For example, Italy has the highest ratings with two populist parties that build their rhetoric on similar three theses: anti- immigration policy, total “Euro skepticism” and “anti-globalism”21. An interesting example of the effectiveness of populist rhetoric in Italy shows that, often with the deceptive charm of populists, voters can opt for completely opposite political positions. For example, for two long decades, “Berlusconi was the undisputed master of promising Italians easy solutions to complicated problems. When his promises failed to materialize, the patience of his countrymen finally ran out. The main beneficiary was the Five Star Movement, a new populist party started by the comedian Beppe Grillo. Though it had sprung up on the left rather than the right, and loudly opposed rather than praised Berlusconi, the Five Star Movement shared his populist style”22. In our opinion, the tendency of political confusion of a significant part of voters is combined with the readiness of political parties themselves to change their programmatic provisions and goals in line with the wishes of the electorate. “Transformation of the ideological foundations of political parties depending on the electoral sympathies and expectations of society, the interests of certain groups, etc. – can be characterized as ideological “hybridization”. This tendency is characteristic of the current stage of development of party ideologies in the West and gives chances to political parties to attract the voices of those voters who are not their persistent electorate”23.

20 Ibid 21Таран В. Чим відрізнається «популізм» у Європі та Україні. URL: https://www.ukrinform.ua/rubric- polytics/2319082-cim-vidriznaetsa-populizm-u-evropi-ta-ukraini.html (дата звернення: 23.07.2019). 22 Yascha Mounk. The More You Watch, the More You Vote Populist. The Atlantic. 2019. JUL 6. URL: https://www.theatlantic.com/ideas/archive/2019/07/does-tv-makes-you-dumber-and-more-populist/593287/ (дата звернення: 23.07.2019). 23 Примуш М. Проблеми формування ідеологій українських політичних партій на сучасному етапі. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова. 2017. С. 374. 240 The recipe for overcoming “party populism” is, at the same time, simple and complex. “In principle, other parties should be created in Ukraine, the basis of which should be the ideological component. They should use fundamentally different, rather than now, communication and organizational strategies that should be aimed at involving citizens in their decision-making process. In parallel, the rhetoric of politicians from the paternalistic to the proactive should change”24. According to V. Yarema, “populist political parties are strong at the stage of achieving power and weak in the period of governance. <...> their ideology does not contain a system of potential government policy…”25. In our opinion, it is advisable to take into account this tendency and consolidate in the Law “On Political Parties in Ukraine” the duty of political parties to develop and offer two meaningfully related programs to the voters (ideological program and strategic development program of Ukraine, with a step-by-step “business plan” achieving the stated goals).

3. “National idea” vs. political corruption Well-known fact that the events of recent years in Ukraine have accelerated the processes of self-identification of the political nation of Ukraine, actualized a large-scale debate on the concept of “national idea” as the basis of consolidation of the state and society as a national ideology. According to the definition proposed by the Institute of History of Ukraine of the National Academy of Sciences of Ukraine, “the national idea – the spiritual basis of the life of the nation, the system of socio-cultural coordinates, which sets its ideological and goal-setting guidelines, defines value orientations”. “At the political level – the system of symbols and volitional impetus, serving as the spiritual basis of national movements and national self-identification, the core of national ideology, the political project of the future nation”. “World experience shows that the greatest successes have been achieved by those nations that have put rational-pragmatic content in the concept of a national idea and viewed it as the idea of a general civil society”26. In the conditions of the globalization of the multi-ethnic world in the modern scientific discourse the term “political nation” is used.

24Таран В. Чим відрізнається «популізм» у Європі та Україні. URL: https://www.ukrinform.ua/rubric- polytics/2319082-cim-vidriznaetsa-populizm-u-evropi-ta-ukraini.html (дата звернення: 23.07.2019). 25 Ярема В. Роль популістських партій у європейських політичних системах. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова, 2017. С. 402. 26 Нагорна Л.П. Національна ідея. Енциклопедія історії України: Т. 7: Мі–О / Редкол.: В.А. Смолій (голова) та ін. НАН України. Інститут історії України. Київ : В-во «Наукова думка», 2010. 728 с.: іл. URL: http://www.history.org.ua/?termin=Natsionalna_ideia (дата звернення: 25.07.2019). 241 It is important to emphasize that “«in the Constitution of Ukraine, the concept “"Ukrainian nation” is used in the political sense. The Ukrainian nation is all citizens of Ukraine, irrespective of their ethnic origin, united by a single citizenship, community of territory, political interests, legal obligations, historical destiny, cultural traditions, awareness of a single national identity and the future of the Motherland as a democratic, social, law Ukrainian state”. “…the concept “nation” is used in the sense of a multiethnic, civil, political community. This understanding of the Ukrainian nation defines the prospects for its consolidation and integration on the basis of common values – a single citizenship, legal rights and responsibilities, a common goal and historical destiny”27. Despite the current trends that indicate the controversial role of modern states in the functioning of regional supranational unions, sovereign states remain the most important players in the realm of politics and, as such, should ensure that their citizens exercise their civil rights. It can be argued that sovereign states have the most powerful tools for ensuring the realization of civil rights. It is human rights as a universal value to be the basis of a “national idea” as a national ideology. But are political parties of modern Ukraine ready become true informal advocates of such ideology? Practice shows that there are many factors that impede the realization of the right as such, or even create a quasi-culture of the realization of civil rights. The most dangerous among these factors is political corruption. Among the means of combating political corruption are many organizational and legal approaches, management technologies and procedures, among which, first of all, democratic elections (in the broadest sense of the word – the electoral system of the state, based on the principles of universality, transparency, openness, political unbiasedness, etc.). Our state has a comparatively small (in historical terms) experience of the functioning of a democratic electoral system, therefore, it is hardly possible to argue that today Ukraine has developed a powerful potential for providing truly transparent democratic elections to the general public. The irony of gradual changes in the electoral system of Ukraine is that if in the early stages its formation of abusing electoral principles and technologies was not of a mass character, they were simple enough in their essence (forgery of ballots, open bribing of voters, etc.), then over time, the improvement of electoral procedures were accompanied by the search for more “ingenious” models of distortion of genuine political will.

27 Конституція України. Науково-практичний коментар / редкол.: В.Я. Тацій (голова редкол.), О.В. Петришин (відп. секретар), Ю.Г. Барабаш та ін.; Нац. акад. прав. наук України. 2-ге вид., переробл. і допов. Харків : Право, 2011. 1128 с. 242 As M. Melnic rightly pointed out, “there is an improvement in the means of achieving the “desired” result: if earlier it was achieved mainly by a primitive-criminal procedure (forcing to vote “as it should”, impeding the activities of candidates, forging minutes of commissions, etc.), now it is done mostly “civilized” and “exquisite” – with the use of informative manipulations, agitational “zombie” of voters, widespread use of technical candidates and parties, provision of administrative resources from legal forms of public and social activities”28. Analyzing the role of ideology in the activities of political parties, it is important to emphasize that the parties “are seen as organizations that direct their activities to nominate and elect their representatives to government positions. It is no coincidence that the legislation of Germany, Sweden and some other states states that a political association loses the legal status of a party if it does not participate in elections during a certain period of time (in Germany, 6 years)”29. Such a provision is enshrined in Article 24 of the Law of Ukraine “On Political Parties of Ukraine”, in which the limitation period of not holding a political party of its candidates for the elections of the President of Ukraine and the elections of people’s deputies of Ukraine is ten years30. In our opinion, such a norm shows that society has expectations from political parties not only about the representation of political rights of citizens, but also the nomination of active and effective candidates capable of offering the society a certain strategy of state development, an ideology of social development. Today, there are 352 political parties in Ukraine. Of the 154 parties registered ten or more years ago, only 90 have participated in parliamentary or presidential elections over the past 10 years. At the same time, only 3 political parties are at the stage of termination of activity. This means that in Ukraine today more than 60 parties continue to exist, the registration of which would already have to be canceled31. Since political parties contribute to the formation and expression of the political will of the citizens (Article 36 of the Constitution of Ukraine, Article 1 of the Law “On Political Parties in Ukraine”), and their activities in accordance with the law are non-profit, it must be supported, in particular

28 Мельник М. Політична корупція: сутність, чинники, засоби протидії. Укр. юридичне товариство. URL: http://justice.org.ua/politika-i-pravo-podiji-fakti-komentari/politichna-koruptsiya- sutnist-chinniki-zasobi-protidiji (дата звернення: 20.07.2019). 29 Ковальчук В.Б. Правові принципи функціонування політичних партій в процесі демократичної легітимації. Часопис Національного університету «Острозька академія». Серія «Право». 2012. № 1(5). URL: http://lj.oa.edu.ua/articles/2012/n1/12kvbpdl.pdf (дата звернення: 10.07.2019). 30 Про політичні партії в Україні : Закон України від 5 квітня 2001 року № 2365-III. Дата оновлення: 01.10.2018. URL: https://zakon.rada.gov.ua/laws/show/2365-14 (дата звернення: 23.07.2019). 31 Кузіва О. Партії чи технічні проєкти: на які політичні сили спираються кандидати в Президенти. Вибори. URL: https://vybory.pravda.com.ua/articles/2019/03/27/7149930/ (дата звернення: 20.07.2019). 243 financially, not oligarchs, not persons capable of acquiring a deputy’s mandate, and by the voters themselves, each by one, and by the state, which is the apparatus of service to a democratic society. It has been so long ago in Austria, Greece, Germany, Poland, France, the Czech Republic, Sweden and many other countries32. Despite the significant efforts made by Ukraine to ensure the democratization and transparency of the electoral process, the financing of political parties, the key players in the electoral process and policy-making, remains a system of systematic abuses and a basis for political corruption. Ukrainian legislation gradually introduces European standards in the field of political funding. The key European standards in the field of political financing are as follows: “Parties must report their income and expenses regularly, at least annually” (Guiding Principles on the Financing of Political Parties of the Venice Commission; Recommendations of the Committee of Ministers РЄ Rec (2003) 4 “On general rules for combating corruption in the financing of political parties and election campaigns”; PACE Recommendation 1516 (2001) “On the financing of political parties”)33. At the same time, the existence of a number of gaps at the legislative level still poses a danger of abuse by political parties with the use of budgetary funds. In particular, the existence in Art. Article 14 of the Law stipulates that provision of material and financial support to political parties is carried out in two forms only: 1) contributions in support of political parties; 2) state financing of their statutory activities. In view of the fact that the Law does not contain a clear definition of statutory activities, in practice this raises a number of issues: for example, whether statutory activities aimed at achieving electoral support can be considered, but based on a complete ideological reorientation of the party? Analysis of Art. 5 of the Law states that illegal activity, which means that a statute may not be envisaged, activity of a political party may be activities aimed at: the elimination of Ukraine’’s independence; change of the constitutional order by violent means; violation of the sovereignty and territorial integrity of the state; undermining state security; illegal seizure of state power; the propaganda of war, violence, incitement to interethnic, racial or religious hatred; an attack on human rights and freedoms; encroachment on the health of the population; the propaganda of the communist and/or national-socialist (Nazi) totalitarian regimes and their symbolism; creation of

32Хавронюк М. Яка діяльність політичної партії є «статутною»? ЦППР. URL: http://pravo.org.ua/ ua/news/20871779-yaka-diyalnist-politichnoyi-partiyi-e-statutnoyu (дата звернення: 15.07.2019 р). 33 Посібник для політичних партій з політичного фінансування / Міжнародна фундація виборчих систем в Україні, 2018. С. 12. 244 paramilitary formations; creation and activity of organizational structures of political parties in executive and judicial bodies and executive bodies of local self-government, military formations, state enterprises, educational institutions, other state institutions and organizations34. At the same time, the Law does not detail the requirements regarding the role of political parties in shaping the development strategy of the state and society, as well as the issue of political responsibility of parties. To date, the problem issues of political financing have been thoroughly worked out, ways of improving the legislation and enforcement practice in the field of funding political parties’ activities have been proposed35. That is why we left beyond the scope of our study a problem of political financing. In our opinion, following the logic of the legislation of European countries and Ukraine, according to which political parties receive state financing (subject to the fulfillment of the requirements specified in the Law), it is logical to prescribe in the Law the necessity for parties to report not only on the use of funds received to finance statutory party activities, but also on the gradual implementation of programs offered to voters in exchange for electoral support. We share the conclusion of M.Primush that “in the Ukrainian society, so far, there has not been a sufficient demand for the formation by parties of so- called ideological ideals that contain answers to certain socio-political demands of society. Instead, there is a market (supply and demand) of the ideals of election campaigns that are fairly easily forgotten by both sides of the process (both parties and voters)”36. At the same time, even taking into account “political infantilism” of a significant part of Ukrainian society, it is necessary to formulate a public request for a national ideologically-colored (value-oriented) program of development of the state and society both in the strategic dimension and in the short and medium term. For example, according to the results of the analysis of programs of political forces carried out by experts of the international charitable organization “Ecology-Law-Man” (data as of 10.10.2018), from more than 20 most active Ukrainian political parties, the environment in their programs mentions only 7. Only in two political parties there is a provision on the need for increased legal liability for environmental damage. A separate panel of

34 Про політичні партії в Україні : Закон України від 5 квітня 2001 року № 2365-III. Дата оновлення: 01.10.2018. URL: https://zakon.rada.gov.ua/laws/show/2365-14 (дата звернення: 23.07.2019). 35 Джуган В.В. Конституційно-правові засади фінансування політичних партій в Україні та країнах ЄС: порівняльний аналіз : дис. … к.ю.н. : 12.00.06. Ужгородський національний університет, Ужгород, 2017. 230 с. 36 Примуш М. Проблеми формування ідеологій українських політичних партій на сучасному етапі. Трансформація партійної системи: український досвід у європейському контексті / За ред. Ю. Якименка. Київ : Центр Разумкова. 2017. С. 382. 245 experts’ recommendations is devoted to the impact on the environment of the war in the East of Ukraine. So far, this aspect has not been mentioned in any of the investigated programs of political parties37. These data indicate a lack of a social request to address such issues as Ukraine and the world as a whole, such as environmental safety. Undoubtedly, such problems and perspectives of their solution should be reflected in the program of every political party that claims to support the electorate. In our opinion, at the present time, the very awareness of the need to find unifying concepts for the whole of society is at the basis of the justification of the need for “integrative ideology”38, “state-building ideology”39. In this context, M. Amosov’s thoughts are quite up-to-date. He wrote, “Does the state need ideology? Many people are now in doubt, they say – pluralism of thoughts. I think it is necessary. Ideology defines the state system, and citizens must believe that it is just. <…> The purpose of all people – this is the ideology of society, painted in the laws. Without the idea there will be no unity of the people, and therefore progress in the material and spiritual spheres”40. It would be desirable to hope that “as crisis phenomena are overcome, “the Ukrainian national idea” will be increasingly recognized as a synthesis of the ideas of statehood, patriotism and solidarity, the consolidation of a political, multiethnic and multicultural nation, the formation of a functioning civil society”41.

CONCLUSIONS The ideological crisis of contemporary Ukrainian society is described in terms of “finding a national idea”, “weakness of national identity”, “value vacuum”, etc. In the modern state of Ukraine a consistent approach is being implemented, according to which: 1) political parties are considered to be an essential element of the public legal order; 2) these are voluntary organizations – mechanism of realization of political rights of citizens; 3) the ability and willingness of parties to participate in democratic procedures is obligatory;

37 Із 20 українських політичних партій про довкілля у програмах згадують лише 7 – МБО «Екологія-Право-Людина» (01.10.2018 р.). UkraineCrisisMediaCenter. URL: http://uacrisis.org/ua/68787- ecology-and-programs-of-political-parties (дата звернення: 10.07.2019). 38 Риженко Є.С. Інтегративна ідеологія як чинник консолідації українського суспільства : автореф. дис. ... канд. політ. наук : 23.00.02. Київ, 2008. 21 с. 39 Миклащук І. Державотворча ідеологія як чинник демократичного розвитку України. Політ. менеджмент. 2009. № 5. С. 63–72. 40 Амосов Н.М. Идеология для Украины. Київ : DEMID, 1997. 36 с. 41 Нагорна Л.П. Національна ідея. Енциклопедія історії України: Т. 7: Мі–О / Редкол.: В.А. Смолій (голова) та ін. НАН України. Інститут історії України. Київ : В-во «Наукова думка», 2010. 728 с.: іл. URL: http://www.history.org.ua/?termin=Natsionalna_ideia (дата звернення: 25.07.2019). 246 4) the presence in political parties of a certain national program of social development is presumed. Thus, political parties as components of civil society should be the expressions of the political interests of citizens. Meanwhile, political parties consider to be the founders and executors of a certain nationwide program. The Law of Ukraine “On Political Parties in Ukraine” sets certain “fuses” against extreme political phenomena (right оr left). At the same time, applying the generally permissible principle of regulating the activities of political parties, the state does not impose strict restrictions on the content of their programs and statutory documents. Taking into account the main purpose of the policy and political parties, should be the formation, articulation and realization of public (national) interests, it is important to understand the role of ideology in the activities of modern political parties. In our opinion, the formation of the political system of independent Ukraine took place simultaneously with the gradual depreciation of ideology as a national value in the public consciousness. Ukrainian parties ideologies are characterized by mostly declarative populist slogans that consider to be absolutely not binding. The lack of a holistic ideology capable of uniting society has also affected the political views of ordinary Ukrainians. In our opinion, in the most general form, this situation can be described as political confusion, that is, the lack of its own political identity, as well as misunderstanding of the most important trends in the development of the political system of society and the role of political players. It can be said that the existence of double rules of the game causes the cynical situation of the commercialization of the electoral process. An influential factor in the emergence and spread of populism was corruption and the most dangerous phenomenon – political corruption. The main ideological basis of populism was the conviction of the corruption of the political elite, which enabled the populist parties to use the rhetoric of the opposition of “demos – power” in vain. In our opinion, it is advisable to take into account this tendency and consolidate in the Law “On Political Parties in Ukraine” the duty of political parties to develop and offer two meaningfully related programs to the voters (ideological program and strategic development program of Ukraine, with a step-by-step “business plan” achieving the stated goals). It seems expedient to prescribe in the Law the necessity for parties to report not only on the use of funds received to finance statutory party activities, but also on the gradual implementation of programs offered to voters in exchange for electoral support. Further scientific discussion needs to be discussed about the prospects for preparing a peculiar “Questionnaire” for new political parties, which should

247 include a wide range of socially significant issues that are potentially interesting for voters. At the same time it is necessary to formulate a public request for a national ideologically-colored (value-oriented) program of development of the state and society both in the strategic dimension and in the short and medium term. The main moderators of this process consider to be political parties.

SUMMARY In the modern state of Ukraine a consistent approach is being implemented, according to which: 1) political parties are considered to be an essential element of the public legal order; 2) these are voluntary organizations – mechanism of realization of political rights of citizens; 3) the ability and willingness of parties to participate in democratic procedures is obligatory; 4) the presence in political parties of a certain national program of social development is presumed. Thus, political parties as components of civil society should be the expressions of the political interests of citizens. Meanwhile, political parties consider to be the founders and executors of a certain nationwide program. The Law of Ukraine “On Political Parties in Ukraine” sets certain “fuses” against extreme political phenomena (right оr left). At the same time, applying the generally permissible principle of regulating the activities of political parties, the state does not impose strict restrictions on the content of their programs and statutory documents. Taking into account the main purpose of the policy and political parties, should be the formation, articulation and realization of public (national) interests, it is important to understand the role of ideology in the activities of modern political parties. In our opinion, the formation of the political system of independent Ukraine took place simultaneously with the gradual depreciation of ideology as a national value in the public consciousness. Ukrainian parties ideologies are characterized by mostly declarative populist slogans that consider to be absolutely not binding. The lack of a holistic ideology capable of uniting society has also affected the political views of ordinary Ukrainians. In our opinion, in the most general form, this situation can be described as political confusion, that is, the lack of its own political identity, as well as misunderstanding of the most important trends in the development of the political system of society and the role of political players. It can be said that the existence of double rules of the game causes the cynical situation of the commercialization of the electoral process. An influential factor in the emergence and spread of populism was corruption and the most dangerous phenomenon – political corruption. The main ideological

248 basis of populism was the conviction of the corruption of the political elite, which enabled the populist parties to use the rhetoric of the opposition of “demos – power” in vain. In our opinion, it is advisable to take into account this tendency and consolidate in the Law “On Political Parties in Ukraine” the duty of political parties to develop and offer two meaningfully related programs to the voters (ideological program and strategic development program of Ukraine, with a step-by-step “business plan” achieving the stated goals). It seems expedient to prescribe in the Law the necessity for parties to report not only on the use of funds received to finance statutory party activities, but also on the gradual implementation of programs offered to voters in exchange for electoral support. At the same time it is necessary to formulate a public request for a national ideologically-colored (value-oriented) program of development of the state and society both in the strategic dimension and in the short and medium term. The main moderators of this process consider to be political parties.

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Information about author: Rogova O. H., Candidate of Juridical Sciences, Аssociate Professor of Department of Law and European integration Kharkiv Regional Institute of Public Administration of the National Academy of Public Administration under the President of Ukraine 75, Moskovskyi ave., Kharkiv, Ukraine

251 PUBLIC CONFIDENCE AS A SYSTEMIC ANTI-CORRUPTION ELEMENT IN UKRAINE

Rozhnova V. V., Savytskyi D. O.

INTRODUCTION According to Thomas Hobbes (English philosopher of the XVI–XVII centuries), corruption is the root from which the contempt for all laws is sprouting at all times and under any temptation1. In the modern world, corruption is recognized not as a local problem, but as a transnational phenomenon affecting the society and economy of all countries, posing a threat to stability and security of societies, undermining democratic institutions and principles, ethical values and justice, and being detrimental to sustainable development and the rule of law2. It was established that none of the countries has complete immunity from corruption. It differs only by its volume, manifestations and scale of influence on the socio-economic and political situation. In countries where corruption is widespread, it turns from a social anomaly into the rule, and becomes a regular means of solving problems, a standard of government operation and lifestyle of a larger part of society. In countries where it is relatively uncommon, corruption in the public consciousness is associated with a great evil for the state and its citizens, and would not have a significant impact on public life3. In modern political, social, legal and psychological sciences of Ukraine, like in many other countries, corruption is classified as a major political, economic and social problem, which in the absence of systemic counteraction on the part of the state and society is able to spread and take root in public relations and state system generally4. The genesis of corruption in Ukraine, as in other countries, has its roots, development factors and peculiarities primarily determined by its historically established state and social forms, i.e. obtaining of undue advantages for commitment of legal acts and obtaining of undue advantages for commitment of illegal acts. The combination of these forms of corrupt behavior of civil servants, their actual acquisition of the meaning of one of the attributes in relations between the state and society not only leads to

1 Гоббс Т. Сочинения. В 2 т. Т. 2. Москва : «Мысль», 1991. С. 198. 2 Конвенція ООН проти корупції (прийнята 31 жовтня 2003 р.; ратифікована Україною 18 жовтня 2006 р.); офіційний переклад. Верховна Рада України / Законодавство України : вебсайт. URL: https://zakon.rada.gov.ua/laws/show/995_c16. 3 Корупція в Україні: причини поширення та механізми протидії / С.В. Дрьомов, Ю.Г. Кальниш, Д.Б. Клименко, Г.О. Усатий, Л.М. Усаченко; за ред. Ю.Г. Кальниша. Київ : ДП «НВЦ «Пріоритети». 2010. 88 с. URL: http://sd.net.ua/2012/03/08/korupciya-v-ukrayini.html. 4 Антикорупційна політика та запобігання корупції в публічному управлінні / І.С. Бондар, В.Г. Горник, С.О. Кравченко, В.В. Кравченко : навчальний посібник. Київ : «Ліра-К», 2016. С. 18. 252 ineffective actions of the government in economic, political, legal, social and other socially significant processes, but also affects the formation public awareness, causes loss of faith in the fairness and credibility of the government, even upon the formal reaching of the desired result. Loss of confidence, in turn, generates stereotypes of the mutual corruption behavior, up to the idea of “status rent” justifying corruption and seen as a mechanism of “compensatory remuneration” to civil servants for their poorly paid work5. Having cited a statement of Thomas Hobbes at the beginning of this introduction, let us again appeal to the famous paper, Leviathan, or the Matter, Form, and Power of a Commonwealth, Ecclesiastical and Civil (1651) by the great philosopher, to sum it up. Investigating crimes and their causes, Thomas Hobbes noted that, in particular, greed, being one of the causes of crime, is the passion inherent in the nature of every human being and the apparent cause of its actions based on its personal experience and reflection. He believed that the negative effects of such passions can be eliminated only by unusual stress of mental abilities or permanent severity of the punishment for them. Since the object the man is eager to get bothers it steadily and continuously, and therefore the man must either practice patience, or liberate itself from the power of this trouble by eliminating its causes. The fulfillment of the first condition is a rather complicated task, and the human mind does not always come to the aid, while fulfillment of the second one is in many cases impossible without violation of any law.6 Following the author’s guidelines, we can arrive at an obvious general conclusion that the corruption combating system shall be primarily aimed at elimination of corruption causes, not at combating its effects, and include not only socio-economic, political, institutional, legal and technological measures, but also the formation of social consciousness.

1. Whether reforms in Ukraine promote the formation of public confidence One of the areas of corruption combating system is recognizing the extreme importance of reforms, including the administrative and judicial ones7. In recent years, almost all aspects of life in Ukraine were subjected to reforming. According to the authorities and some European experts, over the recent five years Ukraine implemented more reforms than during all previous years.

5 Кохан Г.В. Явище політичної корупції: теоретико-методологічний аналіз : монографія. Київ : НІСД, 2013. С. 22. 6 Гоббс Т. Сочинения. В 2 т. Т. 2. Москва : «Мысль», 1991. С. 231. 7 Біленчук П.Д. Корупція як загроза національній безпеці України. Реалізація державної антикорупційної політики в міжнародному вимірі : матеріали ІІІ Міжнародної науково-практичної конференції (Київ, 7 грудня 2018 року). Ч. 2. Київ, 2018. С. 33. 253 According to reform creators, all of them are implemented for the sake of the public good and to meet the diverse needs of society, including a fair trial. However, according to GRECO (Council of Europe Group of States against Corruption) findings contained in Reports on the Implementation of International Commitments Undertaken by Ukraine, the public confidence in the judiciary system and politicians is still low in our country8. A national study conducted by the Razumkov Center Sociological Service on 7–14 February 2019 in all regions of Ukraine except for Crimea and the occupied territories of Donetsk and Luhansk regions found that the citizens of Ukraine most commonly express distrust for the state apparatus (officials) (83% of the poll participants do not trust them)9. Ukrainians trust neither the government nor the courts or the newly established anti-corruption body10. Besides, it is noteworthy that respondents in Ukraine most do not trust even those bodies which were established according to the so-called transparent procedure and recently began their work (for example, 65% do not trust the Supreme Court and 62% to the Anti-Corruption Court). Given the above, the results of a survey on public perception of the reforms conducted in Ukraine look rather predictable. In general, the major reforms conducted in Ukraine have low public support. In particular, the judicial reform is supported by only 13% of respondents, 43.4% of respondents treat it negatively, and 43.6% are indifferent to it, or cannot decide on their attitude (16.4% and 27.2%, respectively)11. However, the estimates of some officials in the background of allegations that reforms are implemented for the sake and for the benefit of people are quite surprising. For example, S. Koziakov (Chairman of HQCJ, the High Qualification Commission of Judges of Ukraine), speaking at the Council meeting on judicial reform held after taking the oath by new judges of the Supreme Court said that when reforms are successful, they are not liked by many...12. In general, 82.5% of Ukraine’s population completely or somewhat

8 Четвертий раунд оцінювання. Запобігання корупції серед народних депутатів, суддів та прокурорів: Звіт за результатами оцінки. Україна (ухвалено на 76-му пленарному засіданні GRECO, Страсбург, 19–23 червня 2017 року) // Національне агентство з питань запобігання корупції : офіційний веб-сайт. URL: https://nazk.gov.ua/sites/default/files/docs/2017/міжнародні%20 програми/GrecoEval4Rep(2016)9-P3-en-Ukraine_ukr.pdf. 9 Рівень довіри до суспільних інститутів та електоральні орієнтації громадян України / Центр Разумкова / Дослідження / Соціологічні дослідження : сайт. URL: http://razumkov.org.ua/napriamky/ sotsiologichni-doslidzhennia. 10 Українці не довіряють судам: результати нового опитування. Судебно-юридическая газета в Украине: сайт. URL: https://sud.ua/ru/news/ukraine/135851-ukrayintsi-ne-doviryayut-sudam-rezultati- novogo-opituvannya. 11 Ставлення громадян до реформ в Україні / Центр Разумкова / Дослідження / Соціологічні дослідження : сайт. URL: http://razumkov.org.ua/napriamky/sotsiologichni-doslidzhennia. 12 Петр Порошено участвует в заседании Совета по вопросам судебной реформы. Судебно- юридическая газета в Украине : сайт. URL: https://sud.ua/ru/news/publication/141263-petr-poroshenko- uchastvuet-v-zasedanii-soveta-po-voprosam-sudebnoy-reformy. 254 agrees with charges regarding the corruptness, political dependency and bias of Ukrainian courts. 7.0% of respondents disagree with this point of view (the remaining respondents failed to make up their mind). It should be noted that most of the respondents interviewed when they were leaving the court, i.e. those who had recent personal experience with courts, agreed with such a description of Ukrainian courts13. Attention should be drawn to the fact that although respondents are positive about all amendments to the Constitution of Ukraine as regards justice, listed in the questionnaire, i.e. increase of qualification requirements for judges (85.7% of those surveyed in the national sample and 77.1% of those leaving the courthouses), competition upon appointment and transfer of judges (81.7% and 71.4%, respectively), restriction of judicial immunity (80.4% and 66.5%, respectively), elimination of political bodies (the Parliament and the President) from addressing the issues of judges’ career (78.1% and 65.8%, respectively), establishment of the constitutional complaint institution (73.6% and 64.9%, respectively), creation of the High Council of Justice as the principal constitutional body deciding on the judges’ career (71.6% and 57.4%, respectively), establishment of courts by law instead of Presidential decree (72.1% of the respondents in the national sample), the vast majority of Ukrainians nonetheless do not consider that the Ukrainian courts are impartial and independent14. Assessing the level of corruption in state agencies on a five-point scale where “1” means the complete absence of corruption, and “5” that this body is completely corrupt, on average, the respondents rated corruption in all proposed bodies as high. For the Security Service of Ukraine, the average score was 3.9 points, for the Ministry of Justice – 4.0 points, for the Interior Ministry and Prosecutor’s Office – 4.1 points each, for tax authorities and courts – 4.2 points, and for the customs – 4.3 points. It should be noted that ratings assigned by the respondents, who participated in the examination of cases estimates during the past two years, are almost the same. As compared to the year of 2017, the assessments did not change statistically significantly15. Assessing the above figures in general, expressing probably different attitudes at various polls and their results, however, we can say that they confirm the general status of public confidence in the government. In this case, a high level of negative attitude and distrust are largely shaped by two factors, a negative information field and a factor of financial and political influence on public servants. The results showed that the impact of the first factor is eliminated quite effectively upon the direct contact of citizens with

13 Ставлення громадян України до судової системи / Центр Разумкова / Дослідження / Соціологічні дослідження : сайт. URL: http://razumkov.org.ua/napriamky/sotsiologichni-doslidzhennia. 14 Ставлення громадян України до судової системи / Центр Разумкова / Дослідження / Соціологічні дослідження : сайт. URL: http://razumkov.org.ua/napriamky/sotsiologichni-doslidzhennia. 15 Ibid 255 public institutions. The impact of the second factor can be reduced by introduction of a set of administrative, legal and economic measures. On the way to overcoming the corruption component, in our view, a special role should be assigned to information and communication technologies, as well as e-government. It is well known that high levels of corruption is facilitated by a direct communication between the public officer and the citizen, who needs to obtain a certain document or a service, and therefore reduction of personal contacts will reduce the level of corruption of public officials automatically. Singapore was one of the world’s first countries to implement the idea of e- government in 1995. The information and communication webportal established by the government for citizens not only released information about government agencies, but also allowed to perform certain actions for which the citizens were earlier forced to visit such agencies. The server supports seven sections: culture, recreation and sport; defense and security; education, training and employment; family and community development; health and environment; housing issues; transport and travel. Using the “Family and community development” section, one can marry; in “Defense and security” section, one can send a message about a certain event to the police. Each government agency maintains its electronic sector. Also, the Government portal for entrepreneurs is established; its twenty-two sections cover a lot of topics, from foreign risks to hiring employees, loans, taxes, and government proposals. In each section, the information from various government agencies is collected, and therefore the citizens do not need to visit government offices to get the answers to their questions. Singapore has invested tens of millions of dollars in order to make IT technologies available and affordable to all, regardless of age, language, physical or socio-economic abilities. A particular attention is paid to such populations as elderly people, housewives, blue collars and people with special needs using IT technologies in their daily activities to a lesser extent. Further, to ensure equal access to e-government for all, the community e-care centers, staffed by professionals who know all four official languages and possess relevant skills, are established across the island16. The development of information and communication technologies and the implementation of e-government has allowed solving the problem of corruption in Estonia fundamentally. Between 2000 and 2005, all document flow in Estonia has been converted into electronic form. All data which may be required by officials are available in the public database, from economic statistics and court records to medical records and complaints. The system is designed so that any official who even watched the data, not to mention

16 Зарубіжний досвід упровадження електронного урядування. URL: http://ktpu.kpi.ua/wp- content/uploads/2016/02/Zarubizhnij-dosvid-uprovadzhennya-elektronnogo-uryaduvannya.pdf. 256 amending them, automatically leaves its trace in the history saved by the system, allowing to find a dishonest employee quickly. Thereby, the direct interaction between officials and citizens is absolutely absent or minimized. Due to the fact that 98% of the country is covered by free Wi-Fi Internet, Estonia became the first country in the world which allowed its voters to vote during elections via the Internet. All Estonian citizens who have become 15 years old hold ID-cards replacing the passport and the driver’s license. It can be used to log in to public and private online services and communicate with government agencies and private enterprises in order to obtain the required information, submit requests, use Internet banking and other electronic services. Similarly, there are e-school, e-police, and e-medicine. Using the Internet, the parents can check the school attendance and progress of their child at any moment. The electronic network stores medical history and x-ray scans of each citizen of the country; one can use the Internet to order a prescription or make an appointment with the doctor17. For a proper operation of e-government in Ukraine, a series of regulations has been adopted in recent years and practical steps are being taken to enable the citizens to use the state registry and receive online services. Specifically, the State Agency for E-Government, implementing the state policy in the field of information, e-governance, development and use of national electronic information resources, as well as development of information society was created. The electronic services are available in the categories such as health and education; safety and judgment; finance and taxes; transport; entrepreneurship; citizenship and migration; land and environment; construction and real estate; as well as social protection. Simultaneously, the main obstacles to the implementation of e-government in Ukraine are the problem of full-fledged access to the Internet; access of certain populations to hardware; imperfect regulatory framework; a lack of qualified experts in the institutions and poor wages; as well as unstable funding of the e-government implementation program. However, the further introduction of e-government should be recognized as one of the most appropriate, effective and promising areas of domestic state governance, since it will improve the efficiency and effectiveness of government institutions and the state; create conditions for open and transparent public administration; provide access to information; create an opportunity of sustainable communication between government and citizens; eliminate administrative barriers; help raise the level of public confidence and, accordingly, reduce the corruption.

17 Зарубіжний досвід упровадження електронного урядування. URL: http://ktpu.kpi.ua/ wp-content/uploads/2016/02/Zarubizhnij-dosvid-uprovadzhennya-elektronnogo-uryaduvannya.pdf. 257 2. On effective confidence-based law enforcement (in terms of the criminal procedural legislation of Ukraine) In the field of law enforcement, with a clearly specified form and content, the impact of confidence as an abstract, irrational category appears to be minimal at first glance, and in the matter of establishing the regulatory model of legal relationships as compared to pragmatic expediency and efficiency, it seems generally irrelevant. Still, there is no doubt that a man is a fundamentally selfish being, and that it implements its self-interest, primarily and above all, in a rational way. However, the man also has a moral aspect making it feel an obligation to its peers, and this aspect sometimes conflicts with selfish human instincts. The most difficult ethical rules followed by a man are always formed on the basis of repetition, traditions and examples. These rules may reflect a deep “adaptive” rationality; they can serve the economically rational objectives; they can even be the result of a rational agreement reached by a limited circle of people. However, from generation to generation, they are transmitted as irrational social life skills. These skills, in turn, ensure that people’s behavior will never be reduced to a pure maximization of selfish utility18. Confidence characterizes the relationship between people, no matter what system of social organization they represent. Where the confidence limits are designated by abstract characteristics, “fully trust/do no trust at all”, “trust/do not trust”, “rather trust than do not trust”, “rather do not trust than trust”, or “trust to some extent”, the degree of its influence is manifested quite specifically in actions or inaction of man, “I act/abstain from action since I trust/do not trust”. The importance of maintaining the confidence of people in the state is pointed by the Constitutional Court of Ukraine, using this category as the rule of law in its judgments. In particular, in the judgment dated April 28, 2009 No. 9-rp/2009, the Constitutional Court of Ukraine, indicating the inadmissibility of narrowing the content and scope of existing rights and freedoms (according to part 3 of Article 22 of the Constitution of Ukraine), which will inevitably lead to a deterioration of the person’s position in society, has made a conceptual reservation to the public authorities that the failure of the state to fulfill its obligations leads to a violation of the principles of a law-governed state, undermining the principle of a person’s confidence in the state (item 5, paragraph 5)19. Implementing the reforms declared by the state, first of all and

18 Фукуяма Ф. Доверие: социальные добродетели и путь к процветанию / пер. с англ. Москва : ООО «Издательство ACT» : ЗАО НПП «Ермак», 2004. С. 79. 19 Рішення Конституційного Суду України у справі за конституційним поданням Президента України щодо відповідності Конституції України (конституційності) підпункту 13 пункту 4 розділу I Закону України «Про внесення змін до деяких законів України щодо зменшення впливу світової фінансової кризи на сферу зайнятості населення» (справа про допомогу по безробіттю звільненим за угодою сторін) від 28 квітня 2009 року № 9-рп/2009. Офіційний вісник України. 2009. № 35. Ст. 1210. 258 as usual, a complete update of legislation (in particular, on the criminal procedure) is declared without the risk of limiting the rights, freedoms and legal interests of every member of the society20. However, it must be noted that amendments to the laws (without their proper scientific justification and in the absence of a comprehensive approach) do not solve the existing problems, and sometimes even create the new ones. The current stage of development of the Ukrainian state requires an increased focus of jurisprudence on the issues of real operational capability of the law enforcement activities in general and criminal proceedings in particular. However, in the background of international law and domestic political processes of globalization and convergence of national legal systems, implementation of legal institutions in the laws of Ukraine and formation of new types of criminal justice, the priorities of which are societal values, such as respect for rights, freedoms and legitimate interests of individual people, protection and security, the need to find the most effective means to ensure the operational capability of the “person – society – state” system in criminal procedural relationship appears with varying intensity. As is knows, law enforcement is a special, indirect, complex form of the law, with authoritative, organizational management, and individual-specific nature, implemented by competent, specially authorized state actors, as defined in accordance with the law21. Therefore, the law is implemented by law enforcement, but law enforcement often determines the content of the law, too. Obviously, during the development and adoption of the law, the legislator (involving the representatives of a “professional group” at the stage of the project development and discussion) places a certain content in its form in pursuit of a specific goal. However, in the process of law enforcement, the content of law may be modified, warped and sometimes distorted, which often becomes the reason to formulate a rhetorical question, what is primary – law or enforcement? Not delving into the reasons for this situation (which, obviously, are objective-subjective), let us note that the criterion of the relationship and mutual influence level of the law and law enforcement is their mutual functional ability to ensure the performance of common tasks of the criminal proceeding stipulated by Article 2 of the Criminal Procedure Code of Ukraine, and thus to respond adequately to the expectations of society from the criminal justice system. The process of a large-scale reform of the criminal procedural legislation of Ukraine, which was commenced in order to improve its effectiveness, particularly within implementation of the

20 Акімова Л.М. Аспекти реалізації засад антикорупційної політики. Реалізація державної антикорупційної політики в міжнародному вимірі : матеріали ІІІ Міжнародної науково-практичної конференції (Київ, 7 грудня 2018 року). Ч. 2. Київ, 2018. С. 21. 21 Барандич С. Правозастосування в сучасному вимірі юридичної науки. Науковий часопис Національної академії прокуратури України. 2014. Вип. 4. С. 6. 259 Judicial Reform Concept in Ukraine (1992)22, continued within implementation of the Criminal Justice Reform Concept for Ukraine (2008)23, and formally ended with adoption of the current Criminal Procedure Code of Ukraine24 in April 2012, but actually lasts until today. Maybe not so extensively, but the reform of domestic criminal procedural legislation became a permanent phenomenon for modern legal system of Ukraine. It would seem that it can be assessed positively, as a necessary and timely response of the legislator to developments in the relevant public relations and objective needs of the enforcement actors in this area. However, in 2015, in the Strategy of Reforming the Judiciary System, Law-Making and Related Legal Institutions for 2015–2020, the state of justice, operation of the prosecution and criminal justice as related legal institutions is estimated as the one having its drawbacks, which are related, in particular, to the strategic planning and legislative process issues, including an excessive focus on short- term solutions in the legislative process, a lack of a systemic vision in shaping the democratization of the justice sector in the long, medium and near term25. The main source of the criminal procedure law, i.e. the current Criminal Procedure Code of Ukraine, is effective since November 20, 2012, although the first amendments thereto were made yet on July 5, 2012, i.e. before its entry into force. Subsequently, the Criminal Procedure Code of Ukraine (sometimes along with other sources of the criminal procedural law of Ukraine) was amended every year. In general, the Criminal Procedure Code of Ukraine was amended in one or another way by more than 55 laws of Ukraine. Some of them changed the regulation of certain procedural acts (e.g., temporary seizure of property and search26), or introduced new procedural mechanisms for implementation of new penal institutions (e.g. special confiscation27), while the others made systemic amendments to the regulatory and criminal procedural activities of some participants of the criminal proceedings or at certain stages of the process (e.g., regulation of operations of

22 Концепція судово-правової реформи в Україні : схвалена Постановою Верховної Ради України від 28 квітня 1992 р. Відомості Верховної Ради України. 1992. № 30. Ст. 426. 23 Концепція реформування кримінальної юстиції України : затв. Указом Президента України від 8 квітня 2008 р. № 311. Офіційний вісник України. 2008. № 27. Ст. 838. 24 Кримінальний процесуальний кодекс України : Закон України від 13 квітня 2012 р. Офіційний вісник України. 2012. № 37. Ст. 1370. 25 Стратегія реформування судоустрою, судочинства та суміжних правових інститутів на 2015–2020 роки : схвалена Указом Президента України від 20 травня 2015 р. № 276. Офіційний вісник України. 2015. № 41. Ст. 1267. 26 Про внесення змін до Кримінального процесуального кодексу України щодо порядку тимчасового вилучення майна та проведення обшуку : Закон України від 13 травня 2015 р. Відомості Верховної Ради України. 2015. № 28. Ст. 251. 27 Про внесення змін до Кримінального та Кримінального процесуального кодексів України стосовно виконання Плану дій щодо лібералізації Європейським Союзом візового режиму для України : Закон України від 18 квітня 2013 р. Відомості Верховної Ради України. 2014. № 11. Ст. 131. 260 the Criminal Cassation Court of the Supreme Court as the court of cassation28). Certain articles of the Criminal Procedure Code of Ukraine were amended repeatedly during six years of its validity. For example, Article 170 of the Criminal Procedure Code of Ukraine was amended six times (by the laws of Ukraine dated 18/04/2013, 23/05/2013, 14/10/2014; 12/02/2015, 10/11/2015, 18/02/2016), and Article 236 of the Criminal Procedure Code of Ukraine was amended four times (by the laws of Ukraine dated 13/05/2015, 10/11/2015, 03/10/2017, 16/11/2017). Besides, some articles of the Criminal Procedure Code of Ukraine were amended repeatedly within a relatively short period (for example, Articles 170, 174 were amended, in particular, by the laws of Ukraine dated 18/04/2013 and 23/05/2013, and Article 303, in particular, by the laws of Ukraine dated 03/10/2017 and 16/11/2017). Some provisions of the Criminal Procedure Code of Ukraine, which were amended, were repealed after some time again. For example, the wording of part 2 of Article 132, item one of part 1 of Article 184, and part 2 of Article 234 of the Criminal Procedure Code of Ukraine was first amended by the Law of Ukraine dated 03/10/2017, however, the Law of Ukraine dated 22/03/2018 on Amendments to the Criminal Procedure Code of Ukraine Regarding the Clarification of Certain Provisions restored the original wording of the relevant provisions due to the fact that amendments made by the law of Ukraine dated 03/10/2017 “...considerably complicated the work of the pre- trial investigation bodies in terms of a prompt, complete and impartial investigation”29. Some laws of Ukraine amending in particular the articles of the Criminal Procedure Code of Ukraine were subsequently repealed by the other laws of Ukraine (for example, the law of Ukraine dated 28/01/2014 was repealed by the law of Ukraine dated January 16, 2014 on Amendments to the Criminal Procedural Code of Ukraine Regarding the Criminal Proceedings in Absentia, the law of Ukraine dated January 16, 2014 on Amendments to the Law of Ukraine on the Judicial System and Status of Judges, as well as the procedural laws regarding additional measures to protect the safety of citizens) and certain provisions of the Criminal Procedure Code of Ukraine (including those, which were amended), were recognized unconstitutional (for example, the law of Ukraine dated 21/12/2016 supplemented Article 216 of the Criminal Procedure Code of Ukraine with part six, which later on was recognized as the one not corresponding to the Constitution of Ukraine

28 Про внесення змін до Господарського процесуального кодексу України, Цивільного процесуального кодексу України, Кодексу адміністративного судочинства України та інших законодавчих актів : Закон України від 3 жовтня 2017 р. Відомості Верховної Ради України. 2017. № 48. Ст. 436. 29 Пояснювальна записка до проєкту Закону України «Про внесення змін до Кримінального процесуального кодексу України щодо уточнення окремих положень» / Верховна Рада України : офіційний вебпортал. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63658. 261 (unconstitutional) by judgment No. 3-p of the Constitutional Court of Ukraine dated April 24, 201830. Undoubtedly, this situation could not help reflecting on the criminal procedural law. As rightly asserted by O.A. Leiba, spontaneous situational rule-making dynamics of the criminal procedural legislation of recent years has led to an aggravation of the regulatory content challenges, which had been “painful” for law enforcement during five years, are still unresolved, create the new problems and aggravate the inconsistencies of individual structural elements of the criminal procedural legislation or form a mutual confrontation between some regulations; cause errors when establishing structural links with the use of blanket and reference regulations; cause violations of the laws of logic when developing the terminology and conceptual-categorical apparatus, etc.31. Certainly, the current Criminal Procedure Code of Ukraine is a subject of numerous complaints. It contains contradictions and gaps, and some regulations allow an ambiguous and sometimes opposite interpretation. Many problems and difficulties are faced by practitioners applying those rules of the Criminal Procedure Code of Ukraine, the wording of which does not comply with the legal technique. Further, it should be emphasized that the reform of the criminal process cannot be carried out in a radical way, let alone stay ahead and determine amendments to the substantive law or determine the competences and the procedure of interaction between government agencies and officials, a system of which is not aligned properly yet. As the embodiment of many social and legal developments in the field of criminal justice, both domestic and foreign, the Criminal Procedure Code of Ukraine sometimes added ideological tent to these legal categories. A striking example of this is definition of the criminal proceeding tasks (Article 2 of the Criminal Procedure Code of Ukraine). Without questioning the fundamental importance of the constitutional provisions on the priority of human rights and freedoms, as well as their safeguards, we can’t help pointing out that the criminal process performs a security and protective functions exclusively in conjunction and within the proceeding, the subject of which is a socially dangerous act. The criminal proceeding is primarily a process of establishing the presence or absence of a criminal offense in the act, availability of a criminal offense in the act of a specific person, a proof of its guilt (or innocence) in commitment of a criminal offense and so on. In this context and in connection with this, the criminal proceeding is a means of protecting a

30 Рішення Конституційного Суду України у справі за конституційним поданням Уповноваженого Верховної Ради України з прав людини щодо відповідності Конституції України (конституційності) частини шостої статті 216 Кримінального процесуального кодексу України від 24 квітня 2018 року № 3-р/2018. Офіційний вісник України. 2018. № 41. Ст. 1459. 31 Лейба О.А. Дефекти кримінального процесуального законодавства та засоби їх подолання : монографія. Харків : «Юрайт», 2018. С. 38. 262 person, society and state from criminal offenses, and the appropriate regulation and implementation of criminal procedural activities safeguard the protection of rights, freedoms and legitimate interests of participants in the criminal proceeding. Therefore, the need to protect the individual, society and state from criminal offenses determines the duty of the prosecutor or investigator to begin a pre-trial investigation in each case of a direct detection of criminal offense, or upon receipt of a report (notice) on commitment of a criminal offense. In this case, the protection of rights, freedoms and legitimate interests of participants in the criminal proceedings are rather a prerequisite, a means to conduct a lawful and impartial investigation and trial. Therefore, the criminal proceedings in any form, and in any country in the world is due, above all, to existence of a crime, and therefore the protection of the individual, society and state from criminal offenses is a common purpose rather than a specific task of the criminal proceeding, the task which has to be provided with adequate implementation means. Similarly, the protection of rights, freedoms and legitimate interests of participants in the criminal proceeding (i.e. protection of private interests) cannot be the driving force behind, the bases and, most importantly, the end result for the mostly public criminal procedural activities. Protection of the rights, freedoms and legitimate interests of participants in the criminal proceeding is the regime and condition of the criminal justice implementation, in which the results are legitimate, appropriate and will ensure the achievement of the main goal, i.e. implementation of the criminal liability and remedy of the public relations damaged by a criminal offense. The rights, freedoms and legitimate interests of the participants in the criminal proceeding are protected within the initiated criminal procedural activity and continued throughout the period of its implementation, i.e. does not appear as the final result of the criminal proceedings, but rather is a prerequisite, the basis for its implementation. The conditions reflect the features of the legal means by which the set tasks are performed and the goal is achieved32. The conceptual drawbacks include the uncertainty of the principle of the rule of law and the absence of the related requirement on impartiality and competence of officials. Part 1 of Article 8 of the Criminal Procedure Code of Ukraine actually reflects the relevant constitutional provision (Article 3 of the Constitution of Ukraine), but as we know, it is not the Constitution and the laws which provide the rights to the people, but rather the people embody their rights through constitutional and other laws. This means that the rule of law is not in the rule of the Constitution over the other laws in the state, the international treaty of

32 Рожнова В.В. Сучасна концепція кримінального процесу та її відображення у системі завдань кримінального провадження. Проблеми правознавства та правоохоронної діяльності. 2012. № 4. С. 126–127. 263 Ukraine over national legislation, etc. (this is a part of the legality principle content), but in the understanding that human rights and freedoms are the foundation, the source, and not the result of the state law. The system of the criminal proceeding principles established by Article 7 of the Criminal Procedure Code of Ukraine, the principle of the rule of law is placed by the legislator in the first place, and therefore it operates as the so-called “principle of principles”, the basis for the formulation and legislative consolidation of all other principles of the criminal proceeding. However, despite such fundamental importance of the rule of law, its wording as enshrined in Part 1 of Article 8 of the Criminal Procedure Code of Ukraine, as already mentioned, actually reproduces the relevant constitutional provisions, not giving answers to the questions about the content of this principle in the criminal proceeding. Still, the peculiarities of the criminal procedural activities, the presence of a significant number of the means of public law enforcement in its arsenal shifts the rule of law to the level of philosophy of the criminal proceeding, meaning philosophy not in the academic sense, but in practice. Each operative officer, investigator, prosecutor, defender, investigating judge, or arbitrator should treat each criminal proceeding from this position. Enshrining the principle of the rule of law in the system of criminal proceeding principles, the legislator apparently pursued a different purpose than just duplicating the relevant constitutional provisions in the text of the Criminal Procedure Code of Ukraine. We hope that the legislator thereby tried to draw attention to the fact that a man as the highest social value, the inviolability of its rights and freedoms are of particular importance in the criminal proceeding, where the principle of legality and need to observe the procedural forms are the most important safeguards of human rights, and discretion limits of officials in positions of authority are clearly defined in the criminal procedural law. Apparently, the developers of the current Criminal Procedure Code of Ukraine intended to indicate to the law enforcement entities that the criminal proceeding stipulated the need and the possibility of transcending behind the formal legitimacy (because it is interpreted as the ratio of the principle of legality and rule of law established for the domestic law). Otherwise, the rule of law loses its independent meaning and value, and any state in which the requirements of the law, especially those far from strengthening and ensuring the human rights and freedoms, are strictly followed, can be called legal33. Currently, the issue of quality of the criminal procedural law, and the effectiveness of its provisions increasingly become the subject of research by the scientists, professional discussion meetings, conferences, seminars, round tables, and conferences at various levels,

33 Рожнова В.В. Верховенство права у системі засад кримінального провадження. Університетські наукові записки. Хмельницький. 2012. С. 383. 264 declaring the need to improve the criminal procedural law and formulating numerous proposals in this regard. However, despite the fact that, on the one hand, currently, the law-making work of our MPs, aimed at the much-desired improvement of the current Criminal Procedure Code of Ukraine is still active, on the other, unfortunately, not all of the bills proposed for consideration, and even the laws adopted by the Verkhovna Rada of Ukraine and currently effective indeed contribute to achieving the declared objective; there are increasingly new grounds for a critical analysis of another improvement (attempts to improve) the criminal procedural law, both in terms of compliance with the rules of legislative technique, and in view of the effectiveness of the normative regulation of the criminal procedural activities, taking into account the legal and organizational aspects of its implementation.

CONCLUSIONS The mechanisms for combating corruption, which can be organizational, technical, legal, or political, are as important as ideological mechanisms. They ensure not only intolerance of society to corruption and its manifestations in all spheres of life, but also form a culture of confidence between public authorities and civil society. An important aspect of this process is also the development and improvement of legislation, the implementation of anti- corruption examination of regulations (bills) to improve their functional performance and prevent the corruption risks in law enforcement. The analysis of only some of the array of proposed bills in recent years, the purpose of which is declared as the effective implementation of overall objectives of the criminal proceeding, protection of rights, freedoms and legal interests of its members, etc. unfortunately, demonstrates a sad tendency towards the desire to change the law enforcement practice for the better, including in terms of human rights, only by means of legislative activity, not taking into account systemic methodological, legal and organizational problems. The reasons for this situation are seen in the absence of adequate scientific justification of relevant amendments (or ignoring the available scientific heritage), the inconsistency in theoretical and methodological understanding of the relevant categories, a lack of systematic approach to specific areas of reform, taking into account not only the purely legal and procedural, but also organizational aspects. However, as is known the objective situation and processes cannot be changed by rewriting laws only, without the proper methodological background, a system of administrative, managerial, and organizational measures, capable of providing for a systemic, consistent and effective implementation of the declared changes in law enforcement. Only such an approach will ensure the protection of human rights as the basis of civil society in both law and law enforcement.

265 SUMMARY The article analyzes certain issues of development and current state of public confidence in relations between the state and civil society in Ukraine. The modern state of law-making and law enforcement was investigated, particularly in terms of the criminal proceeding, in the light of the functional ability of the criminal process, which is based on confidence. It is established that the corruption combating system should be aimed primarily at eliminating the conditions for corruption, rather than at combating its effects, and include not only the socio-economic, political, organizational, and legal measures, but also the technologies of shaping the public awareness. Implementation of e-governance has been recognized as one of the most appropriate, effective and promising areas of domestic governance in corruption combating system and improving public confidence. It was determined that both law and law enforcement, while closely interlinked, have objective conditions caused by the processes occurring in society at a certain stage of its development. The criterion of the relationship and mutual influence of the law and law enforcement level in the criminal proceeding is their mutual functional ability to reach their common objectives. This is what is considered an adequate response to the expectations of society from the system of criminal justice. Currently, there is a tendency towards willingness to change the law enforcement practice for the better only by means of legislative activity, not taking into account the systemic methodological, legal and organizational problems. However, it is impossible to influence on the objective situation and processes only by rewriting laws, without a proper methodological background, as well as administrative, managerial, and organizational measures. Only such an approach can provide for a systematic, consistent and effective implementation of the declared changes in law enforcement.

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Information about authors: Rozhnova V. V., Candidate of Juridical Sciences, Associate Professor, Leading Researcher of the Institute of Post-Graduate Education National Academy of Internal Affairs 1, Solomianska sq., Kyiv, Ukraine

Savytskyi D. O., Candidate of Juridical Sciences, Associate Professor, Deputy Director of the Institute of Post-Graduate Education National Academy of Internal Affairs 1, Solomianska sq., Kyiv, Ukraine

269 MYTHICAL NATURE OF ILLICIT ENRICHMENT AND ITS PROSPECTS IN UKRAINE: IF IT IS NOT PERMITTED, BUT THERE IS A STRONG DESIRE, THEN IS IT ALLOWABLE?

Rubashchenko M. A.

INTRODUCTION The crime of “illegal enrichment” is rightfully considered one of the most controversial in the modern criminal law1. According to various sources2, more than 40 countries, mainly in Latin America and Africa, have envisaged an independent crime of “illegal enrichment” in their criminal law. The question of its criminalization was particularly aggravated upon the adoption of the United Nations Convention against Corruption (UNCAC) that contains Article 20 “Illicit enrichment” that reads as follows, “Subject to its constitution and the fundamental principles of its legal system, each State Party shall consider adopting such legislative and other measures as may be necessary to establish as a criminal offence, when committed intentionally, illicit enrichment, that is, a significant increase in the assets of a public official that he or she cannot reasonably explain in relation to his or her lawful income”3. Actualization of the anti-corruption processes in Ukraine has led to the search for ways to harmonize the Ukrainian anti-corruption legislation with world standards. The illegal enrichment was hasty criminalized in Ukraine in Article 368-2 of the Criminal Code. However, this article has not become an instrument for combating corruption, since no conviction has been issued against officials, in respect of whom the significant difference between declared (official) incomes and their assets (including costs) was found4. Judicial practice has encountered a direct contradiction between elements of illicit enrichment and elements of the presumption of innocence that is firmly and without any exceptions enshrined in the Constitution of Ukraine since its adoption in 1996. The principle of presumption of innocence includes, among other things, the burden of proof that is put to the prosecution, protection of

1 Snider Thomas R. and Kidane Won. Combating Corruption through International Law in Africa: A Comparative Analysis. Cornell International Law Journal. Vol. 40. Iss. 3, Article 4. Р. 728. 2 Boles Jeffrey R. Criminalizing the problem of unexplained wealth: illicit enrichment offenses and human rights violations. New York University Journal of Legislation and Public Policy. 2014. Vol. 17. No. 4. Р. 850; Muzila Lindy, Michelle Morales, Marianne Mathias, and Tammar Berger. Les Profteurs. Incriminer l’enrichissement illicite pour combattre la corruption. Stolen Asset Recovery (StAR) Series. 2014. Washington. Р. xiii. 3 United Nations Convention against Corruption. United Nations Office on Drugs and Crime. URL: http://www.unodc.org/documents/treaties/UNCAC/Publications/Convention/08-50026_E.pdf. 4 Окрема думка судді Конституційного Суду України Шевчука С.В. до рішення Конституційного Суду України № 1-р/2019 від 26 лютого 2019 року. URL: http://www.ccu.gov.ua/docs/2627. 270 the accused against self-incrimination, the right to remain silent, and the prohibition of the prosecution on the basis of the assumption. Naturally, the question of the constitutionality of provisions of Article 368-2 of the Criminal Code was raised before the Constitutional Court of Ukraine (CC). On 27 February 2019, a final decision on the unconstitutionality of this article was published5. The general conclusion is that counteracting corruption should be carried out solely by means of legal methods with observance of constitutional principles. The CC understands the importance of combating corruption and even recognizes that the unreasonable difference between official income and actual assets of the official should be clarified in principle and get a negative assessment from the part of the society and the state, but such an assessment should be carried out not by criminal measures but by disciplinary, administrative or civil law measures. Taking into account the fact that the Ukrainian legislative body provided the illicit enrichment with independent meaning with a criminal nature, it was stated that Article 368-2 of the Criminal Code contradicts the provisions on: 1) legal certainty; 2) in dubio pro reo (“when in doubt, for the accused”); 3) prohibition of the retroactive effect of the law in time in case of deterioration of the person’s status; 4) protection against self-incrimination; 5) imposing the burden of proof on the prosecutor’s office (the prosecution). As long as opponents of illicit enrichment celebrate their victory, its supporters contemplate ways for re-criminalization. For the supporters of illicit enrichment, there is a political factor that has always had a huge corrective effect on the judicial branch of power in Ukraine, including the CC. The abolition of illicit enrichment less than two months before the presidential election caused the effect of an information bomb. The whole politicum outburst criticism of the CС. The newly elected President of Ukraine promised as one of his first steps to revive the approach to illicit enrichment as to an independent crime. At the same wave, parliamentary elections were held in July 2019. Therefore, being electrified by political debate, Ukrainian society will demand to deliver on the promise at any cost. Naturally, there is a high probability that fearing for its political future, the new parliament and head of the state will put pressure on the CС in one way or another due to nation-wide support and will attempt a new criminalization of illicit enrichment.

5 Рішення Конституційного Суду України № 1-р/2019 від 26 лютого 2019 року … щодо відповідності Конституції України статті 368-2 Кримінального кодексу України. URL: http://www.ccu.gov.ua/docs/2627. 271 1. Predictable ways of resuscitation of “illicit enrichment” The rejection of illicit enrichment is characteristic of all countries with a strong constitutional tradition. Although North American countries and most European countries ratified the UNCAC, they categorically refused to criminalize this crime as an independent one. Thus, in the documents of the Convention ratification, the Austrian Parliament suggests that the introduction of this crime as an independent one does not comply with the constitutional and legal tasks and the main features of the European legal tradition on reversing the burden of proof and prohibiting self-incrimination6. The unacceptable reversing of the burden of proof is also mentioned in the materials for the Convention’s ratification by the Swiss Parliament. The Criminal Code of Switzerland allows for reversing the burden of proof regarding the forfeiture of organized crime assets, the prerequisite for which is to prove the specific criminal activity of such group. However, conversely, the Convention does not require any connection between a significant increase in assets and criminal behavior and creates a separate crime – the acquisition of assets as a result of criminal activities, the concrete facts of which have not been proved7. In the materials of the Convention ratification, there is also a categorical statement of the German Parliament: this article should not be transposed into the German criminal law, since it would be contrary to the constitutional principle of presumption of innocence8. Canada and the United States have rejected the similar article by the Inter-American Convention against Corruption for the same reasons9. In Ukraine, the history of the elements of the illicit enrichment crime was not easy from the very beginning. In the first editions, these elements were not textually consistent with their conventional wording. Thus, illicit enrichment was originally defined by Law No. 3207-VI dated 7 April 2011 as “the receipt of an unlawful benefit in a significant amount by an official in the absence of signs of bribery”10, then by Law No. 1698-VII dated 14 October 2014 as “acquisition by an official of ownership of property, the value of which significantly exceeds the

6 Materialien zum Übereinkommen der Vereinten Nationen gegen Korruption. Republik Österreich. Parlament. URL: https://www.parlament.gv.at/PAKT/VHG/XXII/I/I_01062/index.shtml. 7 Bericht des Bundesrates. Botschaft vom 21. September 2007. Zum UNO-Überinkommen gegen Korruption. URL: https://www.parlament.ch/de/ratsbetrieb/suche-curia-vista/geschaeft?AffairId=20070078. 8 Grunddrucksache 231/14. Entwurf eines Gesetzes zu dem Übereinkommen der Vereinten Nationen vom 31. Oktober 2003 gegen Korruption. URL: https://www.bundesrat.de/SharedDocs/beratungsvor gaenge/2014/0201-0300/0231-14.html. 9 Signatories and Ratifications: Inter-American Convention against Corruption, Organization of American States. URL: http://www.oas.org/juridico/english/sigs/b-58.html. 10 Про внесення змін до деяких законодавчих актів України щодо відповідальності за корупційні правопорушення : Закон України від 07.04.2011 № 3207-VI. URL: https://zakon.rada.gov.ua/ laws/show/3207-17. 272 income of the person derived from legitimate sources”11. It was only Law No. 198-VIII dated 12 February 2015 that Article 368-2 of the CC was brought in accordance with Article 20 of the UNCAC: “Acquisition by an official of ownership of a significant amount of assets, the legality of grounds for acquisition of which is not confirmed by evidence”12. In the Ukrainian criminal justice literature, Vasyl Kyrychko was the first person who concluded that the criminalization of illicit enrichment in the form proposed by Article 20 of the UNCAC leads to violations of fundamental human rights. Even before Article 368-2 of the CC was adopted in the Conventional version, the scholar emphasized that direct reproduction of Article 20 of the UNCAC would contradict the provisions of the Constitution of Ukraine: 1) the prosecution cannot be based on assumptions (Part 3 of Article 62); 2) the person is not responsible for refusing to give testimony or an explanation regarding herself/himself (Part 1 of Article 63); 3) nobody is obliged to prove his/her innocence in committing a crime (Part 2 of Article 62)13. However, taking into account a high public demand for combating corruption, the politicum, most non-governmental organizations and a large number of academics insisted on criminalizing illicit enrichment. The decision of the CC did not change their views, but only strengthened their aspirations. The main obstacle to reanimation of the article on illicit enrichment is the decision of the CC, in which Article 368-2 of the CC was not only simply declared unconstitutional, but for the first time in the history of Ukrainian constitutional jurisdiction, the scope of the future activities of the legislative body was outlined. In case of repeated attempts to criminalize illicit enrichment, the Constitutional Court directly indicated in the final paragraph of the motive of its decision that based on legislative formulation of the elements of such offense as illicit enrichment it is not allowed: a) to place an obligation on a person to prove his/her innocence; b) to grant the right to the party of charge to demand from the person confirmation by evidence of legal grounds for acquiring ownership of assets; c) to make it possible to bring the person to responsibility only on the basis of the lack of evidence of legal grounds for acquiring ownership of assets (para. 6 of Part 7)14.

11 Про Національне антикорупційне бюро України : Закон України від 14.10.2014 № 1698-VII. URL: https://zakon.rada.gov.ua/laws/show/1698-18#n357. 12 Про внесення змін до деяких законодавчих актів України щодо забезпечення діяльності Національного антикорупційного бюро України та Національного агентства з питань запобігання корупції : Закон України від 12.02.2015 № 198-VIII. URL: https://zakon.rada.gov.ua/laws/show/198- 19#n39. 13 Киричко В.М. Кримінальна відповідальність за корупцію. Харків : Право, 2013. С. 226. 14 Рішення Конституційного Суду України № 1-р/2019 від 26 лютого 2019 року … щодо відповідності Конституції України статті 368-2 Кримінального кодексу України. URL: http://www.ccu.gov.ua/docs/2627. 273 The first and easiest way to overcome this instruction of the CC is to play a game of legal casuistry: to formulate a new wording of the article without using the controversial wording. As of the middle of July 2019, 17 draft laws on the criminalization of illicit enrichment were registered or were under consideration in the Verkhovna Rada of Ukraine in one way or another. All of them can be conventionally grouped into three groups. First group. Two of the bills reproduce the abolished Article 368-2 of the Criminal Code verbally almost completely15, so there is no need for its analysis, since they are unconstitutional a priori (direct conflict with the CC’s decision). There are still two more bills, in which a special modification of the canceled article is proposed and can be in general represented by the formula: “the acquisition of assets that could not be obtained by lawful means”16. It follows directly from such wording that the prosecutor is obliged to prove the element “assets could not be obtained legally” that is essentially a decoding of the convention formula, when the legality of assets cannot be rationally justified or corroborated by evidence. As stated in the decision of the Constitutional Court, such provisions do not comply with Articles 62 and 63 of the Constitution of Ukraine. Second group. Ten of them, including the bill of the new head of state team, offer modifications to the abolished edition that can be summarized as the formula “acquisition of assets, the value of which exceeds the legal incomes of an official a number of times”17. This is an attempt to overcome the limits of

15 Проєкт Закону про внесення змін до статті 368-2 Кримінального кодексу України «Незаконне збагачення» щодо узгодження із Конвенцією ООН проти корупції та Конституцією України № 4025 від 04.02.2016. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=58080; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-10 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/ zweb2/webproc4_1?pf3511=65686. 16 Проєкт Закону про внесення змін до Кримінального кодексу України щодо відповідальності за незаконне збагачення № 10110-3 від 05.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_ 1?pf3511=65635; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-9 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65685. 17 Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-д від 05.06.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66050; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-2 від 05.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=65634; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-4 від 06.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65638; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-5 від 12.03.2019. URL: http://w1.c1.rada.gov.ua/ pls/zweb2/webproc4_1?pf3511=65656; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за неправомірне збагачення № 10110-6 від 13.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65665; Проєкт Закону про внесення змін до Кримінального кодексу України щодо кримінальної відповідальності за 274 criminalization formulated in the CC decision by depriving the key element that created legal uncertainty – words “that he/she cannot rationally justify” (or, in the Ukrainian version, “the legality of which cannot be confirmed by evidence”). However, such edition only conceals the violation of the constitutional principles set forth in the decision of the Constitutional Court. The essence of this crime and the logic of its proof remains the same: 1) first, assets and expenses of an official are compared with his/her official income; 2) if the size of the first significantly exceeds the size of the latter, then the officer is charged with “illegality” of such difference; 3) provided that the accused doesn’t have any justification for the lawfulness of acquiring this difference (the loss of the title establishing documents, death of witnesses, etc.) or any legitimate reluctance to justify it, the accused automatically finds himself/herself in a situation of fatal choice, “choice without a lawful choice”: а) not to testify against himself/herself and, in this connection, to obtain the conviction unequivocally, as the fact that there is a considerable difference between assets and incomes is enough for qualification of the crime; b) to witness, seek for and formulate evidence of his/her innocence. The first option levels the prohibition of conviction based on the assumption, and the second option levels the same and the right not to incriminate oneself. Both options reverse the burden of proof on the defense side. In fact, the lack in ten bills of key words that reflects the core of this crime in accordance with international conventions levels even more the constitution guarantees on observing human rights. According to the canceled version of the article, the prosecutor was supposed, in particular, to prove the separate element formulated in the disposition of the article – lack of evidence to prove the legality of assets (lack of their rational justification). Thus, there was at least a little hope that the prosecutor’s office would try to check at least a few possible ways of acquiring assets alternative to corruptive ones. In the absence of such element, the prosecutor is only obliged to prove the fact of a significant difference between the assets and expenses of the person and his/her official income, regardless of any rational arguments. Apparently, the

незаконне збагачення № 10110-8 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=65679; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-11 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65687; Проєкт Закону про внесення змін до Кримінального кодексу України щодо відповідальності за незаконне збагачення № 10110-12 від 15.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65692; Проєкт Закону про внесення змін до деяких законодавчих актів України щодо конфіскації незаконних активів осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і покарання за набуття таких активів № 10358 від 03.06.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1? pf3511=66037; Проєкт Закону про внесення змін до деяких законодавчих актів України щодо конфіскації незаконних активів осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і покарання за набуття таких активів № 10461 від 17.07.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66223. 275 Ukrainian legislator seeks to go further and simplify the incriminating function of the prosecutor that means the higher degree of reversing the burden of proof on the defense side. That is, in such a way, the unconstitutionality of illicit enrichment only intensifies. However, in the presidential bill18 that has the highest chance of adoption taking into account results of the electoral race, an attempt to reduce the risk of incrimination of a person based on mere hypothetical assumptions was made. According to the proposed version, the size of the difference between assets and “legitimate” incomes should be a really substantial sum that is as of 2019 amounts to 11.526.000 hryvnias or about 400.000 € (for example: according to the CC of Lithuania, this difference is approximately 19.000 €19). This is almost 1.1 thousand times the size of the average wage in Ukraine. Moreover, according to the note to the proposed article, this difference is not included into assets that are the subject of civil proceedings in cases related to recognition of assets unjustified and their collection in the State’s revenue or those that were collected as a result of such proceedings. Thus, de-facto, in the case of parallel civil proceedings, this difference will be even greater. These legal nuances of the presidential bill usually minimize actual persecution in practice and hence the risks of violations of human rights as a result of establishing a high threshold for the conversion of assets into criminal ones. However, the size of the “difference” as such (regardless of its height) is not able to fully exclude the real possibility of alternative ways of acquiring assets, especially, given that many officials have the business past and could gain unofficial assets before the civil service, including those obtained with a high probability in the non-corruptive way. A person may acquire millions of hryvnias as a result of another own activities or activities of other people. At the same time, such activities may even be criminal, but not related to the functions performed by such official, i. e. be deprived of corruptive nature. Third group. The last three bills20 actually reproduce the original versions of “illicit enrichment” (with minor changes) that were valid within

18 Проєкт Закону про внесення змін до деяких законодавчих актів України щодо конфіскації незаконних активів осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і покарання за набуття таких активів № 10461 від 17.07.2019. URL: http://w1.c1.rada.gov.ua/ pls/zweb2/webproc4_1?pf3511=66223. 19 Lietuvos Respublikos baudžiamasis kodeksas. URL: https://e-seimas.lrs.lt/portal/legalAct Editions/lt/TAD/TAIS.111555?faces-redirect=true. 20 Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110 від 28.02.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65587; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-1 від 01.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=65603; Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-7 від 13.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65666. 276 the period from 1 July 2011 to 25 January 2015. The general structure of the norms envisaged by these bills can be described by the formula “acquisition of assets without legal grounds and in the absence of signs of a specific corruption offense (bribery, abuse of influence, abuse of power, embezzlement)”. According to such wording, the prosecutor is obliged to prove the “illegality” of acquiring assets, for example, that specific money or property was acquired in violation of a specific normative act. The defense side is not loaded with the burden of proof, and its silence will not lead the court to the conclusion that there is no evidence of the legality of the assets. Therefore, from the point of view of observance of the principles of legal certainty and the presumption of innocence (together with all its components), such version of illicit enrichment does not raise any objections. However, it is obvious that in this case the very essence of the illicit enrichment as an independent crime and as a crime described in Article 20 of the UNCAC is emasculated. After all, its function is reduced only to criminalize such receipt of unlawful benefit by an official, that for some reason or another, is not covered by the existing crime of bribery and other “classical” corruption crimes. At the same time, in any case, the prosecutor will have to collect evidence that confirms the concrete fact of gaining profit and the unlawfulness of its gaining that does not simplify the process of proving to the prosecution side. In this regard, it is appropriate to mention one drawback of the decision adopted by the CC, with which opponents of illicit enrichment have to agree. It was partially mentioned by I.D. Slidenko, a Judge of the CC, in his separate dissenting opinion, “A egregious methodological mistake was the solution of the constitutional problem beyond the constitutional representation. In the representation... it was a question of the unconstitutionality of the disposition of Article 368-2 of the Criminal Code in the wording No. 1698-VII dated 14 October 2014 and No. 198-VIIІ dated 2 February 2015. Instead, the resolution part of the Resolution, it is stated that Article 368-2 of the Criminal Code was declared unconstitutional...”21. That is, the Constitutional Court revoked Article 368-2 of the Criminal Code as a whole, and not the law or certain provisions of the law, based on which the last changes were introduced in Article 368-2 of the Criminal Code and that, in fact, became the subject of a broad discussion. As mentioned earlier, before the introduction of the above-mentioned changes, illicit enrichment was the “obtaining an unlawful benefit by an official in a significant amount in the absence of signs of bribery”. Oleksandr Dudorov and Tayisiya Tertychenko rightly pointed out that in

21 Окрема думка судді Конституційного Суду України Сліденка І.Д. до рішення Конституційного Суду України № 1-р/2019 від 26 лютого 2019 року. URL: http://www.ccu.gov.ua/docs/2627. С. 4. 277 2011 Ukraine was not yet ready to establish criminal liability for illicit enrichment in the form, in which this act is recommended to be recognized as a crime in the UNCAC22. And although it is obvious that the “Ukrainian” illicit enrichment of the model defined in 2011 completely differed in its essence from the model envisaged by Article 20 of the UNCAC, the jurisprudence managed to find a place for such article. The Supreme Court of Ukraine described the formula for clear disassociation of separating illicit enrichment (Article 368-2 of the Criminal Code before the introduction of changes dated 14 October 2014) from various types of corrupt practices (bribery): case of bribery, the obtaining of unlawful benefits is always conditioned by behavior of an official, who receives it in the interests of those who provide such benefit (or in the interests of a third person), while using the authority or office powers granted to him/her; in case of illegal enrichment, such conditionality is absent23. This form of Article 368-2 of the Criminal Code allowed bringing the officials to justice in cases where it was impossible to prove the prior agreement of the active and passive sides of corruption activities, but the prosecutor had evidence of concrete facts: a) the obtaining of a benefit from a particular person; and b) the abuse of power or office by an official in favor of such person. In view of the above, it is fair to assume that the new Ukrainian parliament will resuscitate “illicit enrichment” by eliminating the controversial element “lack of evidence of legality/lack of rational justification”. Such option would only increase the unconstitutionality of the law. At the same time, political and public pressure may force the CC to agree on such option saying the revised version is deprived of legal uncertainty and may be justified taking into account public interests. It not worth forgetting that according to Part 2 of Article 92 of new Law “On the Constitutional Court of Ukraine” dated 13 July 2017, “the Constitutional Court may develop and specify the legal position of the Court in its subsequent acts, change the legal position of the Court in the event of a significant change in the regulatory framework, by which the Court was guided in expressing such position, or in the presence of objective reasons for the need to improve the protection of constitutional rights and freedoms, taking into account international obligations of Ukraine and subject to the justification of such change in the Court’s act”24.

22 Дудоров О., Тертиченко Т. Незаконне збагачення: сумнівна новела антикорупційного законодавства України. Вісник Національної академії прокуратури України. 2011. № 3. С. 30. 23 Ухвала Судової палати у кримінальних справах Верховного Суду України від 9 квітня 2015 р. у справі № 5-5кс15. Рішення Верховного Суду України. 2015. Вип. 2. С. 89. 24 Про Конституційний Суд України : Закон України від 13.07.2017 № 2136-VIII. URL: https://zakon.rada.gov.ua/laws/show/2136-19/. 278 2. Concealed threats of criminalization of illicit enrichment The main advantages of illicit enrichment as an independent crime are well formulated by its follower Mesay Tsegaye that can be summarized as such key points that at the same time constitute the quintessence of this crime: criminalizing illegal-enrichment primarily solves the problems associated with collecting evidence for the prosecution of corruption offenses; the burden of proof is eased –without any doubt, the prosecutor has to prove the disproportionate amount of property of the accused in relation to his/her legal income, but is not required to prove that the accused has received a bribe or committed another act of corruption; it is presumed that the wealth that is disproportionate to the legal income of the official was derived due to corruption, unless the accused has proved the opposite25. At the same time, supporters of the criminalization of illicit enrichment substantiate the relief of the burden of proof and partial reversing of it to the accused by the following factors: 1) one of the unique features of corruption crimes is “the secrecy of the crime” and related to it difficulty of proving that: persons who may be witnesses are usually involved in committing the crime, there is no immediate victim, who could disclose a crime or report it, corrupt government officials have great potential to intimidate potential witnesses or influence the investigation of corruption crimes; 2) the existence of a correlation between the struggle against corruption and promotion and protection of human rights – in those societies, where corruption is widespread, there is usually a high level of human rights violations, undermining of the principles of equality and non-discrimination; 3) the lack of financial and human resources of anti-corruption bodies in developing countries; 4) the need to overcome the cycles of impunity and, accordingly, consolidate public trust in governance26. These factors are essentially presented as a test of proportionality between the private interests of the accused (presumption of innocence) and the public interest in combating “secret” corruption (equality, non-discrimination and

25 Tsegaye Mesay. Criminalizing and Prosecuting Illicit Enrichment in Corruption Cases. Abyssinia Law. URL: https://www.abyssinialaw.com/blog-posts/item/1567-criminalizing-and-prosecuting-illicit-enrichment- in-corruption-cases. 26 See references to these factors for example in the following articles: Boles Jeffrey R. Criminalizing the problem of unexplained wealth: illicit enrichment offenses and human rights violations. New York University Journal of Legislation and Public Policy. 2014. Vol. 17. No 4. Р. 841, 845–846. Kofele-Kale Ndiva. Change or the Illusion of Change: The War Against Official Corruption in Africa. George Washington International Law Review. 2006. Vol. 38 (No 4). P. 69. MacMillan Joanna E. Reformasi and Public Corruption: Why Indonesia’s Anti-Corruption Agency Strategy Must be Reformed to Effectively Combat Public Corruption. Emory International Law Review. Vol. 25. Issue 1. Р. 587–588, 627. Tsegaye Mesay. Criminalizing and Prosecuting Illicit Enrichment in Corruption Cases. Abyssinia Law. URL: https://www.abyssinialaw.com/blog-posts/item/1567-criminalizing-and-prosecuting-illicit-enrichment- in-corruption-cases. 279 social justice). It looks as if they are trying to show the peculiar “Themis’ scales” looking at which it is obvious that public interests are more important that in turn allows justifying the relief (reversing) of the burden of proof and departure from other elements of the presumption of innocence. I state that all of the above factors are identically inherent to virtually all crimes or at least to many of them. Particular attention is to be paid to the myth of allegedly unique secrecy of corruption. The fact that corrupt crimes are characterized by a high degree of latency does not raise doubts. However, it is also characteristic of many other forms of criminal activities. That is, the myth is not in secrecy, but in its uniqueness. Thus, for the targeted killing, it is also characteristic that: a) both the customer and the murderer are interested in the confidentiality of the crime; b) such killings are usually committed in an environment that excludes unnecessary witnesses; c) the crime is carefully thought over and the ways of investigation are entangled; d) there is a victim of the crime; however, usually he/she is not already able to help in the investigation and it often happens that the victim disappears. Another example is drug trafficking: all parties – the manufacturer, the supplier, the seller and the buyer – are interested in preserving the scheme of trade, and therefore they will take all measures for its preservation and its secrecy. The same applies to smuggling, for which, among other things, a lack of victims as such is typical. Moreover, drug trafficking and smuggling tend to exist in the form of organized crime activities. In such criminal organization, discipline that is supported by the threat of violence dominates. Such criminal organizations often have more significant authority and more serious influence on potential witnesses and relevant investigation bodies than the political power in the state. Could anyone argue that the targeted killing, smuggling and drug trafficking are less secret or less complex in the gathering of evidence than corruption crimes? It is obvious that, if such difference exists, it is not so significant that is can allow the departure from the presumption of innocence. Supporters of the criminalization of illicit enrichment also try to represent the established connection between the level of corruption and the violation of human rights as a feature of corruption crimes. In general, this statement is not denied by anyone. But what makes corruption unique? Appeal to official documents of the United Nations and other international organizations related to, for example, combating drug trafficking, terrorism, illegal ammunition trafficking or some economic crimes will immediately reveal particular concern about the world community and description of the far-reaching and comprehensive consequences of such crimes in all areas of the public life. For

280 example, the spread of terrorism directly correlates with the violation of fundamental human rights – the right to life and the prohibition of tortures are leveled out, the principles of equality and non-discrimination are violated, and society lives in an atmosphere of anxiety, in a regime of constant expectation of danger and uncertainty of the future. The argument about the need for such instrument for combating corruption as illicit enrichment especially for developing countries is also beneath criticism. There is no doubt that the lack of intellectual (staff), financial and material resources that is characteristic of such countries significantly weakens anti-corruption policy substantially. But is this conclusion only specific for anti-corruption measures? This is a pattern that is easily tracked in all areas of criminal activities. Low level of professionalism, obsolete methods and techniques of investigation, as well as chronic underfunding automatically lead to an increase in the latency of all crimes (the less crimes are revealed, the less victims report them), the increase in length of the investigation and the number of closed cases, and the reduction in the degree of the case disclosure. Ultimately, this all outspreads the cycle of impunity and undermines public confidence in power. Thus, the latency of corruption, complexity of its proof, its direct correlation with the violation of human rights, as well as the lack of proper experience and funding for its investigation in developing countries are not its unique features. All these factors are characteristic of all types of criminal activities one way or another. At the very least, one can confidently state that the same traits can be attributed to at least such dangerous and hardly provable types of crimes as terrorism, drug trafficking, organized crime in general, targeted crimes, war crimes, crimes against humanity and crimes of aggression. The last three groups are so-called international crimes that are probably characterized by the highest degree of complexity of investigation and proving, lead without exaggeration to the most serious consequences of a planetary scale and are usually committed by a political or military official. However, despite their real (and not mythical) uniqueness, international criminal law insists firmly on the observance of all the components of the presumption of innocence of the accused in such crimes. The conclusion that the factors underlying the admissibility of a departure from the relevant elements of the presumption of innocence are devoid of uniqueness and inherent to at least a few other types of criminal activities allow revealing a hidden threat of criminalization of illicit enrichment. It lies in the fact that, in the event of its implementation, as well as further world recognition of this crime that means, first of all, its consolidation in the criminal law of the countries of Europe and North America, the way will be opened for copying

281 such departure from the presumption of innocence and its implementation in relation to the investigation of other types of crimes, for which the same factors of criminalization are inherent. In fact, the basis for this has already been created in the form of relevant conventions that encourage states to criminalize illicit enrichment. As soon as the opportunity arises, the argumentation used in favor of illicit enrichment will certainly be used in the investigation of terrorist or international crimes, drug crimes, crimes against the state (separatism, encroachment on the constitutional order), etc. Indeed, for the prosecutor’s office and the entire state machine, a very “tasty” and easy recipe for neglecting human rights in the criminal justice kitchen is emerging: we find a crime with a high level of secrecy (or a kind of latency), add some difficulty in proving, and “season” it to taste with high public demand (public interest). As Justas Namavičius accurately points out, illicit enrichment requires rethinking of the principle of legality and leads to the formation of a fundamentally new concept of criminal law that is unlikely to be in line with the concept of a liberal-democratic state27. The dish cooked under such a prosecutor’s recipe threatens to become the total tyranny, especially in developing countries. Imagine that your friend secretly acquired ownership of your vehicle, stuffed it with an explosive and left it under an administrative building, committed a terrorist attack. Referring to a particular complexity in proving and strong public interest, the prosecutor requires you to provide rational and convincing explanations that you were not in a conspiracy with the terrorist, he did not tell you about his plans, and you did not provide him with your car. Having forgotten about the right to remain silent and the prohibition of self-incrimination, you decided to testify, otherwise the presumption of your conscious promotion of terrorist act would act. But can you always provide the court with rational explanations and will the court consider them rational? Another example: someone signed into your social networking account and published a separatist call there for forcible disconnecting part of the state territory. How can you prove by the evidence that this is caused by the interference of an unauthorized person, if, in the absence of relevant evidence, the presumption of the unlawfulness of your actions will be applicable? An ideal recipe for those representatives of political power who are looking for extraordinary but formally legitimate methods of combating opponents. When, as a result of several editions, the new for Ukraine offense was actually brought into conformity with Article 20 of the UNCAC, Vasyl Kyrychko rightly called this norm viral and the wording it contains a

27 Namavičius J. Neteisėto praturtėjimo nusikaltimo konstitucinė problematika. Teisė. 2016. Т. 101. Р. 18–19. 282 “legislative virus”: legislative order “the legitimacy of grounds for acquiring of which is not confirmed by evidence”, while interacting with other elements of the system of the Criminal Code, defines, in the content of the criminal law norm envisaged by Article 368-2 of the CC, the legitimized possibility of unjustified violation of human rights in its application in practice28. By agreeing with this assessment, I believe that it can be expanded and indicate that this virus is able to infect other criminal law institutes and other articles about crimes, in respect of which in this or that historical period, the authorities, according to their opinion, lack experience, finances and simplicity of proof. The contradiction of criminalization of illicit enrichment to certain elements of the presumption of innocence has traditionally been regarded as the main “contra” argument. However, there is another significant drawback of the article on illicit enrichment that blurs the foundation of the existing system of liberal-democratic criminal law in the same way and creates a danger of the systematic spread of the legislative virus. In the case of illicit enrichment, the act is not an act of enrichment, but an indicator (factor) that allows formulating a hypothesis about an unlawful way of enrichment of an official. If you apply this pattern to other crimes, it would be impressive. Thus, the normative description of the intentional murder in Article 115 of the Criminal Code of Ukraine instead of “deliberate unlawful causing death to another person” could have acquired the following form: “the presence of a corpse in possession of the suspect or traces of the victim’s blood in his/her things or body, if he/she cannot rationally substantiate that he/she did not cause death to the victim”, and theft in Article 185 of the CC instead of “secret deliberate theft of someone else’s property” could have looked like “presence in the suspect’s hands of property of another person, the legality of possession of which he/she cannot confirm by evidence”. But the victim could die or be killed by another person, the corpse could be planted stealthily, etc. Alternative ways are the appearance of a certain thing in the possession of a suspect – the thing was plant stealthily or purchased in good faith from the real stealer, etc. The alternative and, that is, non-corruption and even legitimate ways of acquiring by a government officer of income, the size of which is significantly different from the declared one, seem to be quite real and not abstract at all. Thus, Vasyl Kyrychko points out to at least the following possible situations of unjustified criminal prosecution for assets: a) acquired in ownership based on legitimate reasons, but proof of legality of which has been lost for certain reasons (documents are lost, persons who have given

28 Киричко В.М. Законодавчий вірус у системі КК України: визначення і актуалізація проблеми на прикладі ст. 368-2 КК «Незаконне збагачення». Проблеми законності. 2016. Вип. 133. С. 146. 283 assets or witnesses died, etc.); b) transferred without their knowledge, including for the purpose of artificial creation of evidence for unlawful prosecution; c) left in the possession of another person who has disappeared; d) that happened to be in their possession accidentally29. Therefore, the criminalization of illegal enrichment can be equated to the opening of the “Pandora’s box”: a departure from the presumption of innocence in assessing the wealth of government officials can spread this evil to the entire criminal sphere. And this already undermines the foundations of the current system of Western criminal law.

CONCLUSIONS The basis of the article on illicit enrichment is a number of objective factors that characterize not this crime, but specific “classical” acts of corruption: the secrecy of corruption, complexity of its proof, connection with the violation of human rights, often limited possibilities of the prosecution. In view of this, supporters of criminalization of illicit enrichment say about justification for a departure from the presumption of innocence. They have the answers to the question why the burden of proof can be reversed to the accused, why a separate element of the crime is the assumption of the corruptive origin of assets and why it is permissible to punish for a crime indicator or its traces, but not for the crime (act) itself. However, these factors are not unique. In their totality, they are inherent in many (and possibly even all) types of crimes. Criminalization of illicit enrichment automatically leads to the recognition of these factors as those that allow a significant narrowing of the traditional constitutional and criminal law principles. And since these factors are of a universal nature, in certain socio-political circumstances, they will play the role of justification for narrowing the traditional liberal principles, when investigating other types of crimes. As a result, this leads to arbitrariness and the destruction of the liberal-democratic criminal law. Recognition of the article on illicit enrichment as unconstitutional one was an important step towards the establishment of a democratic system of constitutional jurisdiction in Ukraine. The body that is the last instance in assessing the compliance of laws passed by the Parliament should be able to counteract the social and political pressures caused by a sharp demand for punishment. The presumption of innocence does not contain exceptions regarding certain categories of persons or separate categories of cases. This is a universal principle that applies in criminal proceedings against each accused person and in the event of suspicion of committing any crime.

29 Киричко В.М. Законодавчий вірус у системі КК України: визначення і актуалізація проблеми на прикладі ст. 368-2 КК «Незаконне збагачення». Проблеми законності. 2016. Вип. 133. С. 148. 284 All ways to revoke or bypass the decision of the Constitutional Court, in the basis of which there will be the conventional model of illicit enrichment, lead to the legalization of political tyranny and gradual infection of the criminal law system in general. Society should understand that the criminal law is only ultima ratio regum. An obstacle in the form of presumption of innocence can be avoided by changing the direction of regulation – from criminal one to civilian, administrative and disciplinary ones. At the same time, such regulation will be consistent with established constitutional principles and will have a high potential for effective counteraction to corruption.

SUMMARY The Constitutional Court of Ukraine has recognized the criminalization of illicit enrichment as false. However, in the society, there is a high demand for punishment of officials, whose magnificent life sharply contrasts with their official income. Against this background, the prospects of re-criminalization of illicit enrichment in Ukraine is considered here. For this purpose, the draft laws on criminal liability for illicit enrichment that were submitted for consideration to the Ukrainian Parliament after the Constitutional Court’s decision are analyzed. It is concluded that all options for the re-criminalization of illegal enrichment will be doomed to failure. They will either level off the very essence of this conventional crime or will contradict the already adopted decision of the Constitutional Court. At the same time, the Constitutional Court may appear under excessive social and political pressure. In addition, the main factors that justify a departure from the presumption of innocence are discussed. The conclusion is drawn about the mythical nature of uniqueness of these factors, as they are characteristic of many other types of crimes. The reanimation of illicit enrichment includes hidden threats of arbitrariness and а selective neglect of human rights throughout the criminal justice sector. Illicit enrichment paves the way to the destruction of liberal-democratic criminal law.

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286 17. Окрема думка судді Конституційного Суду України Шев- чука С.В. до рішення Конституційного Суду України № 1-р/2019 від 26 лютого 2019 року. URL: http://www.ccu.gov.ua/docs/2627. 18. Про внесення змін до деяких законодавчих актів України щодо відповідальності за корупційні правопорушення : Закон України від 07.04.2011 № 3207-VI. URL: https://zakon.rada.gov.ua/laws/show/3207-17. 19. Про внесення змін до деяких законодавчих актів України щодо забезпечення діяльності Національного антикорупційного бюро України та Національного агентства з питань запобігання корупції : Закон України від 12.02.2015 № 198-VIII. URL: https://zakon.rada.gov.ua/ laws/show/198-19#n39. 20. Про Конституційний Суд України : Закон України від 13.07.2017 № 2136-VIII. URL: https://zakon.rada.gov.ua/laws/show/2136-19/. 21. Про Національне антикорупційне бюро України : Закон України від 14.10.2014 № 1698-VII. URL: https://zakon.rada.gov.ua/laws/show/ 1698-18#n357. 22. Проєкт Закону про внесення змін до деяких законодавчих актів України щодо конфіскації незаконних активів осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і покарання за набуття таких активів № 10461 від 17.07.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66223. 23. Проєкт Закону про внесення змін до деяких законодавчих актів України щодо конфіскації незаконних активів осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і покарання за набуття таких активів № 10358 від 03.06.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66037. 24. Проєкт Закону про внесення змін до Кримінального кодексу України щодо кримінальної відповідальності за незаконне збагачення № 10110-8 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=65679. 25. Проєкт Закону про внесення змін до Кримінального кодексу України щодо відповідальності за незаконне збагачення № 10110-12 від 15.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511= 65692. 26. Проєкт Закону про внесення змін до Кримінального кодексу України щодо відповідальності за незаконне збагачення № 10110-3 від 05.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511= 65635. 27. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності

287 за незаконне збагачення № 10110 від 28.02.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65587. 28. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-1 від 01.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65603. 29. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-7 від 13.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65666. 30. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-д від 05.06.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=66050. 31. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-2 від 05.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65634. 32. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-4 від 06.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65638. 33. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-5 від 12.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65656. 34. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за неправомірне збагачення № 10110-6 від 13.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65665. 35. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-11 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65687. 36. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності за незаконне збагачення № 10110-9 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65685. 37. Проєкт Закону про внесення змін до Кримінального та Кримінального процесуального кодексів України щодо відповідальності

288 за незаконне збагачення № 10110-10 від 14.03.2019. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=65686. 38. Проєкт Закону про внесення змін до статті 368-2 Кримінального кодексу України «Незаконне збагачення» щодо узгодження із Конвенцією ООН проти корупції та Конституцією України № 4025 від 04.02.2016. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511= 58080. 39. Рішення Конституційного Суду України № 1-р/2019 від 26 лю- того 2019 року … щодо відповідності Конституції України статті 368-2 Кримінального кодексу України. URL: http://www.ccu.gov.ua/docs/2627. 40. Ухвала Судової палати у кримінальних справах Верховного Суду України від 9 квітня 2015 р. у справі № 5-5кс15. Рішення Верховного Суду України. 2015. Вип. 2. С. 89.

Information about author: Rubashchenko M. A., Candidate of Juridical Sciences, Assistant Professor of Department of Criminal Law № 1 Yaroslav Mudryi National Law University 77, Pushkinska st., Kharkiv, Ukraine

289 LIMITATION OF GETTING GIFTS: PROBLEMS OF CONTENTS OF THE CONCEPT AND TERMINOLOGICAL APPARATUS IN THE CONTEXT OF LAWREALIZATION AND THE ROLE OF ADMINISTRATIVE LAW PRINCIPLES FOR THEIR DECISION

Syniavska O. Yu., Ivantsov V. O.

INTRODUCTION Of course, corruption was and, unfortunately, remains one of the main problems of the Ukrainian state and society. The legal aspect of corruption is manifested in the fact that, on the one hand, it violates law as an objective category, that is, it violates the Law, and on the other, the state takes legal and other measures provided for by law to combat this negative social phenomenon. In a legal state there can be no other means of fighting corruption, except legal ones. Thus, an impressive update of anti-corruption legislation has undergone as a result of the adoption on October 14, 2014 of the so-called “anti-corruption package of laws”. The key among the latter is the Law of Ukraine “On the Prevention of Corruption”1, which defines the legal and organizational basis for the functioning of the system of preventing corruption in Ukraine, the content and procedure for the use of preventive anti-corruption mechanisms, and the rules for eliminating the consequences of corruption offenses. A special place among corruption prevention measures is occupied by the “restriction on the receipt of gifts” (Article 23 of the Law of Ukraine “On the Prevention of Corruption”). However, as research and law enforcement showed, the current provisions of the law in the context of the implementation of restrictions on the receipt of gifts should be considered somewhat controversial2.

1 Про запобігання корупції : Закон України від 14.10.2014 № 1700-VII. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення: 15.07.2019). 2 Коломоєць Т.О. Подарунок для публічного службовця: доцільність нормативної заборони чи обмеження. Правові та інституційні механізми забезпечення розвитку України в умовах європейської інтеграції : матеріали міжнар. наук.-практ. конф., (Одеса, 18 травня 2018 р.). у 2-х т. Т. 2. Одеса : Гельветика, 2018. С. 15–17. Коломоєць Т.О. Обмеження щодо одержання подарунків як інструмент запобігання корупції: вітчизняний та зарубіжний вимір нормативного закріплення. Актуальні проблеми реалізації положень Закону України «Про запобігання корупції» : матеріали регіонального науково-практичного круглого столу (м. Запоріжжя, 1–2 грудня 2017 р.) Запоріжжя : ЗНУ, 2017. С. 100–103. Vladymyr O. Ivantsov, Grzegorz Makowski Restrictions for accepting gifts as a measure to prevent corruption: a critical view on implementation in Ukraine. Кримінально-правові та кримінологічні засади протидії корупції : матеріали IV Міжнародної наук.-практ. конф., (Харків, 15 квітня 2016 р.) Харків : ХНУВС, 2016. С. 75–79. 290 It is worth noting that the implementation of restrictions on the receipt of gifts significantly depend on the clarity of the content of the conceptual and terminological apparatus of the said right restraint, which is obviously reflected in law-enforcement practice, which in turn leads to problems in the latter. This led to the formulation of the first part of our question. We consider it necessary to solve the described problems by referring to the principles of administrative law as a kind of “meganorm”, which can be used as a prism for assessing deficiencies in the implementation of restrictions on the receipt of gifts, which, in turn, based on the objectives of the principles of administrative law3, provide opportunity to work out ways to solve the problems of the implementation of restrictions on the receipt of gifts. Among them they can be: development of proposals for amending the regulatory and legal acts in the field of preventing and combating corruption; filling gaps in the field of administrative and legal regulation of the implementation of restrictions on the receipt of gifts, including the attraction of relevant persons to administrative and/or disciplinary responsibility for the violation of these restrictions; creating a basis for judicial control over administrative actions to implement restrictions on the receipt of gifts.

1. Gift as subject to restrictions on their receipt Restrictions (prohibitions) regarding the receipt of gifts are given in Article 23 of the Law of Ukraine “On the Prevention of Corruption”. However, before proceeding to their characteristics, we define the concept and content of the term “gift” as the subject of appropriate restrictions. In the Law of Ukraine “On the Prevention of Corruption” a gift means cash or other property, advantages, benefits, services, intangible assets that are provided (received) for free or at a price below the minimum market. At the same time, the term “gift” by its semantic meaning is similar to such concepts as “gift” and “donation”. According to Article 718 of the Civil Code of Ukraine4, a gift is the subject of a deed of gift. They can be movable things, including money and securities, as well as immovables and property rights that the donor owns or may have in the future. In accordance with Article 717 of the Civil Code of Ukraine, under a deed of gift, one party (donor) transfers or undertakes to transfer in future to the second party (donee) donated property (gift) into ownership. It is important

3 Мельник Р.С., Бевзенко В.М. Загальне адміністративне право : навчальний посібник / за заг. ред. Р.С. Мельника. Київ : Ваіте, 2014. С. 66. 4 Цивільний кодекс України від 16.01.2003 № 435-IV. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/435-15 (дата звернення: 15.07.2019). 291 that, in accordance with paragraph 2 of Article 717 of this Code, the contract establishing the obligation of the donee to perform any action of a property or non-property nature in favor of the donor is not a gift agreement. Despite the fact that the Law of Ukraine “On the Prevention of Corruption” established a restriction on the receipt of “gifts” (unlike the previous law, which provided for a restriction on the receipt of “gifts”), we believe that the form of expression of a gift agreement and receipt of a gift are identical. In fact, it is about establishing restrictions on the implementation of certain civil rights of a certain category of persons provided for by the Law of Ukraine “On the Prevention of Corruption”. From the position of T.O. Kolomoyets, the regulatory model of settling relations “public servant and gifts” indicates its “prohibitive-restrictive-permissive” content5. Therefore, it is impossible to agree with the position that the provisions of the Civil Code of Ukraine do not apply to the relationship of receiving a gift6. On the contrary, their distribution can be traced as follows. Persons who have entered into a deed of gift (without having any unlawful intent) are governed by the rules of the Civil Code of Ukraine, which leads to their mutual rights and obligations. At the same time, only the donee, acting also as a subject of public relations (the person to whom restrictions on receiving gifts are entrusted) may violate the norms, but not of a dispositive, but imperative nature. As a result of the assessment of the norms of the Law of Ukraine “On the Prevention of Corruption”, a corresponding gift in a civil-legal sense can be recognized as a gift only in relation to the donee as a person who is subject to restrictions regarding the receipt of gifts. As a result, it is the recipient who will be liable in case of violation of restrictions on the receipt of gifts. But the donor is not a subject of tort public-law relations in this case. Such a person only realizes his own civil law capacity provided for by law. It seems that the described position of the legislator is due to the need to establish specific preventive measures, one of which is a “restriction on receiving gifts”, securing such restrictions, in particular in the area of civil legal personality, creates conditions that act as barriers to corruption. In contrast, in terms of “donations”, the provisions of the Law of Ukraine “On the Prevention of Corruption” cannot be applied to relations regulated by the Civil Code of Ukraine (Articles 729, 730) and the Law of Ukraine

5 Коломоєць Т.О. Подарунок для публічного службовця: доцільність нормативної заборони чи обмеження. Правові та інституційні механізми забезпечення розвитку України в умовах європейської інтеграції : матеріали міжнар. наук.-практ. конф., Одеса, 18 травня 2018 р.: у 2-х т. Т. 2. Одеса : Гельветика, 2018. С. 17. 6 Адміністративна відповідальність за правопорушення, пов’язані з корупцією : науково- практичний посібник / К.Л. Бугайчук, О.І. Безпалова, О.В. Джафарова, В.О. Іванцов, С.О. Шатрава. Харків : ХНУВС, 2016. С. 26. 292 “On Charitable Activities and Charitable Organizations”7. After all, firstly, the Law of Ukraine “On the Prevention of Corruption” does not provide for a restriction regarding the receipt of donations (as opposed to the Law “On the Principles of Preventing and Combating Corruption” (became invalid on September 1, 2016)); secondly, for the contract of donation it is necessary to have a definite, predetermined goal, which is determined by the person receiving the donation; thirdly, the donor has the right to control the use of donations for the purposes established by the donation agreement, in particular, the donor or his successors have the right to demand that the donation agreement be terminated if the donation is used for purposes other than intended. The Law of Ukraine “On Charitable Activities and Charitable Organizations” defines the general principles of charitable activities in Ukraine, provides legal regulation of relations in society aimed at the development of charitable activities, approval of humanism and mercy, provides favorable conditions for the formation and activities of charitable organizations. In particular, charitable activity is defined as voluntary personal and/or property assistance in order to achieve the goals specified by this Law, which do not provide for the beneficiary to make a profit, or pay any remuneration or compensation to the benefactor on behalf of or on behalf of the beneficiary. The objectives of charitable activities are to assist in promoting the legitimate interests of the beneficiaries in the areas of charitable activities, as well as developing and supporting these areas in the public interest. The concept of a beneficiary is defined as the purchaser of charitable assistance (an individual, non-profit organization or territorial community) who receives assistance from one or more benefactors to achieve the goals defined by the Law of Ukraine “On Charitable Activities and Charitable Organizations”. The above demonstrates the need to assess the provisions of the Law of Ukraine “On Charitable Activities and Charitable Organizations” and the content of the gift as a subject of restrictions on their receipt through the prism of the principle of humanism. At first glance, the principle of humanism has nothing to do with the issue we are studying. But in modern philosophical literature, humanism determines the release of human capabilities, is a criterion for assessing social institutions, and humanity – the norm of relations between individuals, ethnic and social groups, states8.

7 Про благодійну діяльність та благодійні організації : Закон України від 05.07.2012 № 5073-VI. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/ show/5073-17 (дата звернення: 15.07.2019). 8 Філософський енциклопедичний словник / В.І. Шинкарук (голов. ред.). Київ : Абрис, 2002. С. 134. 293 Considering humanism as a legal principle, M.V. Kostitsky notes that humanism in law affirms the value of the human person, human existence, dignity, rights, and the freedoms of each person9. As we see, we are talking about all the rights and freedoms of a person, and not just those associated with ensuring the right to life, health, prevention of torture, cruel, inhuman or degrading treatment. The position of A.N. Kolodiy, who comes to the conclusion that humanism is the principle according to which the intrinsic value of each person, together with his inalienable rights, is the most valuable, looks good. The components of this principle are kindness, mercy, sympathy, empathy, attention to the person, the desire to help him take a worthy place in life, get rid of all the negative10. At the same time, humanism is directly embodied in all branches of the law of Ukraine, thereby guaranteeing the rights and freedoms of man and citizen11. For example, from the position of T.О. Kolomoyets, among the basic general principles of administrative law, a special place is occupied by humanism and justice in the relationship between the individual and the state12. In the context of this, we recall that the violation of restrictions on the receipt of gifts entails responsibility in accordance with Art. 172-5 of the Administrative Offenses Сode of Ukraine13 and/or disciplinary responsibility14. Based on the above, we believe that there can be no limited (prohibited) (especially administrative burden) the legal possibility of implementing legal relations in the field of humanism and mercy (for example, the possibility of receiving donations (charitable assistance) due to the need for treatment, the occurrence of a natural disaster or emergency that caused damage to property (fire, flood, etc.)).

9 Костицький М.В. Гуманізм права як прояв вищих (космічних) законів у суспільстві. Принципи гуманізму та верховенства права як умова розвитку демократичної, соціальної, правової держави (пам’яті профессора В.В. Копєйчикова) : матеріали міжвуз. наук.-теорет. конф. Київ : КНУВС, 2009. С. 13. 10 Колодій А.М., Олійник А.Ю. Права, свободи та обов’язки людини і громадянина в Україні : підручник. Київ : Правова єдність, 2008. С. 208. 11 Чеботарьов С.С. Гуманізм як принцип права України. Актуальні проблеми держави і права. 2012. № 65. С. 208. 12 Коломоєць Т.О. Адміністративне право України. Академічний курс : підручник. Київ : Юрінком Інтер, 2011. С. 47. 13 Кодекс України про адміністративні правопорушення : Закон України від 07.12.1984 № 8073-X ВР. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/ laws/show/80731-10 (дата звернення: 18.07.2019). 14 Іванцов В.О. Зміст та принципи реалізації дисциплінарної відповідальності у разі порушення норм Закону України «Про запобігання корупції». Науковий вісник публічного та приватного права. 2018. № 5. Том 2. С. 94–95. Настюк В.Я., Синявська О.Ю., Мартиновський В.В., Іванцов В.О. Юридична відповідальність за корупційні правопорушення : підручник / за заг. ред. В.Я. Настюка. Харків : Право, 2019. С. 350–352, 411–412. 294 At the same time, it is necessary to understand that entering into a donation contract, a donation, or carrying out charitable activities can be a format for covertly committing not only actions related to the violation of restrictions on the receipt of gifts, but also corruption offenses related to obtaining unlawful benefits.

2. Problems of determining the content of prohibitions regarding the receipt of gifts and the role of the principles of administrative law in solving them According to Part 1 of Article 23 of the Law of Ukraine “On Prevention of Corruption”, persons authorized to perform state functions and persons equivalent to them are prohibited directly or through other persons from requesting, receiving, or receiving gifts for themselves or persons close to them from legal entities or individuals: 1) in connection with the performance by such persons of activities related to the performance of the functions of the state or local self-government; 2) if the person who gives is subordinate to such person. The content of Article 23 of the Law of Ukraine “On the Prevention of Corruption” gives grounds to refer these cases to a total ban on receiving gifts. Consider them in more detail. 1. The wording “in connection with the exercise by such persons of activities related to the performance of the functions of the state or local self- government” may be given a completely different interpretation. However, any explanation regarding its content is not provided by legal regulations or provisions of an advisory nature. Thus, based on examples of judicial practice regarding accountability for violating restrictions on the receipt of gifts, we can conclude that they are controversial in the context of the understanding of the prohibition – “in connection with the exercise of such persons activities related to the performance of state or local government functions”. Example 1 The Taraschansky District Court of the Kiev Region by its resolution of August 25, 2015 (case No. 379/1230/15-p) brought to administrative responsibility the public inspector of environmental protection of the State Environmental Inspection in the Kiev region for being the subject of responsibility for corruption and corruption offense violated the restriction on receiving gifts, which is set p. 1, Art. 23 of the Law of Ukraine “On the Prevention of Corruption”. Namely, the court found that the public inspector, using his official authority, received a gift from a citizen in the form of coupons for 200 liters of A-95 gasoline of the Avias gas station network, because the inspector would not draw up a protocol on the identified

295 environmental violations by an individual entrepreneur legislation, which entails the imposition of a fine15. Example 2 Novodnestrovsk city court of Chernivtsi region by a decree of June 22, 2016 (case No. 719/183/16-p) brought to administrative responsibility the head of the State Executive Service (GIS) for being the subject of responsibility for corruption and corruption related to corruption receiving gifts, which is set p. 1 Article. 23 of the Law of Ukraine “On the Prevention of Corruption”. In particular, the court found that the head of the GIS acting in his own interests on February 8, 2016, being in his office during the enforcement proceedings for the recovery of alimony from the FACE_1 in his favor, received from the latter as a gift for proper and timely fulfillment of his obligations funds in the amount of 300 UAH. The offender used these funds for his own needs16. From the given examples of judicial practice, it follows that the implementation of activities related to the performance of state functions means receiving a gift for the use of official authority by such a person in their own vested interests. This position cannot be accepted for the following reasons. First, if we turn to the concept of corruption in accordance with Art. 1 of the Law of Ukraine “On the Prevention of Corruption”, then such actions of persons authorized to perform the functions of the state or local self- government, contain signs of corruption, which means they constitute a corruption offense, not an offense related to corruption, which is an administrative offense under Art. 172-5 Administrative Offenses Сode of Ukraine. In turn, the substantive content of the above-mentioned plots of court decisions, in our opinion, contains the corpus delicity provided for by Article 368 of the Criminal Code of Ukraine17. Secondly, the mercenary motive of using official authority or position to a greater extent indicates violations in the described examples of judicial practice of restrictions on the use of official authority or its position, enshrined in Article 22 of the Law of Ukraine “On Prevention of Corruption”. Thirdly, such an approach to the interpretation of the limitation on receiving a gift “in connection with the activities of such persons to perform

15 Справа про адміністративне правопорушення від 25.08.2015 № 379/1230/15-п. Єдиний державний реєстр судових рішень / Судова влада України URL: http://www.reyestr.court.gov.ua/ Review/49058912 (дата звернення 18.07.2019). 16 Справа про адміністративне правопорушення від 22.06.2016 № 719/183/16-п. Єдиний державний реєстр судових рішень / Судова влада України URL: http://www.reyestr.court.gov.ua/Review/49058912 (дата звернення 16.07.2019). 17 Кримінальний кодекс України : Закон України від 05.04.2001 № 2341-ІІІ. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/2341-14 (дата звернення: 16.07.2019). 296 functions of the state or local self-government” can be used as a legal means of avoiding criminal responsibility for obtaining illegal benefits (Art. 368 of the Criminal Code of Ukraine) because the concept of unlawful benefits (par. 8 p. 1 of Article 1 of the Law of Ukraine “On the Prevention of Corruption”) is almost identical with respect to the concept of a gift (par. 10 p. 1 of Article 1 of the Law of Ukraine “On Prevention of Corruption”). The described points out that the judicial practice of assessing restrictions on the receipt of gifts within the administrative-tort industries grossly violates one of the constituent elements of the rule of law principle – “equality before the law”. The latter means that all persons are subject to the same laws, and no person or group of persons has special legal privileges. This requirement concerns both the admission of individuals to certain goods or resources, and legal liability (all persons are responsible for the offenses committed by them under the same conditions)18. The principle of equality of all citizens before the law – a constitutional guarantee of the legal status of a person, extends, in particular, to the imposition of criminal punishment19. Inherent in the principle of the rule of law is legal certainty, which is often referred to as a principle. The latter requires that any legal acts adopted by the public administration be predictable. Predictability means that a legal act must be, if possible proclaimed in advance – to its application, and must be predictable as to its consequences. Such an act must be formulated with a sufficient degree of clarity (to be easily accessible) so that the person has the opportunity to shape his behavior. That is, every subject who is subject to legal acts must clearly understand the consequences that their application will have for him. Of particular importance is the rule in the area of limiting the fundamental rights of a person and citizen20. Thus, in the case of “Kruslen v. France” of April 24, 1990 (The Case of Kruslin v. France), it was determined that the wording of the law should be sufficiently clear and understandable in order to provide citizens with the necessary information regarding the circumstances and conditions under which the public power is vested with the power to covert and potentially dangerous interference with the enjoyment of human rights21.

18 Мельник Р.С., Бевзенко В.М. Загальне адміністративне право : навчальний посібник / за заг. ред. Р.С. Мельника. Київ : Ваіте, 2014. С. 77. 19 Рішення Конституційного Суду України від 02.11.2004 № 15-рп/2004 у справі за конституційним поданням Верховного Суду України щодо відповідності Конституції України (конституційності) положень статті 69 Кримінального кодексу України (справа про призначення більш м’якого покарання). База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/v015p710-04 (дата звернення: 15.07.2019). 20 Мельник Р.С., Бевзенко В.М. Загальне адміністративне право : навчальний посібник / за заг. ред. Р.С. Мельника. Київ : Ваіте, 2014. С. 70. 21 Решение по делу «Крюслен против Франции» : Решение Европейского Суда по правам человека от 24.04.1990. / Европейский суд по правам человека. Избранные решения : в 2 т. Москва : Норма. URL: http//www.echr.ru. 297 2. To receive a gift from a person who is subordinate to a person authorized to perform the functions of the state or local self-government and persons equivalent to them, it should be noted that the nature of the subordination itself does not matter: direct or indirect. Paragraph 3 of Part 1 of Article 1 of the Law of Ukraine “On Prevention of Corruption” defines direct subordination as a relationship of direct organizational or legal dependence of a subordinate person on its leader, including through decision (participation in the decision) on issues of hiring, dismissal from work, applying incentives, disciplinary action, provision of instructions, instructions, etc., control over their execution.

3. Problems of establishing the content of individual characteristics of “authorized” gifts and the role of principles of administrative law in solving them The general ban on receiving gifts has exceptions – “authorized” gifts. These include gifts that: – meet the generally accepted notions of hospitality; – the cost of such gifts does not exceed one subsistence minimum for able- bodied persons, established on the day of receiving the gift, once; – the aggregate value of such gifts received from one person (group of persons) during the year does not exceed two living wages established for an able-bodied person on January 1 of that year in which the gifts are received. The Law of Ukraine “On the Prevention of Corruption” establishes cases to which the aforementioned rule on the limited value of gifts does not apply. This applies in particular to: 1) gifts that are given by close persons. To close persons, the Law of Ukraine “On the Prevention of Corruption” includes: persons who live together, are linked by a common life and have mutual rights and obligations with persons for whom there are special restrictions regarding the receipt of gifts (except for persons whose mutual rights and obligations are with the subject have no family character), including persons who live together, but are not married, and regardless of the specified conditions – husband, wife, father, mother, stepfather, stepmother, son, daughter, stepson, stepdaughter, sibling native sister, grandfather, woman, great-grandfather, great- grandmother, grandson, granddaughter, great-grandson, great-granddaughter, son-in-law, sister-in-law, father-in-law, mother-in-law, adopter or adopted person, guardian or trustee, person under guardianship or trusteeship; 2) gifts received as public discounts on goods, services, public winnings, prizes, bonuses.

298 Based on the rules of legal technology, special attention in determining the format of “authorized gifts” is taken up by the question of establishing the content of such a characteristic as “a generally recognized notion of hospitality”. Obviously, this category is largely evaluative, so its “universality” can be quite controversial, which directly depends on the level of material support of the persons concerned. Giving explanations about the possibility of receiving gifts in accordance with the Law on the Principles of Preventing and Combating Corruption, the Ministry of Justice of Ukraine describes the category “gifts that correspond to generally accepted notions of hospitality” as gifts that can be received on the occasion of, for example, a birthday, anniversary, or generally accepted holiday (New Year, International Women’s Day). Gifts that can be accepted by public servants can include business gifts (souvenirs) and hospitality (an invitation to coffee or dinner) on a modest scale, which are widely used to establish good business relationships and strengthen working relationships22. The difficulty of defining this issue is evidenced by the fact that the National Agency for the Prevention of Corruption (NACP) in the existing methodological recommendations on preventing and resolving conflicts of interest dated 29.09.2017 avoids the assessment of such a characteristic of the “authorized” gift as opposed to the Methodological Recommendations adopted by NACP 14.07. 2016 (expired). Thus, according to the Methodological Recommendations on the prevention and settlement of conflicts of interest in the activities of persons authorized to perform the functions of the state or local government, and persons equated to them from 14.07.2016 to gifts that correspond to generally accepted notions of hospitality, NACP attributed business gifts (souvenirs) and other manifestations of hospitality (an invitation to coffee or dinner), which are widely used to establish good business relations and strengthen working relationships, but not from subordinates and within the money limits defined by the Law, preventing them from receiving such gifts one person or group of persons on a regular basis23. That is, the absence of the definition of such an important characteristic as compliance with the generally accepted notions of hospitality significantly affects the inconsistent law enforcement practice of

22 Одержання подарунків особами, уповноваженими на виконання функцій держави або місцевого самоврядування : роз’яснення Міністерства юстиції України від 28.07.2011. Баланс-Бюджет. 2011. № 36. Ст. 11. 23 Методичні рекомендації з питань запобігання та врегулювання конфлікту інтересів у діяльності осіб, уповноважених на виконання функцій держави або місцевого самоврядування та прирівняних до них осіб : Рішення Національного агентства з питань запобігання корупції від 14.07.2016 № 2. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/rada/show/ v0002884-16 (дата звернення: 17.07.2019). 299 the courts, and obviously violates the principle of legal certainty, the content of which we have revealed above. At the same time, such a position that contradicts the provisions of the Law of Ukraine “On Preventing Corruption” looks like the current position of the NACP that the Typical Anti-Corruption Program of a Legal Entity provides for the possibility of the cost of gifts, which correspond to generally accepted notions of hospitality, to determine (establish) the corresponding anti- corruption program. Moreover, clause 10 of the notes to the Type Anti- Corruption Program of a legal entity establishes that the relevant legal entity may determine additional cases where the receipt of gifts is prohibited24. This state of affairs is a gross violation of the principle of hierarchical superiority of the law, according to which legal acts that contradict the law are considered illegal and, accordingly, do not apply on the territory of Ukraine. As we noted earlier, the current provisions of the Law of Ukraine “On the Prevention of Corruption” in the context of the implementation of restrictions on the receipt of gifts should be considered somewhat controversial. Regarding the legal possibilities of obtaining “authorized” gifts, we can give the following examples. Example 1 Based on the content of the concept “close persons”, persons who are imposed restrictions are obliged to refuse a gift that comes from a uncle (aunt) or cousin (sister) if its value exceeds the amount stipulated by the Law of Ukraine “On the Prevention of Corruption” . Example 2 Extrapolating the described provisions of the Law of Ukraine “On Preventing Corruption” to the possibility of obtaining an engagement ring by a person who is restricted, he also has to refuse such a proposal, except when such a person lives together, has a common life and has mutual rights and obligations with a man who makes her an offer. After all, it is clear that in the overwhelming majority of cases, the cost of a ring will exceed the allowable value of a gift, as defined by the Law “On the Prevention of Corruption”. Example 3 Based on the definition of a gift, persons who are subject to restrictions are not entitled, in particular, to enter into contracts for the sale or other property whose value is lower than the minimum market value, if the purchase and sale is carried out in connection with the purchasers’ activities related to the performance of state functions or local government, or the seller is

24 Про затвердження Типової антикорупційної програми юридичної особи : рішення НАК від 02.03.2017 № 75. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/z0326-17 (дата звернення: 17.07.2019). 300 subordinate to the buyer, which however does not provide for administrative liability under Art. 172-5 of Administrative Offenses Сode of Ukraine. In this context, the definition of a gift according to the provisions of the Law of Ukraine “On the Prevention of Corruption” is in direct conflict with the civil rights of individuals (Article 717 of the Civil Code of Ukraine). The described examples, fully responding to the provisions of the Law of Ukraine “On the Prevention of Corruption” look to a certain extent “absurd” and do not comply with the principle of equality before the law, the content of which, as we noted, is that all individuals are subject to the same laws. At the same time, contradictions arise not in the context that a certain group of persons has certain privileges, but on the contrary, that a certain group of persons is limited in their rights (cannot exercise their civil procedural legal personality). In this context, to a certain extent, one can speak about the elements of discrimination against persons who are subject to restrictions regarding the receipt of gifts. So, for example, R.S. Melnik considers the prohibition of discrimination and equality before the law as a separate integral element of the rule of law principle25.

CONCLUSIONS The study of the conceptual and terminological apparatus of restrictions on the receipt of gifts showed the existence of a number of problems in determining the content of some of them. In turn, the decisions of the latter became possible due to the appeal to the principles of administrative law as a kind of meganorm, on the basis of which “ordinary” norms of administrative law should be formed and developed, resulting in the following conclusions. 1. The term “gift” as an object of restriction on their receipt by the semantic meaning is similar to such concepts as “gift” and “donation”. As a result of the assessment of the norms of the Law of Ukraine “On the Prevention of Corruption”, it was proved that a gift in a civil-legal sense can only be recognized as a gift in relation to the donee as a person subject to restrictions regarding the receipt of gifts. In turn, the donor sells his own, provided by law, civil legal capacity. Having studied the norms of the laws of Ukraine “On the Prevention of Corruption” and “On Charitable Activities and Charitable Organizations” through the prism of the principle of humanism and justice in the relationship between the individual and the state, it was proved that there can be no limited (prohibited) legal possibility of implementing legal relations in the field of humanism and mercy.

25 Мельник Р.С., Бевзенко В.М. Загальне адміністративне право : навчальний посібник / за заг. ред. Р.С. Мельника. Київ : Ваіте, 2014. С. 76–77. 301 2. Analysis of the law enforcement practice of prohibiting the receipt of gifts by persons authorized to perform the functions of the state or local self- government, and persons equivalent to them in connection with the activities of such persons related to the functions of the state or local self-government often revealed a gross violation of the rule of law principle (in particular, legal certainty and equality before the law as mandatory elements of the rule of law). It was noted that ensuring the implementation of legal certainty of the described prohibition can be ensured by disclosing their contents to NACP, guided by the powers enshrined in clause 15 of part 1 of Article 11 of the Law of Ukraine “On Prevention of Corruption”. We propose the following approach to the interpretation of the phrase “persons authorized to perform the functions of the state and persons equivalent to them are prohibited from receiving gifts in connection with the activities of such persons related to the performance of the functions of the state or local self-government”, which may well be borrowed by the NACP, namely: 1) it is prohibited for persons authorized to perform the functions of the state or local self-government and persons equivalent to them, directly or through other persons, to require, request, receive gifts for themselves or their close persons from legal entities or individuals in case of their receipt as the subject of establishing informal relations, which with a certain probability may affect the commission of actions (inactions) or decision-making by such a person in the interests of the donor or another person determined by him. At the same time, both parties, both the person who receives the gift and the person who accepts it, understand that the corresponding gift is a “symbol (pledge)” of building such informal relationships (for example, birthday entrepreneurs try to give a gift to the employee (manager) controlling body in the amount stipulated by law, the latter, in turn, during the implementation of control measures draws attention to who came to congratulate on his birthday (other holiday), that is, it evaluates the format of their “preliminary communication”, which can be the basis for the commission of a corruption offense); 2) It is prohibited for persons authorized to perform the functions of the state or local self-government and persons equivalent to them, directly or through other persons, to require, request, receive gifts for themselves or their close persons from legal entities or individuals if received as a subject of “gratitude” for completely lawful realization of official or representative powers (for example, the person who applied for state services tries to thank the official for providing the relevant service at its discretion, the estimated present). 3. It has been established: 1) the uncertainty of individual characteristics of “authorized gifts”, which requires amending the Law of Ukraine “On the Prevention of Corruption” to exclude them or provide clear explanations in the

302 framework of the NAPC Guidelines; 2) Violation of the provisions of the Model Anti-Corruption Program of a Legal Entity approved by the Decision NACP dated March 2, 2017 No. 75 of the principle of hierarchical superiority of the law, which requires making changes to them taking into account the norms of Art. 23 of the Law of Ukraine “On the Prevention of Corruption”, which defines the uniform rules for determining the amount of “authorized gift”; 3) the inconsistency of the content of the concept of “gift” to such an important element of the rule of law principle as “the prohibition of discrimination and equality before the law”, which requires amendments to the Law of Ukraine “On the Prevention of Corruption” in terms of adjusting the concept of “gift” as such, which will be related to the restriction of “family-private” relations that are not related to the performance of state or local government functions.

SUMMARY Attention is focused on the study of restrictions on the receipt of gifts, under Art. 23 of the Law of Ukraine “On the Prevention of Corruption”. It was noted that the current provisions of the law in the context of the implementation of restrictions on the receipt of gifts should be considered somewhat controversial. In turn, the implementation of restrictions on the receipt of gifts significantly depend on the clarity of the content of the conceptual and terminological apparatus of the said right restraint, which is obviously reflected in law enforcement practice, which in turn leads to problems in the field of the latter. This led to the formulation of the first part of the question posed by the authors. Proposed solutions to the implementation of restrictions on the receipt of gifts to implement by referring to the principles of administrative law as a kind of “meganorm”, which can be used as a prism to assess the shortcomings of restrictions on the receipt of gifts, which, in turn, based on the principles of administrative law. The characteristic is given to the concept of a gift as a subject of restrictions on their receipt. The problems of determining the content of prohibitions regarding the receipt of gifts and the problem of determining the content of individual characteristics of “authorized” gifts are identified. Discloses the role of principles of administrative law in their decision. As a result of the assessment of the norms of the Law of Ukraine “On the Prevention of Corruption”, it was proved that a gift in a civil-legal sense can only be recognized as a gift in relation to the donee as a person subject to restrictions regarding the receipt of gifts. Analysis of the law enforcement practice of prohibiting the receipt of gifts by persons authorized to perform the functions of the state or local self- government and persons equivalent to them in connection with the activities of

303 such persons related to the functions of the state or local self-government has often shown a gross violation of the rule of law (in particular legal certainty and equality before the law as mandatory elements of the rule of law). It was noted that ensuring the implementation of legal certainty of the described prohibition can be ensured by disclosing their contents to the NACP, guided by the powers enshrined in clause 15 of part 1 of Article 11 of the Law of Ukraine “On Prevention of Corruption”. The author’s approach to the interpretation of the wording “persons authorized to perform the functions of the state and persons equivalent to them is prohibited to receive gifts in connection with the activities of such persons related to the performance of the functions of the state or local self- government”, which can be borrowed by the NACP.

REFERENCES 1. Vladymyr O. Ivantsov, Grzegorz Makowski. Restrictions for accepting gifts as a measure to prevent corruption: a critical view on implementation in Ukraine. Кримінально-правові та кримінологічні засади протидії корупції : матеріали IV Міжнародної наук.-практ. конф., (Харків, 15 квітня 2016 р.) Харків : ХНУВС, 2016. С. 75–79. 2. Бугайчук К.Л., Безпалова О.І., Джафарова О.В., Іванцов В.О., Шатрава С.О. Адміністративна відповідальність за правопорушення, пов’язані з корупцією : науково-практичний посібник. Харків : ХНУВС, 2016. 97 с. 3. Іванцов В.О. Зміст та принципи реалізації дисциплінарної відповідальності у разі порушення норм Закону України «Про запобігання корупції». Науковий вісник публічного та приватного права. 2018. № 5. Том 2. С. 89–95. 4. Кодекс України про адміністративні правопорушення : Закон України від 07.12.1984 № 8073-X ВР. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/ laws/show/80731-10 (дата звернення: 15.07.2019). 5. Колодій А.М., Олійник А.Ю. Права, свободи та обов’язки людини і громадянина в Україні : підручник. Київ : Правова єдність, 2008. 350 с. 6. Коломоєць Т.О. Адміністративне право України. Академічний курс : підручник. Київ : Юрінком Інтер, 2011. 576 с. 7. Коломоєць Т.О. Обмеження щодо одержання подарунків як інструмент запобігання корупції: вітчизняний та зарубіжний вимір нормативного закріплення. Актуальні проблеми реалізації положень Закону України «Про запобігання корупції» : матеріали регіонального науково-практичного круглого столу (м. Запоріжжя, 1–2 грудня 2017 р.). Запоріжжя : ЗНУ, 2017. С. 100–103.

304 8. Коломоєць Т.О. Подарунок для публічного службовця: доцільність нормативної заборони чи обмеження. Правові та інституційні механізми забезпечення розвитку України в умовах європейської інтеграції : матеріали міжнар. наук.-практ. конф., Одеса, 18 травня 2018 р. : у 2-х т. Т. 2 Одеса : Гельветика, 2018. С. 15–17. 9. Костицький М.В. Гуманізм права як прояв вищих (космічних) законів у суспільстві. Принципи гуманізму та верховенства права як умова розвитку демократичної, соціальної, правової держави (пам’яті професора В.В. Копєйчикова) : матеріали міжвуз. наук.-теорет. конф. Київ : КНУВС, 2009. С. 13–15. 10. Кримінальний кодекс України : Закон України від 05.04.2001 № 2341-ІІІ. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/2341-14 (дата звернення: 16.07.2019). 11. Мельник Р.С., Бевзенко В.М. Загальне адміністративне право : навчальний посібник / за заг. ред. Р.С. Мельника. Київ : Ваіте, 2014. 376 с. 12. Методичні рекомендації з питань запобігання та врегулювання конфлікту інтересів у діяльності осіб, уповноважених на виконання функцій держави або місцевого самоврядування та прирівняних до них осіб : рішення Національного агентства з питань запобігання корупції від 14.07.2016 № 2. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/rada/show/v0002884-16 (дата звернення: 17.07.2019). 13. Настюк В.Я., Синявська О.Ю., Мартиновський В.В., Іванцов В.О. Юридична відповідальність за корупційні правопорушення : підручник / за заг. ред. В.Я. Настюка. Харків : Право, 2019. 512 с. 14. Одержання подарунків особами, уповноваженими на виконання функцій держави або місцевого самоврядування : роз’яснення Міністер- ства юстиції України від 28.07.2011. Баланс-Бюджет. 2011. № 36. Ст. 11. 15. Про благодійну діяльність та благодійні організації : Закон України від 05.07.2012 № 5073-VI. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/ show/5073-17 (дата звернення: 15.07.2019). 16. Про запобігання корупції : Закон України від 14.10.2014 № 1700-VII. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення: 15.07.2019). 17. Про затвердження Типової антикорупційної програми юридичної особи : Рішення НАК від 02.03.2017 № 75. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/ show/z0326-17 (дата звернення: 17.07.2019).

305 18. Решение по делу «Крюслен против Франции» : Решение Европейского Суда по правам человека от 24.04.1990. / Европейский суд по правам человека. Избранные решения: в 2 т. Москва : Норма. URL: http//www.echr.ru (дата звернення: 15.07.2019). 19. Рішення Конституційного Суду України від 02.11.2004 № 15-рп/2004 у справі за конституційним поданням Верховного Суду України щодо відповідності Конституції України (конституційності) положень статті 69 Кримінального кодексу України (справа про призначення більш м’якого покарання). База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/ laws/show/v015p710-04 (дата звернення: 15.07.2019). 20. Справа про адміністративне правопорушення від 22.06.2016 № 719/183/16-п. Єдиний державний реєстр судових рішень / Судова влада України URL: http://www.reyestr.court.gov.ua/Review/49058912 (дата звернення: 16.07.2019). 21. Справа про адміністративне правопорушення від 25.08.2015 № 379/1230/15-п. Єдиний державний реєстр судових рішень / Судова влада України URL: http://www.reyestr.court.gov.ua/Review/49058912 (дата звернення: 16.07.2019). 22. Філософський енциклопедичний словник / В.І. Шинкарук (голов. ред.). Київ : Абрис, 2002. 742 с. 23. Цивільний кодекс України від 16.01.2003 № 435-IV. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/435-15 (дата звернення: 15.07.2019). 24. Чеботарьов С.С. Гуманізм як принцип права України. Актуальні проблеми держави і права. 2012. № 65. С. 205–210.

Information about authors: Syniavska O. Yu., Doctor of Juridical Science (habilitated degree), Professor, Professor of the Law Enforcement and Police Studies Chair of Kharkiv National University of Internal Affairs 27, Lev Landau ave., Kharkiv, Ukraine

Ivantsov V. O., Candidate of Juridical Sciences, Associate Professor, Doctoral Candidate of the Department for the Organization of Educational and Scientific Training of Kharkiv National University of Internal Affairs 27, Lev Landau ave., Kharkiv, Ukraine

306 CORRUPTION AS A SOCIAL AND LEGAL PHENOMENA AND NORMATIVE NOTION: PROBLEMS OF DEFINITION

Sikorskyi O. P., Sandiuk H. O.

INTRODUCTION Today, there is no uniform system definition of corruption in the literature that would cover this complex phenomenon in all its diversity of forms and manifestations. Even with regard to the origin of the term among scientists there is no unity. Some scientists believe that the term “corruption” comes from the Latin corruptіo and means “bribery, venality of public and political figures, officials”. Others – that this term is the result of a combination of the Latin words “соrrеі” – the obligatory involvement of several representatives of one of the parties in one case, and “rumpere” – to violate, break, damage, cancel. Together they formed an independent term – соrrumреrе, which means participating in the activities of several (at least two) persons whose purpose is to “damage”, “destruction”, “damage” the normal development of the judicial process or the process of managing the affairs of society. Avoid excessive detailing and “specifics” in the definitions and the relevant international legal acts of anti-corruption issues. Thus, in the materials of the Eighth United Nations Congress on the Prevention of Crime and the Treatment of Offenders (Havana, August 27 September 7, 1990), it is stated that the term “corruption” is not strictly legal and rather has a general character1. Corruption actions can include any planned, expected, or such that happened, receiving benefits as a result of unjustified use of official status and conflict of interests, that is, contradictions between official duties and personal interests. In the model Law “On the fight against corruption”, adopted at the XIII plenary meeting of the Inter-Parliamentary Assembly of the Member States of the Commonwealth of Independent States on April 3, 1999, corruption as well as persons equated to them, using their official powers and related opportunities, as well as the bribery of these persons by unlawful actions they individuals or legal entities mentioned benefits and advantages2.

1 Попередження злочинності та кримінальне правосуддя у контексті розвитку: реалізації та перспективи міжнародного співробітництва. Практичні заходи боротьби з корупцією : Резолюція ООН від 07.09.1990. База даних «Законодавство України» / Верховна Рада України. URL: http://zakon2.rada.gov.ua/laws/show/995_785 (дата звернення: 16.07.2019). 2 Модельний закон про боротьбу з корупцією (прийнятий на ХІІІ пленарному засіданні Міжпарламентської асамблеї держав-учасниць СНД), постанова № 13-4 від 03.04.1999). База даних «Законодавство України» / Верховна Рада України. URL: http://zakon3.rada.gov.ua/rada/show/997_998 (дата звернення: 16.07.2019). 307 In turn, the Verkhovna Rada of Ukraine, adopting a title law in the field of preventing and combating corruption went by providing an exhaustive definition of the concept of corruption, which necessitated updating the approaches to understanding the latter in the modern anti-corruption legal paradigm.

1. Corruption as a social and legal phenomenon Etymologically, corruption is viewed as “the use by an official of his official position for the purpose of personal enrichment. Venality of officials and public figures”3. As a foreign language, corruption is defined as: 1) bribery and corruption of state, public and political figures; 2) the union of public authorities with the structures of organized crime4. Depending on the approach chosen by the author to the definition of corruption, legal reference books provide the following: the activities of persons authorized to perform state functions aimed at unlawfully using the powers granted to them to obtain material goods, services, benefits or other benefits5; a social phenomenon that covers the entire totality of corruption acts related to the unlawful use by persons authorized to perform the functions of the state, the authority vested in them, official powers, appropriate opportunities in order to meet the personal interests or interests of third parties, as well as other corruption offenses creating the conditions for committing acts of corruption or is concealing them or condoning them6; socially dangerous act in the sphere of politics or public administration, expressed in the deliberate use by representatives of the authorities of their official status for the unlawful receipt of property and non-property benefits and advantages in any form, as well as bribing these persons7. Scientists more generally approach the definition of corruption. Thus, M.Yu. Tikhomirov considers corruption as criminal activity in the sphere of politics or government, the use by officials of the rights and powers vested in them for personal enrichment8. A broader approach to the definition of corruption is demonstrated by N.V. Kuznetsova, who proposes to treat this phenomenon not only as a legal phenomenon, but also as a social, economic

3 Великий тлумачний словник сучасної української мови (з дод. і допов.) / уклад і голов. ред. В.Т. Бусел. Київ; Ірпінь : ВТФ «Перун», 2005. С. 578. 4 Сучасний словник іншомовних слів. Близько 20 тис. слів і словосполучень / уклад. О.І. Скопненко; Т.В. Цимбалюк. Київ : Довіра, 2006 С. 386. 5 Юридична енциклопедія: в 6 т. / редкол.: Ю.С. Шемшученко (голова редкол.) та ін. Київ. : Укр. енцикл, 2001. Т. 3: К–М. 2001 С. 369. 6 Великий енциклопедичний юридичний словник / за ред. Ю.С. Шемшученка. 2-ге вид., перероб і доповн. Київ : Юридична думка, 2012. C. 502 7 Большой юридический словарь / под. ред. А.Я. Сухарева, В.Е. Крутських. 2-е изд,, перераб. и доп. Москва : Инфра-М, 2004. С. 288. 8 Тихомиров М.Ю. Юридическая энциклопедия. Москва : Юринформцентр, 1995. С. 215. 308 and moral phenomenon that damages the normal functioning of moral and legal relations in society and the state9. B.V. Volzhenkin as corruption refers to a socio-cultural phenomenon consisting in the destruction of power10, in which state (municipal) employees and other persons authorized to perform public functions use their official position, status and authority of their position for personal gain for personal enrichment or in group interests. A similar position is occupied by some Ukrainian legal scholars. For example, N.I. Melnik defines corruption as a multidimensional socio-economic, political, legal and moral phenomenon, consisting of a whole complex of illegal actions and unethical actions11. S.M. Klimova and T.V. Kovaleva characterize corruption as a complex social phenomenon consisting in the use of official position for personal gain, has a negative impact on all aspects of political and socio-economic life and the development of society and the state12. A.A. Vishniakov speaking about corruption, notes that the study of the problem of the existence of corruption should be carried out not only as a category of legal and legal, but also as philosophical, social, and political13. L.I. Arkusha expresses the opinion that corruption is the illegal activity of certain individuals, aimed at using their official and social status for personal enrichment, enrichment of their relatives and supporters, and other benefits and benefits despite the interests of society14. S.M. Alferov defined corruption as the use by a person of the official authority granted to him and related opportunities with the purpose of obtaining an unlawful benefit or accepting/soliciting a promise/offer of such benefit for himself or other persons or a promise/suggestion or providing unlawful benefit to such a person or, at his request, to other natural or legal persons in order to persuade that person to unlawfully use his official powers and related opportunities15. According to A.Ya. Prokhorenko, corruption is the abuse of state power for personal gain; it is a relationship system that helps capital owners buy

9 Кузнецова Н.В. Коррупция в системе уголовных пре ступлений. Вестник Московского университета. 1993. № 1. С. 21. 10 Волженкин Б.В. Коррупция. Санкт-Петербург.: С.-Петерб. юрид. ин-т Генер. прокуратуры Рос. Федерации, 1998. С. 8. 11 Мельник М.І. Корупція: проблеми визначення сутності і поняття. Вісник Академії правових наук України. 1997. № 3 (10). С. 79. 12 Клімова С.М., Ковальова Т.В. Організація запобігання та протидії корупції в Україні : навчальний посібник. Харків, 2012. 283 с. 13 Вишняков А.А. Свободные и демократические выборы как преграда политической коррупции. Организованная преступность, терроризм и коррупция: Криминологический ежеквартальный альманах. Вып. 1. 2003. С. 73. 14 Аркуша Л.И. Выявление и расследование организованной преступной деятельности при наличии коррупционных связей. Одесса : Одесская нац. юр. академия, 2003. С. 41. 15 Алфьоров С.М. Недоліки та переваги визначення корупції в новому антикорупційному Законі: аналіз поняття. Форум права. 2011. № 2. С. 18. URL: http://www.nbuv.gov.ua/e-journals/FP/2011- 2/11acmzap.pdf (дата звернення: 18.09.2019). 309 everything – benefits, influence, laws, decisions in their favor, patronage of the legislative, executive, and judicial branches16. Important, in our opinion, is the second part of the proposed definition, which focuses on the fact that corruption is not limited to the abuse of power or authority, it is not just a set of relevant illegal acts with a mercenary purpose, but is a system of certain relations. In turn, M.Yu. Bezdolny defines the concept of corruption as a combination of corruption acts and other offenses related to the receipt of material goods, gifts, services, benefits, benefits or other benefits of a material or non-material nature that are different in nature and degree of public danger organizational and administrative or administrative powers in the sphere of state (public) management17. The above notion of corruption was formulated on the basis of its features: 1) it provides: on the one hand, bribery, on the other – corruption of subjects of corruption and other offenses related to corruption; 2) constitutes an aggregate of corruption acts of a different nature and degree of public danger, and other offenses committed by action or inaction; 3) is associated with the receipt of material goods, gifts, services, benefits or other benefits of a material or intangible nature to satisfy personal or group interest; 4) is performed by a subject that performs organizational, administrative or administrative powers in the field of state (public) management. A successful, albeit overly detailed, definition of A.V. Tereshchuk can be considered, which by corruption means the activities of persons authorized to perform public functions or equivalent persons, aimed at the unlawful use of their powers or their official position and related opportunities for illegal receipt from individuals and legal entities of material goods, services, benefits or other benefits of a material or non-material nature (treason), and bribery of the said persons natural and legal persons18. The advantage of this definition is that the author does not reduce corruption solely to the unlawful acts of persons authorized to perform state functions or persons equal to them, but also reveals another dangerous side of corruption – the provision of tangible or intangible assets by individuals or legal entities. Some foreign experts in the field of corruption problems point out another feature of the phenomenon of corruption – dishonesty in the decision-making process. That is, when the decision maker does not comply with the established requirements for its adoption in exchange for a reward or a promise to provide such remuneration. So, from the position of K. Friedrich, corruption is a deviant

16 Прохоренко О.Я. Протидія корупційним проявам у системі державної служби України (організаційно-правовий аспект) : дис. канд. наук з держ. упр. : 25.00.03. Київ., 2004. С. 16. 17 Бездольний М.Ю. Адміністративно-правові засади діяльності органів внутрішніх справ щодо протидії корупції : автореф. дис... канд. юрид. наук : 12.00.07. Харків, 2009. С. 9. 18 Терещук О.В. Адміністративна відповідальність за корупційні правопорушення : автореф. дис. … канд. юрид. наук: 12.00.08. Одеса, 2000. С. 11. 310 behavior combined with private motivation, which means that private (individual, group) goals are pursued at the expense of society19. In an effort to come to a common understanding of the concept of corruption, V.N. Trepak notes that it is impossible and unnecessary to reduce the definition of corruption to a single (one) formulation, because this term objectively affects various phenomena, although they are united by a common basis, phenomena. Therefore, the alignment of positions on this matter can only occur within each of the following manifestations of corruption, when it is viewed as: 1) A separate act, in fact, is identified with a corruption offense; 2) Corruption crime; 3) A complex nationwide social and legal phenomenon; 4) An international problem20. Interestingly, as a result, the author proposes to define corruption as an integrated, massive, ingrained, negative public phenomenon, due to historical, political, economic and other determining factors, is the unlawful use of such powers or related opportunities by individuals empowered interests and/or interests of other persons21. This is not all reasonable definitions of corruption in the scientific literature. However, even their analysis indicates an attempt to formulate a universal concept of corruption, which would cover the diversity of its manifestations. Such a significant amount of interpretations can be explained by the fact that corruption in its broad sense is primarily a synthesized socio- legal concept. Therefore, scientists consider its essence in different ways, focusing on some of its signs, then on others. Identifying the signs of corruption in their totality will allow understanding the content of corruption and synthesizing this concept. However, there is also an opinion that the legislator’s attempt to regulate all the signs and forms of corruption in a normative manner, since any attempts to limit this phenomenon by a strict framework will result in some acts of corruption being outside the scope of the law. The problems arising in determining corruption are also largely due to the fact that in different legal systems (and sometimes even in different countries of the same legal system) their definitions of this phenomenon and the range of actions covered by it are fixed at the legislative level. For example, administrative corruption offenses are separated from corruption offenses. Also, their types are distinguished in the system of the branch of law.

19 Friederich C. Corruption Concepts in Historical Perspective. Political Corruption: A Handbook. New Jersey, New Brunswick : Transaction Publishers, 1989. Р. 20. 20 Трепак В.М. Поняття корупції: від різнотлумачення до єдиного розуміння. Юридична наука. 2016. № 8. С. 17. 21 Ibid, с. 18. 311 Qualifying some actions, it can be said that although they have some corruption signs, they are also related to disciplinary offenses and vice versa. In particular, in determining fraud or embezzlement, abuse of power for personal enrichment or enrichment of a certain organization, corrupt relations may be present, but they may not be. As L. Holmes notes fairly about this, today there is no clear definition of the range of actions that are recognized as such and are characteristic of all legal systems (the “concept of relevance”)22. So, corruption is a complex concept that covers a set of interrelated offenses: criminal, administrative (despite the fact that administrative offenses according to Administrative Offense Code of Ukraine23 are not such, the latter are connected with corruption), disciplinary. Such an assertion is correct, corruption really needs to be considered on the basis of an integrated approach, for this it would be easier, in our opinion, to state that it is a phenomenon of the public sphere (such a statement will help to unite all the spheres of corruption). Despite the diversity of approaches to the phenomenon and definitions of corruption, it can be argued that it occurs when an individual, contrary to the law, places his own interests above the interests of society and the state. From the given definitions of corruption, we can single out its main features:  the presence of a subject authorized to distribute public goods;  the mercenary motive of corrupt officials (personal enrichment or enrichment of “close” persons);  the presence of public harm from corrupt activities;  manifested in public relations of individuals. Corruption mainly arises in the public legal subsystem, that is, in the sphere of “public affairs”. In particular, this may include the sphere of government; the scope of all public institutions, the state apparatus; the sphere of administrative relations, public service, criminal prosecution and responsibility; the sphere of interstate relations and international organizations and others. This constitutional, administrative, criminal, financial, administrative and procedural, criminal procedure, international public, international humanitarian law and the like. Anti-corruption should be carried out primarily in the public sphere, where there is a conflict between the personal behavior of the subject of corruption and the interests of the state. According to the well-known formula of the Roman

22 Холмс Л. Корупція та криза в посткомуністичних державах: Корупція в сучасній політиці : матеріали міжнар. наук.-практ. конф. (Англія, 14–16 листопада 1996 р.), 1996 р. С. 7. 23 Кодекс України про адміністративні правопорушення : Закон України від 07.12.1984 № 8073-X ВР. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/ laws/show/80731-10 (дата звернення: 15.07.2019). 312 jurist Ulpian, the public legal subsystem is used to regulate the legal status of the state, the private law applies to individuals24. Of course, the one who provides the undue benefit is interested in the fact that the official takes a management decision that would give him certain advantages or reduce their size. In other words, he pays for a decision that in his favor changes the system of ownership of resources that are subject to regulation by the state. The difference between the actual value of resources, goods, works or services and the fact that subjects of corruption offenses pay (or receive) for them in the language of the economy can be called a benefit of corruption. Such a benefit arises when a subject of a corruption offense has special powers and he exceeds the limits of these powers. Summarizing the above, we can define corruption in a broad sense as a system of corrupt relations based on the unlawful actions of public officials with the benefit of corruption and contrary to state and public interests. Public corruption relations can be defined as a set of relations in the public sphere related to the obtaining of corruption benefits by the subjects of corruption offenses. The logic of corruption becomes clear if we analyze the system of such relations. In particular, the following groups of corruption systems can be distinguished by the number of parties involved in corruption relations: 1) simple, when two parties directly participate in corruption relations (with possible plurality) between which there is an agreement on the mutual exchange of corruption benefits – a person who provides undue benefit to the person who receives it; 2) complicated when a mediator (s), representatives of organized crime, etc. are also involved in corruption relations.

2. The concept of corruption and the forms of its expression according to the anti-corruption legislation of Ukraine The Law of Ukraine “On the Prevention of Corruption”25 establishes that corruption is the use of the person indicated in the first part of Article 3 of the Law of Ukraine “On the Prevention of Corruption”, the authority granted to him or the opportunities related to them in order to obtain unlawful benefits or accept such benefits or accepting a promise/offer of such benefit for oneself or other persons or, respectively, a promise/offer or provision of unlawful benefit to a person specified in the first part of Article 3 of the above Law and, at his request,

24 Задорожний Ю.А. Основи римського приватного права : курс лекцій. Київ : Вид-во Нац. авіац. ун-ту «НАУ-друк», 2009. С. 9. 25 Про запобігання корупції : Закон України від 14.10.2014 № 1700-VII. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення: 15.07.2019). 313 to other natural or legal persons in order to incite this person to the unlawful use of the official powers granted to him or related opportunities. As we see, the existence of corruption is impossible without the subject of corrupt actions – “undue profit”, the receipt of which can be the goal of corrupt actions (inaction), directly the subject of receiving or giving a promise or offer, and the like. Unlawful benefits should be understood as monetary funds or other property, advantages, benefits, services, intangible assets, any other intangible or monetary benefits that promise, offer, provide or receive without legitimate grounds (paragraph 7 of part 1 of Article 1 of the Law of Ukraine “On the Prevention of Corruption”). The position of the legislator on the definition of the concept of “corruption” gives grounds for highlighting its following forms. 1. Corruption is the use of a person referred to in Art. 3 of the Law “On the Prevention of Corruption”, the powers of office or related opportunities granted to it with a view to obtaining undue advantage. Signs of this form of corruption are: actions in the form of using official authority or related opportunities; subject – a person specified in Art. 3 of the Law of Ukraine “On the Prevention of Corruption”; the goal is to gain undue advantage. Use by a person referred to in Art. 3 of the Law “On Prevention of Corruption”, the official authority or related opportunities granted to it is any intentional use by the person concerned, contrary to the interests of the relevant sphere of professional activity, of their rights and opportunities related to their position (place of work). 2. Corruption is the acceptance of a person referred to in Art. 3 of the Law of Ukraine “On the Prevention of Corruption” of an unlawful benefit or the adoption of a promise/proposal of an unlawful benefit for oneself or other persons. Signs of this form of corruption are: actions in the form of making an undue benefit or making a promise/offer of an undue benefit to yourself or others; subject – a person specified in Art. 3 named Law; characterized by mercenary motive or other (selfless) interest. The peculiarity of accepting an illegal benefit proposal is that it presupposes the determination of the consent of the person referred to in Art. 3 of the Law “On Prevention of Corruption” with the expression to her of the intention to provide such benefits, their approval of these actions, her readiness to directly receive the specified benefits. If the expression of intent is accompanied by a message about the time, place, method of providing unlawful benefits and the person specified in Art. 3 of the Law “On Prevention of Corruption”, agrees (agrees) with this intention, approves these actions, is ready to directly receive such benefits, then the promise of illegal benefits already takes place.

314 Accepting an unlawful benefit consists in receiving it directly (acquiring, using) in any way (directly, by mail, transferring money to a bank account; covert when concluding transactions, charging and paying wages or bonuses, paying services, consulting, examinations, etc. e.) for oneself or a third person for commission or non-performance by the person specified in Art. 3 of the Law of Ukraine “On the Prevention of Corruption” in the interests of the one who offers, promises or provides an unlawful benefit, or in the interests of a third party of any action using the authority granted to him, the organizational, administrative or administrative functions, etc. 3. Corruption is a promise/offer or provision of unlawful benefits to a person specified in Art. 3 of the Law of Ukraine “On the Prevention of Corruption” or, at its request, to other individuals or legal entities in order to incline this person to the unlawful use of the official powers granted to him or related opportunities. Signs of this form of corruption are: the subject of corruption in this form can be any delictual (respectively, in a criminal, civil, and disciplinary sense) a person; action – in the form of a promise/offer or provision of unlawful benefits to a person specified in Art. 3 of the Law of Ukraine “On the Prevention of Corruption” or, at its request, to other natural or legal persons; the goal is to cajole the person indicated in Art. 3 of the Law “On the Prevention of Corruption” to the unlawful use of the official authority granted to him and related opportunities. This form of corruption is a direct reflection of the previous form, because the receipt of unlawful benefits cannot take place without its provision. The same applies to the promise/proposal of unlawful benefit and, accordingly, its (their) acceptance. Under the promise should be understood the person taken on the obligation to provide (transfer) undue benefits. A proposal is a message about the existence of the opportunity and the intention (desire) to provide a person with undue benefit; such a proposal should be clear, unambiguous and contain all essential conditions. According to the note to Art. 354 of the Criminal Code of Ukraine26, the clause in articles 354, 368, 368-3–370 of the Criminal Code of Ukraine should be understood as statements made by an employee of an enterprise, institution or organization, a person who provides public services, or an official of the provision of unlawful benefits, and under the promise – the expression of such an intention with a message about the time, place, method of providing unlawful benefits. Granting means the transfer of undue benefit to another particular person in any way (identical with respect to accepting undue benefit).

26 Кримінальний кодекс України : Закон України від 05.04.2001 № 2341-ІІІ. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/2341-14 (дата звернення: 16.07.2019). 315 Illegal benefits can be promised, proposed, provided and accepted both personally and through intermediaries – the latter does not matter for the recognition of such actions as corruption. The definition of accepting a promise/proposal of an undue benefit to oneself or others, as well as the actual promise/proposal to the relevant person of such benefits as corruption (and therefore as a corruption offense) follows from the provisions of Part 2 and Part 3 of Article 27 of the Organization Convention United Nations Against Corruption27 (according to these provisions, each State Party may take such legislative and other measures as may be necessary to establish a crime in accordance with its internal he has the right to prepare to commit any crime and attempt to commit such a crime), but does not take into account the peculiarities of the Ukrainian legal system compared to the legal systems of most countries of the world. As it follows from the above, inherent signs of corruption are, on the one hand: the use of official powers and corresponding opportunities as a form of action; undue profit as an object or as a goal, and on the other: a promise/proposal or the provision of undue benefit as a form of action; inclination to use official powers and related opportunities as a goal. In other words, actions to determine the Law of Ukraine “On the Prevention of Corruption” cannot be recognized as a corruption offense if it, respectively: does not correspond to the description of action or inaction defined in the Law of Ukraine “On the Prevention of Corruption” or is reckless or is intentional but not perfect for the purpose specified in the law, or committed by a person not specified in Art. 3 of the Law; for him, the law does not establish criminal, disciplinary or civil liability (and provides, for example, economic, financial and legal liability). A kind of novella of the Law of Ukraine “On the Prevention of Corruption” is the definition of the concept “offense related to corruption”. Introducing the latter, the legislator has eliminated the legal conflict that existed in the legislation after the adoption of the Law “On the Basics of Preventing and Combating Corruption”, after formulating the definition of a corruption offense almost identical to its current concept, administrative offenses that establish responsibility for corruption offenses are not de jure were corrupt. However, after the adoption of the Law of Ukraine “On the Prevention of Corruption”, all administrative offenses were attributed to those related to corruption. Offense related to corruption, the current legislation defined as an act that does not contain signs of corruption, but violates the requirements, prohibitions and restrictions established by the Law “On the Prevention of

27 Конвенція Організацій Об’єднаних націй проти корупції : Міжнародний документ від 31.10.2003, ратифікація від 18.10.2006. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/995_c16 (дата звернення: 16.07.2019). 316 Corruption”, committed by the subject responsible for corruption and corruption-related offenses, for which the law establishes criminal, administrative, disciplinary and/or civil liability28. A special feature of a number of administrative offenses related to corruption is a conflict of interest between the actions of an official (scope of the subject of administrative law) and the interests of a private person, or a conflict between the actions of an elected person and the interests of society. Corruption can be subject to any person who has discretionary power – the power at its discretion to distribute certain resources that do not belong to it. At the same time, the main incentive for corruption is the possibility of obtaining economic profits (benefits) associated with the use of power, and the main deterrent is the risk of exposure and punishment. To carry out delimitation of corruption as an administrative offense from corruption as a general social phenomenon is possible, in our opinion, with the help of such an additional feature as the presence of an offense related to corruption officially fixed in a regulatory act. An administrative offense (misdemeanor) is an unlawful, guilty (intentional or careless) act or omission encroaching on public order, property, rights and freedoms of citizens, on the established management procedure and for which the law provides for administrative liability (Article 9 of the Administrative Offense Code of Ukraine29). The composition of administrative misconduct involves the presence of 4 elements: the object of the offense, the objective side, the subject of the offense, the subjective side. So, corruption in the administrative-legal sense is a system of social relations based on the acts of public sector officials provided for by a specific composition of the administrative offense related to corruption.

CONCLUSIONS Summing up, it can be stated that today in the scientific literature there is no uniform system definition of corruption, which would characterize this complex phenomenon in all the variety of its forms and manifestations. Corruption is a complex concept that covers a set of interrelated offenses, therefore to disclose the contents of this category, we offer the definition of corruption: 1) in a broad sense, as a system of corruption relations, based on unlawful actions of public officials with the benefit of corruption and contrary to state and public interests;

28 Про запобігання корупції : Закон України від 14.10.2014 № 1700-VII. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення: 15.07.2019). 29 Кодекс України про адміністративні правопорушення : Закон України від 07.12.1984 № 8073-X ВР. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/ laws/show/80731-10 (дата звернення: 15.07.2019). 317 2) in the administrative-legal sense (the sphere of relations, encroachment on which contain the composition of administrative offenses related to corruption) – the system of public relations based on the specific composition of the administrative offense related to corruption, acts of public sector officials. One of the key problems in the definition of corruption was the artificially created “regulatory paradox”: there is corruption, but it is not a corruption offense, in particular, a promise/proposal or provision of unlawful benefits to a person specified in Art. 3 of the Law of Ukraine “On the Prevention of Corruption” or, at its request, to other individuals or legal entities in order to persuade this person to unlawfully use the official powers or related opportunities provided to him, if these actions were performed by any other person, except the persons specified in Article 3 of the Law of Ukraine “On the Prevention of Corruption”. This is confirmed by the provision of Part 1 of Article 65 of the Law of Ukraine “On the Prevention of Corruption”, which also explicitly provides that for the commission of corruption or corruption-related offenses criminal, administrative, civil law and disciplinary liability in accordance with the law Article 3 of the Law of Ukraine “On the Prevention of Corruption”. On the other hand, it is a corruption offense within the meaning of the Criminal Code of Ukraine (a corruption offense under the note to Article 45) to offer or promise an employee of an enterprise, institution or organization that is not an official to provide him or a third party with unlawful benefits, as well as providing such benefits for the commission or non-accomplishment by them of any actions using the provision that is given to him, because the normative-defined concept of corruption provides for a promise/proposal or the provision of such benefits in order to induce the person concerned to use his official duties or the opportunities associated with them. In turn, the consequences of inaccurate definition in the current legislation of Ukraine of the content of the concepts “corruption offense” and “corruption” negatively affect law enforcement practice, which ultimately can nullify the goal of anti-corruption reforms in Ukraine.

SUMMARY Today, there is no uniform system definition of corruption in the literature that would cover this complex phenomenon in all its diversity of forms and manifestations. Even with regard to the origin of the term among scientists there is no unity. Avoid excessive detailing and “specifics” in the definitions and the relevant international legal acts of anti-corruption issues. In turn, the Verkhovna Rada of Ukraine, adopting a title law in the field of preventing and combating corruption went by providing an exhaustive

318 definition of the concept of corruption, which necessitated updating the approaches to understanding the latter in the modern anti-corruption legal paradigm. The study of the main approaches to the definition of the concept of corruption made it possible to single out its main features: the presence of a subject with the authority to distribute public goods; the mercenary motive of corrupt officials (personal enrichment or enrichment of “close” persons); the presence of public harm from corrupt activities; manifested in public law relations of individuals. The study of the normative concept of corruption made it possible to identify and characterize three separate forms of corruption. As a result, it was determined that corruption is a complex concept that covers a set of interrelated offenses, therefore, a definition of corruption in a broad and narrow (administrative-legal) sense is proposed for disclosing the content of this category. In a broad sense, corruption is defined as a system of corruption relations based on unlawful actions of public officials with the benefit of corruption and contrary to state and public interests. In the administrative-legal sense, corruption is a system of public relations, based on the acts of public sector officials provided for by a specific composition of an administrative offense related to corruption. Special attention is paid to defining the problems of identifying corruption offenses in the context of determining the scope of corruption as a socially dangerous phenomenon.

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320 Практичні заходи боротьби з корупцією : Резолюція ООН від 07.09.1990. База даних «Законодавство України» / Верховна Рада України. URL: http://zakon2.rada.gov.ua/laws/show/995_785 (дата звернення: 16.07.2019). 19. Про запобігання корупції : Закон України від 14.10.2014 № 1700-VII. База даних «Законодавство України» / Верховна Рада України. URL: https://zakon.rada.gov.ua/laws/show/1700-18 (дата звернення: 15.07.2019). 20. Прохоренко О.Я. Протидія корупційним проявам у системі державної служби України (організаційно-правовий аспект) : дис. канд. наук з держ. упр. : 25.00.03. Київ, 2004. 206 с. 21. Сучасний словник іншомовних слів. Близько 20 тис. слів і словосполучень / уклад. О.І. Скопненко; Т.В. Цимбалюк. Київ : Довіра, 2006. 789 с. 22. Терещук О.В. Адміністративна відповідальність за корупційні правопорушення : автореф. дис. канд. юрид. наук : 12.00.08. Одеса, 2000. 20 с. 23. Тихомиров М.Ю. Юридическая энциклопедия. Москва : Юринформцентр, 1995. 365 с. 24. Трепак В.М. Поняття корупції: від різнотлумачення до єдиного розуміння. Юридична наука. 2016. № 8. С. 12–24. 25. Холмс Л. Корупція та криза в посткомуністичних державах: Корупція в сучасній політиці : матеріали міжнар. наук.-практ. конф. (Англія, 14–16 листопада 1996 р.), 1996 р. С. 6–11. 26. Юридична енциклопедія: в 6 т. / редкол.: Ю.С. Шемшученко (голова редкол.) та ін. Київ : Укр. енцикл, 2001. Т. 3: К–М. 2001. 792 с.

Information about authors: Sikorskyi O. P., Candidate of Juridical Sciences, Senior Lecturer of Department of Administrative and Constitutional Law Faculty of Maritime Law Admiral Makarov National University of Shipbuilding 9, Heroiv Stalinhradu ave., Mykolaiv, Ukraine

Sandiuk H. O., Candidate of Juridical Sciences, Senior Lecturer of the Maritime and Commercial Law Department Faculty of Maritime Law Admiral Makarov National University of Shipbuilding 9, Heroiv Stalinhradu ave., Mykolaiv, Ukraine

321 “PROVOCATION OF BRIBERY” ARTICLE 370 OF CRIMINAL CODE OF UKRAINE: CASE-LAW ANALYSIS

Stepanenko A. S., Stepanenko O. V.

INTRODUCTION Corruption has permeated every walk of life. It seems the more government under the guidance of the law enforcement system tries to overcome it, the more “it” resists and the more form it takes expanding into the new capacity. That’s why fighting corruption continues to be one of the top priorities of Ukraine’s crime control policy for many years. Government’s contemporary policy in that direction can be characterized by taking a complex approach: on the one hand, it is a stricter criminal liability and prohibition of incentive measures, on the other hand, it is establishment of a complete system of specialized agencies. Nevertheless, the high latency rates of corruption offences in some cases force to act under the “ends justify means” rule. Article 23 of Criminal Law Convention on Corruption (CLCC) of 1999 provides that each Party shall adopt such legislative and other measures as may be necessary, including those permitting the use of special investigative techniques, in accordance with national law, to enable it to facilitate the gathering of evidence related to criminal offences and to identify, trace, freeze and seize instrumentalities and proceeds of corruption, or property the value of which corresponds to such proceeds1. The explanatory report to CLCC states that “special investigative techniques” refers to the use of under-cover agents, wire-tapping, bugging, interception of telecommunications, access to computer systems and so on2. Moreover, application of mentioned methods doesn’t have to violate human’s rights, whereas the right to a fair trial is the essential one. To properly defend the above-mentioned right, the Criminal Code of Ukraine (CC of Ukraine) has Article 370 “Provocation of bribery”. Although, the offence set out in Article 370 of CC of Ukraine, under Article 46 of CC of Ukraine does not fall within the scope of corruption offences, however it is directly related to them, as persons accused of corruption offences commission allege that they were provoked by law enforcement officials and they wouldn’t have taken such illicit actions without their assistance.

1 Criminal Law Convention on Corruption, ETS No. 173. Strasbourg, 27.01.1999. URL: https://www.coe.int/en/web/conventions/full-list/-/conventions/treaty/173 (дата звернення: 19.07.2019). 2 Explanatory Report to the Criminal Law Convention on Corruption. Details of Treaty No. 173. Strasbourg, 27.01.1999. URL: https://www.coe.int/en/web/conventions/full-list/-/conventions/treaty/173 (дата звернення: 19.07.2019). 322 The issues of entrapment have become the subject of research of many scholars of substantial and procedural criminal law, as well as operational- investigative activities, such as O. Aloshyna, S. Babych, B. Volzhenkin, Yu. Hrodetskyi, O. Hrudzura, O. Hovorukhina, N. Yehorova, V. Kyrychko, O. Masterkov, M. Melnyk, V. Navrotskyi, O. Nazarov, O. Pobryzghaev, S. Radachynskyi, O. Ryzhov and others. The long story of having the analyzed offence in criminal legislation of Ukraine and others states, numerous scholars researches, European Court of Human Rights (ECtHR) case-law, all of it should have resolve any disagreements and disputes regarding reasonableness of criminalization/decriminalization of provocation of bribery and specificities of the offence characteristics. But still there is lack of consensus among scholars and practitioners on the issue and that’s why the issue is still relevant.

1. Provocation of bribery: ECtHR standpoint A number of scholars and legal practitioners claims that it is necessary to decriminalize the provocation of bribery and argue the following:  criminal law forbidding stated just hampers the fight against corruption;  the rule that provides liability for provocation does not work, in particular there are very few cases in law-enforcement practice of Ukraine3;  provisions set out in Article 370 of CC of Ukraine in some instances prevents the combat against corruption legally, while in the others – hampers the conduct of operational-investigative activities to solve a crime as virtually any operational-investigative actions are aimed at documentation of bribery are entrapment4;  exclusion of Article 370 of CC of Ukraine provided that there would general rule “provocation of crime”, while official position should be a qualifying characteristic of this offence5;  Article 370 of CC of Ukraine is not sufficient criminal-law measure to prevent provocation activity by officials, and amend Chapter XVIII of Special part of CC of Ukraine “Crimes against justice” with Article “Provocation of crime by an law enforcement official”6.

3 Акрам Трад Аль-Фаїз. Відповідальність за хабарництво за кримінальним законодавством Йорданії і України (порівняльно-правове дослідження) : автореф. дис. на здобуття наук. ступеня канд. юрид. наук : спец. 12.00.08. Ін-т держави і права ім. В.М. Корецького. Київ, 2002. 16 с. С. 9. 4 Мороз О.А. Запобігання злочинам у сфері службової діяльності серед працівників податкової міліції України : автореф. дис. на здобуття наук. ступеня канд. юрид. наук : спец. 12.00.08. Держ. НДІ М-ва внутр. справ України. Київ, 2011. 20 с. С. 8. 5 Альошина О.І. Провокація злочину (кримінально-правове дослідження) : автореф. дис. на здобуття наук. ступеня канд. юрид. наук : спец. 12.00.08. Дніпропетр. держ. ун-т внутр. справ. Дніпропетровськ, 2007. 19 с. 6 Ibid, С. 14. 323 In turn, the majority of scholars believes that analyzed crime should remain in CC of Ukraine and provide the following arguments:  Article 370 is crucial to the sphere of criminal law prevention of entrapment in fight against corruption and bribery within state policy7;  provocation of bribery as way of initiating of offence commission of relevant category is socially dangerous act that deserves criminalization and that is justified. Illicit provocation of bribery demonstrates shift of publicly important objectives of criminal law policy8. Besides that, it is noteworthy that over the lifetime of Article 370 of CC of Ukraine there were several draft laws that seeking for substantial change in the article. Central Scientific Experts Office of The Verkhovna Rada of Ukraine Secretariat based on the analysis of Law of Ukraine “On amendments to some law of Ukraine (on decriminalization of provocation of bribery)” (No. 2754 of 10.07.2008) concludes that draft law proposal on providing law enforcement official with the right to provoke with impunity in the course of operational- investigative actions, that is to provoke persons to commit offences set out in Article 368 and 369 of CC of Ukraine is questionable. Firstly, to qualify act as “provocation of bribery” it is necessary to convince a person that it appropriate to bribe, that is stimulate the person to commit a crime. However, in that case, law-enforcement officials actually act as offence accomplices (organizer or abettor), the liability for committing which set out in Articles 368, 369 of CC of Ukraine. Secondly, it is fairly improbable that with the “legal” provocation of bribery the combat against corruption would be more efficient. The majority of bribers have well-established schemes of bribe-giving and receiving or they operate through intermediaries. These individuals won’t believe detectives-“provocateurs”. Thus it would more probable to provoke those officials that do not have mentioned established schemes and are not criminals at all. Considering the above-mentioned, in all similar cases there would a great concern of whether the crime would have been committed in case a perpetrator hadn’t been provoked by law- enforcement officials that were on a special mission of prevention and solving corruption offences. In the meantime, if the amendments were made, the quite possible consequence would be bringing indicators of bribes crimes by law- enforcement officials to the “right” level. The right to legally provoke

7 Романова О.І. Місце та значення кримінально-правової протидії провокації у боротьбі з корупцією та хабарництвом у межах державної політики. Право і Безпека. 2011. № 3 (40). URL: http://nbuv.gov.ua/j-pdf/Pib_2011_3_48.pdf (дата звернення: 16.07.2019). 8 Дудоров О.О. Кримінально-правова заборона провокації підкупу, або Правоохоронець як ініціатор злочину / О.О. Дудоров, Є.О. Письменський. Юридичний вісник України. 2015. № 15 (1032). С. 12–13. 324 individuals into offence commission could give rise to abuse by law- enforcement officials. Analyzing the draft-law the Supreme Court of Ukraine (SC of Ukraine) highlighted several shortcomings. For example, the draft-law (amendments to Article 370 of CC of Ukraine) suggests providing law-enforcement agencies operational units in course of operational-investigative actions with the right to make provocation of bribery for detection of potential bribers, that is to provoke individuals to commit crimes set out in Article 368, 369 of CC of Ukraine. Such amendments seem to be questionable. First, provocation of bribery requires creation of certain conditions, convince person that it appropriate to bribe, that is stimulate the person to commit a crime. In that case law-enforcement officials would act as offence accomplices prescribes in Article 369 and 369 of CC of Ukraine: abettors and organizers. Second, it is obvious, in many cases law abiding citizens who were not mentally resilient to this kind of “proposals” could fall into “pre-planned traps”. The major part of “experienced bribers” would be detected that way, as have well-established schemes of bribe-giving and receiving and operate through intermediaries. Third, one of the most important issues in dealing with provocation of bribery is whether the crime would have been committed if not for the provocative actions made by law-enforcement officials that were on a special mission of prevention and solving corruption offences. ECtHR judgment in the case of Teixeira de Castro v. Portugal9. According to the decision actions of two police officers who instigated the offence were found unlawful. ECtHR found that no evidence was presented that would suggest that without intervention from officials the crime would have been committed. This precedent, in case of adoption of the draft law, would provide citizens with an opportunity to apply to ECtHR for protection of their infringed rights. Consequently, to prevent further applications against Ukraine amendments to Article 370 of CC of Ukraine to exclude the provisions on lawful provocations of bribery would be needed. Therefore, adoption of the changes would put at risk of abuse by law-enforcement officials of their right to provoke individuals to commit crimes, and could also lead to systematic applications by citizens to ECtHR. It should be noted that we agree with the arguments put forward, as to utility of existence of Article 370 of CC of Ukraine that provides liability for provocation of bribery. However, we are convinced that there is fine line between provocation of bribery and lawful activity aimed at detection of bribers. That’s why it is important to comply with the legislation and provision formulated in numerous ECtHR judgements which consist of cases

9 Teixeira de Castro v. Portugal, Judgment of 9 June 1998, App. No. 25829/94 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-58193 (дата звернення: 20.07.2019). 325 when there was entrapment and when it was lawful activity of state agencies aimed at detection of perpetrators and prevention of illicit activity. According to Article 8 of Code of Criminal Procedure of Ukraine (CCP of Ukraine), Article 17 of Law of Ukraine “On execution of judgments and use of European Court of Human Rights case-law” of 23.02.2006 No. 3477-IV, courts use Convention on Human Rights and Fundamental Freedoms (ECHR) and ECtHR case-law in the course of justice as a source of law. Article 9 of Constitution of Ukraine stated that ECHR is part of national legislation and guarantees fundamental human rights that could be expanded within national legislation, which, for its part, due to commitments undertaken by Ukraine, cannot contradict provisions enshrined in ECHR (Article 19 of Law of Ukraine “On international treaties” of 29.06.2004 No. 1906-ІV, Article 27 of Vienna Convention on the Law of Treaties). Article 6 of ECHR guarantees the right to fair trial. Public interest cannot justify the use of evidence obtained as a result of police incitement (Teixeira de Castro v. Portugal, § 36). Under Article 271 para. 3 of CCP of Ukraine when preparing and carrying out measures aimed at establishing control over the commission of crime, it is forbidden to provoke (incite) an individual to the commission of this crime in order to subsequently expose it, to assist the individual to commit a crime which he would not have committed if investigator had not encouraged thereto, or with the same purpose exert influence on his behavior through violence, threats or blackmailing. Objects and documents obtained in such a way may not be used in criminal proceeding. National legislation has a concept of evidence, its relevance and admissibility and the court have to evaluate evidence when rendering a judgment. Another important rule is set out in Article 246 para. 4 of CCP of Ukraine that states that only prosecutor is vested the right take decision to conduct such a covert investigative (detective) action as control over the commission of crime. Besides that, in case when a defendant argues that an incitement to commission of crime took place, domestic court should carry out careful examination of the materials of criminal proceedings, since for the trial to be fair within the meaning of Article 6 § 1 of ECHR, all evidence obtained as a result of police incitement must be excluded. This is especially true where the police operation took place without a sufficient legal framework or adequate safeguards (Ramanauskas v. Lithuania, § 60)10. We believe that considering the problems encountered in practice as to interpretation of notion of provocation, the detailed analysis of ECtHR case-

10 Ramanauskas v. Lithuania, Judgment of 5 February 2008, App. No. 74420/01 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-84935 (дата звернення: 20.07.2019). 326 law, where ECtHR found the fact of police incitement is needed. The above- mentioned ECtHR decision in case of Teixeira de Castro v. Portugal, besides the issues mentioned before, has other crucial points. For example, ECtHR holds that the use of undercover agents must be restricted and safeguards put in place even in cases concerning the fight against drug trafficking. While the rise in organized crime undoubtedly requires that appropriate measures be taken, the right to a fair administration of justice nevertheless holds such a prominent place. The general requirements of fairness embodied in Article 6 apply to proceedings concerning all types of criminal offence, from the most straightforward to the most complex. The public interest cannot justify the use of evidence obtained as a result of police incitement. ECtHR notes that the Government have not contended that the officers’ intervention took place as part of an anti-drug-trafficking operation ordered and supervised by a judge. The Supreme Court’s judgment of 5 May 1994 does not indicate that, at the time of his arrest, the applicant had more drugs in his possession than the quantity the police officers had requested thereby going beyond what he had been incited to do by the police. There is no evidence to support the Government’s argument that the applicant was predisposed to commit offences. The necessary inference from these circumstances is that the two police officers did not confine themselves to investigating Mr. Teixeira de Castro’s criminal activity in an essentially passive manner, but exercised an influence such as to incite the commission of the offence. ECtHR concludes that the two police officers’ actions went beyond those of undercover agents because they instigated the offence and there is nothing to suggest that without their intervention it would have been committed. That intervention and its use in the impugned criminal proceedings meant that, right from the outset, the applicant was definitively deprived of a fair trial. Consequently, there has been a violation of Article 6 § 1. In its judgment of 15 December 2005 in case of Vanyan v. Russia11 ECtHR holds that ECHR does not preclude reliance, at the investigation stage of criminal proceedings and where the nature of the offence so warrants, on sources such as anonymous informants. However, the subsequent use of their statements by the court of trial to found a conviction is a different matter. The use of undercover agents must be restricted and safeguards put in place even in cases concerning the fight against drug trafficking. The requirements of a fair criminal trial under Article 6 entail that the public interest in the fight against drug trafficking cannot justify the use of evidence obtained as a result of police incitement. Where the activity of undercover agents appears to have

11 Vanyan v. Russia, Judgment of 15 December 2005, App. No. 53203/99 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-71673 (дата звернення: 20.07.2019). 327 instigated the offence and there is nothing to suggest that it would have been committed without their intervention, it goes beyond that of an undercover agent and may be described as incitement. Such intervention and its use in criminal proceedings may result in the fairness of the trial being irremediably undermined. A mere claim at the trial by the police to the effect that they possessed information concerning the applicant’s involvement in drug- dealing, a statement which does not seem to have been scrutinized by the court, cannot be taken into account. The police had not confined themselves to investigating the applicant’s criminal activity in an essentially passive manner. There is nothing to suggest that the offence would have been committed had it not been for the above intervention of OZ. ECtHR therefore concludes that the police incited the offence of procuring drugs at OZ’s request. Thus, the police’s intervention and the use of the resultant evidence in the ensuing criminal proceedings against the applicant irremediably undermined the fairness of the trial. There has therefore been a breach of Article 6 § 1 of the ECHR. In the case of Ramanauskas v. Lithuania12, ECtHR considered an instance of entrapment. ECtHR held that to ascertain whether or not AZ and VS confined themselves to “investigating criminal activity in an essentially passive manner”, ECtHR must have regard to the following considerations: there is no evidence that the applicant had committed any offences beforehand, in particular corruption-related offences; as is shown by the recordings of telephone calls, all the meetings between the applicant and AZ took place on the latter’s initiative. On the contrary, through the contact established on the initiative of AZ and VS, the applicant seems to have been subjected to blatant prompting on their part to perform criminal acts, although there was no objective evidence – other than rumours – to suggest that he had been intending to engage in such activity. These considerations are sufficient for ECtHR to conclude that the actions of the individuals in question went beyond the mere passive investigation of existing criminal activity. Article 6 of ECHR will be complied with only if the applicant was effectively able to raise the issue of incitement during his trial, whether by means of an objection or otherwise. It is therefore not sufficient for these purposes, contrary to what the Government maintained, that general safeguards should have been observed, such as equality of arms or the rights of the defense. It falls to the prosecution to prove that there was no incitement, provided that the defendant’s allegations are not wholly improbable. In the absence of any such proof, it is the task of the judicial

12 Ramanauskas v. Lithuania, Judgment of 5 February 2008, App. No. 74420/01 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-84935 (дата звернення: 20.07.2019). 328 authorities to examine the facts of the case and to take the necessary steps to uncover the truth in order to determine whether there was any incitement. The Court observes that throughout the proceedings the applicant maintained that he had been incited to commit the offence. Accordingly, the domestic authorities and courts should at the very least have undertaken a thorough examination of whether the prosecuting authorities had gone beyond the limits authorized by the criminal conduct simulation model, in other words whether or not they had incited the commission of a criminal act. To that end, they should have established in particular the reasons why the operation had been mounted, the extent of the police’s involvement in the offence and the nature of any incitement or pressure to which the applicant had been subjected. This was especially important having regard to the fact that VS, who had originally introduced AZ to the applicant and who appears to have played a significant role in the events leading up to the giving of the bribe, was never called as a witness in the case since he could not be traced. The applicant should have had the opportunity to state his case on each of these points. However, a confession to an offence committed as a result of incitement cannot eradicate either the incitement or its effects. In conclusion, while being mindful of the importance and the difficulties of the task of investigating offences, ECtHR found that the actions of AZ and VS had the effect of inciting the applicant to commit the offence of which he was convicted and that there is no indication that the offence would have been committed without their intervention. In view of such intervention and its use in the impugned criminal proceedings, the applicant’s trial was deprived of the fairness required by Article 6 of ECHR. The case of Khudobin v. Russia13. ECtHR acknowledges the difficulties encountered by the authorities in combating serious crimes and the need for more sophisticated methods of investigation sometimes required in this context. In principle, the Court’s case-law does not preclude reliance, at the investigation stage of criminal proceedings and where the nature of the offence so warrants, on evidence obtained as a result of an undercover police operation (see, for instance, Lüdi v. Switzerland, judgment of 15 June 1992, Series A no. 238). However, the use of undercover agents must be restricted; the police may act undercover but not incite (Teixeira de Castro v. Portugal, § 36). ECtHR recalls that a clear and foreseeable procedure for authorizing investigative measures, as well as their proper supervision, should be put into place in order to ensure the authorities’ good faith and compliance with the proper law-enforcement objectives. In the present case the police operation

13 Khudobin v. Russia, Judgment of 26 October 2006, App. No. 59696/00 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-77692 (дата звернення: 22.07.2019). 329 had been authorized by a simple administrative decision of the body which later carried out the operation. It transpires from the materials of the case that the text of that decision contained very little information as to the reasons for and purposes of the planned “test buy”. Furthermore, the operation was not subjected to judicial review or any other independent supervision. In the absence of a comprehensive system of checks accompanying the operation, the role of the subsequent supervision by the trial court became crucial. ECtHR notes that the only three witnesses questioned by the trial court were T., M. (the applicant’s friend who was present at the moment of the arrest) and the applicant’s mother. The policemen involved in the “test buy” have never been questioned by the court, although the defense sought to have them heard. Nor was G., who had sold the heroin to the applicant and had been convicted of that act, questioned in those proceedings. In sum, although in the present case the domestic court had reason to suspect that there was an entrapment, it did not analyze the relevant factual and legal elements which would have helped it to distinguish entrapment from a legitimate form of investigative activity. It follows that the proceedings which led to the applicant’s conviction were not “fair”. Accordingly, there has been a violation of Article 6 § 1 of ECHR. In the case of Bykov v. Russia14, ECtHR rendered the decision that has vital provisions. According the materials presented to ECtHR applicant’s complaints were dismissed as it was found that the applicant had let V. into his house voluntarily and that no judicial authorization had been required for the use of the radio-transmitting device as it was only required for the interception of communications transmitted by means of wire channels or mail services, none of which had been employed in the covert operation at issue. However, ECtHR holds that the use radio-transmitting device to intercept communications between the applicant and V. in terms of nature and degree of intrusion involved, is virtually identical to telephone tapping. Moreover, the applicant enjoyed very few, if any, safeguards in the procedure by which the interception of his conversation with V. was ordered and implemented. In particular, the legal discretion of the authorities to order the interception was not subject to any conditions, and the scope and the manner of its exercise were not defined; no other specific safeguards were provided for. The possibility for the applicant to bring court proceedings seeking to declare the “operative experiment” unlawful and to request the exclusion of its results as unlawfully obtained evidence met the above requirements. Accordingly, its use was open to arbitrariness and was inconsistent with the requirement of lawfulness.

14 Bykov v. Russia, Judgment of 10 March 2009, App. No. 4378/02 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-91704 (дата звернення: 22.07.2019). 330 In the case of Nosko and Nefedov v. Russia 15 ECtHR reiterated that in its case-law undercover operations must be carried out in an essentially passive manner without any pressure being put on the applicant to commit the offence through means such as taking the initiative in contacting the applicant, insistent prompting, the promise of financial gain or appealing to the applicant’s sense of compassion. ECtHR also noted that the police did not send Ms A. to the applicant directly but did so through the applicant’s former fellow medical student and long-time colleague. By involving X. in the undercover operation and by placing the applicant in an inappropriately informal setting, the police counted at least to some extent on the applicant’s trust in this person and her willingness to help a colleague. It can therefore be concluded that the police did not remain fully passive, and that the undercover operation involved at least some element of pressure on the applicant. In the case of Taraneks v. Latvia16 the ECtHR held that nothing in the case file or in the observations submitted by the Government indicates that the applicant had a criminal record or that the national authorities had any good reason to suspect him of any prior criminal activity. It further noted that contrary to what has been suggested by the Government, that it appears that all the telephone calls and private meetings in the course of which the applicant allegedly asked the agent to pay a bribe took place at the initiative or even the insistence of the agent and not that of the applicant. ECtHR attached particular importance to the events of 18 December 2001, when the agent insisted on waiting for the arrival of the applicant, who had been absent from the office, and also refused to receive a copy of the decision from other person and insisted on speaking with the applicant. In the case of Bannikova v. Russia17, the ECtHR indicated that when drawing the line between legitimate infiltration by an undercover agent and instigation of a crime the crucial question to be examined is whether the applicant was subjected to pressure to commit the offence. It further stated that the abandonment of a passive attitude by the investigating authorities to be associated with such conduct as taking the initiative in contacting the applicant, renewing the offer despite his initial refusal, insistent prompting, raising the price beyond average or appealing to the applicant’s compassion by mentioning withdrawal symptoms.

15 Nosko and Nefedov v. Russia, Judgment of 30 October 2014, App. Nos. 5753/09 and 11789/10 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-147441 (дата звернення: 22.07.2019). 16 Taraneks v. Latvia, Judgment of 2 December 2004, App. No. 3082/06 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-148268 (дата звернення: 23.07.2019). 17 Bannikova v. Russia, Judgment of 4 November 2010, App. No. 18757/06 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-101589 (дата звернення: 23.07.2019). 331 The ECtHR judgments where it has found no incitement by the police. For example, in the case of Sequeira v. Portugal18 ECtHR noted that it has been established by the domestic courts that A. and C. began to collaborate with the criminal-investigation department at a point when the applicant had already contacted A. with a view to organizing the shipment of cocaine to Portugal. Furthermore, from that point on, the activities of A. and C. were supervised by the criminal-investigation department, the prosecution service having been informed of the operation. The application was declared inadmissible. In the case of Milinienė v. Lithuania19, the ECtHR established that the initiative in the case was taken by SŠ, a private individual, who, when he understood that the applicant would require a bribe to reach a favorable outcome in his case, complained to the police. Thereafter the police approached the Deputy Prosecutor General who authorized and followed the further investigation within the legal framework of a criminal conduct simulation model, affording immunity from prosecution to SŠ in exchange for securing evidence against the suspected offender. To the extent that SŠ had police backing to offer the applicant considerable financial inducements and was given technical equipment to record their conversations, it is clear that the police influenced the course of events. However, ECtHR does not find that police role to have been abusive, given their obligation to verify criminal complaints and the importance of the warting the corrosive effect of judicial corruption on the rule of law in a democratic society. Nor does it find that the police role was the determinative factor. The determinative factor was the conduct of SŠ and the applicant. To this extent, the Court accepts that, on balance, the police may be said to have “joined” the criminal activity rather than to have initiated it. Their actions thus remained within the bounds of undercover work rather than that of agents provocateurs in possible breach of Article 6 § 1 of ECHR.

2. Provocation of bribe: domestic experience It is not uncommon for the domestic case-law when a person alleges that it became a victim of entrapment. It should be pointed out that in these cases taking into account ECtHR case-law, a court must ascertain whether there was an incitement to commit a crime.

18 Sequeira v. Portugal, Decision of 6 May 2003, App. No. 73557/01 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-67303 (дата звернення: 23.07.2019). 19 Milinienė v. Lithuania, Judgment of 24 June 2008, App. No. 74355/01 / European Court of Human Rights. URL: http://hudoc.echr.coe.int/eng?i=001-87142 (дата звернення: 23.07.2019). 332 For example, according to the judgment of conviction of Chernivtsi Appeal court of 22 March 2019 in the case No. 727/5252/15-к20 in the March of 2015, Person_4, abused trust of Person_7, who is the mother of his defendant, using a trusting relationship between them, told her that in order for Person_9 not to be sentenced to real imprisonment by Putylskyi district court where the criminal proceedings (Article 119 of CC of Ukraine) against Person_9 were pending, she has to convey through him, as a lawyer, illegal benefit in the amount of 2000 USD to the deputy prosecutor of Chernivtsi region and the judge of Putylskyi district court in Chernivtsi region. On 26 of March, 2015, at about 11 a.m. Person_4, being at front of the entrance of “Tsentralnyi” market in Chernivtsi city met with the victim Person_7, who gave him 2000 USD, thereby seized the funds received and caused pecuniary losses for the victim. At the appeal court hearing the accused Person_4 pleaded not guilty in the alleged offence and explained that, he indeed have had a meeting with his defendant’s (Person_9) mother (Person_7), however, he planned to hand money to aggrieved party. He is acquainted with Person_12 and Person_19, they are colleagues. He was acting within the powers, according to the agreement on providing legal assistance. The criminal proceedings against him considers illegal, and Person_7 to be a provocateur with whose assistance police-officers and prosecution officials forged criminal case. The court found that while handing over the money to Person_4, which according to him were intended for the deputy regional prosecutor (Person_25), Person_7 did not incite Person_4 to obtain illegal benefit, as at that moment Person_7 was acting with the knowledge and under control police officials in order to expose illegal actions of Person_4. Person_7 was instructed in order to avoid provocative actions (incitement) towards Person_4 prior to getting illegal benefit and found no provocative actions from video recording of conducted covert investigative (detective) action. Arguments of Person_4 regarding provocative actions of the victim (Person_7) are unfounded, as it is Person_4 who made active actions to obtain the money of victim by fraud, determine the amount of money, the circumstances and conditions under which he allegedly has to transfer money, his behavior was not passive, he initiated the conversation, has a meeting with the prosecutor Person_12, with whom he discussed application of Article 75 of CC of Ukraine in respect of Person_9, while was qualified enough to inform Person_7 in the way beneficial for him to defraud.

20 Вирок Чернівецького апеляційного суду 22 березня 2019 р. (справа № 727/5252/15-к) / Єдиний державний реєстр судових рішень. URL: http://reyestr.court.gov.ua/Review/80676144 (дата звернення: 23.07.2019). 333 Thus, in this decision, the court highlights the important circumstances that rules out provocation to a certain degree, i.e. active, rather than passive, behavior of alleged person, monitoring by law-enforcement officials of carrying out illicit actions, rather than provocation of them and, of course, control of law-enforcement personnel. The other decision was rendered by Kamin-Kashyrskyi district court 16 February 2018 in the case No. 157/2932/1721. The court found no provocation and states: “Testimonies of witnesses Person_3 and Person_5 refute defense’s claim that Person_2 giving of illegal benefit to the first one is the result of law-enforcement officials provocation. It seems from the analysis of testimonies of the witnesses and of the defendant that the defendant’s illicit actions on recovery of property seized during the search of amber took place immediately following the completion of the investigative action. Therefore, the defendant’s claim that he was incited to commission of the crime by police officers found ungrounded since it is evident that intention to return the seized property developed had emerged before the contact with law- enforcement officials. In addition, witnesses said that Person_2 after the search contacted police and prosecution office officials repeatedly and were offered money in exchange for material evidence to be replaced, which again proves the fact that the defendant knowing what the status of his property seized as material evidence in criminal proceedings is, didn’t seek legal assistance, but rather proceeded with illicit activity aimed at recovery of his seized property by unlawful means. The court didn’t find reason to doubt the credibility of testimonies provided by witnesses Person_5 and Person_3, as their testimonies are supported by the results of covert investigative (detective) actions conducted, where the proposition of Person_3 to give illegal benefit to Person_3 to replace material evidence was made expressly and clearly (page 184)”. Another instance of domestic case-law is the judgement of Desnianskyi district court of 11 February 2019 in the case No. 750/6311/1722. The court stated that Person_1, Person_2, and Person_3 are charged with commission of crimes set out in Articles 190 (para. 2), 27 (para. 4), 369 (para. 4) of CC of Ukraine, i.e. taking possession of somebody else’s property by deceit (fraud), committed by a group of persons upon their prior conspiracy, incitement to give bribe to an official in the interest of one who gives the bribe, to conduct any actions by using its official status, committed upon prior conspiracy.

21 Вирок Камінь-Каширського районного суду від 16 лютого 2018 р. (справа № 157/2932/17) / Єдиний державний реєстр судових рішень. URL: http://reyestr.court.gov.ua/Review/72245904 (дата звернення: 23.07.2019). 22 Вирок Деснянського районного суду від 11 лютого 2019 року (справа № 750/6311/17) / Єдиний державний реєстр судових рішень. URL: http://reyestr.court.gov.ua/Review/79729363 (дата звернення: 23.07.2019). 334 Defendants during court deliberations claimed that they were subject to incitement. The court correctly refers to the ECtHR case-law, yet analyses them in a fragmented manner. The court established that in the course of pre-trial investigation Person_9 was key witness of prosecution party, whose testimony formed the basis for the filed indictment against Person_1, Person_3, and Person_2. In the indictment the witness is the individual who, together with witness Person_39 were subject to provocation to commit corruption crime and fraud by defendants. The prosecution party didn’t ensure the appearance of witness Person_9 to the courtroom. The inability to question the key witness of the prosecution in the course of court deliberation makes it impossible both for the defense party and the court to establish with the necessary degree of certainty whether the alleged offences were committed. As may be inferred from the testimony of witness Person_3 all meetings held with Person_9 were initiated by Person_9. Knowing that Person_3 is the former police officer, Person_9 insisted on asking him to find a police officer who that would help to deliver Christmas trees at Chernihiv region without any hindrance or stoppages, and even when Person_3 rejected, he continued asking to find a police officer that could help. Partially the testimony is confirmed by testimony of the witness Person_7, who confirmed in the courtroom that it was Person_9 who approached Person_3 initially. The meeting of Person_2 with Person_9 and consequently with him and Person_7 was initiated by Person_9 and Person_7, initially Person_9 tried to convince Person_2 to find a police-officer who that would help to deliver Christmas trees at Chernihiv region without any hindrance or stoppages, but having been refused, over time returned with Person_39 and went on persuading to deal with the matter. A rhetorical question arises, why Person_9 and latter Person_7 that not doing either illegal or legal logging, transportation, sales of Christmas trees would contact defendants who are not in charge of such activity. According to testimony of Person_2 it was witness Person_39 who established the cost of delivery of Christmas trees, said that he will send text messages – licensed plate numbers of cars with Christmas trees. According to the printed telephone calls records, it seems that Person_39 called accused Person_2 first and made 19 calls. Considering the above-mentioned, the court holds that witnesses Person_9 and Person_39 incited accused to commit alleged crimes, i.e. their actions had provocative character. In the light of the foregoing, the court finds Person_1, Person_2, and Person_3 not guilty of alleged crimes set out in Articles 190

335 (para. 2), 27 (para. 4), 369 (para. 4) of CC of Ukraine as it was not proved that act committed contains elements of crime. Another example of decision of acquittal and where fact of provocation was established is the judgement of Volodarskyi district court of Donetsk region of 11 July 2018 in the case No. № 222/392/1723. The court found that nominally there are elements of criminal offence (crime) in actions of Person_1, namely offence provided for by Article 369 para. 3 of CC of Ukraine – providing an official in responsible position with illegal benefit (bribe) to take actions in the interest of third person using its official status. However, specificities of legal relations, that arose, as well as defense party position on incitement of Person_1 to commit a crime aimed to expose him needs further assessment by the court of examined circumstances of criminal proceedings to establish whether the provocation by state officials was made. On 23 December 2016 at 13:40:56 pre-trial investigation was instituted in the criminal proceedings No. 12016050000000984 against Person_1 under Article 369 para. 3 of CC of Ukraine. After 13:40:56 an investigator prepared motions to request to conduct covert investigative (detective) actions such as, audio, video monitoring of Person_1, and collecting information from telecommunication networks of Person_1 subscriber numbers; these motions were agreed by a prosecutor and filled them to an investigative judge of Appeals Court of Donetsk region for examination, rulings authorizing conduct of covert investigative (detective) actions were passed and enforced. However, from materials in case follows that covert investigative (detective) actions had been initiated at 13:27:42 that is 13 minutes prior to the moment criminal proceedings were instituted. All above-mentioned actions require considerable time and suggests that covert investigative (detective) actions in respect of Person_1 were initiated and conducted not only 13 minutes prior to the moment pre-trial investigation was instituted but several hours before the permission to conduct them was granted. Moreover, circumstances established during court deliberation of criminal proceedings, as to personal acquaintance of the main witness – claimant Person_3 with official of the Economy Protection Office in Donetsk region of Economy Protection Department of National Police of Ukraine (EPO in Donetsk region EP NP) to maintain good relations and providing him with information of inability of Person_1 to undertake a project of reconstruction and renovation of boreholes in Nikolske village even before a conclusion of refit contract, indicate, in the court’s view, the existence of relations between Person_3 and law-enforcement agencies, thus it does not exclude the

23 Вирок Володарського районного суду Донецької області 11 липня 2018 року (справа № 222/392/17) / Єдиний державний реєстр судових рішень. URL: http://reyestr.court.gov.ua/Review/ 75245083 (дата звернення: 23.07.2019). 336 cooperation with them on a regular basis, that it’s not a coincidence that he was involved into the covert operation, existence of ulterior motive (Malininas v. Lithuania, §§ 37–41). As proof of Person_1 initiative to provide Person_3 with illegal benefit (bribe) for the act of acceptance to be signed without actually any work performed, the prosecution party provided the criminal complaint of Person_3 against Person_1 and explanations of Person_3 as a witness. Any other evidence that would support that circumstance are absent in the case-file, moreover, it was not gathered during covert investigative (detective) actions conducted against Person_1. As to conversations held between Person_1 and Person_3 and contained in the report on the results of conducting covert investigative (detective) actions of 10.01.2016 that took place on 23.12.2016, the court observes that the meeting didn’t last for long, Person_1 gave documents to Person_3 and said that they wouldn’t make it that day, and the Person_3 after examination of documents replies that it could be done on Monday, and asked Person_1 to make appointments for signature with the head of Nikolsk district state administration (Nikolsk DSA) so it went off smoothly. On Monday, on 26.12.2016 on the very day of providing Person_3 with illegal benefit (bribe) by Person_1, the conversation went longer, where Person_3 tried to convince Person_1 to sign the act No. 177/12-16 “Acceptance of performed construction works for December 2016” in the sum of 1,472,605.59 Ukrainian hryvnas without any works performed. Person_1 told Person_3 that he wouldn’t be able to complete the entire project, and if Person_3 hadn’t been intended to sign the act without any works performed he should have told him it straight. After much discussion, Person_1 asked Person_3 how much did he want, and Person_3 replied that nothing and added that would fit fine, however the question was when. Than Person_1 offered Person_3 to transfer money to his card account but he refused. Person_1 brought out money from his pocket and put then on the desk of Person_3 and said that there was “ten”, and added that for the remainder he needed to reach an ATM. Upon return, Person_1 put money on the desk, Person_3 asked how much there was, and Person_1 answered “five” and added that was “fifteen”. In the courtroom accused Person_1 claimed that from the outset initiative to give illegal benefit came from Person_3, the sum of 50000 hryvnas was expressed by Person_3 as well. The circumstance in issue supported by witnesses’ explanations. During court deliberations Person_1 said that he didn’t want to give money to Person_3 for the act. In addition, following the report of covert investigative (detective) action, the court observes that Person_1 didn’t give

337 money to Person_3 for a quite long time, promised to complete works during first days following of the new year, and finally provides Person_3 with illegal benefit. So it suggests that the situation doesn’t seem to happen accidentally but rather pre-planned, Person_1 seems to be inclined to the commission of the crime, what wasn’t refuted by the prosecution. Consequently, examining circumstances of the case on whether the investigation was done in “an essentially passive manner”, the court has had regard to the following considerations: whether there was objective suspicion whether the accused took active role in criminal activity or was inclined to the commission of the crime. For instance, there is nothing in the materials of criminal proceedings presented by the prosecution party suggesting that the accused either had a criminal record or national authorities had any grounds to suspect him of any previous involvement in criminal activity. In the light of the foregoing considerations, the court concludes that there are enough factors that sufficiently point to the presumption of incitement by law-enforcement officials, namely testimonies of the accused, witnesses Person_16, Person_17, Person_8, that are convincing for the court, as well as taking procedural actions without court approval by law-enforcement personnel that requires prior authorization of a court. In addition, the court has all reasons to believe that claimant Person_3 had actively cooperated with law-enforcement agencies, followed the orders, took actions to create the situation where actions of Person_1 could be qualified as a crime. In doing so, there are no objective grounds to suspect that the accused was involved in criminal activity or was prone to it. The given facts in their entirety are supplementary and suggest that the crime could have been not committed by Person_1 if it wasn’t for Person_3, however, such provocation excludes criminal liability and is the basis for found evidence collected inadmissible. On the basis of findings, the court decided that Person_1 is found not guilty of alleged crime set out in Article 369 para. 3 of CC of Ukraine as it was not proved that criminal offence was committed by the defendant.

CONCLUSIONS Wrapping up the above-mentioned, namely analysis of legislation, domestic case-law, ECtHR case-law and scholarly writings allows us to identify crucial moments when finding provocation in a person actions: 1. Law enforcement agency initiates criminal proceedings when there is information that unlawful activity has already began, and it wants to suspend it and arrest the relevant person. That means that there’s reasonable suspicion that the person in question is involved in criminal activity or prone to the

338 commission of an offence. There should be sufficient reasons to believe that a crime might be committed prior to the operation. 2. Law-enforcement agencies should confine themselves to investigating criminal activity in an essentially passive manner without putting any pressure on a person to commit an offence by taking such actions as taking the initiative in meetings, persistent incitement, promise of financial gains or create a feeling of compassion. Thus, initiative must come from the suspected person of committing an offence. 3. The procedure for application of incentive model provided for by law should be adhered to. Granting permission after implementation of the model and legitimation of preliminary stage violates Article 6 (1) of ECHR ex post facto and is unacceptable. 4. If a suspect or an accused puts forward arguments that the provocation took place, courts must address it while the prosecution party bears the burden of proving the absence of provocation.

SUMMARY The research is devoted to the issues of criminalization and decriminalization of provocation of bribe, analysis of domestic case-law and ECtHR case-law concerning the offence. The feasibility of existence of Article 370 of CC of Ukraine that provides criminal liability for provocation of the commitment of an offence was justified. Based on the analysis we obtained following results. Law enforcement agency initiates criminal proceedings when there is reasonable suspicion that the person in question is involved in criminal activity or prone to the commission of an offence. Law- enforcement agencies should confine themselves to investigating criminal activity in an essentially passive manner. Thus, initiative must come from the suspected person of committing an offence. The procedure for application of incentive model provided for by law should be adhered to. Granting permission after implementation of the model and legitimation of preliminary stage violates Article 6 (1) of ECHR ex post facto and is unacceptable. If a suspect or an accused puts forward arguments that the provocation took place, courts must address it while the prosecution party bears the burden of proving the absence of provocation.

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Information about authors: Stepanenko A. S., Candidate of Juridical Sciences, Associate professor of the Department of Criminal Procedure National University “Odessa Law Academy” 23, Fontanska road, Odessa, Ukraine

Stepanenko O. V., Candidate of Juridical Sciences, Associate professor of the Department of Criminal Law National University “Odessa Law Academy” 23, Fontanska road, Odessa, Ukraine

341 THE PREVENTION OF CORRUPTION AS A GUARANTEE FOR THE ENSURING OF THE CONSTITUTIONAL RIGHT OF HUMAN TO THE SECRET OF CORRESPONDENCE IN UKRAINE

Cherevko M. O., Khaliuk S. O.

INTRODUCTION In terms modern, in Ukrainian, information society the problem of prevention of corruption in the sphere of ensuring the constitutional right of human to the secret of post correspondence, telephone conversations, telegraph and other correspondence (hereinafter – the right to the secret of correspondence) requires special attention. The corruption today is the significant problem for Ukraine, as it threatens not only the information security of every citizen of Ukraine, but also the information security of state in general. So, the researches of valid legislation and practices in the field of prevention of corruption in the field of communication, today is quite relevant, given the active international policy of the Ukrainian state in the fight in prevention of corruption. Moreover, the obtained results in the future may become useful for the development of the branch of constitutional law of Ukraine and branches of law related to ensuring the right of human to the secret of correspondence. After analyzing recent researches and publications on the topic of prevention of corruption, in particular, the scientific works of M. Pashkovskaya, N. Fedorovskaya1, A. Yurchenko2, L. Bakunchyk3, A. Yaroshenko4, etc., we come to the conclusion that the problem under scientific study was not given due attention. So, a comprehensive study of valid legislation of prevention of corruption in the sphere of ensuring the constitutional right of human to the secret of correspondence in Ukraine and its practical application by the relevant institutions in legal reality.

1 Пашковська М.В, Федоровська Н.В. Правові підстави анонімного повідомлення про корупцію. Актуальні питання вдосконалення діяльності Національної поліції України в сфері превенції та запобігання корупції. с. 210–214. URL: МВ elar.naiau.kiev.ua. 2 Yurchenko, A.V. (2019). Elektronne uriaduvannia – efektyvnyi mekhanizm zapobihannia politychnii koruptsii [E-Governance as an effective mechanism for preventing political corruption]. P. 83–90. 3 Бакунчик Л.М. Антикорупційна освіта військових фахівців: здобутки та перспективи розвитку. Збірник наукових праць «Військова освіта» Національного університету оборони України імені Івана Черняховського. 2016. № 2 (34). 289 с. С. 268–273 4 Ярошенко А.С. Нормативно-правові засади діяльності правоохоронних органів щодо запобігання корупції в умовах євроінтеграціїю Правові та організаційні засади забезпечення державою правоохоронної функції: матеріали Всеукр. наук.-практ. конф. (Дніпро, 30 жовтня 2018 р.). Дніпро : ДДУВС, 2018. С. 270–271. 342 1. The system of institutions for prevention of corruption in the field of communication as a guarantee of ensuring the secret of human correspondence in Ukraine The corruption in the sense of the Law of Ukraine “On Prevention of Corruption” No. 1700-VII of October 14, 2014 is the use of a person specified in part one of Art. 3 of this Law (in particular, a person authorized to perform state functions, or a person who, for purposes Law No. 1700-VII of October 14, 2014, shall be deemed equivalent to such persons), the powers granted to it or their associated facilities with the purpose of obtaining or benefiting from improper benefits or the acceptance of the promise / offer of such benefit to themselves or other persons, or accordingly promise / proposition or provision of unlawful benefit to a person referred to in Article 3, paragraph 1, of Law No. 1700-VII of October 14, 2014, or at his request to other natural or legal persons with a view to inciting the person to the unlawful use of the authority or related duties provided to him with them opportunities (Part 1 of Art. 1)5. The prevention of corruption is a system of measures for the application of preventive anti-corruption mechanisms, and a set of rules for the elimination of the consequences of corruption offenses. So, accordingly, the prevention of corruption in the sphere of communication is a system of measures for the application of preventive anti-corruption mechanisms and a set of rules for eliminating the consequences of institutions (within the limits of their functions and powers), which in turn are complex of special-legal, institutional and organizational guarantees ensuring the constitutional right of human to the secret of correspondence. Thus, the system of institutions for prevention of corruption in the sphere of communications includes the following subjects: the Verkhovna Rada of Ukraine (defines anti-corruption policy (strategy) of Ukraine), the Cabinet of Ministers of Ukraine (controlled by the National Agency on Corruption Prevention (hereinafter – NACP) and hears the annual National Report on the implementation of the principles of anti-corruption policy), profile ministries and other central executive authorities (including law enforcement agencies) that legally limit the constitutional right of human to the secret of correspondence in in the case of the existence of such a requirement (the bodies of the National Police of Ukraine (NPU), the State Bureau of Investigation (SBI), the Security Service of Ukraine (SSU), the Foreign Intelligence of Ukraine (FIU), the State Border Guard Service of Ukraine (SBGSU), Department of State Guard of Ukraine (DSGU), the State Fiscal

5 Закон України «Про запобігання корупції» [текст]. URL: https://zakon.rada.gov.ua/laws/show/1700-18. 343 Service of Ukraine (SFSU), the State Criminal Execution Service of Ukraine (SCESU), the Ministry of Defense of Ukraine (MDU), the National Anti- Corruption Bureau of Ukraine (NABU) (Art. 5 of the Law of Ukraine “On Operational and Investigative Activity”)) and authorized to counteract corruption (the National Police of Ukraine, the National Anti-Corruption Bureau of Ukraine, the National Agency on Corruption Prevention), prosecutors, and which in its structure with specially-authorized bodies to prevention of corruption (Fig. 1).

Fig. 1. The system of institutions for prevention of corruption in the field of communication as a guarantee of ensuring the secrect of human correspondence in Ukraine 344 Participants in public-legal relations related to ensuring the constitutional right of human to the secret of correspondence are also: 1) companies of communication (operators of postal, courier communication, and operators and providers of telecommunications); 2) companies of servicing networks of communication and their equipment; 3) National Commission for the State Regulation of Communications and Informatization (issues a license for the activities of operators and providers of communication services). Thus, according to Article 31 of the Constitution of Ukraine, everyone is guaranteed the secret of post correspondence, telephone conversations, telegraph and other correspondence. Exceptions can only be established by a court in cases provided for by law, in order to prevent a crime or to find out the truth during the investigation of a criminal case, if it is impossible to obtain information in other ways6. However, in the main, the corruption itself becomes the reason for violating the constitutional right of human to the secret of correspondence. At the same time, there is a high probability that employees of the telecommunication companies and the companies that operate the systems of communication networks, or existing or former officials, mainly law enforcement agencies, using their official powers or those connected with they can “secretly”, without a legitimate reason, provide interested persons with restricted access information contained in the correspondence of individuals in order to obtain an unlawful benefit or through the acceptance of such a benefit or promise / offer of such a benefit for themselves or others by removing it from the communication channels, while actually committing criminal offenses, on the grounds specified in Art. 163 of the Criminal Code of Ukraine “Violation of the secret of correspondence, telephone conversations, telegraph or other correspondence, transmitted by means of communication or through a computer”, Art. 344 of the Criminal Code of Ukraine “Bribing an employee of an enterprise, institution or organization”, Art. 368 of the Criminal Code of Ukraine “Adoption of a proposal, promise or obtaining an unlawful benefit by an official”, Art. 388-3 of the Criminal Code of Ukraine “Bribing an official of a legal entity of private law irrespective of the organizational and legal form”, Art. 349 of the Criminal Code of Ukraine "Proposition, promise or render unlawful benefit to an official”, and Art. 370 of the Criminal Code of Ukraine “Provocation of bribery”7. According to data published by the General Prosecutor’s Office of Ukraine contained in the monthly Uniform reports on criminal offenses, pre-trial investigations carried out by the bodies of the National Police to investigate

6 Конституція України (ст.31) [текст]. URL: https://zakon.rada.gov.ua/laws/show/254%D0%BA/96- %D0%B2%D1%80. 7 Кримінальний кодекс України [текст]. URL: https://zakon.rada.gov.ua/laws/show/2341-14. 345 criminal offenses, on the grounds provided for in Art. 163 of the Criminal Code of Ukraine, from June 2018 by May 2019 (for the last year), there are grounds to state that a small number of such accounted offenses is on average – 9 (Table 1)8.

Table 1 Information on criminal offenses, pre-trial investigation of which is carried out by the authorities of the National Police (Violation of the secret of correspondence, telephone conversations, telegraph or other correspondence, transmitted by means of communication or through a computer, Art. 163 of the Criminal Code of Ukraine) for the period from June 2018 to May 2019

Criminal offenses

in which proceedings

are closed

Period Total

paragraphs

of Ukraine of

withindictment the

Criminal offenses were offenseswere Criminal

sub

no decision has been taken been has decision no

Criminal offenses in which offensesin Criminal

Including of Including 1 part

(on termination (on suspension) or

1, 2, 4, 6 Art. 284 of the the 284 Art. 6 4, 2, 1, of

reported in the reporting the reportedperiod in

at the end of the reporting the of end the at period

proceedings were sent to the court court the to sent proceedingswere

The criminal offenses on which the the on which offenses criminal The Criminal Procedural Code Procedural Criminal Jun 2018 7 0 4 4 7 Jul 2018 8 0 4 4 8 Aug 2018 11 0 4 4 11 Sept 2018 13 0 4 4 13 Oct 2018 13 0 5 5 13 Nov 2018 15 1 6 6 14 Dec 2018 11 1 11 11 10 Jan 2019 2 0 1 1 2 Febr 2019 6 1 1 1 5 Mar 2019 5 0 1 1 5 Apr 2019 5 1 2 2 4 May 2019 6 1 2 2 5

8 Єдиний звіт про кримінальні правопорушення по державі за відповідний місяць. URL: https://www.gp.gov.ua/ua/stst2011.html?dir_id=113899&libid=100820&c=edit&_c=fo#. 346 Thus, the number of cases not decided at the end of the reporting period (on a monthly basis) is an average of 8, and for the investigated (researched) period, only 5 accusatory acts were drawn up and transferred to the court. Based on the number of registered criminal offenses of pre-trial investigations in which the investigation is carried out by the bodies of the National Police, which is reflected in the data, the Reports on criminal offenses committed at enterprises, institutions, organizations of the sphere of communication, we obtain the results for which over the past year The crimes committed by an official related to bribery were recorded: 1) in the field of ensuring of postal, courier services in the period from September to November 2018 – one criminal offense, and in December 2018 – two criminal offenses; 2) in the sphere of telecommunications in January–March 2019 only one criminal offense was registered, and in April-May 2019 – two criminal offenses (Table 2)9.

Table 2 Information on criminal offenses committed by employees at enterprises, institutions, organizations in the field of communication (postal, courier activities and telecommunications (telecommunication)) for the period from June 2018 to May 2019. Kind of activity of the Postal and courier activities Telecommunications

companies

Period

period period

including including

Including Including

corruption corruption

were reported were reported were

in the in reporting the in reporting

anofficial person anofficial person

Criminal offenses Criminal offenses

Jun 2018 336 13 0 2661 5 0 Jul 2018 375 14 0 3093 9 0 Aug 2018 435 12 0 3968 7 0 Sept 2018 423 12 1 4396 7 0 Oct 2018 510 13 1 5024 8 0 Nov 2018 579 14 1 5428 9 0

9 Звіт про кримінальні правопорушення, вчинені на підприємствах, установах, організаціях за видами економічної діяльності за відповідний місяць. URL: https://www.gp.gov.ua/ua/stst2011.html? dir_id=113899&libid=100820&c=edit&_c=fo\. 347 End of Table 2 Kind of activity of the Postal and courier activities Telecommunications

companies

Period

period period

including including

Including Including

corruption corruption

were reported were reported were

in the in reporting the in reporting

anofficial person anofficial person

Criminal offenses Criminal offenses

Dec 2018 594 16 2 5692 9 0 Jan 2019 95 31 0 387 2 1 Febr 2019 157 34 0 828 2 1 Mar 2019 230 76 0 1251 3 1 Apr 2019 259 77 0 1672 4 2 May 2019 261 78 0 2214 4 2

It should be noted that in the field of postal, courier communication, on average, 355 criminal offenses were counted on average, and in the telecommunications sector – 3 051, which is almost nine times as much. Thus, regardless of the number of criminal offenses registered in the field of postal, courier communication or telecommunications, the number of registered criminal cases committed by an official on the basis of the crime of “bribery and obtaining unlawful benefits” is the same, and varies from one to two. However, based on the available statistical data, it is difficult to determine the exact number of criminal offenses (crimes (Art. 163 of the Criminal Code of Ukraine) related to corruption crimes (Art. 354, 368, 368-3, 369, 370 of the Criminal Code of Ukraine), was counted in the National Police, which were committed by the workers of the telecommunications industry (postal, courier, telecommunication), and whether or not they had taken place at all. So, let’s analyze the activities of the communications companies for compliance with them legislation in the field of prevention to corruption.

2. Specifics of prevention of corruption at the communication companies while ensuring the constitutional right of human to the secret of correspondence According to the Unified State Register of Postal Operators in Ukraine, which belongs to the National Commission, which carries out state regulation

348 in the field of communication and informatization, as of 09.07.2019, in Ukraine, business activities related to the ensuring of acceptance services, processing, transportation, delivery of postal items to only 47 entities, among which: 1) companies of a public form of ownership (for example, State Enterprise of Special Communications (hereinafter – SESC), Public Joint Stock Company “Ukrposhta” (hereinafter – “Ukrposhta” PJSA)); 2) companies of a private form of ownership (for example, “Nova Poshtа” LLC, “Delivery” LLC etc.)10. At present, it is undeniable that the direct and direct contact with the channels of communications are, first of all, employees of the telecommunication companies, and enterprises that serve the systems of communication networks, both public (state) and private form of ownership. It is the workers above the above listed enterprises that can potentially violate the right of human to the secret of correspondence, while committing acts that contain signs of corruption. It is also worth noting that in accordance with the provisions of p.2, p.3.1.3 of the Law of Ukraine “On the Prevention of Corruption”, officials of the above legal entities are among the entities subject to this Law. According to the results of the analysis of the availability of information on the official web-sites of operators of postal and courier communication on the subject of the measures taken by them to prevent corruption and corruption- related offenses, we arrive at the following conclusions: a) only public-owned enterprises, such as the SESC11 and “Ukrposhta” PJSC12, have taken maximum measures to prevent corruption, in particular, developed and approved the relevant the Anti-Corruption Program of the enterprise, and report on the results of the anti-corruption measures, and also posted information about it in open access on their own official web-sites; b) all other companies, operators of postal, courier communications of private ownership, with high probability, have not taken anti-corruption measures, as evidenced by the lack of relevant information (documentation) on public web-sites in open access13. It should be noted

10 Єдиний державний реєстр операторів поштового зв’язку. URL: https://nkrzi.gov.ua/index.php? r=site/index&pg=60&language=uk. 11 Антикорупційна програма ДПСЗ [текст]. URL: http://dpsz.ua/pages/Koruptsija. 12 Антикорупційна програма ПАТ «Укрпошта». URL: https://ukrposhta.ua/pro-pidpriyemstvo/ antikorupcijna-programa-pat-ukrposhta/. 13 Офіційний веб-сайт ТОВ «Торговий дім «Міст Експрес». URL: https://www.meest-express.com.ua/ ua/kontakty/. Офіційний вею-сайт ТОВ «Спільне Українсько-Канадське підприємство «Росан». URL: http://rosan.com.ua. Офіційний сайт ТОВ «Нова пошта». URL: https://novaposhta.ua/. Офіційний веб-сайт ТОВ «Делівері». URL: https://www.delivery-auto.com/uk-UA/GroupCompany. Офіційний вебсайт ТОВ «Хайвей». URL: http://highway.biz.ua/. 349 that the overwhelming majority of postal and courier service providers do not have their own official web-sites at all, but only fragmentary, but not always relevant, information about them on various reference internet portals is available. Consequently, we can hardly say that the presence or absence of the measures taken to prevent corruption in order to ensure the constitutional right of human to the secret of correspondence at enterprises of the private sector of the economy in the field of postal and courier communications. However, it should be noted that the existence of an anti-corruption program is a serious advantage for any legal entity, since its absence will have negative consequences in case of imposing criminal sanctions on such a legal entity, in particular, the lack of compliance by the responsible persons of such legal entity on the prevention and counteraction of corruption, if it resulted in the commission of corruption offense on behalf and in the interests of a legal entity. According to Art. 61 of the Law of Ukraine “On Prevention of Corruption”, legal entities ensure the development and adoption of measures that are necessary and justified to prevent and counteract corruption in the activities of a legal entity. According to Part 2 of Art. 62 of the Law of Ukraine “On Prevention of Corruption” an obligatory anti-corruption program is approved by the leaders: 1) state, communal enterprises, economic partnerships (in which the state or communal share exceeds 50 percent), where the average number of employees in the reporting (financial) year exceeds fifty persons, and the volume of gross income from the sale of products (works, services) for this period exceeds seventy million hryvnias; 2) legal entities (privately owned entities) who are participants in the preliminary qualification, participants in the procurement procedure in accordance with the Law of Ukraine “On State Procurement”, if the cost of purchasing goods (goods), services (services), works is equal or exceeds UAH 20 million. At the same time, this norm of the valid legislation on the date of this scientific study is not brought in line with the latest changes in the valid

Офіційний веб-сайт ТОВ «Пост-Інтернейшнл». URL: https://post-int.com/. Офіційний веб-сайт ТОВ «Профі Сервіс КСД. URL: http://www.ksd.kiev.ua/. Офіційний веб-сайт ПП «Нічний Експрес». URL: http://nexpress.com.ua/uk. Офіційний веб-сайт ТОВ «Глобекс Пост». URL: http://globexpost.com/. Офіційний веб-сайт ТОВ «Преміум Пакет ГМБХ ЕНД КО. КГ». URL: http://premiumpaket.com.ua/ru/contacts.html. Офіційний веб-сайт ТОВ «Грандес Тур». URL: https://www.grandes-tour.com.ua/. Офіційний веб-сайт ТОВ «Ейч Ар Інтрасервіс». URL: http://vysh.gov.ua/tov-ejch-ar-intraservis- pratsevlashtuvannya-v-polshhi/. Офіційний веб-сайт ПАТ «Укртелеком». URL: https://new.ukrtelecom.ua/about/. Офіційний веб-сайт ПрАТ «ВФ Україна». URL: https://www.mts.ua/. 350 legislation. Thus, the Law of Ukraine “On State Procurement” has already expired on the basis of the Law “On Public Procurement” No. 922-VIII dated 12.25.201514. In the same way, we will analyze in more detail the measures taken to prevent corruption in order to ensure the constitutional right of human to the secret of correspondence at the enterprises of postal, courier communication of the public (state) form of ownership, namely on the example of the SESC and “Ukrposhta” PJSC. Thus, in compliance with the requirements of the Law of Ukraine “On Prevention of Corruption”, in order to prevent, detect, minimize and eliminate the consequences of corruption and corruption-related offenses in the said enterprise, “The Anti-Corruption Program of the SESC”, approved by the Order of the SESC No. 203 dated September 23, 2018, and an assessment of corruption risks in the enterprise, including “information management”15. Thus, the Report, prepared on the results of the assessment of corruption risks in the activities of the SESC, approved on August 30, 2018, indicates the existing risk: non-compliance with the requirements of the Law of Ukraine “On Information” No. 2657-XII of 02.10.199216, namely through the transfer of confidential, commercial or other service information to third parties, without legal grounds for the purpose of obtaining an unlawful benefit; the use of personal data or information about individuals for their own mercenary purposes; disclosure of confidential, commercial or other official information after dismissal; use of confidential, commercial and other official information, other resources of the enterprise for the purpose of organization of own business. Probability level – low. The SESC in the Anti-Corruption Program provided for the following measures to eliminate corruption risk, namely: 1) writing about restrictions related to work with confidential, commercial or other official information; 2) provision of a technical limitation when dealing with confidential, commercial or other service information, in particular regarding access to it, making it impossible to copy, forward or otherwise transfer such information; 3) a warning about the inadmissibility of the disclosure of confidential, commercial and other official information by a person after dismissal17. Activities are carried out by directors, heads of structural units, authorized persons on issues of prevention and detection of corruption on a permanent basis.

14 Закон України Про публічні закупівлі [електронний ресурс]. URL: https://zakon.rada.gov.ua/laws/ show/922-19#n608. 15 Антикорупційна програма ДПСЗ [текст]. URL: http://dpsz.ua/pages/Koruptsija. 16 Закон України «Про інформацію» [текст]. URL: https://zakon.rada.gov.ua/laws/show/2657-12. 17 Звіт виконання антикорупційної програми ДПСЗ [текст]. URL: http://dpsz.ua/pages/Koruptsija. 351 An active “The Anti-Corruption Program” was also developed and approved by the operator of postal, courier communication of “Ukrposhta” PJSC18. Periodically, authorized persons report on the measures taken to prevent corruption. Thus, according to the data on the results of the implementation of “The Anti-Corruption Program of “Ukrposhta” PJSC for 2018”, all draft regulatory, organizational and regulatory documents and agreements that are being developed or issued by the company are subject to anti-corruption expertise19. Corruption risks of “Ukrposhta” PJSC are analogous to the SESC, and include the risk of “information management”. Thus, in the Report on Corruption Assessment of “Ukrposhta” PJSC in the list of measures for their elimination (minimization) it is provided for using (interference) by employees of the company for personal purposes, the information systems (databases, etc.) “Ukrposhta” PJSC. Thus, the factors of corruption risk are the presence of employees’ personal property (non-property) interest. The same system of information systems (information) of security “Ukrposhta” PJSC monthly monitors periodically the persons who use the information systems of the company in order to minimize the facts of their use of information in personal interest. Consequently, we conclude that the aforementioned enterprises of postal, courier, special (SESC) and general use (“Ukrposhta” PJSC) complied with the requirements set forth by the Law of Ukraine “On Prevention of Corruption” and the Law of Ukraine “On Postal Communication” № 2759-III from 04.10.200120, namely, the security of mail and the secret of information in the field of ensuring of postal services are provided. So, according to Art. 6 of the Law No. 2759-III dated October 4, 2001, the secret of postal items, including correspondence and other written correspondence, electronic communications, sent (transmitted) by means of communication, is guaranteed by the Constitution, namely Art. 31, and the legislation of Ukraine. Operators are obliged to use all possible organizational and technical measures for the protection of information in accordance with the legislation of Ukraine. Separation and inspection of written correspondence, investments in other postal items, receipt of any certificates concerning them is prohibited, except in cases specified by law.

18 Антикорупційна програма ПАТ «Укрпошта». URL: https://ukrposhta.ua/pro-pidpriyemstvo/ antikorupcijna-programa-pat-ukrposhta/. 19 Звіт виконання антикорупційної програми ПАТ «Укрпошта» https://ukrposhta.ua/pro-pidpriyemstvo/ antikorupcijna-programa-pat-ukrposhta/ 20 Закон України «Про поштовий зв’язок» [текст]. URL: https://zakon.rada.gov.ua/laws/show/ 2759-14. 352 The effectiveness of the adopted anti-corruption measures is confirmed by the lack of court decisions (sentences in criminal cases) in the database of the Unified Register of court decisions at the time of conducting this research on the employees of the SESC and “Ukrposhta” PJSC21. According to the Register of Operators, Telecommunication Providers of the National Commission, which carries out state regulation in the field of communication and informatization, as of June 20, 2019 in Ukraine in the field of telecommunications are engaged in economic activities related to the provision of communication services of 7,560 subjects management, although about a third of them are not licensed22. Existing operators providing mobile (telephony) telephony services with the right to maintain and operate telecommunication networks and to provide telecommunication channels: the public entity in this area is “Ukrtelecom” PJSC23, and private ownership – such companies as “VF Ukraine” PJSC (MTS), “Kyivstar” PJSC, “Lifesell” LLC, “Telesystems of Ukraine” PJSC, “Intellectual Communications” LLC24, as well as companies which are active service providers fixed local telephone network with a network capacity of more than 10,000 numbers with the right to maintain and operate telecommunication networks and to provide telecommunication channels such as “Ukrcom”, “Ukrainian-American-Swiss” Ltd., “Kankom”, “Velton.Telecom” Ltd., “World service” LLC, “Telecommunication Company” Ltd., “Arkada-X” Ltd, is not available in public access on official web-sites, any information or documents related to the prevention of corruption, and in “International Telecommunications” Ltd. generally absent official web-site25. A similar situation exists with existing telecommunication providers, namely: “Laykamoobayl Ukraine” Ltd., “Farlep-Invest” PJSC, “Lane Network” Ltd.26.

21 Єдиний державний реєстр судових рішень. URL: http://www.reyestr.court.gov.ua. 22 Реєстр операторів, провайдерів телекомунікацій. URL: https://nkrzi.gov.ua/index.php?r=site/index &pg=55&language=uk. 23 Офіційний веб-сайт ПАТ «Укртелеком». URL: https://new.ukrtelecom.ua/about/. 24 Офіційний веб-сайт ПрАТ «ВФ Україна». URL: https://www.mts.ua/. Офіційний веб-сайт ПрАТ «Київстар». URL: https://kyivstar.ua. Офіційний сайт ТОВ «Лайфселл». URL: https://www.lifecell.ua/uk/pro_lifecell/kompaniia- sogodni/vazhliva-informatsiia/. Офіційний веб-сайт ПрАТ «Телесистеми України». URL: http://telesystems.ua/ua/. Офіційний веб-сайт ТОВ «Інтелектуальні комунікації». URL: http://www.giraffe.ua/. 25 Офіційний веб-сайт ТОВ «Укрком». URL: http://ukr-com.net/ua/contact. Офіційний веб-сайт Українсько-американсько-швейцарське ТОВ «Канком». URL: http://www.kancom.kiev.ua/index.php/uk/kontakti-2.html. Офіційний веб-сайт ТОВ «Велтон.Телеком». URL: https://www.velton.ua/ua/o_kompanii/kontakty/. Офіційний веб-сайт ТОВ «World service». URL: http://www.ws.kiev.ua/uk/%D0%BE%D0%BF% D0%BB%D0%B0%D1%82%D0%B0. Офіційний веб-сайт ТОВ «Телекомунікаційна компанія». URL: http://www.telcom.net.ua/. Офіційний веб-сайт ТОВ «Аркада-Х». URL: https://arkada-x.com/about.php. 26 Офіційний веб-сайт ТОВ «Лайкамобайл Україна». URL: https://www.lycamobile.ua/ru/lycamobile- ukraine. 353 Consequently, we come to the conclusion that the telecommunications services operator “Ukrtelecom” PJSC has not fulfilled the requirements of the Law of Ukraine “On Prevention of Corruption” (in the part of elaborating an anti-corruption program of the company and reporting on the measures taken to prevent corruption in telecommunication companies). The same, since Art. 62 of the Law of Ukraine “On Prevention of Corruption” does not contain norms and responsibilities for the development and implementation of an anti-corruption program in private entities, and in connection with the increase in the value and influence of information that is contained in the correspondence, which is transmitted by operators of postal, courier communication, operators and telecommunication providers, it is proposed to amend the corresponding part and add to the second part of Art. 62 of the Law of Ukraine “On Prevention of Corruption” paragraph third in the next edaktsiyi “entities, which operate in the ensuring of telecommunications services, including the right to maintenance and operation of telecommunication networks and channels for use, regardless of ownership”. Moreover, since in accordance with Art. 6 of the Law of Ukraine “On Postal Communication”27 and Art. 9 of the Law of Ukraine “On Telecom- munications”28, communication operators are obliged to provide the secret of correspondence, we propose to authorize the National Commission, which performs state regulation in the field of communication and informatization, to deprive operators of licenses for unlawful ensuring of information with restricted access to correspondence, including law enforcement agencies without legitimate reasons. In this regard, make appropriate changes to the normative documents on their issue and termination.

3. Specifics of prevention of corruption in law enforcement bodies in the restriction of the constitutional right of human to the secret of correspondence A separate group of persons potentially capable of committing a corruption offense is connected with violation of the constitutional right of human to the secret of correspondence – they are employees, civil servants of authorized bodies to restrict the correspondence of Ukraine, namely, employees, civil servants of law enforcement agencies (operational search activities), defined in the list of Art. 5 of the Law of Ukraine “On Operational and Investigative

Офіційний веб-сайт ПАТ «Фарлеп-Інвест». URL: https://vega.ua/ukr/about_company/farlep_invest. Офіційний веб-сайт ТОВ «Мережа Ланет». URL: https://www.lanet.ua/uk/. 27 Закон України «Про поштовий зв’язок» [текст]. URL: https://zakon.rada.gov.ua/laws/show/2759-14. 28 Закон України «Про телекомунікації» [текст]. URL: https://zakon2.rada.gov.ua/laws/show/1280-15. 354 Activity” No. 2135-XII dated 18.02.1992 (bodies of the NPU, SBI, SSU, FIU, SBGSU, DSGU, SFSU, SCESU, MDU, and NABU)29. Thus, examples illustrating cases of violations of the constitutional right of human to the secret of correspondence by active employees of the above- mentioned law-enforcement bodies are the commission of a criminal offense by acting civil servants of the Security Service of Ukraine (SSU), against which, in 2017 and 2018, convictions were imposed on the results of consideration by the courts of the Pridniprovsk district court Cherkasy and Shevchenkivsky District Court of Kyiv and, respectively, Criminal Affairs Nos. 711/10887/16-k and No. 761/41747/1830. Thus, in both of these cases, the crime, on the grounds provided for in Part 2 of Art. 163 of the Criminal Code of Ukraine, was committed by prior agreement with an active employee of the SSU, who potentially had access to the database of information of operators and telecommunication providers, which is protected by law as a secret on communications subscription, subscription, ensuring of telecommunication services, incl. reception of services, their duration, content, routes of transmission. So, in order to prevent similar cases, on December 19, 2018, the Order of the Central Directorate of SSU No. 2101 approved “The Anti-Сorruption Program of the SSU for 2018–2020”31. Thus, according to the Report on the results of the assessment of corruption risks in the activity, the SSU to corruption risks includes the risks that are possible when dealing with information with restricted access, namely: insufficient level of protection of information with limited access that was created or became known during fulfillment of official duties (the possibility of leakage of information with restricted access due to violation of its storage conditions, among which there is insecurity of technology, access of a wide range of employees to automated databases, incompleteness of safe keeping of office cabinets, use of data by SSU staff who have access to state registers and databases containing restricted information32. Factors influencing the likelihood of committing corruption offenses related to the disclosure of the secret of correspondence are as follows: 1) there is no electronic document flow; 2) insufficient logistical support; 3) insufficient awareness of the SSU staff with the requirements of legislation in the field of document circulation and protection of information with restricted access.

29 Закон України «Про оперативно-розшукову діяльність» [текст]. URL: https://zakon.rada.gov.ua/ laws/show/2135-12. 30 Єдиний державний реєстр судових рішень. URL: http://www.reyestr.court.gov.ua. 31 Антикорупційна програма СБ України на 2018–2020 роки. URL: https://ssu.gov.ua/ua/pages/296. 32 Звіт виконання антикорупційної програми СБ України. URL: https://ssu.gov.ua//ua/pages/296. 355 The SSU refers to the possible consequences of a corruption offense or offense related to corruption in the sphere of ensuring the constitutional right of human to the secret of correspondence: 1) violation of the constitutional rights of citizens and the interests of the state; 2) undermining the image of the SSU and reputation losses of the state. The separate corruption risk in the sphere of ensuring the constitutional right of human to the secret of correspondence of the SSU considers the election of non-optimal technical decisions on the creation, modernization of ITC and the construction of their integrated information security systems (hereinafter – referred to as the ІІSS). Under the IISS is the ineffective and/or misuse of budget funds allocated for the modernization of ITS and the construction of their IISS, leads to excessive financial costs of budget funds and / or the receipt of unlawful benefits by officials of the SSU. The factors of the occurrence of this corruption risk, the SSU considers: 1) insufficient level of control over the modernization of ITS and the construction of their IISS; 2) the imperfection of the departmental legal and regulatory framework for the issue raised. And the possible consequences include the following: 1) ineffective use of budget funds; 2) the disclosure of information with limited access, which may lead to reputational and financial losses; 3) inadequate software, technical and informational support in the SSU. In the same way, measures to eliminate the possible risks that may occur when handling classified information include the following: 1) taking measures to create appropriate conditions for the protection of information with limited access (arrangement of office premises, provision of their safes, etc. in accordance with the legislation on protection restricted information); 2) carrying out measures to assess the security of information processed by means of electronic computers (implementation of instrumental control, attestation of technical protection information systems and conducting state expert review of IISS); 3) providing additional study of the personnel of the requirements of the legislation of Ukraine on the protection of state secrets; 4) preparing proposals for amending the departmental legal acts in order to optimize the special order of access to information funds and functional regimes of data processing in ITS. Concerning the measures to eliminate the corruption risk associated with violation of the constitutional right of human to the secret of correspondence such as “the selection of non-optimal technical decisions on the creation,

356 modernization of ITS and the construction of their integrated information security systems” it should be noted that the following anti-corruption measures include: 1) implementation of an additional survey of the operating environment of ITS; 2) carrying out works on the creation, modernization of ITS and the construction of their IISS solely on the basis of feasibility studies, in compliance with the requirements of Ukrainian legislation and normative legal acts of the SSU. An exemplary example of anti-corruption measures among law enforcement officials authorized to the restriction of the constitutional right of human to the secret of correspondence is the activity in the field of prevention of corruption of the National Police of Ukraine (hereinafter – NPU) [16]. Thus, the NPU is one of the specially authorized actors in the field of prevention of corruption and the central executive body, whose activities are directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Internal Affairs and which implements state policy in the spheres of ensuring the protection of rights of human and freedoms, human rights to the secret of correspondence, the interests of society and the state, the fight against crime, the maintenance of public security and order. In the structure of the NPU, the Office of Prevention of Corruption and Lustration has been established and is operating in the central governing body (in the apparatus). A Commission for the Evaluation of Corruption Risks and Monitoring has also been established. To the interregional territorial bodies of the NPU, namely the Department of Homeland Security (within the Criminal Police) (to the apparatus), which includes the Anti-Corruption Office. The Order of the NPU No. 246 dated March 20, 2019 approved “The Anti- Corruption Program of the NPU for 2019–2021”. In accordance with Annex 2 of the “Anti-Corruption Program of the NPU”, corruption of the risks related to the secret of correspondence includes the risk of “possible insolvency of a police officer in the use of information that has become known to him in connection with the exercise of official authority” in his interests. At the same time, the priority of corruption risk is high. Measures to eliminate corruption risk: 1) to carry out checks on the availability of documents and other media of information containing official information in the State Enterprise of Ukraine; 2) to ensure the interaction of police and citizens exclusively through official correspondence; 3) prepare a technical task for the creation of a comprehensive system of protection in the information and telecommunication system “Informational portal of the NPU”;

357 4) to ensure the preparation of a plan for the protection of information in the information and telecommunication system “Information portal of the NPU”; 5) to build a departmental Special Network for the exchange of official information “Sich”; 6) to conduct training (trainings) with typical cases of violations of anti- corruption legislation during (on the results) consideration of requests, appeals (consideration in the conditions of conflict of interests, disclosure of restricted information), as well as situations of violations of special legislation that may precede or be the consequences of committing corruption or corruption-related offenses; 7) to prevent police officers from taking responsibility for violations of anti-corruption legislation. According to the 2018 Report, the Office for Prevention of Corruption and Lustration, in the structural subdivisions of the apparatus of the central police authority, territorial (including interregional) bodies, institutions belonging to the sphere of management of the state of emergency of Ukraine, organized coordination of actions on submission by the police, civil servants, and other police officers who are the subjects of the declaration of electronic declarations [17]. Among the police officers on an ongoing basis is an explanatory work on criminal and administrative liability for the submission of knowingly false information or intentional failure or delayed submission without valid reasons for electronic declarations. In pursuance of the order of the Minister of Internal Affairs of Ukraine dated March 23, 2013 № 3863/01 / 18-2018 “On ensuring electronic declaration” for 2017. 779 briefings and press conferences, 671 “round tables”, and 391 “direct telephone lines” were conducted in the regions. Every day a certificate is prepared on the activities of police and police units in the media, which includes statements by the leadership of the Ministry of Internal Affairs and the state of emergency of Ukraine; comments about the state of emergency of Ukraine representatives of authorities, experts, politicians, etc.; main valid events related to the activities of the National Police of Ukraine; critical materials to the address of the state of Ukraine; positive materials about the activities of the NPU, as well as materials on the evaluation of the activity of the NPU. Thus, over 2018, more than 19.4 thousand materials were processed on the Internet. In the general background of publications that have an emotional color, the positive component over the negative for assessing the activities of police organs and units is over: 1322 and 793 materials, respectively.

358 The same, taking into account the criminal situation in the state and judicial practice, it is our belief that one should not ignore and periodically monitor the former employees of the agencies conducting operative and investigative activities (the list specified in Art. 5 of the Law of Ukraine “On Operational Investigative Activity”), as it is precisely those who have been released from law enforcement agencies, possessing special knowledge and professional experience, communications and special technical equipment and software necessary for the removal of information uu communications, etc., often commit offenses and illegally providing private investigators pursuing intent to obtain pecuniary advantage. In Ukraine, as of the date of this research, the activity of private detectives is prohibited. Thus, according to Art. 5 of the Law of Ukraine “On Operational and Investigative Activity”, carrying out operational and investigative activities by public, private organizations and individuals is prohibited. Persons guilty of violations of the constitutional right of human to the secret of correspondence are prosecuted for the commission, with the prior consent of a group of persons, of a crime, on the grounds specified in Part 2 of Art. 163 of the Criminal Code of Ukraine. An example is the conviction of the Vasylkivskyi district court of the Kyiv region dated June 7, 2018 in the criminal case No. 362/2300/18 [20]. Thus, the court found that the accused person, having a higher education and being properly informed about the procedure for access to information that is protected by law, as well as with the provisions of Art. 31 and Art. 32 of the Constitution of Ukraine, the provisions of the Law of Ukraine “On Information”, was engaged in providing services to individuals for the collection of information to order, represented as a detective detective agency “Conrad”. In the court session, the accused convicted of a criminal offense, stipulated in Part 2 of Art. 28, Part 2 of Art. 163 of the Criminal Code of Ukraine, was fully recognized. A similar criminal case was considered by the Irpin City Court of the Kyiv region (No. 367/1464/2018) [20]. Thus, on 20.11.2018 the court issued a conviction that the accused (the detective of the detective agency “Kasandra”) was prosecuted for committing the offenses provided for in Part 2 of Art. 28, Part 2 of Art. 163, Part 1 of Art. 359 of the Criminal Code of Ukraine. Thus, analyzing the data of the Unified State Register of court decisions, we will receive information on the state of criminal cases, on the charge of law enforcement officers or the court in committing criminal offenses, stipulated in Art. 163 of the Criminal Code of Ukraine and Art. 349 of the Criminal Code of Ukraine (bribe) and Art. 368 of the Criminal Code Ukraine (taking a bribe), we come to the conclusion about their insignificant amount. Proceeding from the above-mentioned circumstances and for the maximum

359 minimization of their number, it is proposed in the anti-corruption programs of law enforcement bodies authorized to restrict the constitutional right of human to the secret of correspondence, to provide for measures on the periodic monitoring of the activities of former employees who in the past were associated with conducting operational searches (secret investigators) actions, including related to the secret of correspondence.

CONCLUSIONS Summarizing the foregoing, we conclude that counteracting corruption in the sphere of communication in Ukraine is provided within the limits of authority and functional responsibilities as separately created by specially authorized institutions and structural units authorized by persons for prevention of corruption of enterprises, institutions, organizations, which are connected including with the provision of constitutional right of human to the secret of correspondence. Countering corruption at communication enterprises (postal operators, couriers, operators and telecommunication providers and enterprises that serve communication networks and special ensuring and equipment are characterized as having certain specifics. Thus, in the enterprises of the public (state) form of ownership, an appropriate аnti-corruption program has been developed and the authorized bodies and individuals report on its implementation. As far as the private sector is concerned, privately owned enterprises do not carry out similar anti-corruption measures, and therefore, appropriate changes to the legislation are proposed to secure such a duty. Fighting corruption in law enforcement agencies that carry out their activities, including connected with the restriction of constitutional right of human to the secret of correspondence also has its peculiarities. Thus, an example of anti-corruption measures is the activity of specially authorized anti-corruption bodies of the National Police of Ukraine and the Security Service of Ukraine. It should be noted that it is the valid and former employees of the Security Service of Ukraine, pursuing the intention to make a profit, acting illegally as detectives, most often commit criminal offenses related to the secret of correspondence and corruption. It is also proposed to amend the legislation to strengthen control in the form of periodic internal monitoring of their material condition and future activities.

SUMMARY The article is devoted to the analysis of the legal consolidation of prevention of corruption in the sphere of ensuring the constitutional right to the secret of correspondence. The authors compared the experience of prevention of

360 corruption in various institutions authorized to ensure the constitutional right to the secret of correspondence in Ukraine and proposed a number of changes to the valid legislation that eliminate the problems not regulated by law. The main results of the study are to determine the mechanisms for prevention of corruption as one of the guarantees of ensuring the constitutional right to the secret of correspondence. The authors come to the conclusion that there are certain peculiarities of prevention of corruption at communication enterprises and in law enforcement bodies, while ensuring / restricting the constitutional right of human to the secret of correspondence. Publicly owned companies, namely postal operators, have taken the utmost to prevent corruption, as opposed to telecommunication service providers. They have developed anti-corruption programs and have appointed anti-corruption agents. Law enforcement agencies have also taken the utmost measures to prevent corruption in the legal relationships in which they are involved, while ensuring the human right to secret of correspondence. The programs of the National Police and the Security Service of Ukraine are exemplary.The authors propose a number of changes to the legislation of Ukraine.The authors also proposed to strengthen monitoring of law enforcement officials upon their dismissal.

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Information about authors: Cherevko M. O., Candidate of Juridical Sciences Department of Constitutional Law and Human Rights National Academy of Internal Affairs 1, Solomianska st., Kyiv, Ukraine

Khaliuk S. O., Candidate of Juridical Sciences, Associate Professor at Department of Constitutional Law and Human Rights National Academy of Internal Affairs 1, Solomianska st., Kyiv, Ukraine

364 CORRUPTION: SOCIAL AND LEGAL PROBLEM OF SOCIETY

Chyzhov D. A.

INTRODUCTION Corruption is one of the most pressing social problems of our time. Some researchers generally believe that corruption has become a major political problem at the end of the 20-th century. For all approaches and assessments, one thing is certain: corruption is a problem, which is a matter of great urgency for many countries. It fully concerns Ukraine, whose high level of corruptions is recognized by its political leadership, legislative body, domestic and foreign analysts, and relevant international institutions. Corruption in today’s conditions has become a factor that really threatens the national security and the constitutional order of Ukraine. This phenomenon negatively affects different aspects of public life: economy, politics, governance, social and legal spheres, public consciousness, international relations. Corrupt relations are increasingly displacing legal, ethical relations between people from an anomaly gradually turn into a norm of behavior. The key issue, which today has no clear and unambiguous solution, is the issue of determining the socio-legal characteristics of corruption. In the widely used term “corruption” various authors have invested a variety of content, ranging from corruption to crime such as bribery (illegal gain), ending with the definition of corruption through general wording that does not contain specific features of the offense (stable relationship, system of relationships, etc.). It was also not clarified whether it is possible to give a universal notion of corruption that would meet the requirements of various branches of science, which is legal corruption, and so on. At the same time, the definition of corruption makes it possible to determine the scope of corrupt acts, as well as to fill the specified legal term with the specified term. Among the issues not resolved, which have an important theoretical and practical significance for anti-corruption activities, is the question of the mechanism of corrupt relations. The clarification of this question will not only more deeply and precisely determine the social nature of corruption and its legal nature, but also develop adequate measures to counter this evil. In other words, the mechanism of combating corruption should be based on the mechanism of corrupt relations. The peculiarities of corrupt processes and anti-corruption activities in Ukraine are a complex of issues that require their social and legal research. The answer to them will make it possible to determine the patterns of development of corruption processes, their tendencies, shortcomings of anti- 365 corruption legislation, the main problems that arise in its application, and other reasons for ineffective anti-corruption activities. Analysis of recent research and publications. Among the developments in this problem are the works of such scholars: A. Bantysev, M. Melnyk, A. Skrypnyk, O. Hrytsenko, A. Bova. In questions concerning the study of the socio-legal nature of the emergence of corruption in terms of deviation, a large number of scientific papers of the following scientists are devoted: V. Afanasyev, Y. Gilinsky, A. Bistrov, M. Sylvestros, I. Golosenko, A. Kirpichnikova, G. Satarov, I. Klyamkin, L. Timofeev, V. Radaev, and others. The purpose of the article is to analyze the concept of determining the socio-legal characteristics of corruption in the conditions of modern Ukrainian society. The realization of this goal includes: to characterize the main theoretical approaches to the definition of corruption, taking into account the sociological specificity of the consideration of this phenomenon; to determine the nature of the phenomenon of corruption in Ukraine and the reasons for its spread. The object of the article is the study of the socio-legal characteristics of corruption. The subject of the article is the socio-legal essence of corruption and its negative consequences.

1. Corruption: social and legal characteristics In recent years, a lot has been done in Ukraine in the field of combating corruption – a special anti-corruption law and a number of other legislative acts of anticorruption have been adopted, the Concept of Fighting Corruption approved, a special anti-corruption program has been developed, a course on intensifying counteraction to this evil has been proclaimed at the political level, introduced systematic holding of organizational events at the highest level with the participation of heads of law-enforcement and other state bodies devoted to counteraction to corruption, etc. The launch of the Anti- corruption Court was also an important step. However, these and others carried out in the state and in society, revenues did not lead to tangible positive results in the fight against corruption. There are many reasons for this – both objective and subjective. One of them is that during the existence of Ukraine as an independent state, anti-corruption processes did not have the proper scientific support. Actually, today the problem of counteracting corruption is determined by three socio-legal aspects, whose coexistence is a rather paradoxical fact: firstly, it is extremely relevant to social life in general and to legal science and practice in particular, which is acknowledged and emphasized by all; and

366 secondly, politicians, journalists, and other categories of citizens talk about it a lot; and thirdly, while it is characterized by a low level of scientific research. Many researchers call this a criminological phenomenon, although there is a point of view that “corruption is a concept not so much legal, as social and moral”1. It is worth starting with an appeal to the etymology of the word itself. Researchers highlight several variants of the origin of the term “corruption”. Some believe that it comes from the combination of the Latin words “correi” (several members of the binding relationship on one subject) and “rumpere” (break, damage, break, cancel). As a result, an independent term “corrumpere” was created, which involves participation in the activities of several individuals whose purpose is “inhibition” of the normal course of the trial or management process of society. Sometimes this term is also associated with the Latin word, but somewhat different – “corruption”, which is interpreted as “bribery, corruption of public and political figures, officials”. As a result, there is an independent term – “corrumpere”, which implies participation in the activities of several people whose purpose is “damage”, “damage” to the normal course of the trial or management of the affairs of society2. In general terms, corruption can be defined as a negative social and legal phenomenon that covers the whole set of acts related to the unlawful use by individuals of the authority and authority granted to them in order to meet the personal interests or interests of third parties, as well as other offenses creating conditions for committing or concealing acts of corruption. Henry Blek’s authoritative legal dictionary defines corruption as: “an act committed with the intent to provide some of the benefits that are incompatible with the official duties of an official and the rights of others; an act of an official who misuse his position or status illegally to obtain any advantage for himself or another person for purposes that are contrary to the duties and rights of others”. The authors of the domestic legal dictionary-directory suggest to consider corruption as one of the forms of abuse of power associated with the bribery of officials3. Some authors understand corruption as a socially negative phenomenon, which is expressed in the bribing of some people by others, which is reflected in the criminal law bribery4. There is also a broader understanding of

1 Быстрова А.С., Сильвестрос М.В. Феномен коррупции: некоторые исследовательские подходы. Журнал социологии и социальной антропологии. 2000. Т. 111. № 1. С. 91–112. 2 Водолеев Г.С. Коррупция: Хроника борьбы. Санкт-Петербург, 1995. 181 с. 3 Юридичний словник-довідник. Київ. 1996. С. 308. 4 Быстрова А.С., Сильвестрос М.В. Феномен коррупции: некоторые исследовательские подходы. Журнал социологии и социальной антропологии. 2000. Т. 111. № 1. С. 93. 367 corruption as a process in which direct use by officials of the rights associated with the position and for the purpose of personal enrichment takes place. So let’s note that there are many definitions of corruption. Perhaps, the shortest and most accurate one is: “abuse of public authority for private (personal) benefit”5. Similar definitions are found in UN documents. The fuller of them is contained in the documents of the 34th session of the General Assembly of the United Nations (1979): “The performance by an official of any act or omission in the field of his or her official authority for remuneration in any form in the best interests of a person who provides such remuneration as with violation of job descriptions, and without their violation”6. The interdisciplinary group on corruption in the Council of Europe gave an even broader definition of work: corruption is a bribery and any other behavior of persons entrusted with the performance of certain responsibilities in the public or private sector, and which leads to a breach of the obligations imposed on them by the status of a public official, a private employee or an agent of a different kind of relationship and is aimed at obtaining any unlawful benefits for himself and others7. In this case, the subject of corruption can be not only an official. I believe that this wording is the most correct one, and it allows us to comprehend corruption and all its forms and manifestations, regardless of the form of ownership and activity. The adopted “Concept of Fighting Corruption 1998–2005” adopted in Ukraine provides a rather broad definition of corruption, which is a combination of different nature and degree of social danger, but the only ones of a nature of corruption and other offenses (criminal, administrative, civilian legal, disciplinary), as well as violations of the ethics of the behavior of officials involved in the commission of these acts8. Based on the specifics of Ukrainian legislation currently in the criminological aspect, corruption is characterized by a narrow set of key features: it is possible only in the field of activity of state authorities and local self-government bodies; the entity can be only a person, endowed with power or official authority; corruption relations arise as a result of the abuse of a person authorized by the authorities or authorities, by his or her authority; corruption is made only of acts committed by a person, endowed with power

5 Голосенко И.А. Феномен «русской взятки»: Очерк истории отечественной социологии чиновничества. Журнал социологии и социальной антропологии. 1999. Т. 11. № 3. С. 21. 6 Ibid, с. 24. 7 Кирпичников А.И. Взятка и коррупция в России. Санкт-Петербург : Альфа, 1997. С. 21. 8 Бюлетень «Твій вибір – 2007». Вип. 9. Питання формування антикорупційної політики. Київ : УНІПД, 2007. С. 10. 368 or authority, in order to satisfy the mercenary self or the interests of other persons. The unlawful or unethical actions of an official and their focus on satisfying mercenary interests essentially determine which acts belong to the category of corruption. Such a definition restricts the prohibition of other officials who are not civil servants but abuses by the authorities, which essentially interfere with the full scale of the fight against corruption. The Law of Ukraine “On the Principles of Prevention and Counteraction of Corruption”, which came into force on January 1, 2011, provides an extended definition of the content of corruption – “Use by a person of the authority and powers attached to her in order to obtain unlawful gain or accept a promise /offer such benefits to himself or other persons or, accordingly, promise/offer or unlawful gain to such person or on his request to other natural or legal persons in order to persuade the person to misuse the service provided to her powers and related capabilities”9. The advantage of this wording of the law is that it broadens the category of persons who fall under its influence: if in the past it was only civil servants, then in a new wording all its persons with official powers, which should improve the effectiveness of the struggle with this phenomenon. Deeper and more precise clarification of the social nature and the legal nature of corruption helps to establish the mechanism of corrupt behavior. It can appear in two variants. In the first case, there is the interaction of two subjects, each of which seeks to satisfy their mercenary interests (for example, giving – receiving a bribe); in the second – the corrupt behavior is reduced to the actions of only one person who independently satisfies selfish interests, abusing the powers granted to her (for example, the theft of state property using his official position). Both variants combine the fact that the subject of corruption acts satisfies his own interest or interests of third parties through the misuse of the powers he has given him. In legal terms, corruption is a combination of different nature and degree of social danger, but the only in its essence actions (criminal, administrative, civil, disciplinary), as well as violations of ethical norms of behavior of officials associated with the commission of these acts. Such a broad understanding of corruption indicates that not all corruption manifestations are criminal punishments, and most often it depends on the traditions and customs of a particular society (for example, nepotism in the Vatican is a sacred tradition) and the perfect legal framework (as, for example, now in Ukraine when there is no legal basis for condemning corrupt officials to non- public servants)10. But, as a rule, corruption is the biggest public danger.

9 Закон України «Про засади запобігання та протидії корупції». URL: http://zakon.rada.gov.ua/ cgi-bin/laws/main.cgi? nreg=1506–17. 10 Дудоров О. Корупція. Варіації на теми хабарництва. Віче. 1994. № 3. С. 27–34. 369 The definition of the notion of corruption provided for in the Law of Ukraine “On the Fight against Corruption” is not the only understanding in our country that has an official character. Such an understanding is also reflected in the Concept of the fight against corruption for 1998–2005, approved by the decree of the President of Ukraine of April 24, 1998, No. 367/98, namely: “In legal terms, corruption is a combination of different nature and degree of social threats, but the only ones of the essence of corrupt acts, other offenses (criminal, administrative, civil, legal, disciplinary), as well as violations of the ethics of the behavior of officials involved in committing these acts”11. As we see, the above definition of “corruption" in its content significantly differs from that which is envisaged in the Law of Ukraine “On Fighting Corruption”. This is due to the fact that it has a different functional purpose than the legal definition – its main purpose is to ascertain the diversity of corruption manifestations, excluding the erection of corruption into one single type of offense. It should be noted that it was in this form that definition was foreseen in the Conception. Depending on the criterion, corruption actions can be divided into bureaucratic and political corruption; coercive, centralized and decentralized12, purely criminal (mainly economic) and political13. Several types of corruption have been identified by M. Johnson:  bribe officials in the field of trade (for the sale of illegally produced products, overstating the quality of goods, etc.);  relations in clan and patronage systems, including participation of “bosses” on the basis of the national, family, party principles; friendship and chastity;  crisis corruption that exists in a transition economy, where the old rules of the game are no longer valid, and new ones are only being established: they become the subject of bargaining, buying and selling14. Specialists on Corruption in Transition Economies D. Jones, J. Hellman and D. Kauffmann distinguish two forms of corruption: administrative corruption and the so-called “buying up of the state”. Under administrative corruption, they understand the intentional misrepresentation in the process of implementing laws and regulations in

11 Указ Президента України «Про Концепцію боротьби з корупцією на 1998–2005 роки». URL: https://zakon.rada.gov.ua/laws/show/367/98. 12 Дудоров О. Корупція. Варіації на теми хабарництва. Віче. 1994. № 3. С. 27–34. 13 Удалова Л.Д. Кримінальна процесуальна діяльність Національного антикорупційного бюро України. Вісник Академії адвокатури України. Том 12, число 2 (33), 2015. С. 20. URL: https://goo.gl/i9ti3k. 14 Yessi Bello Perez. Santander: Blockchain Tech Can Save Banks $20 Billion a Year. CoinDesk’s. URL: https://www.coindesk.com/santander-blockchain-tech-can-save-banks-20-billion-a-year. 370 order to provide themselves or others who need them unlawful privileges or benefits. An example is a petty dealer, forced to give bribes to an infinite number of state inspectors, so that they closed their eyes to certain violations of trade rules. These include bribes for obtaining all kinds of tolerances and permits, unimpeded passage of customs inspection, winning in tender (tender) basis of government orders. Finally, officials may distribute public funds under their control or under the control of members of their families, or receive unlawful financial benefits. Similar cases can be attributed to the discriminatory application of rules and regulations. “Purchase of the state” consists in the fact that individual corporations or groups of persons with the help of bribes seek to adopt and implement favorable for them laws and measures of economic policy. This practice is along with lobbying. It is done to ensure that it benefits from the unlawful and opaque provision of personal benefits. Such forms are thriving where there is a high concentration of economic power, there is no open rivalry between public parties and interest groups, and not legitimate channels of political influence and lobbying. D. Jones, D. Kaufmann and D. Hellman consider that the “purchase of the state” reaches a large scale in those countries where there are no sufficient guarantees of property rights and constrained by the processes of economic liberalization. In underdeveloped civil society and when restricting media freedom, entrepreneurs do not have legal channels for influencing government policy. Then shadow corrupt schemes are launched. In conditions of weak competitive environment, trends of monopolization of the market by the main players are revealed, which increases their ability to influence government decisions and, as a result, severely hinders the introduction of market mechanisms and provokes corruption. Depending on the population, A. Heidenheimer has divided corruption into “white”, “gray” and “black”. The first refers to acts of corruption that the public does not consider harmful, for example, gifts to the Prime Minister or the President. “Black” corruption is much worse: all sectors of society consider it criminal behavior. “Gray” corruption occupies an intermediate position between the two poles: these phenomena are ambiguously evaluated by different social groups. Depending on the hierarchical position of civil servants, corruption can be subdivided into “top” and “grassroots”. The first involves politicians, higher and middle bureaucrats, and persons authorized to make decisions of high value (formulas of laws, state orders, change of forms of ownership, etc.). The second is widespread at the medium and lower levels and is associated with a constant, routine interaction between officials and citizens (fines, registration, etc.).

371 Often, both interested in a corrupt party agreement belong to one organization. For example, when an official gives a bribe to his boss for the fact that the latter covers the corruption actions of the bribe-taker, it is also corruption, which is called “vertical”. It usually acts as a bridge between the “top” and “grassroots” corruption. This is especially dangerous, since it shows the transition of corruption from the stage of disparate acts to the stage of organized forms of rooting15. A separate kind of corruption is international corruption. It can be politically colored when certain people, forces and organizations are financed abroad for the purpose of achieving certain geopolitical goals – this form of corruption is actively used by the United States to promote its influence in many countries around the world (for example, the “revolution of roses” in Georgia). It can also use bribery by multinational corporations of senior executives abroad for economic benefit. An example is the loud corruption scandal associated with the activities of the American Lockheed company in Japan, which led to the resignation of the Government and encouraged American legislators to adopt in 1977 the “Act on Foreign Corruption Practices”, which outlawed the bribing of foreign officials persons by American citizens or companies. The authors of the report for the sake of the Rome Club “First Global Revolution (1991)” believe that political power in the modern world is no longer controlled by the strength and complexity of weapons – it is determined by financial power, which is to some extent manifested itself in political corruption. Thus, the peculiarity of corruption crimes is that they may enter into crimes against the foundations of national security of the state, against property, against election, labor and other personal and human rights and freedoms, against justice in the sphere of economic activity, official activity, war crimes. According to some indications, corruption crimes can be involved in economic, professional, organized and other forms of crime. But corruption crimes do not completely coincide with any other type of crime and has its own specific social color, which reveals its essence in the historical and social traditions of society and the peculiarities of the functioning of society. That is why it is important to consider social approaches to the determination of corruption16.

15 Усаченко Л.М. Природа корупції в Україні: суперечності, ризики, проблеми : навчальний посібник / Л.М. Усаченко, В.М. Гурієвська. Каб. Міністрів України; Нац. ун-т біоресурсів і природокористування України; Навч.-наук. ін-т післядиплом. освіти. Херсон : Грінь Д.С. С. 50. 16 Удалова Л.Д. Кримінальна процесуальна діяльність Національного антикорупційного бюро України. Вісник Академії адвокатури України. Том 12, число 2 (33), 2015. С. 20. URL: https://goo.gl/i9ti3k. 372 As already noted above, it is important to understand the very social and legal nature (nature) of corruption. This will avoid excessive politicization, “legalization” and, ultimately, the mythologization of this problem. In this perspective, corruption acts as a complex social phenomenon, generated by society and social relations, one of the manifestations of corruption.

2. The level division of the definition of the characteristics of corruption The modern socio-legal view on corruption has expanded, due to the spread of this phenomenon to all countries and awareness of its falsehood for society at the international level. In terms of socio-legal characteristics of corruption, it is necessary to study three levels. The first level is the causes of corruption: historical, cultural, political, administrative, economic, etc. Theories of corruption research at the level of causes that cause corruption can be attributed to G. Simmel’s view that the social phenomenon of corruption (from corruption of officials to prostitution in various spheres of society’s activity) is possible in a society of developed commodity- money relations, when there is the ability of all products, activities, relations to exchange for something third, real, to something that, in turn, can also be about bimnyane. For example, the commodity-money essence of prostitution as a corruption was attributed to G. Simmel. He noted that the nature of prostitution and the nature of money are similar, that in the conditions of commodity-money, property, alienated relations, prostitution becomes a symbol of human relations. Money loses the nature of things with one touch17. Within the framework of historical corruption, one should note the idea of classifying relations between people, which Bauman considered. He talked about two types of relationships – talent and exchange. Differences between gift and exchange relations are well correlated with two types of corruption, which can be conventionally called “western” and “eastern”. The first type can be interpreted as an illegal shadow market, which is regulated by exchange relations. For eastern corruption, corruption of relations in the fabric of other, actually legitimate (in the Weberian sense: adopted by society as normal) social relations is characteristic of the other, and here the boundary between corrupt relations and talent relations is often blurred18. The third type of relationship is rooted in the course of development of the state and awareness of the fact that the state – the institution of providing certain services to its citizens. These relationships – service relationships – are developing in this way. At first, citizens “give” the state their taxes, which go to provide them with certain services. For this, other citizens are hired, which

17 Волков А., Привалов А. Ворующие по закону. «Эксперт». № 7, 21 февраля 2000 г. С. 22. 18 Вальчук А. Корупція як соціальне явище. URL: http://ppf.net.ua/index.php? page=article&id=24. 373 we call “officials”. A citizen comes to an official when he has some kind of need, and both parties enter into service relationships. In this invisible presence of a third party – the state, will pay (money of a citizen) services provided to him by an official (and the salary of this official is included in this payment). However, there are fundamental differences between the three types of relationship. Relation of gift – the most ancient, rooted. The presence of them in the third party is the least noticeable, because the morals governing them, reflect weakly and perceived, wanders without stress, almost unconsciously. Finally, they are positively emotionally painted, and therefore as comfortable as possible. Followed by a long tradition – the exchange relationship. They are customary, because human life is permeated with them, but they are not permanent, and therefore do not have an emotional color. The presence of a third party (institutions protecting exchange procedures) is only mentioned when the relationship is complicated by the conflict. The service relationship is significantly different from the first two. First of all, they are the youngest. In addition, they are unusual, as citizens encounter the authorities incomparably less often than going to the store or turning for help to relatives. In principle, they must be emotionally neutral, but the tradition, unfortunately, is that contact with the authorities, as a rule, cause negative emotions. Most importantly, the majority of citizens of the service relationship are practically not understood as such. The mass consciousness, traditional in its essence, is unusual to represent the state, and hence its representative, as an institution that exists thanks to the taxes of citizens. It is also difficult to remember that the necessary services and work of an official on their provision are prepaid from the same taxes. Officials also consider in most cases that when rendering services to citizens, they make him deserving remuneration. That is why it is so convenient to turn the uncomfortable and unstable relationship of the service into a more familiar gifting relationship. In general, it can be noted that in the absence of external constraints, people tend to reduce the comfort of the relationship to a more comfortable. Now we have the opportunity to ensure that this fact does not necessarily explain the cynicism of the representatives of this group. First, we are talking about culture, close to the Patriarchal, in which the relationship of donation are dominant. According to the hypotheses and practices, exchange relationships in this culture are also trying to destroy the relations of gift-giving. The state commands respect, is frightening. The mediator, a third agent interaction, just not seen across the horizon of Patriarchal culture with its closeness, orientation

374 toward domestic standards. This leads, as we have seen, in the example, the transformation of the relations of the service, which is not perceived as a service to those who need it, in the act of giving. A bribe, a gift, in this case – a ritual that helps to create an emotionally comfortable relationship. In fact, a bribe is a payment not only for the services received, but for the opportunity to find a solution to the issue, being in a familiar system. The second level – actually corruption as a kind of social relations. Due to this, sociology should be given the main role in the study of this phenomenon, it is intended to study the practices of corruption relations, norms governing these practices, institutions that protect these norms. The term “institution of corruption” is used here not by chance, since, although no official document provides for such practice, people “legitimize” it, that is, they recognize the bribe as the norm of the relationship with those from whom they depend. On the second level, corruption is seen in the theory of social capital P. Bourdieu, it is based on it can be considered to be informal communication, a form of interpersonal communication, which compensate for the deficiencies of the formal system of management and functioning of social institutions. Informal social capital in the form of acquaintance, kinship and friendship ties (they provide a high level of trust within the network and almost total distrust of other members of society) is important in the transformation of social institutions and is one of the means to adapt the environment to the new rules. Informal relationship involves some mutual exchange of services in informal norms, competing with the law and act in relatively closed social networks. In the case of illegal activity such networks, social capital acquires a negative connotation19. Informal social capital plays an important role not only in mobilizing and consolidating the pragmatic part of the ruling elite, but also in raising the social status of representatives of the criminal world. Criminal elements, due to the high solidarity network and contacts with the bureaucracy, achieve the legalization of shadow incomes and redistribution of profits. A striking example is the modern Ukraine, where the existence of multiple barriers of social mobility social capital cronyism is increasingly becoming a determining factor of success in life. Meanwhile, the vast majority of the population lives in conditions of not only limited resources (financial, material, informational, cultural), but also limited access to networks that they distribute. This situation creates for some groups the terms of exclusivity (using resource control, “shadow” privatization, regulation of access to private networks), for others – social

19 Бова А.А. Социальный капитал трансформирующегося общества: опыт социологического исследования. Украина: гражданское общество в контексте европейской интеграции. / Отв. ред.: Л.Н. Синельникова, Л.Ф. Компанцева, Г.А. Петровская. Луганск : Знание, 2004. С. 20. 375 exclusion (out of production, the social sphere, influence on the formation of government and the like). All this contributes to clan solidarity and loyalty, insulation of individuals from socio-political life of society and participation in democratic reforms. Also, within the framework of the establishment of corruption, it can be considered as a social institution, an element of the management system, is closely interlinked with other social institutions – political, economic, and cultural. About institutionalization of corruption, that is, the process of formation of social practices as regular and long-term, testify: – the implementation of a number of social functions – simplification of administrative relations, acceleration and simplification of management decisions, consolidation and restructuring of relations between social groups, promotion of economic development by reducing bureaucratic barriers, optimizing the economy in the face of a shortage of resources, etc.; – presence of well-defined subjects of corruption relations (official – client), distribution of social roles (bribe-taker, intermediary); – the presence of certain rules of the game, norms known to the subjects of corruption; – formed slang and symbols of corruption actions (for example, well- known to all gesture of rubbing fingers); – became well-known to the interested persons of the tax service. The essence of institutional deformation is revealed by the sociology of culture, because the modernization is the process of transferring political, legal and economic institutions of Western democracies to a new social soil. Imported a system of rules and laws are distorted, and rejected, reforms stalled or turn into its opposite. Suddenly it turns out that the rules are designed to support multi-party system, creating a “black market” trade of parliamentary seats, bankruptcy becomes an instrument of terror against successful businesses; the opening of the investment market to individuals it becomes one of the tools of hostile takeover of another business. The old informal norms and practices come into conflict with new, there are gaps in the legislation that skillfully use the most aggressive social agents, the adaptation not only of official position, but many social institutions for their vested interests. The more ambitious institutional changes and consequently the greater the gap between the old and the new, the more space for the growth of new forms of corruption. It should also be noted that within the framework of the second level studies, corruption is seen as a social construct: society determines exactly where, when, under what conditions and with what consequences corruption is considered.

376 I believe that the process of social design of corruption includes: – the presence of many facts of corruption of different officials; – the awareness of society of these facts as a social problem; – the criminalization of some forms of corruption; – the reaction of politicians, law enforcement agencies, lawyers, the media, the population to corruption, and so on. The construction of corruption takes place as a kind of social contract between participants in the shadow markets. It can be assumed that if institutions of the state do not fulfill their tasks or the economic activity of the subjects within the framework of formal rules leads to large transaction costs (ensuring compliance with contracts, business security, etc.), then there are corruption institutions that guarantee and organize production, exchange and redistribution of resources, creating significant benefits for individual actors. The third level is the psychology of corruption relations. This aspect is also necessary, albeit due to the fact that under other equal social conditions, some people are involved in corruption relations, while others do not. Corruption psychologically corrupts not only society as a whole, deforming its socio-political institutions and the morals of the people, but also the bribe- taker. When a person takes a bribe, he does not merely conclude an agreement with his conscience. He gets rid of the most important thing – a sense of calm and balance. Every day he expects to be exposed and punished. Constantly living with such a feeling of health is to expose your psyche to powerful stress. Also, the nervous tension is facilitated by the fact that it is difficult for a bribe person to talk about immoral acts, even in the immediate surroundings, because it means to cause additional condemnation; however, it should be noted that in societies where corruption has systematically spread, psychological factors have less meaning, however, the fact of dependence. From the one who offers the bribe remains, the bribe also corrupts the performer, because in providing informal services the customer will not be able to complain about the quality of the work. From the point of view of the theory of the evolutionary-psychological direction of sociology, developed by C. Coley, the bribe is determined as a social form of voluntary humiliation. The more an actor leans before an official, the faster he has the opportunity to get a solution to his problem. The hypertrophied form of humiliation is taking in the eastern bureaucracy. In the eastern despotism of the subordinates there is a single right – to humble and humbly wait for mercy, and at the head – humiliate and sympathize. Respect only conceals the desire of one to take another place. And when this happens, this other takes over all the attributes of power, the manner of behavior and lifestyle of the superintendent.

377 By this time, the study of corruption was carried out mainly at the first level, rare attempts to explore the phenomenon on the second (mainly sociology was used as a tool for obtaining information on the extent of corruption), and there is no research at the third level. The consequences of corruption are manifested in various spheres of society’s activity. In conditions of total corruption of all branches of power, at all its levels it is fundamentally impossible to solve any other social, economic, political problem. Corruption generates the idea that everyone decides on money, the significance of a person is determined by the size of his income, regardless of the means of obtaining it, there is a devaluation and breakdown of civilized social regulators of human behavior: the norms of morality, law, religion, public opinion, etc. Corruption contributes to the unfair redistribution of life’s benefits, which is due to the sharp increase in property inequality among the population, the impoverishment of a large part of society and the growth of social tension in the country. Corruption is discrediting the right as the main tool. Corruption affects all spheres of society’s life: the economy, the social sphere, and politics. Negative consequences generated by this phenomenon not only hinder the progressive, progressive development of society, but also represent a serious threat to the interests of national security of the country. In the social sphere, the negative effects of corruption are reduced to the following: corruption implies a significant difference between the declared and real values; in detail, these processes are described in the theory of E. Durkheim: because of corruption in society, the state reigns when a part of society, knowing the existence of binding their norms, treats them negatively or indifferently, it forms the members of society a “double standard” of morality and behavior. The dominant value is money, which leads to a decrease in social solidarity. In the public consciousness the idea is formed that it is impossible to achieve success by legal means, which leads to social deviations20. In the political sphere, the negative effects of corruption are that corruption reduces the legitimacy of the existing government, discredits it in the eyes of the international community, politics in essence instead of sound management becomes a means to meet certain economic interests21. In the economic sphere, corruption contributes to the emergence of a “shadow economy”, it inevitably involves corruption mechanisms. As a result, the “shadow economy” determines the lifestyle of all social groups, as

20 Вальчук А. Корупція як соціальне явище. URL: http://ppf.net.ua/index.php? page=article&id=24. 21 Удалова Л.Д. Кримінальна процесуальна діяльність Національного антикорупційного бюро України. Вісник Академії адвокатури України. Том 12, число 2 (33), 2015. С. 18. URL: https://goo.gl/i9ti3k. 378 they have to engage in corruption relations to solve their problems, realizing that all public goods are available only on terms of purchase and sale. Due to corruption, the mechanisms of direct competition are being violated, which displaces the market of the most effective entrepreneurs, in the extreme form, it can lead to the monopolization of certain industries, which significantly affects the quality and price of products. Corruption has a negative impact on the ability to attract foreign investment. Corruption fuels the value of business, it also distorts the rules of the game by protecting firms with links in state bodies from competition and thus supporting poorly functioning firms. Officials, hiding their business relations, may overestimate the technical complexity of projects in the public sphere, which in the future leads to a distortion of the true picture of investment activity. Corruption also worsens the situation in the sphere of observance of construction, environmental and other norms, reduces the quality of services provided by state authorities, increases budgetary pressure on the government. However, one should consider the positive features of corruption. In the studies of corruption, economic analysis sometimes takes the view that the bribe is considered as an analogue of the ordinary transfer payment (for the service), which does not entail any serious consequences for public welfare. Moreover, there is an approach where corruption proves to increase social welfare, as it avoids excessive regulation and builds the system of adequate remuneration for low-paid civil servants. Some scholars find it plausible that there is a direct correlation between corruption and economic growth, which is explained by the fact that corruption contributes to economic development and the conclusion of more transactions in the shortest possible time by minimizing transaction costs. There is also an opinion that corrupt behavior avoids “burdensome and excessive government actions”22. With losses for the whole society, the system of corruption at the same time allows this system to survive. In other words, if officials simply stopped taking bribes, and everything would have remained the same, GDP would have fallen. Corruption is not caused by the problem of bribes, but by the problems in the efficiency of the system itself, which ceases to perform its functions qualitatively and without transaction costs. In fact, the causes of corruption (the shortcomings of laws, principles and methods of state regulation, etc.), on the one hand, lead to losses from corruption, but, on the other hand, the same corruption is a spontaneous method of compensating for these reasons.

22 Верстюк С. Корупція: визначення, причини появи, вплив на економіку. Економіка України. 2001. № 3. С. 70. 379 The support of this order is that corruption is already a norm of behavior, it is a communication style and it is an extensive, well-established system. In general terms, there are two approaches: corruption as a “lubricant in the non-lubricated mechanism” of the state and as a “sand” that impedes social progress – they are usually considered as an alternative to each other, the detailed elaboration of this problem was by A. Eidze and R. Di Tella – only the lack of empirical data has led to the lack of final verification or refutation of these extreme points of view. But, as the experience of modern countries proves, no country can at one and the same time have a high standard of living and social guarantees and a high level of corruption. But if we analyze the factors of spreading corruption at the individual level from the point of view of bureaucracy, then two main types of explanation of the phenomenon of bribery should be distinguished. The first is based on an analysis of such factors as material insecurity of officials, which gives rise to the peculiarities of the alienation of officials from each other and from the whole of society, which led to extremely negative perception by the majority of the population. All these factors, of course, are prerequisites for bribery. In conditions of material insecurity, the bureaucracy received an incentive to abuse the official position. The material need to constantly fueled the phenomenon of corruption behavior, which firmly remained an unspoken article of income officials of all ranks. The provocative factors in the abuse of officials is the legal confusion, confusion and contradiction of legal norms, in which an ordinary person feels helpless, and the official sees a feeder for himself. The feature of the bribe within the imperial, and then the Soviet system of society, was that it ceased to be ashamed, and it gradually began to become the norm of social life, that is, control through public condemnation began to lose its function23. The second approach to explaining the reasons for a bribe is based on an analysis of its “constitutional role” in the political and economic structure of society. The real explanation of the unsinkable nature of bribery must be sought in the fact that it “inextricably merged and merged with the whole system and the way of political life”. In power relations, the bribe serves as a kind of tribute to administrative individuals for their political loyalty to the state regime. The official, in essence, is the only support of the administrative state, since more than all other sections of the population are interested in its preservation in order to dispose of a specific resource of authority. For loyalty the state allows an official to receive a status loan that does not require special labor costs.

23 Гиблов М. Взятка – норма нашей жизни. Аргументы и факты в Украине. 2004. № 48. С. 23. 380 The structuring function of a bribe is particularly noticeable in terms of contradictory, confusing, lagging legislation from changing living conditions. All this brings to the fore the role of his interpreter – an official whose services with the application of one or another norm are paid in the form of a bribe. Especially this process is characteristic for transforming communities, within which the creation of new legal norms is carried out unevenly, inconsistently and with a lag24. As to the motivation for corruption at the personal level, it is sufficiently adequately described by the model of anticipated usefulness of corruption actions. In this model, the input data defining human behavior are the parameters of the environment – the probability of identifying corruption actions, the size of punishment when they are detected, and a personal parameter that characterizes the propensity to risk the decision maker. Religious, educational or cultural- historical factors in this setting also affect the rate of human predisposition or indifference to risk. Institutional factors determine the effectiveness of government agencies to detect corruption (the likelihood of detection). It is precisely in view of the aggregate of factors that predetermine corruption both at the individual and institutional level, anti-corruption programs should be developed. The desire to get rid of bribery in one fell swoop testifies to its superficial understanding, while it is a complex economic, political, legal and socio- moral phenomenon. The complexity of overcoming corruption in the most corrupted countries of the world is that it is inherent in all sectors of society, that is, corrupt mechanisms accompany a person throughout his life – from a school where he, with the help of parents and teachers, receives the first lessons of corruption behavior, into an independent life where he, perhaps, change his own status in the system of corruption relations. In some cases, the organization of combating corruption can be implemented in creating a system of reliable, effective legal and institutional mechanisms and guarantees of social and political control over the activities of state bodies, various organizations and individuals. In other circumstances, it mainly consists only of forced measures by the authorities aimed at the restoration of elementary order in society, as well as the redistribution of spheres of influence between different clans of the ruling oligarchy and criminal entities of the mafia type. In this way, corruption is actually “embedded” in the mechanisms of state regulation as an unconstitutional “lever of power”.

24 Коррупция: исторические корни и современное состояние / ред. М.Б. Горный. Санкт-Петербург : Норма, 2002. С. 103. 381 Fighting corruption is a transnational problem, despite its specific phenomena. Among them, special attention should be paid to socially significant principles such as:  independence and autonomy of persons who are responsible for the prevention, investigation and sentencing of crimes related to corruption;  guarantee of protection of persons who have assisted the competent authorities in the fight against corruption;  limiting the privileges that impede investigation, investigation and judgment in these crimes, at a level appropriate to a democratic society;  the introduction of the principle of publicity in practice in order to inform the public, which will ultimately promote fair competition and deter corrupt officials from committing crimes;  the provision of the media, as demanded by a democratic society, the freedom to receive and use information on corruption, is not subject to special secrecy or official use;  integrity and orientation in the struggle, in which all the forces of power and society participate;  an anti-corruption program should be implemented at the highest level of political leadership of the country and with maximum cooperation with civil society institutes25.

CONCLUSIONS The socio-legal characteristic of corruption is a complex social phenomenon that requires objective research. Corruption is a complex social phenomenon generated by society and social relations. Corruption can be viewed as a social construct. The process of social construction of corruption includes: the existence of a multitude of bribery facts of civil servants and officials; awareness of these facts as a social problem; criminalization of some forms of corruption; the reaction of politicians, law enforcement agencies, lawyers, the media, and the population to corruption. First of all, it should be noted that the socio-legal characteristics of corruption has many forms and reasons for its emergence, therefore, corruption is a common phenomenon, highlighted a number of approaches that can be grouped into 3 levels: the theory of social where thermoware, institutional theory, and personal motivation. It is impossible to identify the dominant approach in the fight against corruption – the problem is complicated and definitely complex, its solution involves not only the use of

25 Удалова Л.Д. Кримінальна процесуальна діяльність Національного антикорупційного бюро України. Вісник Академії адвокатури України. Том 12, число 2 (33), 2015. С. 18. URL: https://goo.gl/i9ti3k. 382 a wide range of legal tools (criminal law, administrative law, disciplinary, civil law), but the application of the full set of socio-management, managerial, political, and cultural events. Socio-legal and cultural mechanisms for the eradication of corruption directly due to the transformational dynamics of consciousness (societal and individual) from an integrated sample of the totalitarian to liberal-democratic. In this process, there is always a deep change “mental image” of human dignity with Patriarchal pdasecure in a free democratic mentality of the citizen of sovereign and strong country, will not accept the humiliation of its dignity, no action and the extortion by a corrupt bureaucracy. It is important to note that, despite the comprehensive corruption in Ukraine, it only performs an adaptive function in transforming social life into new market realities and is not at all an innate disadvantage of Ukrainian society, which is why, through systematic reforms and changes in social life, it is possible to overcome this phenomenon, In fact, this way passed by many countries of all continents and the period of domination of economic relations over social was inherent, as the European countries with a long history of democracy (Italy), so a relatively new country. They did not have ready-made strategies for mastering corruption (USA), and it also spread to Asian countries (Singapore, South Korea), but with systematic work and changing social realities, the solution to this problem is possible, since there is no country in the world who is doomed to corruption.

SUMMMARY Corruption is one of the most pressing social problems of our time. Some researchers generally believe that corruption has become a major political problem at the end of the 20th century. Corruption in today’s conditions has become a factor that really threatens the national security and the constitutional order of Ukraine. It fully concerns Ukraine, whose high level of corruptions is recognized by its political leadership, legislative body, domestic and foreign analysts, and relevant international institutions. The key issue, which today has no clear and unambiguous solution, is the issue of determining the socio-legal characteristics of corruption. The analysis of the concept, which is to determine the socio-legal characteristics of corruption in the conditions of modern Ukrainian society, realization of the stated goal includes: to characterize the main theoretical approaches to the definition of corruption, taking into account the sociological specificity of considering this phenomenon; to determine the nature of the phenomenon of corruption in Ukraine and the reasons for its spread.

383 REFERENCES 1. Закон України «Про боротьбу з корупцією». URL: http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi nreg=356% 2F95-%E2% F0. 2. Закон України «Про засади запобігання та протидії корупції». URL: http://zakon.rada.gov.ua/cgi-bin/laws/main.cgi? nreg=1506–17. 3. Указ Президента України «Про Концепцію боротьби з корупцією на 1998–2005 роки». URL: https://zakon.rada.gov.ua/laws/show/367/98. 4. Быстрова А.С., Сильвестрос М.В. Феномен коррупции: некоторые исследовательские подходы. Журнал социологии и социальной антропологии. 2000. Т. 111. № 1. С. 91–112. 5. Водолеев Г.С. Коррупция: Хроника борьбы. Санкт-Петербург, 1995. 181 с. 6. Юридичний словник-довідник. Київ. 1996. С. 308. 7. Быстрова А.С., Сильвестрос М.В. Феномен коррупции: некоторые исследовательские подходы. Журнал социологии и социальной антропологии. 2000. Т. 111. № 1. С. 93. 8. Голосенко И.А. Феномен «русской взятки»: Очерк истории отечественной социологии чиновничества. Журнал социологии и социальной антропологии. 1999. Т. 11. № 3. С. 21. 9. Голосенко И.А. Феномен «русской взятки»: Очерк истории отечественной социологии чиновничества. Журнал социологии и социальной антропологии. 1999. Т. 11. № 3. С. 24. 10. Кирпичников А.И. Взятка и коррупция в России. Санкт- Петербург : Альфа, 1997. С. 21. 11. Бюлетень «Твій вибір – 2007». Вип. 9. Питання формування антикорупційної політики. Київ : УНІПД, 2007. С. 10. 12. Дудоров О. Корупція. Варіації на теми хабарництва. Віче. 1994. № 3. С. 27–34. 13. Удалова Л.Д. Кримінальна процесуальна діяльність Національного антикорупційного бюро України. Вісник Академії адвокатури України. Том 12, число 2 (33), 2015. С. 20. URL: https://goo.gl/i9ti3k. 14. Yessi Bello Perez. Santander: Blockchain Tech Can Save Banks $20 Billion a Year. CoinDesk’s URL: https://www.coindesk.com/santander- blockchain-tech-can-save-banks-20-billion-a-year. 15. Усаченко Л.М. Природа корупції в Україні: суперечності, ризики, проблеми : навчальний посібник / Л.М. Усаченко, В.М. Гурієвська; Каб. Міністрів України; Нац. ун-т біоресурсів і природокористування України; Навч.-наук. ін-т післядиплом. освіти. Херсон : Грінь Д.С. С. 50. 16. Волков А., Привалов А. Ворующие по закону. «Эксперт». № 7, 21 февраля 2000 г. С. 22.

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Information about author: Chyzhov D. A., Candidate of Law Sciences, Associate Professor, Legal Support Department Military Institute of Taras Shevchenko National University of Kyiv, 60, Volodymyrska st., Kyiv, Ukraine Assistant of the Department of General Law Disciplines Institute of Management and Law of Yaroslav Mudryi National Law University 77, Pushkinska st., Kyiv, Ukraine

385 INTERNATIONAL EXPERIENCE OF COUNTERACTING CORRUPTION IN THE POLICE

Chumak V. V., Khan O. O.

INTRODUCTION The problem of corruption today is one of the topical issues, relevant not only for Ukraine but also for most countries of the world. Corruption is a complex social, economic and political phenomenon that affects all countries regardless of the level of development and does not recognize national borders. It causes great harm, slowing down the economic development of society and undermining the state’s foundations. Therefore, the study and analysis of global corruption practices is important in using best practices in combating corruption in Ukraine. Moreover, as stated in the Preamble to the United Nations Convention against Corruption, the prevention and eradication of this destructive phenomenon is an obligation of all States and, in order to ensure the effectiveness of their efforts in this field, they must cooperate with each other1. Assessing the level of corruption in the world, we can talk about the conditional division of all countries into two large groups – those who successfully deal with this problem and those for whom corruption is an insoluble difficulty. In these conditions, international cooperation in the fight against corruption has become an urgent necessity in our state. Clearing out corruption is the most important value of the spiritual revival of Ukraine. Therefore, it is not surprising that this problem has long been the brain of scientists. First of all, such scholars as F.V. Abramov, O.M. Bandurka, A.V. Gaiduk, S.M. Gusarov, I.V. Drobush, A.I. Kaminsky were the first to analyze the international experience of counteracting corruption. T. Komzyuk, Y.V. Kidruk, I.V. Koruli, A.M. Kuznetsov, R.S. Melnyk, O.S. Pronnev, A.V. Sergeev and many others. In their research, scientists recognize the possibility of using some international experience of legislative and organizational character. The purpose of our article is to highlight the experience of some European countries and North America in countering corruption in the police. An overview of the legislation of European countries makes it possible to conclude that although in each country there are specific measures to combat corruption in view of the peculiarities of their development, legal traditions, mentality and the degree of activity of citizens, anti-corruption measures are

1Конвенція Організації Об’єднаних Націй протии корупції : від 31 жовт. 2003 р. ; ратиф. Україною із заявами законом від 18 жовт. 2010 р.№ 251-V. URL: http://zakon.rada.gov.ua/laws/show/995_c16 (дата звернення: 22.07.2019). 386 nevertheless in the overwhelming majority similar. This is due to the formation of unified approaches to the formation and implementation of a single anti-corruption policy in the European space, the processes of integration of legislation, active intergovernmental coordination of measures to counteract corruption with signs of corruption, exchange of experience in conducting concrete anti-corruption measures for their development, legal traditions, mentality and the degree of activity of citizens2.

1. International legal regulation of combating corruption in the police At present, the main legal acts regulating the issues of international cooperation of our country in the field of prevention and counteraction to corruption are: the United Nations Convention against Corruption of October 31, 2003; The United Nations Declaration on Combating Corruption and Bribery in International Commercial Transactions of 16 December 1996; Council of Europe Criminal Law Convention on the fight against corruption (ETS 173) of 27 January 1999; Supplementary Protocol to the Criminal Law Convention on Corruption (ETS 191) of 15 May 2003; Council of Europe Civic Convention on the Fight against Corruption of November 4, 1999; European Convention on the Extradition of Offenders of December 13, 1957; Additional Protocol to the European Convention on the Extradition of Offenders dated October 15, 1978; European Convention on Mutual Assistance in Criminal Matters dated April 20, 1959; European Convention on the Transfer of Sentenced Persons, March 21, 1983; Additional Protocol to the European Convention on the Transfer of Sentenced Persons of 18 December 1997; Convention of the Commonwealth of Independent States on Legal Assistance and Legal Relations in Civil, Family and Criminal Matters dated 22 January 1993; Agreement on the Establishment of a Group of States Against Corruption (GRECO) of May 05, 1998; Statute of the Group of States against Corruption (GRECO) of 5 May 1998; Recommendations on international cooperation in crime prevention and criminal justice in the context of development adopted by United Nations General Assembly resolution 45/107 at its 68th plenary meeting of 14 December 1990; Resolution No. R (97) 24 of the Committee of Ministers of the Council of Europe “On the Twenty Principles of Fighting Corruption” of November 6, 1997; Model Treaty on the Transfer of Criminal Justice, adopted by Resolution No. 45/118 of the United Nations General Assembly on December 14, 1990, etc.

2 Ответственность за должностные преступления в зарубежных странах / Ф.М. Решетников (отв. ред.). Москва : Юридическая литература, 1994. С. 75–76. 387 In the area of police activity, the international community also adopted a number of documents on combating corruption. This is in relation to the Declaration on Police adopted by the Parliamentary Assembly of the Council of Europe in 1979 (resolution 690). It sets out the rules for passing civil service in the police. A clear procedure for the execution of the order and the order of dismissal from subordinates’ leaders is determined, as well as ethical provisions to be observed by police officers from different countries, in particular: the policeman must act honestly, impartially with a sense of personal dignity, refrain from and fight against corruption firmly; the police officer must follow the instructions given to him by his superiors, but he must refrain from following the instructions if he knows or should be aware that they are illegal; no criminal or administrative punishment can be applied to a police officer who has refused to execute an illegal order; the police officer must be personally liable for his actions, as well as for illegal actions or inactions, made at his direction; there should be the possibility of establishing a manager who will be responsible for the actions or omissions of an employee3. A more substantive document, which discloses specific measures to counter corruption in the police, was adopted at the 71st session of the General Assembly of Interpol, held in 2002 in Cameroon – General standards for combating corruption in police units and services. It is aimed at ensuring the integrity, integrity and ethical conduct of police officers in the performance of their law enforcement functions, promoting the development in each Member State of Interpol of the measures necessary to prevent, detect, punish and eradicate corruption in the police, and to bring corrupt police officers to responsibility4. In order to succeed in our country, we had to do everything possible so that international relations were impartial.

2. Measures to counteract police corruption in the Federal Republic of Germany Thus, the Federal Republic of Germany introduced the “Anticorruption Code”, which clearly specifies the scope of the police, in which there are high risks of corruption, signs of corruption and the procedure for action in the event of a temptation to commit a corrupt act. According to the Federal Law “On Fighting Corruption”, the possibility for civil servants to engage in

3 Куракин А.В. Вопросы использования зарубежного опыта борьбы с коррупцией в правовом регулировании государственно-служебных отношений. Государство и право. 2003. № 38. С. 35–47. 4 Підсумки роботи МНДЦ з проблем боротьби з організованою злочинністю при Раді національної безпеки і оборони України за 2012 рік. Київ : РНБО України, 2012. С. 47–61. 388 additional activities is limited, penalties for failure to declare received income and gifts are strengthened, and control over the incomes and property of law enforcement officers and their family members is introduced. Legal norms prohibiting corruption by police officers are supplemented by administrative procedures aimed at preventing corruption. These include, in particular, the rotation of workers: corruption is facilitated by long-term, close links between the police, and therefore, in areas of high-level corruption, they try not to use employees in one post for a long time – more than 7 years. An important role in the fight against corruption in the Federal Republic of Germany belongs to the Federal Criminal Department. This police body is developing a strategy, tactics and methods for combating corruption and organized crime, coordinating the efforts of the German police. In addition to the Federal Criminal Department, the task of detecting and preventing corruption among police officers in Germany relies on the most experienced managers who have the right to conduct official police checks on information about corruption among police officers coming from different sources, including anonymous ones. The number of such directors is limited to one in 700 staff members. The materials of the inspections after their completion are reported to the first supervisor for taking action. In the case of confirmation of the actions of a police corruption crime materials are sent to the prosecutor’s office for appropriate response, and the person himself is released from the police5. Along with the use of punitive measures against corruption among the German police, the prevention of corruption among personnel is a priority measure. Anticorruption preventive measures provide an opportunity not only to counteract corruption, but also to prevent the commission of other offenses by the police. The “Anticorruption Code” developed and operated in the land of Lower Saxony identified areas of police activity in which corruption could be manifested, signs of corruption were outlined, and the consequences of committing a corrupt act by the police were indicated. In addition, this code defines the procedure for police action in the event of a temptation to commit a corrupt act. Educational work is recognized as an effective means of preventing corruption in the police.

3. Measures to counter police corruption in the UK A country with a low level of corruption in the police is the United Kingdom. Unlike traditional legal principles for the country, anti-corruption laws oblige officials to bring their innocence against corruption offenses (that

5 Коненко С.Я. Профілактика та боротьба з корупцією в поліції Німеччини (з досвіду роботи поліції землі Нижня Саксонія). Київ :Знання України, 2006. С. 4–5. 389 is, the British “cradle of democracy” system of law enforcement on corruption causes the presumption of guilt). In order to counteract corruption in the country, autonomous police units have been created, the main task of which is to search and prosecute the police guilty of committing corruption offenses. In order to reveal and prove corrupt acts, special units of internal security use various measures and methods, including secret operations, surveys, collect information from both regular informers and other sources that give the message in a confidential form. After further refinement of the operational data, a further in-depth investigation is carried out following the sanction of the relevant head. In the course of the investigation, the issue of starting a criminal prosecution or bringing the employee to disciplinary responsibility is resolved6. In this country there is even a special secret anti-corruption unit operating under the cover of a commercial firm. Her agents mimic the dismissal of the police and lead a double life, earning salary through secret channels and monitoring the activities of the police already “from the side”. It is important to monitor the level and way of life of the police to identify the high costs, inappropriate wages, or the tendency to expensive hobbies. The standard, commonly used method of detecting corrupt police officers, used throughout the world, is bribery (provocation). To do this artificially create situations where a policeman can take unlawful profits or assign material evidence, and see if he managed to overcome temptation. In the UK, there is a network of public associations that are empowered to oversee the investigation of acts of corruption in the police. In our opinion, it is necessary to draw attention to the experience of these countries in exercising control over the behavior of police officers by public associations and responding appropriately in case of commission of their official misconduct or other unlawful acts7.

4. Measures to counter police corruption in some other European countries The nature of the anti-corruption measures taken by police in other countries depends, first of all, on typical ways of committing corruption. For example, in Poland, a police officer fills out so-called “property declarations” each year, in which he discloses information about his income and property.

6 Невмержицький Є.В. Корупція як соціально-політичне явище: особливості проявів і механізми подолання в сучасній Україні : дис. … канд. політ. Наук : 23.00.02 / АН України, Інститут держави і права ім. В.М. Корецького. Київ, 1999. С. 119. 7 Плигун Ю.С. Поняття правоохоронної діяльності та її суб’єкти. Держава і право. Юридичні і політичні науки : зб. наук. пр. 2002. Вип. 17. С. 17–22. 390 In the event of suspicion of a police officer in committing acts of corruption, the Hungarian Internal Security Police Service initiates verification of the source of its funds or property. The creation of mobile groups from among the employees of security units of the law enforcement agencies is practiced (at one time, creation of similar mobile groups in the system of the Ministry of Internal Affairs of Ukraine on monitoring the observance of human rights and freedoms has become a significant step in the implementation of the idea of public control over law-enforcement bodies). These groups have the right to carry out planned and unscheduled inspections of police units of any level (local, regional or central). In the Financial Police of Italy, anti-corruption prevention is being studied through special courses. Corruption practices are commonplace in the law enforcement agencies of Great Britain, Denmark, Moldova and Poland, while special attention is paid to training police officers in the case of provoking bribes or coercion to commit other unlawful actions. Among the preventive anti-corruption measures, it is necessary to draw attention to the experience of the Bulgarian Ministry of Internal Affairs, which created a hotline for complaints of committing corruption among employees of this department, as well as receive citizens twice a month so that they can file their complaints and suspicions about the officials persons of the ministry. Ensuring the stability of the functioning of the police system in some European countries rests on functional units of the unit, in particular, in Belgium, the General Inspection Service, the Staff Committee and the Federal Anti-Corruption Service; in the UK – to the Independent Commission on Police Complaints and the Anticorruption Department; in Denmark – to the Department of Personnel; in Moldova – the Internal Security Subdivision and the Center for Combating Economic Crime and Corruption; in Poland – to the Bureau of Internal Affairs; in Slovakia – to the Inspectorate of the Ministry of Internal Affairs and the Control Agency; in Hungary – to the Security Service of the law enforcement agencies; in the Czech Republic – to the Inspectorate of the Ministry of Internal Affairs. In performing their functions, these units are as independent as possible, provided by their direct subordination to the ministers of internal affairs or police officers.

5. Police corruption measures in the United States and Canada In the United States, anti-corruption legislation is characterized by extreme rigor, while it is aimed at countering corruption among civil servants. In this context, the anti-corruption legislation on police is regulated, which in turn focuses on precautionary measures. It is important to note that initially the

391 police are provided with significant preferences. Increasing material incentives for policemen is based on the fact that low funding encourages corruption. On the contrary, better policing conditions will force policemen to cherish the service and deliberately abandon corrupt motivation. In order to develop the attractiveness of a stable police service for its employees, it is necessary to create particularly favorable social conditions. It is not only about high wages but also about social benefits, which include preferential lending, high-quality medical care (insurance), free higher education and high pensions. There is a high level of pension for employees who have an impeccable track record. Everything starts with careful selection, since it depends not only on the professionalism and competence of the police, but also on their resilience to material temptations. Particular attention is paid to: maintaining a high level of prestige of the profession of a policeman in society, the availability of education for each candidate, knowledge of a foreign language, perfect biography not only of the candidate, but his relatives, high degree of stress resistance, moral and will qualities8. The US has created a system for countering and controlling corruption among police officers. Its essence lies in the fact that the police departments pay particular attention to the issue of their staffing. For candidates for service, as well as for police officers of all levels, there are high moral standards and fairly strict rules of conduct and discipline. The rigorous selection of candidates for service, which involves verification by the lie detector, is introduced. In the Federal Bureau of Investigation, one of the main tasks of which is the fight against corruption, the constant movement of employees from one area to another is practiced in order to reduce the possibility of merging with local authorities and organized crime. In addition, the FBI General Directorate has a special internal investigations department that checks for information about the abuse of its employees9. Every year, the quality and completeness of verification of information gathering about candidates increases, which should be as complete and objective as possible. Recruitment to the police takes place through the adoption of a special oath, which obliges the relevant bidder to honestly report everything known to himself. In this case, any inaccurate information is called a false testimony and is considered a violation of the oath. Revealed in this policeman is released without the right to appoint a pension10.

8 Григоренко І.А. Зарубіжний досвід протидії службовим зловживанням та корупції в діяльності поліції. Юридичний часопис Національної академії внутрішніх справ. 2014. № 1. С. 147. 9 Протидія організованій злочинності в країнах ЄС та США. Kиїв : НТВ «Правник», 2002. С. 186. 10 Там само. 392 In the United States, police are required to submit special declarations. In this case, the information provided is accumulated and is subject to periodic review throughout the life of the police officer. Police organized a special job to prevent official misconduct. This is done through the implementation of a departmental control system, the basis of which are two elements: monitoring of the material well-being of employees and their relatives, which includes: declaration of income, expenses and property of employees; control of the balance of the employee’s credit card; obtaining in the credit organizations information about employees who are debtors; day-to-day control of the official’s activity of the employee, which includes: moral and material incentives to comply with the law by the police officer; transfer of a policeman who has proven himself well for a more paid and prestigious position; conducting of special psychophysiological researches using the polygraph for admission to the information constituting the official secret, as well as within the framework of the official inspection; compulsory provision of information by the employee regarding the circumstances under which the service is audited11. In Canada, the manual check of a job applicant in the police begins with the collection of information about a person after reaching her 12 years of age (the period considered in Canada, the formation of a person’s individuality), his contacts at the place of former and current residence, work or service. One of the elements of the prevention of corruption in the Canadian police is conducting special psychophysiological studies of the applicant using a polygraph. Deserves special attention to the experience of the Royal Equestrian Police in Canada. In order to prevent official delinquency, a specialized system of so-called “early anticorruption intervention” functions, which allows determining the individual inclination of specific employees to commit official crimes and affect the person of a policeman. Such a system should be based on special indicators that reflect the psychophysiological state of a person, to track the dynamics of behavior of policemen throughout the time (during and outside the service). The following evaluation data is included in this system: complaints about police actions, information on committed disciplinary offenses, violations of motor vehicle usage rules, work results, welfare and a number of others.

6. The experience of the Baltic States in Georgia with regard to combating corruption in the police The study of the experience of the Baltic States and Georgia is essential, since only the countries of the former Soviet Union in the “anti-corruption”

11 Карпов Н.С. Протидія корупції у правоохоронних органах: американський підхід. Вісник Хмельницького інституту регіонального управління та права. 2004. № 4. С. 203. 393 list only Lithuania, Estonia and Latvia far outpacing the former Soviet republics. In other words, we started our independence from some “starting” positions. First of all, Estonia’s experience deserves great attention. In the short term, this state was able to become the leader among the Baltic countries for combating corruption, ahead of its closest neighbors – Lithuania and Latvia. According to the chairman of the special commission on combating corruption, Ken-Marty Vacher, the system approach is important in the fight against corruption. In his opinion, public awareness of the problem of corruption and its risks, as well as the maximum openness and transparency of state administrative activity, is extremely important12. The disclosure of cases of corruption – hidden crime largely depends on the independence and capacity of law enforcement agencies. Estonia has made a lot of effort in this area. The reform of the police in Estonia began almost immediately after the restoration of independence, not so much about the revival of the police service, as the attempt to reform the Soviet police system, since the main function of the police remained the protection of the state, not citizens. As a model for building a new police system, the Estonians took the Finnish model of “non-military” police, which is part of the Ministry of the Interior. At the same time, the principle of reform was declared very clearly: from the Soviet militia as a force structure – to a democratic police service, with the establishment of fundamentally new relations with society. According to the Finnish model, Estonia gradually reduced the number of police forces. But, despite all these changes, the level of public trust in law enforcement agencies remained very low for a long time. Something needs to be changed, radical methods used. So, Estonia started its way with a major reform of fiscal policy. Soon, a 26 percent “flat scale” of income tax was introduced in Estonia. The flat tax did not “punish” people for what they worked and received more, unlike the tax system, which was based on a progressive tax rate. An unprecedented economic growth was seen immediately13. The next step was the program of general computerization of schools. In a few years the program has been successfully implemented, all educational

12 Вахер: в борьбе с коррупцией важен системный подход. Postimees (газета). Вып. от 26 сент. 2014 г. URL: http://rus.postimees.ee/2933515/vaher-v-borbe-s-korrupciej-vazhen-sistemnyjpodhod (дата звернення: 22.07.2019). 13 Отчет по анализу лучших практик международного опыта в сфере борьбы с коррупцией. подгот. Соц. корпоратив. фондом «Зубр» в рамках проекта «Формирование атмосферы нетерпимости к коррупции в обществе» по заказу Упр. внутр. политики Вост.-Казахстан. обл. URL: http://www.akimvko.gov.kz/ru/right/otchet-po-analizu-luchshix-praktik-mezhdunarodnogo-opyita-vsfere- borbyi-s-korrupcziej.html (дата звернення: 22.07.2019). 394 institutions have been provided with free Internet. At the same time, the system of Internet payments has also rapidly developed, all work has been carried out through a computer network. At the initial stage various privilege schemes were used for the population, alternative ways of processing various documents through the Internet were created. All this contributed to the popularization of the system of Internet payments and allowed to avoid communication with officials in public organizations. Thus, this program has made it possible to exclude the human factor as an opportunity for corruption. Computerization of education and life of citizens radically changed the life of Estonian society. So, in 2005, the project “Electronic Police” started in Estonia. The main task of the project was to enable police officers to perform their work regardless of their location. Today, the Estonian police are fully in line with the European model, including the basic principles of the latter: the police are by nature a service organization. There are no privileges. There are no official flats, departmental pensions, hospitals and other institutions in the Estonian police, no social privileges. The level of trust above all. The main criterion for assessing the work of the police is the level of public confidence. This is due to the high degree of information openness of the police. On the website of the Estonian Police Department, citizens can find all information about the structure and activities of the police, make inquiries, track the stages of criminal or administrative proceedings. The introduction of such systemic reform was a very complicated matter, but the results surpassed all expectations. Today, the Estonian police is considered one of the most exemplary in Europe14. The reform of Georgian law enforcement agencies was carried out quickly and widely and, as it turned out, was very effective. Today, the author of revolutionary transformations at the Ministry of the Interior of Georgia, Eka Zguladze, works in the Ukrainian Cabinet of Ministers; therefore, many provisions of the reform of Georgian law enforcement agencies will be implemented in Ukraine15. The reform of Georgia’s law enforcement agencies began with such transformations. State Reduction For the beginning, the police force was significantly reduced by 3 times. Almost completely changed people in traffic

14 Мишина Е. Те же менты, но в профиль. (Институт современной России). URL: http://www.imrussia.org/ru/аналитика/право/1214-is-russian-police-reform-doomed-lessons-from-estonia-and- georgia (дата звернення: 22.07.2019). 15 Экс-министр образования Грузии: Как только вы победите коррупцию – Украина встанет на ноги. Свободная зона: информ.-аналит. портал Балто-Черномор. региона. URL: http://www.szona.org/eks-ministr-obrazovaniya-gruzii-kak-tolko-vy-pobedite-korruptsiyu-ukraina-vstanet- na-nogi (дата звернення: 22.07.2019). 395 police. All functions that were duplicated were transferred to other ministries and departments. Major units of the Ministry of Internal Affairs of Georgia after the reform became patrol service and criminal police. The patrol service began simultaneously to serve as a traffic police and to respond promptly to citizens appeals to the emergency service. New frames. New policemen in Georgia were not at all police officers. In addition, formerly employees of law enforcement bodies and even citizens with legal education were not specifically taken to the place of discharged. This position was explained by the fact that an educated person quickly learns in any business, but for those who have ambitions and are looking for everywhere their benefits, to learn from these flaws more difficult. Training and retraining of personnel. The system of special education was thoroughly rebuilt. On the basis of several schools of the Ministry of Internal Affairs was opened a police academy. The passage of the special course at this academy was a prerequisite for employment in the police. Material and technical support. The material and technical base was well thought out. For example, police cars are equipped with special tools to check any suspect machine or the detainee’s identity. The camera of the police car was installed, all the crew’s conversations were recorded. One of the main conditions of the police patrol service is that its crew has no right to detain and question people outside the camera’s view of their car, this can only be done in a particular sector. Establishing a decent salary. If a police officer can not keep himself and his family on pay, he is unlikely to work honestly. A policeman must receive enough to make it unprofitable to lose his place. Active Explanatory Campaign. Not only the facts of the crime were revealed, but also the explanatory work among the population was conducted that “corruption is bad”. Electronic document flow. All documents of the Ministry of Internal Affairs of Georgia, in addition to particularly sensitive documents, were translated electronically. A specially designed program distributes employee documents in order to track the progress of tasks, with standards for response, automatic archiving. System reforms. Before the commencement of a comprehensive police reform, both the prosecutor’s office and the judicial system were reformed at the same time. Otherwise, if only the police changed, there would be no result16.

16 Іванченко Г. Національне бюро розслідувань. Бути чи не бути? Ні корупції! : Блогери України проти корупції. URL: http://nikorupciji.org/2013/11/20/natsionalne-byuro-rozsliduvan-buty-chy-ne-buty/ (дата звернення: 22.07.2019). 396 Until recently, Latvia was one of the most corrupt countries in the European Union. But realizing that corruption is indeed a problem that hinders the development of the country as a whole, some decisive steps have been taken. Create a special office. On October 10, 2002, the KNAB – Bureau for the Prevention and Combating of Corruption, with a total of 145 employees, appeared. The main objective of this Bureau is to investigate and prevent corruption, as well as to carry out appropriate educational activities17. Back in 2004, the Lithuanian police system was far from the generally accepted European standards, so it was urgently needed to be changed. The main step taken by the Lithuanian authorities is the fight against corruption in the police ranks. A special anticorruption group was created in the country, which is responsible to the Chief Commissioner and monitors the work of other police officers. A small but important addition: people who are part of this group have a high salary. But close to eradicating corruption began in the police only in 2006, when very specific measures were applied. Strict control over the work of the police. First of all, all police cars, as well as personal vehicles, were equipped with the latest technology: a GPS system was installed, which transmitted to the police authorities, video cameras that detected violations, etc. Police officers were given special alcotesters and radars to work, the memory of which can not be erased. The checker can connect at any time to the device and check how many times it showed excessive speed or alcohol intoxication, and also whether these indicators match the number of protocols compiled. Punishment. Most law enforcement officials were released and received a criminal penalty for bribes. Many have lost a special retirement pension. High fines. The most effective way to influence a person is to hit the hryvnia in a pocket. In Lithuania, all fines have increased ten times, if not more. Explanatory work. Police have repeatedly conducted explanatory talks. There were also clear rules on how a policeman should behave if a bribe is offered to him or if he has become an involuntary witness to such a situation. Promotion. If the police officer reports the proposed bribe, and the person who offered the bribe is punished, then the policeman will be rewarded for it18.

17 Іванченко Г. Національне бюро розслідувань. Бути чи не бути? Ні корупції! : Блогери України проти корупції. URL: http://nikorupciji.org/2013/11/20/natsionalne-byuro-rozsliduvan-buty-chy-ne-buty/ (дата звернення: 22.07.2019). 18 Стецко Л. Полиция Литвы до и после реформы. Intex-press.by: Барановичский новост. портал. 5 авг. 2013 г. URL: http://www.intex-press.by/ru/971/society/14153 (дата звернення: 22.07.2019). 397 7. The main anti-corruption measures applied in Ukraine The stable and effective functioning of the bodies of the National Police of Ukraine is a prerequisite for the protection of the constitutional system, the maintenance of law and order, and the observance of human and civil rights and freedoms. The effectiveness of the activities of the National Police of Ukraine depends to a large extent on the success of the realization of national interests and the stability of social development. The activities of the National Police organs of Ukraine are aimed at preserving the balance between the needs of the internal discipline of the body, on which public security depends on the one hand, and on the protection of basic human rights, on the other. Today, the issue of combating corruption in the bodies of the National Police is decided at the national level. Thus, in 2014, the general Law of Ukraine “On Prevention of Corruption” was adopted, which provided for such novelties of anti-union legislation as: annual declaration by public servants and their families of their property, incomes and expenses, and the creation of a special anti-corruption body – the National Agency for Prevention corruption, whose authority includes control over the submission and authenticity of information in the property declarations of officials, as well as the bringing of offenders to administrative liability. Note that the analysis of normative and legal, which determine the legal grounds for preventing corruption, has enabled us to distinguish the following: 1) conducting anti-corruption expertise of normative legal acts; 2) restrictions on the receipt of gifts; 3) introduction of anticorruption strategy; 4) informative and explanatory work; 5) determination of the procedure for conducting public procurements; 6) ensuring the transparency of the activities of the entities defined by the Law of Ukraine “On Prevention of Corruption”; 7) Compliance (a set of principles, rules and methods of counteracting corruption offenses, standards and procedures, etc.); 8) restrictions on the combination and combination with other activities; 9) limitation of the co-operation of close relatives; 10) conflict resolution of interests; 11) observance of the rules of ethical conduct; 12) implementation of financial control; 13) a ban on obtaining privileges, services and property by state authorities and local self-government bodies; 14) carrying out special inspections; 15) the creation and administration of the Unified State Register of Persons who have committed corruption or corruption-related offenses;16) creation and administration of the Unified State Register of Declarations of persons authorized to perform functions of the state or local self-government; 17) openness and transparency of activity of state institutions; 18) availability of forms and methods of public control regarding

398 the prevention of corruption; 19) verification of employees’ integrity and monitoring their lifestyle, etc. The Law of Ukraine “On Prevention of Corruption” provides for the obligation for public authorities to develop and adopt anti-corruption programs – local regulatory documents that define the principles of general departmental policy on prevention and counteraction of corruption in the relevant sphere, measures for their implementation, as well as implementation of anticorruption strategy and state anti-corruption program; assessment of corruption risks in the activities of the body, institution, organization, causes and conditions that promote them; measures to eliminate the identified corruption risks, persons responsible for their implementation, terms and resources required; training and information dissemination activities on anti- corruption programs; procedures for monitoring, evaluation of implementation and periodic review of programs; others are aimed at preventing corruption and corruption-related offenses. This anti-corruption program was also adopted by the Ministry of the Interior, in particular, by 2019. It is determined that during 2015–2018 the Ministry initiated and implemented a number of reform measures aimed at reducing the level of corruption in the Ministry of Internal Affairs system, including institutional content. The National Police were formed, which, according to the results of a transparent competition, recruited a new staff of employees oriented towards intolerance to corruption. The new structure of the Ministry of Internal Affairs was approved, which included the Department for the Prevention of Corruption and the Lustration (hereinafter referred to as the Office) as the authorized subdivision of the Ministry of Internal Affairs on the Prevention and Detection of Corruption. At the end of 2017, the Ministry of Internal Affairs was elaborated, and the Government approved the Strategy for the development of the bodies of the Ministry of Internal Affairs system up to 2020, the goals of which, in particular, are to create a safe environment for the existence and development of a free society through the formation and implementation of state policy in the area of internal affairs, strengthening confidence in the organs of the Ministry of Internal Affairs on the part of society, the continuation of Ukraine’s development as a safe European state based on the interests of its citizens and the high efficiency of all components of the Ministry of Internal Affairs. During the last three years, the Ministry of Internal Affairs has prepared and passed the Cabinet of Ministers of Ukraine a number of legislative acts to improve the quality of administrative and other services that fall within the competence of the Ministry of Internal Affairs. To date, in Ukraine there are 155 territorial service centers of the Ministry of Internal Affairs, of which 101

399 are a new sample, which provide services according to the principle of “one window” in the format of an open office. A newly-adopted motivated and client-oriented staff, a system of electronic queue and electronic info-boxes are in operation at the TCC of the Ministry of Internal Affairs of the new sample. Monitoring of the quality of service provision in the service halls is ensured, and in some centers and workplaces an on-line video camera is installed to record the maintenance process. Conditions are provided for the service of people with disabilities, there is a children’s corner. At the same time, the work on preventing corruption in the Ministry of Internal Affairs should be continued, focusing more on areas where the risk of corruption manifestations is elevated. According to the statistics of the Corruption Prevention Report (form No. 1-KOR), there was a tendency to increase the number of bodies of internal affairs, brought to administrative liability (fine) for corruption-related offenses. In particular, in 2014 – 51 persons, in 2015 – 45, in 2016 – 15, in 2017 – 48, in 2018 – 256. At the same time, in comparison with 2015, the number of persons of the internal affairs bodies who have committed criminal corruption offenses has decreased. Thus, in 2015, the number of such persons was 203, in 2016 – 268, in 2017 – 246, in 2018 – 201. Last year, 141 persons were charged with criminal offenses under Article 368 of the Criminal Code of Ukraine (acceptance of a proposal, promise or receiving unlawful benefits), which is 70% of the total number of such offenses committed (in 2017 – 166 people or 67%). The problem of reducing corruption in the system of the Ministry of Internal Affairs is expected to be solved by bringing together the efforts of the leadership of the Ministry of Internal Affairs of Ukraine, the National Guard of Ukraine, the National Police, the State Border Guard Service of Ukraine, the State Service of Ukraine for Emergencies, the State Migration Service of Ukraine, institutions and enterprises belonging to the sphere of management of the Ministry of Internal Affairs, and public organizations, aimed at continuing the implementation of measures in the field of anti-corruption policy, which begin in 2016, in such priority areas:  ensuring a systematic approach to preventing and combating corruption;  realization of anticorruption policy in personnel management, formation of negative attitude towards corruption, training and information dissemination activities on anti-corruption programs;  implementation of measures to comply with the requirements of financial control, prevention and settlement of conflicts of interest;

400  prevention of corruption in the field of public procurement, strengthening of the efficiency of financial resources management, development and support of the internal audit system;  improvement of the process of providing administrative services;  participation in the implementation of measures falling within the competence of the Ministry of Internal Affairs approved by the order of the Cabinet of Ministers of Ukraine dated October 05, 2016, No. 803-p, and the Strategy of Communications in the field of prevention and counteraction to corruption, approved by the Resolution of the Cabinet of Ministers of Ukraine dated August 23, 2017 No. 576-p;  cooperation with the public and international organizations on the implementation of anti-corruption measures19.

CONCLUSIONS In view of the above, one can see that some of the listed facilities are implemented in the current legislative models of combating corruption in Ukraine, for example, such as filling in the property and income statements of a policeman, the prohibition on engaging in other paid activities, etc. However, the following perspectives are relevant to our opinion and unrealized in the domestic model: increasing the prestige of the work of the police by increasing their social and material security (significant increase in wages, social benefits, pensions, etc.) – this gives rise to the desire of the police to value their positions and works as a warning anti-corruption measure. Also important is the quality of the selection of police officers, the correct assessment of their moral qualities, in particular, with the help of a lie detector. The experience of Great Britain in carrying out measures to provoke corruption from the part of internal control units is quite applicable. This will cause potential corrupt officials to be afraid of possible liability and restrain them from committing corrupt acts. To summarize, we note that in each country there is a path of formation and development. Therefore, it is impossible to take and simply transfer successful reforms in other countries to Ukraine. We need to develop our own anti-corruption strategy in the internal affairs bodies, which will satisfy the national peculiarities and traditions of Ukrainians. But neglecting someone else’s experience is also not worth it. Therefore, on the basis of the analysis of the peculiarities of the fight against corruption

19Антикорупційна программа МВС на 2019 рік, затверджена наказом Міністерства внутрішніх справ України від 22 лютого 2019 року № 121. URL: https://mvs.gov.ua/ua/pages/232_Zapobigannya_ korupcii___Antikorupciyna_programa_MVS_ta_informaciya_pro_rezultati_ii_vikonannya.htm (дата звернення: 22.07.2019). 401 in law enforcement bodies, it is possible to formulate some useful regularities that can be imposed during anti-corruption reform in Ukraine: 1. System reform. To overcome the manifestations of corruption, there are not enough single reforms. The key to success will be the coverage of all areas without exception. The single reforms will be fruitless and over time will be reduced to nothing by a destroyed system. 2. Dedicated wages and benefits. A person appreciates his stay in the public service if he has a high salary, a decent pension, social privileges. 3. Provision of material and technical means – those that will help in the performance of their professional duties, and those that will allow control over the work of law enforcement officers themselves. 4. Creation of an electronic system, which will allow as much as possible to avoid communication with officials and law enforcement officers, and will allow to keep track of the motion of the case. 5. Conducting explanatory work with the population and raising its level of education. In developed countries, as a rule, corruption is low.

SUMMARY The article is devoted to the comparative analysis of the main measures against corruption in the police of the developed countries. The experience of such countries as Germany, Great Britain, Poland, Hungary, Denmark, Moldova, Bulgaria, Belgium, Czech Republic, Slovakia, the United States of America and Canada is considered in the work. The first section reviews the main international legal acts that define the general vector of fighting corruption in the world. The second section analyzes the history of anti-corruption in Germany. In the third section – Great Britain. In the fourth – Belgium, Bulgaria, Denmark, Moldova, Slovakia, Czech Republic and Hungary. The fifth paragraph focuses on the study of the experience of reforming the police in the Baltic States and Georgia. The sixth section examines the experience of the United States and Canada in this area. The final section is about situation with atnticorruption activities in National police of Ukraine. The purpose of the study was to highlight the main measures to prevent and counteract police corruption, which are used in the leading countries of the world. An important task of the study was also to determine the possibility of applying these measures in Ukraine. As a result of a scientific study, it was found that Ukraine currently uses the vast majority of measures that have been achieved in countries that have made significant progress in countering police corruption. In addition, it was emphasized on the feasibility of introducing a number of additional measures into the state anti-corruption policy of Ukraine.

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Information about authors: Chumak V. V., Candidate of Juridical Sciences, Senior Researcher, Leading Researcher of the Department of Scientific Work Kharkiv National University of Internal Affairs 27, Lev Landau Ave., Kharkiv, Ukraine

Khan O. O., Candidate of Juridical Sciences, Senior Researcher of the Department of Scientific Work Kharkiv National University of Internal Affairs 27, Lev Landau Ave., Kharkiv, Ukraine

404 CONFLICT OF INTERESTS IN THE PUBLIC SERVICES IN UKRAINE: ADMINISTRATIVE AND LEGAL REGULATION AND PROBLEMS OF REALIZATION

Shevchuk O. M.

INTRODUCTION In the modern world one of the most dangerous social phenomena which significantly affects the interests of society and the state is corruption1. For Ukraine and for the EU, the problem of countering is also quite relevant. In order to define a clear action plan for fight against corruption in Ukraine, the Anti-Corruption Strategy for 2015–2017 was approved, which defined a system of tasks and measures to reduce corruption, aimed in particular at creating a system of integrity and professional public service in accordance with international standards and best international practices2. In order to implement the anti-corruption measures predetermined, the State Program for the period until the end of 2017 is approved, which is a plan for reducing corruption in Ukraine, raising the level of public trust in the government, and increasing the level of foreign investment in the state economy3. Among the causes of corruption, an important place is the conflict of interests, that is, the contradiction between private interest and official duties in the public and private sectors. The presence of such a phenomenon is disturbing the public in many countries of the world. Although conflicts of interest should not be identified with corruption ipso facto (in fact, actually), there is an increasing awareness that inadequate settlement between private interests and official duties of public officials becomes a significant source of corruption. Statistics of the National Agency for the Prevention of Corruption according to the indicator of the completed administrative protocols for 2017 and 2018 confirm the ineffectiveness of the work of the National Agency for the Prevention of Corruption in this direction. Thus, in 2017, the National Agency for the Prevention of Corruption prepared 147 protocols under Article 172-7 of the Code of Administrative Offenses, while the National

1 Юридична відповідальність за корупційні правопорушення : підручник / за ред. В.Я. Настюка. Харків : Право 2019. 512 с., с. 34. 2 Про засади державної антикорупційної політики в Україні (Антикорупційна стратегія) на 2014–2017 роки: Закон України від 14 жовтня 2014 року № 1699-VII. Відомості Верховної Ради. 2014. № 46. Ст. 2047. 3 Про затвердження Державної програми щодо реалізації засад державної антикорупційної політики в Україні (Антикорупційної стратегії) на 2015–2017 роки: постанова Кабінету Міністрів України від 29 квітня 2015 р. № 265. URL: http://zakon.rada.gov.ua/laws/show/265-2015-%D0%BF. 405 Police, which is not the focal point for such offenses, filed and sent 1359 protocols to the Сourt, that is ninefold more. In 2018, the number of protocols of violating the requirements for preventing and resolving conflicts of interest, drawn up by the National Agency for the Prevention of Corruption, increased slightly up to 497 protocols. At the same time, the National Police during the 11 months of 2018 drew up to 1,292 protocols4. In the modern, dynamic world, the recurring conflict of interest is a regularity rather than something extraordinary. Despite the large number of legal regulations that impose requirements for the behavior of public officials, the legislator considers it necessary to resolve separately issues related to the conflict of interests, and emphasizes additionally the public interest priority over the private interest. By imposing a requirement to prevent the occurrence and settlement of the present conflict of interests, the state seems to admit the lack of both moral and ethical norms which are specific to every society but also legal ones that determine the behavior of public officials. This confirms the preventive nature of the legal regulation of the conflict of interest in anti-corruption legislation: the state creates additional tools destined to minimize the impact of private interest on actions or decision-making by officials.

1. Conflict of interest in the public service: concept, elements and structure A conflict of interest is a situation in which an official, while performing his duties, has a private interest (personal interest), which, however not always, leads to an unlawful decision or the committion of an unlawful act, but can lead to it5. The public service consists of the activities of people holding political positions, public officials, local officials, deputies of all levels, public officials of public law, and other entities that perform the functions of the state. The standart meaning of this term is given in Art. 3 of the Code of Administrative Justice of Ukraine: public service is activity on state political positions, professional activity of judges, prosecutors, servicemen, alternative (non military), diplomatic, other civil service, service in the authorities of the Autonomous Republic of Crimea, in local self- government entities6.

4 Імітація діяльності або як НАЗК «розслідує» конфлікти інтересів. URL: https://rpr.org.ua/ news/imitatsiya-burhlyvoji-diyalnosti-yak-nazk-rozsliduje-konflikty-interesiv-halyna-yanchenko. 5 Методичні рекомендації з питань запобігання й урегулювання конфлікту інтересів у діяльності осіб, уповноважених на виконання функцій держави або місцевого самоврядування, і прирівняних до них осіб: рішення Національного агентства запобігання корупції від 14.07. 2016 р., № 2. URL: https://zakon.rada.gov.ua/rada/show/v0839884-17. 6 Кодекс адміністративного судочинства України: Закон України від 06.07.2005 № 2747-IV. Відомості Верховної Ради України. 2005. № 35-36. № 37. Ст. 446. 406 It is exactly the public service where there is a high risk of conflict of interest. As Yu. Bytiak fairly points, “managerial decisions, especially the solution of a number of problems in which legal entities and citizens are interested, can be carried out only by officials of executive authorities or local self-government”, which is related directly to the controlling over the power, financial and human resources7. Public officials have broad access to information that becomes known due to the duties performed. All aforesaid potentially creates conditions for a conflict of interest. A state employee, possessing a special legal status, is at the same time a spokesman for the public interests of the state, as well as a carrier of his own private interests. In the process of fulfilling duties by state employees, cases called “conflict of interest” might arise, when personal interest of state employees affects or may affect the implementation of their own official duties8. In the legal literature some aspects of the structural elements of the mechanism of conflict prevention and conflict resolution as a way of anti- corruption in Ukraine were elucidated9, as well as the concept and essence of such a conflict in the public service10, conflict of interests in the activities of state employees as a component of the mechanism of anti-corruption11, peculiarities of the management of conflicts of interest in the public service12, conflict of interest and ways of its settlement in national legislation13, the concept of “conflict of interest” in international legal acts and administrative legislation of Ukraine14, conflict of interest as a corruption-causing factor of corporate crime15, conflict of interests: essence,

7 Битяк Ю.П. Державна служба в Україні: організаційно-правові засади : монографія. Харків : Право, 2005. 304 с., с. 190. 8 Кім К.В. Конфлікт інтересів на державній службі: правовий аспект. Вісник Харківського національного університету імені В.Н. Каразіна. Серія «Право», (18). URL: https://periodicals.karazin.ua/ law/article/view/1267. 9 Рівчаченко С.В. Структурні елементи механізму запобігання та врегулювання конфлікту інтересів як способу протидії корупції в Україні. Visegrad Journal on Human Rights. 2016. № 6. Ч. 2. С. 92–95. 10 Кацуба О.Ю. Конфлікт інтересів на публічній службі: поняття та сутність. URL: http://www.dridu.dp.ua/zbirnik/2017-01(17)/12.pdf. 11 Лавренюк Ю. Конфлікт інтересів у діяльності публічних службовців як складова механізму протидії корупції. Ефективність державного управління: зб. наук. пр. 2011. Вип. 27. С. 422–428. 12 Олешко О. Особливості управління конфліктом інтересів у сфері державної служби URL: http://www.dridu.dp.ua/vidavnictvo/2015/2015_01(24)/28.pdf. 13 Гудков Д.В. Конфлікт інтересів та шляхи його врегулювання в національному законодавстві. Право і суспільство. 2014. № 1.2. С. 124–128. 14 Янюк Н. Поняття «конфлікт інтересів» у міжнародно-правових актах та адміністративному законодавстві України. Вісник Львівського університету. Серія юридична. 2018. Випуск 66. С. 147–154. 15 Пивоваров В.В. Конфлікт інтересів як корупціогенний фактор корпоративної злочинності URL: http://www.lj.kherson.ua/2017/pravo05/part_2/27.pdf. 407 peculiarities of passing and consequences16, however, the legal problems of preventing and resolving conflicts of interest in the field of public service are not sufficiently covered in scientific works in the current conditions of the development of legal science. In science, there is no single point of view on the understanding of the legal consept of “conflict of interest”. So some scientists, considering the notion of “conflict of interest” are linking its occurrence with the lack of an indicidual’s freedom of choice, and argue that “even formally independent people, as we all are, in some cases, are forced to face a choice, and more often this choice turns out to be not in favor of interests which need legal protection (public interest)”17. According to other scientists, the conflict of interests in the public service system, by its nature and content, is mostly a moral conflict between the state interests and the personal interests of the person who holds the certain specific position. In reality, there is very often a very tempting case for a public official that his personal and public interests intersect. Moreover, the implementation of public interest “in his favor”, according his will for an official, may have a great financial, political or some else benefit18. From our point of view, the conflict of interest in the field of public service is a situation in which a public person, while implementing his duties, has a private interest (personal interest), which, however not always, leads to an unlawful decision or the committion of an unlawful act in public service, but has possibility of doing it. The simultaneous awareness of a state employee of private and public (common) interests does not surely leads to a conflict between them. The private interest of a state employee is to obtain certain benefits for himself, public or common, while implementing his official duties within the law. If private interest extends to an area not linked with the implementing of official authority, no problems or harm for the public interest arise. However, the private interest of a state employee may also apply to his official authority, which creates a case where he is able to satisfy this interest, using or not his authority. Often this happens through abusing and, as a rule, violating the law. Even if, trying to satisfy his private interests, a state employee acts within the law and does not violate the rights or legitimate interests of others, the very fact of using his official authority to satisfy his interests makes doubt the principles of objectivity and impartiality of this

16 Соболь Г. Конфлікт інтересів: сутність, особливості проходження та наслідки у сфері контролю. URL: https://studlib.org.ua/index.php/eprs/article/view/71. 17 Дедов Д.И. Юридический метод: научное эссе. Москва : «Волтерс Клувер», 2008. 160 с. С. 87. 18 Милушева Т.В. Конфликт интересов как фактор ограничения публичной власти: теоретико- правовой аспект. Вестник Поволжской академии государственной службы . 2009. № 1. С. 4–11. 408 person. This case is recognized as a conflict of interests and, of course, needs to be resolved. The Law of Ukraine “On Prevention of Corruption” already contains 2 different definitions of conflicts of interest – potential and real, namely:  a real conflict of interest is a contradiction between the private interest of a person and his official or representative powers, which affects the objectivity or impartiality of the decision-making process or the implementing or non-implementing of actions in the exercising of these powers;  a potential conflict of interest is the presence of a private interest in the field in which he carries out his official or representative powers, which may affect the objectivity or impartiality of his decisions or the implementing or non-implementing of actions in the exercising of these powers19. According to the definitions given, a potential conflict of interest consists only in the presence of a private interest in the field in which a state employee implements his duties. This interest may not have a negative impact on the implementation of these official’s duties. However, taking into account the preventive nature of all activities related to the conflict of interest as a social phenomenon, this case requires mandatory information about it and its settlement in the way predetermined by the anti-corruption law. As we see from the definition, the contradiction between private interest and official authority exists in the real conflict of interest as well as in the potential one. The difference between them is that in the case of a potential conflict, private interest may affect the objectivity of the employee’s decision- making or committing of acts only in the future in the case of certain circumstances. In fact, it is a question of the time of occurrence and, consequently, the identification of a conflict of interest, which prevents an earlier stage of making unlawful decisions or committing acts. A potential conflict of interest should include the following elements: (a) in accordance with the job description or other document, the person must implement the proper official or representative duties or be authorized to implement them; (b) regardless a reason, this person’s private interest has already appeared exactly in the field where he carries out his official duties or representational powers; (c) the private interest of an official may affect the impartiality or objectivity of the decision-making process in the future or the implementing or non-implementing of actions in the execution of these duties and powers. The lack of any component means that there is no potential conflict of interest.

19 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 409 It is reasonable to include in the real conflict of interests the following elements: (a) in accordance with the job description or other document, the person has to implement the proper official or representative duties or be authorized to implement them; (b) regardless of a reason, this person’s private interest has already appeared exactly in the field where he carries out its official or representative powers; (c) An official faces to a conflict between his private interest and his official or representative powers. The Law of Ukraine “On Prevention of Corruption” does not apply any prohibitions or restrictions on the presence of private interests (private life) in general. It is about fulfillment of the rules of ethical behavior by the state employee and the appropriate assessment of private interests through the view of their possible negative impact on the objectivity of decision-making or acts of the state employee in the implementation of his official or representative powers. The key to defining both types of conflict of interest is the concept of “private interest”. The Law of Ukraine “On Prevention of Corruption” also provides an interpretation of the term “private interest”: it is any property or non-property interest of a person, including personal, family, friendly or other non- governmental relations with individuals or legal entities, in particular those which arise from membership or activity in public, political, religious or other organizations20. We would like to emphasize that private interest is not limited only by very close individuals, relatives or family members of an employee, as the circle of people whose relations can cause a conflict of interest in the public service is much wider. For example, a conflict of interest may arise due to the membership of officials in one public organization or political party, long-term friendly relations, mutual university education, etc. Another important point is that the conflict of interest does not even require the presence of another individual or individuals (for example: the participation of an official in making a decision to purchase goods which he holds property rights for. One more example is related with the work of close relatives, when the reason of the occurrence of a potential or real conflict of interest is, as a rule, the necessity of duty interactions prescribed by regulations, instructions, job descriptions or other documents. It is recommended to avoid situations in which close people “intersect” among themselves due to the implementing of their official powers. It is reasonable to prescribe the duties of such people in the way that the implementing of actions or decision-making by one person does not foresee the execution of another

20 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 410 person’s control, supervision, approval or other powers of this kind in relation to these decisions or actions. It is recommended to avoid the simultaneous involving of close people in various types of working groups. Unfortunately, in real life, these and other precautions do not always guarantee the avoidance of a conflict of interest. In general, the duties of an official regarding the above can be represented as a logical set of 4 elements – prevention, informing, abstaining from actions or decisions, settlement.

2. Conflict of interest in the public service: legislative regulation The basis of the national legislation on requirements for public officials is: the Constitution of Ukraine21; Laws of Ukraine “On Civil Service” of December 10, 2015, No. 889-VIII22; “On the Service in Local Self- Government Bodies” of June 7, 2001 No. 2493-III23 та ін. Article 3 of the Constitution of Ukraine declares that individual, his life and health, honor and dignity, inviolability and security are recognized in Ukraine as the highest social value. Human rights and freedoms and their guarantees determine the content and direction of the State, which is responsible to an individual for its activities. The assertion and provision of human rights and freedoms is the main duty of the State. According to Art. 19 of the Basic Law of Ukraine, entities of state power and entities of local self-government, their officials are obliged to act only on the basis, within the boundaries of authority and in the manner prescribed by the Constitution and laws of Ukraine. Article 21 of the Basic Law establishes the constitutional principle of freedom and equality of all people in their dignity and rights. In the development of this norm Art. 24 of the Constitution establishes that citizens have equal constitutional rights, freedoms and are equal before the law24. The main international instrument in the field of prevention and counteraction of corruption is the UN Convention against Corruption, asserted by Resolution 58/4 of the General Assembly of October 31, 2003. In Art. 7 The “Public Sector” of the Convention specifies that each State-participant seeks, in accordance with the fundamental principles of its domestic law, to create, maintain and strengthen systems which promote transparency and prevent conflicts of interest25.

21 Конституція України: Закон України від 28.06.1996 № 254к/96-ВР. Відомості Верховної Ради України. 1996. № 30. Ст. 141. 22 Про державну службу: Закон України від 10.12.2015 р. № 889-VIII. Відомості Верховної Ради. 2016. № 4. Ст. 43. 23 Про службу в органах місцевого самоврядування: Закон України від 7.06. 2001 № 2493-III. Відомості Верховної Ради України. 2001. № 33. Ст. 175. 24 Конституція України: Закон України від 28.06.1996. № 254к/96-ВР. Відомості Верховної Ради України. 1996. № 30. Ст. 141. 25 Конвенція Організації Об’єднаних Націй проти корупції: міжн. документ від 31.10.2003. URL: https://zakon.rada.gov.ua/laws/show/995_c16. 411 An important role in the solution of the issue belongs to such international legal instruments of anti-corruption orientation, such as the International Code of Conduct for Public Officials26. This International Code states that public officials are not entitled to: (a) use their public employee position for unjustified personal gain or personal or financial gain for their families; (b) participate in any financial deal or agreement; (c) take job position, implement functions or have financial, commercial or other similar interests incompatible with their job position, functions, duties or execution. The following international documents also have an important role in the field of prevention and conflict of interests settlement:  asserted by the United Nations: Resolution of the General Assembly of the United Nations 3514 (XXX) of December 15, 1975, Guiding principles for the effective implementation of the Code of Conduct for Law Enforcement Officials (1989), Resolution VIII of the UN Congress on the Prevention of Crime and the Treatment of Offenders, “Corruption in Public Administration” (1990), Decree of the VIII Congress of the United Nations (1990) “Practical Measures to Fight Corruption”, Resolution of the General Assembly of the United Nations of December 12, 1996 (A / RES / 51/59) “Fighting Corruption”, The UN Declaration (1996) “On Combating Corruption and Bribery in international commercial transactions International Code of Conduct for Public Officials” (1996), the Council of Europe Criminal Law Convention on Corruption of 27 January 1999, the UN Convention against Corruption, asserted by 58 UN General Assembly in October 2003;  acts of the Council of Europe against corruption: Twenty principles of the fight against corruption (1997), the Council of Europe Criminal Law Convention on the fight against corruption (1999), the Council of Europe Criminal Law Convention on the fight against corruption (1999), the Model Code of Conduct for State employees (2000), Uniform Rules for Combating Corruption in Financing Political Parties and Electoral Campaigns (2003);  European Union Anti-Corruption Documents: Communiqué of the European Commission dated May 28, 2003 “On Integrated EU Anti- Corruption Policy”, EU Council Framework Decision No. 568 of 22 July 2003 “On Combating Corruption in the Private Sector”;  Acts of the Organization for Economic Co-operation and Anti- Corruption Development: Anticorruption Network for Eastern Europe and Central Asia, Istanbul OECD Anti-Corruption Action Plan (2003). Particular attention should be paid to the General Principles on Conflict of Interest in the Public Service mentioned in the International Code of Conduct

26 Міжнародний кодекс поведінки державних посадових осіб: міжн. документ від 23.07.1996. Відомості Верховної Ради України. 2007. № 49. 412 for Public Officials (annexed to the Recommendations of the Council of the Organization for Economic Co-operation and Development (OECD) of May 28, 2003), which analyzes the essence of the conflict of interest, examines its types (real, imaginary and potential), proposes the basic principles of its settlement and key elements of effective policy in this field. The Law of Ukraine “On Prevention of Corruption” is the main normative and legal act in resolving the conflict of interest in the public service. Section V of “Prevention and conflict resolution of conflicts of interest” of the Law of Ukraine “On Prevention of Corruption” is devoted to questions related to this conflict, in which the following define: preventing and resolving conflicts of interest (Article 28), measures for the external and independent settlement of such conflicts (Article 29), interdict of the execution of tasks, implementing of actions, decision-making or participation in its asserting (Article 30), restriction of access to information (Article 31), review of the scope of official powers (Article 32), implementing of powers under external control (Article 33), the transfer or dismissal of a person by reason of the presence of a conflict of interest(Article 34), the peculiarities of conflict of interests resolution arising in the activity of certain categories of State employees authorized to implement functions of the state or local self- government (Article 35), prevention of conflict of interests27. Relevant norms are contained in other articles of the above Law. So, in part 7 of Art. 28 of this legal act it is established that laws and other normative-legal acts, which determine the powers of state entities, authorities of the Autonomous Republic of Crimea, local self-government entities, the procedure for the providing of certain kinds of state services and other types of activities related to the implementing of state and local self-government functions should provide the procedure and ways of settlement of the conflict of interests of officials whose activities they regulate28. In addition, in Part 1 of Art. 35 of this Law it is provided that the rules for resolving conflicts of interest in the activities of the President of Ukraine, people’s deputies of Ukraine, members of the Cabinet of Ministers of Ukraine, heads of central executive authorities who are not members of the Cabinet of Ministers of Ukraine, judges of the Constitutional Court of Ukraine and judges of general jurisdiction, heads and their deputies of regional and district councils, city, village, settlement heads, secretaries of city, village, town councils, deputies of local councils are determined by the

27 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 28 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 413 laws regulating the status of these individuals and relevant principles of these organizations29. Consequently, in the prescriptions on the prevention and settlement of conflicts of interest, the particularities of the legal status of certain categories of public servants and the manner in which they exercise their authority should be taken into account. The relevant provisions are contained in the following Laws of Ukraine: “On the Rules of the Verkhovna Rada of Ukraine”, “On Central Executive Entities”, “On the Cabinet of Ministers of Ukraine”, “On the Judicial System and Status of Judges”, “On the Constitutional Court of Ukraine”, “On Local Self-Government in Ukraine”, “On the National Bank of Ukraine”, “On the Accounting Chamber”, “On Military Duty and Military Service”, “On the Security Service of Ukraine”, “On the National Anti-Corruption Bureau of Ukraine”, “On Advocacy and Advocacy” and some others. The above Law of Ukraine “On Civil Service” the term “civil employee” interprets as a citizen of Ukraine, who holds the position of civil employee in a state power entity, another state entity, its staff (secretariat), receives wages from the State Budget, implements powers directly related to the tasks and functions of such a public authority and established for this post, and also adheres to the principles of civil service30. Articles 4 and 8 of the Law of Ukraine “On Civil Service” establish the basic principles of the civil service, general requirements to the ethics of civil employees and their main responsibilities. In particular, the civil service relies on the principles of supremacy, legality, professionalism, patriotism, integrity, efficiency, ensuring equal access to public service, political impartiality, transparency and stability. A civil employee must implement his duties in good faith, do not commit acts and actions that might harm the interests of the civil service or negatively affect his reputation31. According Art. 8 of this Law the main duties of a civil employee are recognized:  adhere to the Constitution and laws of Ukraine, act only on the basis, within the limits of authority and in the manner prescribed by the Constitution and laws of Ukraine;  adhere to the principles of civil service and rules of ethical behavior;  respect human dignity, preventing violations of human and civil rights and freedoms;

29 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 30 Про державну службу: Закон України від 10.12.2015 р. № 889-VIII. Відомості Верховної Ради. 2016. № 4. Ст. 43. 31 Про державну службу: Закон України від 10.12.2015 р. № 889-VIII. Відомості Верховної Ради. 2016. № 4. Ст. 43. 414  respect the state symbols of Ukraine in a proper way;  it is obligatory to use the state language during the implementing of their official duties, to prevent discrimination of the state language and to counteract possible attempts to discriminate against it; Honestly and professionally implement his duties;  execute decisions of state entities, orders (commands), orders of directors, given on the basis and within the powers prescribed by the Constitution and laws of Ukraine;  to comply with the requirements of legislation in the field of prevention and counteraction to corruption;  to prevent the emergence of a real and potential conflict of interest during the public service;  constantly increase the level of own professional competence and improve the organization of official activities;  to keep the state secret and personal data of people which became known to him due to implementing of official duties, as well as other information which is not subject to disclosure according to the law;  to provide public information within the limits defined by law32. When entering a public service, a citizen accepts an oath of a state employee and thus undertakes to faithfully serve the people of Ukraine and strictly adhere to its Constitution and laws. The Law of Ukraine “On Service in Local Self-Government Bodies” indicates that the service in local self-government entities is, on a permanent basis, a professional activity of Ukrainian citizens who occupy positions in these entities, aimed at realizing of the right of the territorial community to local self-government and the implementation of certain powers of executive entities provided by law33. Article 4 of this Law defines the basic principles of service in local self- government entities, namely: service to a territorial community; a combination of local and state interests; the rule of law, democracy and the rule of law, humanism and social justice; publicity of the priority of human and civil rights and freedoms; equal opportunities for citizens to access the service in local self-government entities, taking into account their business qualities and professional skills, professionalism, competence, initiative, honesty, devotion to the cause; accountability, personal responsibility for violation of discipline and improper implementing of official duties;

32 Про державну службу: Закон України від 10.12.2015 р. № 889-VIII. Відомості Верховної Ради. 2016. № 4. Ст. 43. 33 Про службу в органах місцевого самоврядування: Закон України від 7.06. 2001 № 2493-III. Відомості Верховної Ради України. 2001. № 33. Ст. 175. 415 complience of the rights of local self-government; legal and social security of local self-government officials; protection of interests of the respective territorial community; financial and logistical support of the service at the expense of the local budget; autonomy of personnel policy in the territorial community34. The main duties of local self-government officials, established by this Law: (a) the complience of the Constitution and laws of Ukraine, other normative legal acts, acts of local self-government entities; (b) ensuring, in accordance with their authority, the effective operation of these entities; (c) the complience of human and civil rights and freedoms; (d) preservation of state secrets, information about citizens that became known to them due to implementing of official duties, as well as other information which is not subject to disclosure according to the Law; (e) continuous improvement of the organization of their work, professional development; (e) diligent attitude to the implementing of official duties; (є) initiative and creativity in work; (g) respect for citizens and their complaints and suggestions to local self- government entities, care for a high level of culture, communication and behavior, authority of local government entities and officials; (c) preventing acts or omissions that may harm the interests of local self-government or the state (Article 8)35. The Law of Ukraine “On Prevention of Corruption” defines the general requirements for the ethics of the behavior of officials. Appropriate instructions are contained in section VI “Rules of Ethical Conduct”. Thus, the people mentioned in point 1, in the subparagraph “a”, point 2, 1 st. 3 of the Law, during the implementing of their official duties, have to adhere strictly to the requirements of the law and generally prescribed ethical norms of behavior, to be polite while communicating with citizens, leaders, colleagues and subordinates. Another example is the provisions of its art. 39, which states that people authorized to execute state or local government functions representing the state or the territorial community act exclusively in their interests. According to Art. 41 of the Law “On the Prevention of Corruption”, mentioned employees, as well as other public officials of public law entities, act impartially, regardless of private interests36.

34 Про службу в органах місцевого самоврядування: Закон України від 7.06. 2001 № 2493-III. Відомості Верховної Ради України. 2001. № 33. Ст. 175. 35 Про службу в органах місцевого самоврядування: Закон України від 7.06. 2001 № 2493-III. Відомості Верховної Ради України. 2001. № 33. Ст. 175. 36 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 416 3. Subjects and modern system of prevention and settlement of conflicts of interest in the public service Prevention and settlement of conflict of interest apply to people mentioned in points 1 and 2 of part 1 of Art. 3 of the Law of Ukraine “On Prevention of Corruption”, that is, on subjects authorized to implement functions of the state or local self-government and people equal to them37. Subjects which subject to the Law of Ukraine “On Prevention of Corruption”38, have to: take measures to prevent the emergence of a real, potential conflict of interest; to inform the direct manager no later than the next working day from the moment when it became known or should be known of the existence of a real or potential conflict of interests, as well in the case if a state employee does not have a direct supervisor or a collegial entity, inform National Agency for the Prevention of Corruption, or another entity or collegial entity established by law, where the conflict of interest arises (accordingly); not act and not make decisions in conditions of a real conflict of interests; take measures to resolve a real or potential conflict of interest39. According to Art. 12-I The Law of Ukraine “On Prevention of Corruption”, local self-government officials are obliged to adhere to the rules of prevention and settlement of conflicts of interests provided for by them. Responsibility for non-compliance with the requirements of legislation in this regard is established by Art. 172-7 “Violation of requirements to prevent and resolve conflicts of interest” of the Code of Ukraine on Administrative Offenses. These actions may also serve as a reason for bringing a state employee to justice in disciplinary and / or civil law. The requirements of the Law “On Prevention of Corruption”, concerning the prevention and settlement of the conflict under consideration, are applied to people authorized to implement functions of the state or local self-government and people of equal value (paragraphs 1 and 2, part 1, Article 3)40. The current system for the prevention of conflicts of interest or their settlement is aimed at (a) seeking a balance between private and public interest through identifying risks for the integrity of officials; (b) the prohibition of unacceptable forms of conflict; (c) managing conflict situations; (d) settlement of conflict situations.

37 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 38 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 39 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 40 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 417 Measures to minimize the possibility of conflict of interests of subjects authorized to implement functions of the state should include: a) organization of execution of acts and instructions of executive entities of a higher level; b) raising the level of knowledge on issues of combating corruption, legal education and explanatory work among state employees; c) the division of duties among state employees, the clear regulation of the exercise of official authority, the implementing of their duties and rights specified in the job descriptions; d) clearness and accessibility for individuals and legal entities to the information given on the websites of state entities; e) strict compliance by state employees with their work of law, norms of morality, service ethics and professional honor; f) control over compliance with anti-corruption legislation. In the Law of Ukraine “On Civil Service”, state employees and officials of local self-government should prevent conflicts in the interaction with citizens, leaders, colleagues and subordinates. They are forbidden to use their powers or their official position in the personal (private) interests or in the unlawful personal interests of other people, including using their status and information about their state job in order to obtain an unlawful benefit for themselves or others41. Preventing a conflict of interest consists of resolving both potential and real ones and requires concrete mutual actions of both the person who is the sourse of conflict and his manager. This settlement process is often followed by the publication of organizational and administrative documents and takes long time. Therefore, as far as possible, situations of such conflict should be avoided. One of the most effective ways of preventing them is the voluntary deprivation of private interest before getting (election, approval) to public office. Legislation contains a list of measures aimed at preventing a conflict of interest, and they operate even when their functioning is not directly related to it. For example, Art. 25 of the Law “On Prevention of Corruption” prohibits state employees and officials of local self-government: (a) to be involved in other paid activities (except teaching, scientific, creative and medical, as well as instructor and judge practice in sport); (b) to be involved in business activities; (c) to be a member of the board, other executive or supervisory entities, supervisory board of an enterprise or organization with a view to obtaining profit. Note that the last prohibition has exceptions42.

41 Про державну службу: Закон України від 10.12.2015 р. № 889-VIII. Відомості Верховної Ради. 2016. № 4. Ст. 43. 42 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 418 Article 26 of the Law “On Prevention of Corruption” establishes a number of restrictions for individuals who have ceased activities related to the exercise of state and local government functions. Restrictions apply, in particular: (a) representing the interests of anyone, if the other part is the authority (enterprise, institution, organization) where these people worked; (b) employment of former state employees in a private enterprise, the activities of which they had previously controlled; (c) disclosure of official information43. In Art. 23 of the Law “On Prevention of Corruption” also mentions restrictions and ban on gifts, and Art. 27 establishes a ban on work under leading of close friends. The relevant rules contain not only anti-corruption legislation44. Moreover, Art. 25-1 of the Labor Code of Ukraine establishes restrictions on the joint work of relatives in an enterprise, institution or organization. According to Art. 29 of the Law of Ukraine “On the Prevention of Corruption” measures for resolving conflicts of interest are divided into external and independent ones. Measures of independent conflict resolution of interests. According to Part 2 of Art. 29 of the Law under review, people authorized to implement functions of the state or local self-government, and persons equal to them, who possede a real or potential conflict of interests, can independently take measures for its settlement by depriving the relevant private interest with the provision of supporting documents to the direct supervisor or director of the entity whose powers include the dismissal or initiation of dismissal from the office. Deprivation of private interest should exclude any possibility of its concealment45. External actions to resolve the conflict of interest include: (a) dismissal of a person from a task implementation, committing an act, taking a decision or taking part in its acceptance in a real or potential conflict of interest; (b) external control over the execution of a particular task by a person, the commission of certain actions or making decisions; (c) limiting the person’s access to certain information; (d) reviewing the scope of official authority of a person; (e) transfer of person to another post; (e) dismissal of a person46. According to Clause 7 of the Procedure for holding a competition for the filling of a vacant job of state employees, approved by the Resolution of the Cabinet of Ministers of Ukraine dated March 25, 2016, No. 246, people who:

43 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 44 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 45 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 46 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 419 (a) were prohibited to engage in activities related with the fulfillment of the functions of the state, or to occupy certain positions under a court order; (b) were subject to administrative penalty for corruption or corruption-related offenses within 3 years from the date of entry into force of the relevant court decision, as well as persons who, in case of employment, will be directly subordinated or subordinate to their relatives, are not allowed to participate in the competition. In the legislation of Ukraine, the principle of self-defense is quite common. For example, in accordance with Articles 27 and 30 of the Code of Administrative Justice of Ukraine, a judge is obliged to declare a self- rejection if he is directly or indirectly interested in the consideration of the case or is a member of the family or close relative of the part or other people involved in the case47. Also in Art. 31 of this codified act details the procedure for resolving the issue of withdrawal (self-discharging). The provisions of the Law of Ukraine “On Enforcement Proceedings” of June 2, 2016, No. 1404-VIII stipulate that the state executor is not entitled to participate in the enforcement proceedings and is a subject to withdrawal, if he is the debtor or payer himself, or people close to him who live together, connected with common life and have mutual rights and duties with him (including people who live together, but are not married), and also regardless of the specified conditions (husband, wife, father, mother, stepmother, stepmother, son, daughter, stepchild, stepchild, brother, native sister, etc. d, grandmother, great-grandfather, grandson, granddaughter, great-grandfather, grandson, granddaughter, great-grandson, granddaughter, son-in-law, daughter-in-law, father-in-law, mother-in-law, father-in-law, in-law, adopter or adopted parent, guardian or caretaker, person under guardianship or care of the perpetrator) associated with him48. Taking into account that the main purpose of preventing conflicts of interest is, first of all, preventing them from occurring, the Law “On Prevention of Corruption” establishes a requirement for officials to take appropriate measures (clause 1 Part 1, Article 28)49. At the same time, if the people, mentioned in clauses 1 and 2 part 1 of Art. 3 of this Law, knew or should have been informed of the existence of a real or potential conflict of interest to them, they have to inform the direct supervisor at least on the next working day. If the person is in a position that does not involve the presence

47 Кодекс адміністративного судочинства України: Закон України від 06.07.2005 № 2747-IV. Відомості Верховної Ради України. 2005. № 35-36. № 37. Ст. 446. 48 Про виконавче провадження: Закон України від 2.06.2016 р. № 1404-VIII. Відомості Верховної Ради. 2016. № 30. Ст. 542. 49 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 420 of a direct supervisor or a post in a collegial entity, inform the National Agency or another entity or collegial entity established by law, in the course of the exercise of the authority, in which a conflict of interest arose (respectively). At the same time, these people are obliged to refrain from taking actions or taking decisions in a situation of real conflict of interests (clause 3 part 1 article 28)50. Appeal to the National Agency in case of doubt about the existence of a conflict of interest. According to parts 5 and 6 of Art. 28 of the Law “On the Prevention of Corruption” in the case if a person has doubts about the existence of a conflict of interest at her, this person is obliged to apply for clarification to the territorial entity of the National Agency. The person who was given a confirmation of a lack of a conflict of interest, is released from responsibility, even if in the future in the actions affected by the appeal, this conflict will be revealed. Without this confirmation, he has to act in accordance with the requirements of this Law. Refraining from actions or decisions in a real conflict of interest. In point 3 of Part 1 of Art. 28 of the Law “On Prevention of Corruption” states that people authorized to implement functions of the state or local self-government and equal to them are obliged not to take actions and not to make decisions in the specified real situation. Responsibility for violation of this prohibition is established in Part 2. of Art. 172-7 Code of Ukraine on Administrative Offenses. It should be noted that, in contrast to the interpretation of the conflict of interest contained in anti-corruption legislation, the Code of Ukraine on Administrative Offenses somewhat narrowed the objective side of an administrative offense committed in a conflict of interest, since the impact of a real conflict of interest on the commission of acts or decisions was mentioned, but “Non-action” was not mentioned. Article 26 of the Law “On Prevention of Corruption” provides for restrictions on the activities of individuals after they resigned or ceased their activities in any other way, related to the implementing of the functions of the state, local self-government. These restrictions apply to people who held positions, which provide for the implementing of the functions specified in clause 1, part 1, Article. 3 of this Law. It should be emphasized that the application of such restrictions is a generally accepted international anti- corruption standard51. Thus, in Article 12 of the UN Convention against Corruption (2003), among the instruments aimed at preventing corruption in

50 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 51 Про запобігання корупції: Закон України від 14.10.2014 1700-VII. Відомості Верховної Ради. 2014. № 49. Ст. 2056. 421 the private sector, it is provided for the prevention of a conflict of interest by imposing restrictions, in appropriate cases and for a reasonable period, on the professional activities of former public officials in the private sector after their retirement or dismission if such activity or work is directly related to the functions that these public officials implemented during their period of office or they were supervising its execution. The necessity for the application of such a restriction comes from the Recommendation of the Committee of Ministers of the Council of Europe No. R (2000) 10 on codes of conduct for public officials. By its very nature, the preventive mechanism is referred to aim minimizing the risks of a conflict of interest in the case when an employee transfers to another job that is not related to the functions of the state, local self-government. In other words, to minimize cases when a person, being an employee, in an unlawful manner creates particularly favorable conditions for institutions, enterprises, organizations, where he plans to work after leaving the public service, or uses in his new position the official information or other possibilities of his former position on the State service The Law “On Prevention of Corruption” establishes three types of restrictions, which have certain common features. An important feature of these restrictions is that they relate to people who stopped working in the public service at the positions specified in clause 1, part 1, Article. 3 of the Law. Another feature to be taken into consideration is a clearly defined period of validity of such restrictions, namely one year from the moment of termination of service. Such a relatively short term is most optimal given the inadmissibility of imposing excessive restrictions on citizens who have been released from state or local government. At the same time, such a term is sufficient to eliminate or significantly weaken the person’s ability to use his previous official position unfairly. So in July 2018, employees of the National Agency for the Prevention of Corruption made 46 reports on the conflict of interests for the same state employee, and they did it on the same day. One of the problems of the National Agency for the Prevention of Corruption lies in the procedure for requesting the necessary data that they practice. For example, the National Agency for the Prevention of Corruption requires clarification of the circumstances in the case to provide certified copies made from original documents. However, if the government refuses to provide documents or the necessary originals of the National Agency for the Prevention of Corruption, demanded by the court or seized by law enforcement agencies, the National Agency gives up in the case and does not take any action for further verification. Meanwhile, the terms of bringing to responsibility for actions in

422 the conflict of interests expire. After all, the Code of Administrative Offenses for prosecution for such an offense is only three months from the date of its detection and two years from the date of its commission. In this way, the perpetrators actually avoid responsibility, and the decisions they took in the conflict of interests remain valid52. That is, the activity of the National Agency for the Prevention of Corruption is not effective. Also, the urgent problems of preventing and resolving conflicts of interest in the public service include the following: 1) the heads do not take measures to resolve the conflict of interests in the case when they received the notification from an affiliated person in accordance with article 28 of the Law; 2) the officials who are members of the collegial entity (committee, commission, collegium, etc.) do not take measures to resolve the conflict of interests in case of its occurrence; 3) the problem remains related with the prevention of a conflict of interests in connection with the presence at the person of enterprises or corporate rights, in particular, non-transferability to management or violation of the deadlines for the transfer to management of his owned enterprises and corporate rights (Article 36 of the Law); 4) bonus of relatives or other related people. Occasionally, cases of bonus or other encouragement by leaders of themselves or their relatives – subordinates. Much of the violations of anti-corruption legislation in the field of conflict resolution of interests are found in the parliamentary corps, in particular, with the deputies of local councils53. In addition, the existence of certain gaps in anti-corruption legislation is also proved by the number of appeals to the National Agency for the Prevention of Corruption to scientists asking for a scientific position, in particular regarding the combination of positions by people authorized to implement state or local government functions, in order to clarify the relation of the categories “close people” and “family members” of the subject of declaration, concerning monitoring of the declarant’s way of life and some others.

CONCLUSIONS The conflict of interests in the public service is a situation in which a public person, while performing his duties, has a private interest (personal interest), which, although not necessarily, leads to the acceptance of an unlawful decision or to commit an illegal act in the public service, but anyway is able to do this. Public services are the activities of people holding political positions, state employees, local government officials, deputies of all levels,

52 Імітація діяльності або як НАЗК «розслідує» конфлікти інтересів. URL: https://rpr.org.ua/ news/imitatsiya-burhlyvoji-diyalnosti-yak-nazk-rozsliduje-konflikty-interesiv-halyna-yanchenko. 53 Сторінка антикорупціонера: погляд із середини на деякі актуальні питання конфлікту інтересів. URL: https://i.factor.ua/ukr/journals/ds/2019/april/issue-4/article-43836.html. 423 public officials of public law, and other entities that implement the functions of the state. The Law of Ukraine “On Prevention of Corruption” already contains 2 different definitions of conflicts of interest types – potential and real. The structural elements of a potential conflict of interest should include the following: (a) in accordance with the job description or other document, the person has to implement the relevant official or representative duties or be authorized to implement them; (b) for any reason, it must have a private interest in the sphere in which he carries out his official duties or representational powers; (c) the private interest of an official may affect the impartiality or impartiality of the decision-making process in the future or the execution or non- execution of actions in the implementing of these duties and powers. The lack of any component means that there is no potential conflict of interest. It is worth to include in the structural elements of the real conflict of interests the following: (a) in accordance with the job description or other document, the person is obligated to implement the relevant official or representative duties or be authorized to implement them; (b) regardless of a reason, it already has a private interest in the sphere in which it carries out its official or representative powers; (c) An official faces a conflict between his private interest and his official or representative powers. The measures of Law of Ukraine “On Prevention of Corruption” for conflict resolution of interests are divided into external and independent ones. The duties of a State employee regarding a conflict of interest can be represented as a logical set of 4 elements, namely: prevention, informing, refraining from actions or decisions and settlement. Self-regulation of the conflict of interests is the deprivation of the corresponding private interest with the provision of supporting documents to the direct supervisor or the head of the authority whose authority is to dismiss or initiate. An external conflict resolution of interests consists in (a) dismissal a person from implementing a task, taking action, taking a decision or participating in its acceptance in a real or potential conflict of interest; (b) the use of external control over the implementing of the corresponding task and the commission of that person’s actions or decision-making; (c) limiting his access to certain information; (d) reviewing the scope of official authority of a person; (e) transferring him to another post; (e) dismissal of a person from office. Actual problems of legal regulation of prevention and settlement of conflicts of interest in the public service are following: officials who are members of the collegial entity (committee, commission, collegium, etc.) do not take measures to resolve the conflict of interests in case of its occurrence; in connection with the presence at the person of enterprises or corporate

424 rights, in particular, non-transferring into management or violation of the deadlines for transfer to management of his own enterprises and corporate rights; the bonus of close relatives or other related people, cases of bonuses or other encouragement of the leaders of themselves or their relatives – subordinates often occur; The leaders do not take measures to resolve the conflict of interest in the case that they received a notification from an affiliated person in accordance with Article 28 of the Law of Ukraine “On Prevention of Corruption”. The above facts indicate the ineffectiveness of the National Agency for the Prevention of Corruption in the prevention and resolution of conflicts of interest in the public service and necessity to be changed as anti-corruption legislation and should take place in the direction of creating effective mechanisms for resolving the conflict of interests for each category of state employees.

SUMMARY The article is devoted to the analysis of the Ukrainian legislation on prevention and settlement of conflict in the public service, and analysis of their legal problems of implementation in practice. The types of conflict of interests are found out – the potential and the real and characterized their essence. It is stated that each person has private interests consisting in obtaining certain benefits for himself or his relatives, as well as for commercial, political or other organizations with which he is affiliated. Realizing the constitutional right to work and volunteering to enter the public service, a person submits himself to certain requirements and accepts certain obligations stemming from the tasks and functions of the modern state, and in the narrower context, from the tasks and functions of a particular state entity or local self-government entity. It is suggested that the duties of a state employee in relation to a conflict of interest can be represented as a logical set of 4 elements, namely: prevention, informing, refraining from actions or decisions and settlement and their analysis. The author’s definition of legal construct “conflict of interests in the public service” is provided. It was established that measures to resolve conflicts of interest are divided into external and independent ones. The actual problems of legal regulation of prevention and settlement of conflict of interests in the public service are revealed. It is concluded that the development of the legislation of Ukraine should take place in the direction of creating effective mechanisms for resolving the conflict of interests for each separate category of state employees.

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Information about author: Shevchuk O. M., Doctor of Juridical Sciences, Professor of the Department of Administrative Law and Administratively Activities Yaroslav Mudryi National Law University 77, Pushkinska st., Kharkiv, Ukraine

427 FINANCIAL AND LEGAL ASPECTS OF COUNTERACTING CORRUPTION AND MONEY LAUNDERING IN THE WORLD AND UKRAINE

Sheremetieva O. Yu.

INTRODUCTION Corruption is a shameful phenomenon that, like rust, has fueled all the spheres of Ukrainian society. Unfortunately, corruption is prospering at the highest levels of state power. This kind of corruption has very negative consequences for the development of the country, reducing all social achievements to nothing. It is well known that, for several years running, Ukraine has the last place in terms of development among the countries of Europe, and the first – in terms of corruption. Corruption is one of the obstacles to improving the investment climate in Ukraine. As you know, our country has for many years set itself the task of attracting foreign investment into the country, since almost all years of independence have a problem with a budget deficit and a balance of payments. About Ukraine is usually spoken of as a country with enormous potential, but this potential has not yet been used. Among the reasons why Ukraine has not used its potential, the regulated and “unfriendly” business environment and unfavorable investment climate are called. In particular, in 2010, business spent about 7.2 billion UAH ($ 900 million) for obtaining permits, inspections and technical regulations. In addition, businesses suffer from bribery and corruption, which have become integral companions of the regulatory process. Thus, about 46% of enterprises surveyed confirmed that they had resorted to unofficial ways of resolving issues with state authorities, spending in 2010 on the “settlement of cases” an average of 10% of the company’s turnover1. In addition, it should be noted that in the last few years, Ukraine has a negative tendency to increase the figures of these corrupt business expenses. Issues related to counteracting corruption and money laundering in the field of legal science was researched by domestic and foreign scholars such as: M. Bondareva, O. Charychansky, E. Dmitrenko, D. Hopton, T. Kachka, A. Klymenko, V. Larichev, V. Mitsilegas, R. Noble, P. Schott, M. Senatorov, S. Sinyavsky, J. Trehan, B. Volzhenkin and others.

1 Звіт IFC «Інвестиційний клімат в Україні: яким його бачить бізнес». Київ : Група Світового банку, МФК, 2011. С. 8.

368 1. Analysis of the financial and legal aspects of counteracting corruption and money laundering at the international level and the experience of Ukraine Corruption and money laundering are interconnected categories. Where corruption is almost always a problem of money laundering. At the same time, the problem of money laundering is much wider and continues to assume devastating consequences for the whole world. Thus, according to the International Monetary Fund, as of 1998, the annual volume of “dirty money” amounted to 2–5% of the World Gross Domestic Product2. As for Ukraine, according to various sources, there are about 15 billion “dirty hryvnias” are in foreign banks and about 70% of the receipts from crime are directed to various forms of legal business activity, and 15% is for the acquirement of real estate and other property3. So, as public experience shows, corruption can have different forms of manifestation. However, the financial component is almost always present in corruption cases. Taking into account the danger and scale of using the banking system for money laundering, the issue of fighting against this phenomenon has emerged on an international level. One of the first international legal documents in this area was the Recommendation adopted by the Committee of Ministers of Council of Europe of 27 June 1980 on Measures Against Transfer and Safekeeping of Funds of Criminal Origin, which states that the transfer of funds of criminal origin from one country to another and the process, due to which they are laundering through introduction into the economic system, causes serious problems4. The Recommendation calls on the governments of the Member States to introduce a number of measures within the banking system, namely:  to enter obligatory clients verification;  to limit the lease of safes;  to introduce training for cashiers;  to establish cooperation between banks and competent authorities, as well as cooperation at the international level;

2 Noble R., Golumbic C. A New Anti-Crime Framework For the World: Merging the Objective and Subjective Models for Fighting Money Laundering. International Law and Politics. Vol. 30. P. 86; Trehan J. Crime and Money Laundering. James Bannett Pty Ltd, 2004. P. 6. 3 Чаричанський О.О. Підстави кримінальної відповідальності за легалізацію (відмивання) доходів, одержаних злочинним шляхом, за Кримінальним кодексом України: автореф. дис… канд. юрид. наук : 12.00.08. Національна юридична академія України ім. Ярослава Мудрого. Харків, 2004. С. 1. 4 Recommendation R (80) 10 adopted by the Committee of Ministers of Council of Europe on 27 June 1980. Measures Against Transfer and Safekeeping of Funds of Criminal Origin.

429  to create an information system containing a list of banknotes related to criminal offences5. The next important document was adopted by the Basel Committee on Banking Supervision, a set of principles for preventing the criminal use of the banking system for money laundering, which refers to the ethics of banking activities; necessity to encourage the management of the bank to implement procedures for the proper identification of clients; refusal of suspicious and illegal transactions; necessity and importance of cooperation with law enforcement agencies in this area6. In 1989, the Financial Action Task Force on Money Laundering (FATF) was created as an international intergovernmental organization that developed the 1990 Basic FATF Forty Recommendations, which were gradually amended and supplemented. The Recommendations formulate the concept of “money laundering”; the limits of criminal and other types of liability for this crime are determined; provides for the principles of confiscation of the laundered property; the rule of caution and accounting in financial institutions is established; the obligation to notify suspicious transactions is fixed, etc.7 The European Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime, of November 8, 1990, was also adopted, one of the most important goals of which is to facilitate international cooperation in the investigation, search, seizure and confiscation of receipts of all types of crime. An important achievement is that the Convention defines the acts that States parties must define as crimes related to money laundering8. Another international legal document that plays an important role in preventing the money laundering is the United Nations Convention against Transnational Organized Crime of November 15, 2000. Its provisions criminalize the laundering of receipts of crime by States parties, the responsibility of legal entities for participating in committing the relevant crimes, as well as other measures to fight money laundering. In particular, the Convention provides that each Member State shall establish a comprehensive internal regime for the regulation and supervision of banks and non-bank financial institutions as well as other institutions in order to prevent and detect

5 Gilmore W. Dirty Money: the Evolution of Money Laundering Countermeasures. Council of Europe Publishing, 1999. P. 123.; Recommendation R (80) 10 adopted by the Committee of Ministers of Council of Europe on 27 June 1980. Measures Against Transfer and Safekeeping of Funds of Criminal Origin. 6 Basle Committee on Banking Regulations and Supervisory Practices. Prevention of Criminal Use of the Banking System for the Purpose of Money Laundering. Statement of Principles. December, 1988. URL: http:www.bis.org/publ/bcbsc137. 7Financial Action Task Force on Money Laundering, FATF. The Forty Recommendations (incorporating the amendments). URL: http:www.fatf-gafi.org/dataoecd/7/40/34849567. 8 Європейська Конвенція про відмивання, пошук, арешт та конфіскацію доходів, одержаних злочинним шляхом від 8 листопада 1990 р. Збірка договорів Ради Європи: українська версія / Є.М. Вишневський (пер. та ред.). Київ : Парламентське вид-во, 2000. С. 356–364.

430 all forms of money laundering. Moreover, such a regime should be based on the requirements for identifying the client, keeping report and providing information about suspicious transactions9. As domestic scientists point out, with which one can be agree, in Ukraine, the struggle with the use of the banking system for the legalization of receipts from crime is of particular relevance. This is due to the need to ensure the transparency of the banking system of Ukraine, to increase the attractiveness of the Ukrainian economy for foreign investors, to improve the international image of Ukraine, to overcome the barriers to Ukraine’s recognition of the state with a market economy, decriminalization and de-shadowing of economic relations, expansion of correspondent relations of Ukrainian banks with financial institutions of the FATF member states, promotion of filling the revenue part of the state budget10. Despite the fact that under Soviet period Ukraine had no experience and perfect legislation in the area of fighting the use of the banking system to legalize illegal income, and in the first post-Soviet years the financial system of Ukraine was still in the development stage, the state took a number of measures to support international efforts in this direction and during 2000– 2006, a system of fighting the use of the banking system for the legalization of illegal receipts was created11. This system includes a number of legislative acts of Ukraine, which contain provisions aimed at counteracting the use of the banking system to legalize illegal receipts. These include, first of all, the Law of Ukraine “On Banks and Banking”, Chapter 11 of which contains a number of norms to prevent the legalization (laundering) of receipts from crime12. And also the Law of Ukraine “On the National Bank of Ukraine”, in item 30 of Art. 7 which, in the functions of the National Bank, states that it carries out state regulation and supervision in the field of prevention and counteraction to the legalization (laundering) of the receipts from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction for non-bank financial resident institutions, which are payment institutions and / or members / participants of payment systems in terms of providing them with financial services for the transfer of funds on the basis of respective licenses,

9 Закон України «Про ратифікацію Конвенції Організації Об’єднаних Націй проти транс- національної організованої злочинності та протоколів, що її доповнюють». Відомості Верховної Ради України. 2004. № 19. Ст. 263. 10 Банківське право в Європейському Союзі та Україні: порівняльно-правове дослідження / О.А. Мірошниченко, М.В. Сенаторов, О.В. Сенаторова. Київ : Центр учбової літератури, 2007. С. 253. 11 Банківське право в Європейському Союзі та Україні: порівняльно-правове дослідження / О.А. Мірошниченко, М.В. Сенаторов, О.В. Сенаторова. Київ : Центр учбової літератури, 2007. С. 254. 12 Закон України «Про банки і банківську діяльність» від 7 грудня 2000 р. № 2121-ІІІ. Відомості Верховної Ради України. 2001. № 5-6. Ст. 30.

431 in particular, the National Bank of Ukraine (except the postal operators in terms of their transfer of funds)13. Criminal liability for such activities was established by the Art. 209 of the Criminal Code of Ukraine14. In addition, Art. 166-9 of the Code of Ukraine on Administrative Offences established administrative liability for violating the legislation on prevention and counteraction to the legalization of receipts from crime15. In order to further implementation of international standards in the field of fighting against legalization of illegal receipts, a special legislative act was adopted, namely the Law of Ukraine “On Prevention and Counteraction of the Legalization (Laundering) of the Receipts from Crime”16. Later, this Law was no longer in force due to the adoption of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Receipts from Crime, Terrorist Financing and Financing the Proliferation of Weapons of Mass Destruction”. In Part 1 of Art. 4 of this Law, in particular the definition of actions related to the legalization (laundering) of receipts from crime has been given. Namely, any actions connected with the conducting of a financial transaction or a transaction with assets obtained as a result of a crime, as well as the commission of actions aimed at concealing or disguising the illegal origin of such assets or possession of them, rights to such assets, sources their origin, location, movement, change in their form (conversion), as well as the acquisition, possession or use of assets obtained as a result of a crime17. It is also worth noting that the relevant amendments were supplemented to prevent and counteract the legalization (laundering) of receipts from crime into the Law of Ukraine “On Financial Services and State Regulation of Financial Services Markets”18 etc.

13 Закон України «Про Національний банк України» від 20.05.1999 р. № 679-XIV. Відомості Верховної Ради України (ВВР). 1999. № 29. Ст. 238. 14 Кримінальний кодекс України від 5 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25-26. Ст. 131. 15 Кодекс України про адміністративні правопорушення. Відомості Верховної Ради Української РСР. 1984. № 51 (додаток). Ст. 1122. 16 Закон України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, або фінансуванню тероризму» від 28 листопада 2002 р. № 249-IV. Відомості Верховної Ради України. 2003. № 1. Ст. 2 (втратив чинність). 17 Закон України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення» від 14.10.2014 р. № 1702-VII. Відомості Верховної Ради. 2014. № 50-51. Ст. 2057. 18 Закон України «Про внесення змін до деяких законів України з питань запобігання використання банків та інших фінансових установ з метою легалізації (відмивання) доходів, одержаних злочинним шляхом» від 6 лютого 2003 р. № 484-IV. Відомості Верховної Ради України. 2003. № 14. Ст. 104.

432 2. Repressive measures for fighting against the use of the banking system for money laundering in the EU and Ukraine In the EU, repressive measures for fighting against the use of the banking system for money laundering are laid down in Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing19. This Directive contains very important provisions for the prevention and counteraction of money laundering, namely, in accordance with clause 2 of Art. 1 of Directive 2005/60 /EC money laundering is considered to commit intentional acts such as: (a) exchange or transfer of ownership, if it is known that such property arose as a result of criminal activity or participation in such activities in order to conceal or disguise the unlawful origin of property or the promotion of any person who carries out similar activities, to evade the legal consequences of their actions; (b) the concealment or disguise of the true nature, source, location, placing, movement, rights connected with property or property rights, if it is known that such property arose as a result of criminal activity or participation in such activity; (c) the acquisition, possession or use of property if at the time of receipt it was known that such property was the result of criminal activity or participation in such activity; (d) participation in any of the actions specified in the preceding paragraphs; association for the purpose of carrying out such actions; an attempt to implement them and assist in their implementation; complicity, promotion and consulting. And in clause 3 of Art. 1 of this Directive states that money laundering should be considered as such, even when the activities which created the property for laundering were carried out in the territory of another Member State or in the territory of a third State20. In clause 6 of Art. 3 Directive 2005/60/EC the definition of criminal activity has been given, which is any type of criminal participation in the commission of a serious crime, the concept of which is disclosed in clause 7 of Art. 3 of this Directive. So, according to this document, along with other types of offenses, serious crimes include corruption and serious swindling. At the same time, the concept of fraud is disclosed in the Convention on the Protection of the Financial Interests of the European Communities21.

19 Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing. Official Journal L 309, 25.11.2005, P. 15. 20 Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing. Official Journal L 309, 25.11.2005, P. 15. 21 Convention on the Protection of the Financial Interests of the European Communities. Official Journal C. 316, 27.11.1995, P. 49.

433 In Ukraine, repressive measures for fighting against the use of the banking system for the laundering of the crime receipts, primarily, consist in the application of criminal and administrative responsibility. As already mentioned above, criminal responsibility for laundering of receipts from crime is established in Part 1 of Art. 209 of the Criminal Code of Ukraine, which provides: “1. The fulfilment of a financial transaction or deed with funds or other property obtained as a result of the proceeding of a socially dangerous unlawful act preceding the legalization (laundering) of receipts, as well as the fulfilment of actions aimed at concealing or disguising the illegal origin of such funds or other property or ownership thereof, rights to such funds or property, sources of their origin, location, movement, change of their form (transformation), as well as the acquisition, possession or use of funds or other property obtained as a result of fulfilment of social dangerous illegal act that preceded the legalization (laundering) of receipts, – shall be punishable by imprisonment for a term of three to six years with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to two years with the confiscation of property”22. The note to this article of the Code defines a socially dangerous unlawful act preceding the legalization (laundering) of receipts, as well as the notion of legalization (laundering) of the receipts from crime, which is put into effect in large dimensions and in a particularly large dimensions23. In Art. 209-1 of the Criminal Code of Ukraine established responsibility in the form of a fine with the deprivation of the right to occupy certain positions or engage in certain activities for a term up to three years for deliberate failure to submit, late submission or submission of inaccurate information about financial transactions that by the law are subject to financial monitoring to the specially authorized the central executive body with a special status on financial monitoring issues; as well as for the disclosure in any form of information that is provided by law to a specially authorized central executive body with a special status on financial monitoring issues, by a person to whom this information became known in connection with professional or official activities24. Measures of administrative and legal nature and administrative responsibility for violation of the legislation on prevention and counteraction to legalization (laundering) of receipts from crime, provided for in Art. 166-9

22 Кримінальний кодекс України від 5 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25-26. Ст. 131. 23 Кримінальний кодекс України від 5 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25-26. Ст. 131. 24 Кримінальний кодекс України від 5 квітня 2001 р. Відомості Верховної Ради України. 2001. № 25-26. Ст. 131.

434 of the Code of Ukraine on Administrative Offenses, which establishes responsibility for various types of offenses, in particular: violation of the requirements for identification, verification of the client (client representative); non-submit, late submission, violation of the procedure for submission or submission of inaccurate information in cases stipulated by the legislation to the specially authorized central executive authority in this area, including at its request; breach of the requirements for the storage of official documents and other documents, their copies concerning the identification of persons (clients, representatives of clients), as well as persons, which were denied in conducting financial transactions by the subject of initial financial monitoring; violation of the order of suspension of financial transactions; disclosure in any form of information that according to the law is the object of exchange between the entity of initial financial monitoring and the specially authorized central executive body in this area, etc. 25 Regarding civil responsibility for violation of the legislation on prevention and counteraction to the legalization (laundering) of receipts from crime, in our opinion, it should also take place. Yes, civil responsibility – this is primarily a sanction for the offense, attached in the law in the event of its commission. This sanction is reflected in the application of coercive measures to the offender. That is, responsibility is a measure of coercion to observe the rules of law applied by the state authorities to the offender26. In the opinion of the outstanding lawyer O. S. Ioffe, the following features are the responsibility of civil law:  it is a sanction for violating civil laws guaranteed by conviction and state coercion or its ability;  on the basis of it there is a public condemnation of the offender’s conduct and its promotion to certain activities in the interests of society in the absence of grounds for convicting the behavior of the responsible person;  it manifests itself in the form of the restoration of violated relations and in the form of determining the negative consequences for the offender27. Summing up, O. S. Ioffe concludes that these features are common to all types of responsibility under Soviet law28, namely, for civil, administrative, financial and criminal law.

25 Кодекс України про адміністративні правопорушення від 07.12.1984 р. № 8073-X. Відомості Верховної Ради Української РСР. 1984. № 51 (додаток). Ст. 1122. 26 Иоффе О.С. Ответственность по советсткому гражданскому праву. Ленинград : Изд-во Ленинградского университета, 1955. С. 9. 27 Иоффе О.С. Ответственность по советсткому гражданскому праву. Ленинград : Изд-во Ленинградского университета, 1955. С. 17. 28 Иоффе О.С. Ответственность по советсткому гражданскому праву. Ленинград : Изд-во Ленинградского университета, 1955. С. 17.

435 However, it should be noted that in the Civil Code of Ukraine there are no provisions on responsibility for violating the legislation on prevention and counteraction to legalization (laundering) of receipts from crime29. Although, in general, comparing the content of the provisions of Directive 2005/60/EC and legislative acts of Ukraine, concerning repressive measures to fighting against the use of the banking system for laundering of receipts from crime, we can speak of a certain consistency of their norms. From our point of view, one can agree with the opinion of some lawyers that one of the main issues of preventing the use of the banking system for money laundering is to identify the entities of such prevention, and, above all, the subjects of financial monitoring30. In the EU, according to Art. 2 Directives 2005/60/EC the financial monitoring entities include: 1) credit institutions; 2) financial institutions; 3) physical or legal entities who carry out a certain activity on a professional basis, namely:  auditors, external auditors (accountants) and tax advisers;  notaries and other independent lawyers, if they participate, acting on behalf of and for the client, in any financial transaction or real estate transaction, or in assisting in the planning or execution of transactions for the client relating to: the buy or sale of enterprises or real estate; management of money, securities or other assets of the client; opening or management of bank accounts, savings (deposit) accounts or securities accounts; organization of contributions necessary for the creation, operation or management of companies; creation, work or management of trusts, companies or similar structures;  persons providing services to trusts and companies;  real estate agents;  other physical or legal entities trading goods for which the payment may be made in cash in an amount equal to or exceeding EUR 15 000 and when the transaction is made once or in several transactions that appear to be related; 4) casino31.

29 Цивільний кодекс України від 16.01.2003 р. № 435-IV. Офіційний вісник України. 2003. № 11. Ст. 461. 30 Банківське право в Європейському Союзі та Україні: порівняльно-правове дослідження / О.А. Мірошниченко, М.В. Сенаторов, О.В. Сенаторова. Київ : Центр учбової літератури, 2007. С. 259–260. 31 Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing // Official Journal L 309, 25.11.2005, P. 15.

436 In Ukrainian legislation, entities of financial monitoring are defined in Art. 5 of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Receipts from Crime, Terrorist Financing and Financing of the Proliferation of Weapons of Mass Destruction”. Thus, this Law establishes that the system of financial monitoring consists of the primary and state levels. In particular, entities of initial financial monitoring are: 1) banks, insurers (reinsurers), insurance (reinsurance) brokers, credit unions, pawnshops and other financial institutions; 2) payment organizations, members of payment systems; 3) commodity and other exchanges, which carry out financial transactions with goods; 4) professional participants in the stock market (securities market); 5) postal operators, other institutions that carry out financial transactions for the transfer of funds; 6) branches or representative offices of foreign business entities that provide financial services on the territory of Ukraine; 7) specially designated entities of initial financial monitoring: a) entrepreneurs who provide intermediary services in the course of real estate purchase and sale transactions; b) business entities that trade in cash for precious metals and precious stones and products from them; c) business entities conducting lotteries and gambling, including casinos, electronic (virtual) casinos; d) notaries, lawyers, law offices and associations, auditors, audit firms, accounting entities, legal entities providing legal services (except for persons providing services in the framework of labor relations); 8) other legal entities which, by their legal status, are not financial institutions but provide separate financial services32. The subjects of state financial monitoring are the National Bank of Ukraine, the central executive body for the formulation and implementation of state policy in the field of prevention and counteraction to the legalization (laundering) of receipts from crime and terrorism financing, the Ministry of Justice of Ukraine, central executive authorities, which ensure the formation of state policy in the field of provision of postal services, in the sphere of economic development, the National Securities and Stock Market Commission, National Commission for State Regulation of Financial Services Markets, specially authorized body33.

32 Закон України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення» від 14.10.2014 р. № 1702-VII. Відомості Верховної Ради. 2014. № 50-51. Ст. 2057. 33 Закон України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення» від 14.10.2014 р. № 1702-VII. Відомості Верховної Ради. 2014. № 50-51. Ст. 2057.

437 So, analyzing the structure of financial monitoring entities, which is enshrined in this Law, it can be noted that it is somewhat harmonized and brought into line with the list of subjects of financial monitoring in the Directive 2005/60/EC. Since the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Receipts from Crime or Terrorist Financing”, which is no longer valid, such a list of subjects of financial monitoring was much narrower and did not cover certain categories of subjects. An important role in fighting against the use of the banking system for money laundering is played by the Law of Ukraine “On Prevention of Corruption”, in Art. 1 of which is defined, first of all, a term such as corruption. So, under corruption one realizes using by a person specified in Part 1 of Art. 3 of this Law, the powers granted to it or the related facilities for the purpose of obtaining the illegal benefit or acceptance of such a benefit or the acceptance of the promise / offer of such benefit to itself or others or, accordingly, the promise / offer or provision of illegal benefit to a person specified in Part 1 of Art. 3 of this Law, or at its request to other physical or legal entities, in order to persuade the person to unlawful misuse the powers or the related facilities attached to it34. At the same time, a corruption offense is an act that contains signs of corruption committed by a person specified in Part 1 of Art. 3 of this Law, for which the law establishes criminal, disciplinary and / or civil responsibility35. That is, in our opinion, it should be noted that on the one hand, according to the content of this article of this Law for the commission of a corruption offense, there is no administrative responsibility. At the same time, as we noted above, the Code of Ukraine on Administrative Offenses contains rules on administrative responsibility for violating the legislation on prevention and counteraction to the legalization (laundering) of receipts from crime. And such receipts may be the result of corrupt acts, as a result of a corruption offense. On the other hand, there is a certain discrepancy between the contents of the provisions of this Law. Thus, according to Part 1 of Art. 65 of the Law of Ukraine “On Prevention of Corruption” for the commission of corruption or corruption-related offenses the persons specified in Part 1 of Art. 3 of this Law, shall be subject to criminal, administrative, civil, and disciplinary responsibility in accordance with the procedure established by law. Moreover, the provisions of Section XIII of this Law introduce amendments to the Code of Ukraine on Administrative Offenses, including the title and content of

34 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056. 35 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056.

438 chapter 13-A “Administrative Offenses Related to Corruption”36. Consequently, from our point of view, “administrative responsibility” should be added to the concept of “corruption offense”, which defined in this Law. Under unlawful benefits, in accordance with this Law, are understood as cash or other property, privilege, benefits, services, intangible assets, any other benefits of immaterial or non-monetary nature, which promise, offer, grant or receive without legal grounds37. Also important for preventing corruption and money laundering is that in this Law defines the subjects, to which the Law extends the application and the status of the National Agency for the Prevention of Corruption (NAPC). And Section VII of this Law contains provisions on financial control, in particular the need for submission of declarations by persons authorized to perform functions of the state or local self-government. At the same time, in Art. 51 of this Law states that the NAPC selectively monitors the livelihood of the subjects of declaration in order to establish the conformity of their standard of living with the property and income received by them and their family members in accordance with the declaration of the person authorized to perform the functions of the state or local self-government38. In other words, the mechanism for controlling expenditures is actually in place, which is the most effective in preventing and counteracting of corruption and legalization of receipts from crime. It is also important that this Law ensures the state protection of persons providing assistance in preventing and counteracting of corruption and also identifies other mechanisms for preventing and counteracting of corruption39.

3. The bodies of state power of Ukraine in the field of prevention and counteraction to corruption and the role of Interpol As you know, the existing mechanism of countering corruption in Ukraine is ineffective. One of the ways to increase the effectiveness of counteracting corruption is institutional reform of bodies that carry out pre-trial investigation and prosecution in the cases of corruption crimes. Therefore, a number of new autonomous bodies (outside of the existing law enforcement system) were created, whose main function is to fight corruption, including the detection and investigation of corruption offenses, which are particular public danger. And the

36 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056. 37 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056. 38 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056. 39 Закон України «Про запобігання корупції» від 14.10.2014 р. № 1700-VII. Відомості Верховної Ради України. 2014. № 49. Ст. 2056.

439 main task of the new anti-corruption bodies is to counter corruption offenses committed by senior officials authorized to perform the functions of the state or local government, and posing a threat to national security. That is, we can say that the purpose of anti-corruption reforms in Ukraine has been chosen quite correctly, namely, the fight against the most dangerous for the society corruption offenses committed by top officials. However, unfortunately, to this day, this direction is almost completely failed, since there are no court sentences for such persons. And the level of the fight against corruption is significantly reduced, to the officials of medium and lower rank. An important role in the field of prevention and counteraction to corruption is played by cooperation with the relevant state authorities of other countries and international organizations. Thus, the International Criminal Police Organization (Interpol) may provide substantial assistance in detecting and delaying offenders who have committed acts of corruption and have been illegally enriched and fled abroad. Ukraine is a member of this organization and actively cooperates with it. However, recently the Ukrainian authorities tried to use this organization for political purposes, filing in search of their political opponents without to offer the firm proofs. It is clear that almost all such appeals were rejected by this organization. Since, firstly, the objectives of Interpol are: a) the provision and development of wide-ranging mutual cooperation of all criminal police agencies within the framework of the current legislation of the countries and in the spirit of the Universal Declaration of Human Rights; b) the establishment and development of institutions which can successfully contribute to the prevention and combating of general crime (Art. 2 of the Statute of the International Criminal Police Organization (Interpol))40. Second, according to Art. 3 of the Statute of this Organization, it strictly prohibits to it any interference or activity of a political, military, religious or racial nature41. And thirdly, in fulfilling its objectives, this Organization relies on the constant and active cooperation of its members, which, within the framework of the legislation of their countries, must do everything possible to participate fairly in its activities (Art. 31 of the Statute)42.

40 Статут Міжнародної організації кримінальної поліції (Інтерпол) від 13 червня 1956 р. Международное публичное право. Сборник документов. Том 2. Москва : Издательство БЕК, 1996. С. 117–123. 41 Статут Міжнародної організації кримінальної поліції (Інтерпол) від 13 червня 1956 р. Международное публичное право. Сборник документов. Том 2. Москва : Издательство БЕК, 1996. С. 117–123. 42 Статут Міжнародної організації кримінальної поліції (Інтерпол) від 13 червня 1956 р. Международное публичное право. Сборник документов. Том 2. Москва : Издательство БЕК, 1996. С. 117–123.

440 Therefore, the reforms that are taking place in the bodies of state power of Ukraine, which are responsible for counteracting corruption, are of great importance. In particular, the State Bureau of Investigations, the National Agency for the Prevention of Corruption, the Specialized Anti-Corruption Prosecutor, the National Anti-Corruption Bureau of Ukraine and, at present, the Special Anticorruption Court, have been established. Despite the number of specialized state agencies for fihgting corruption, their achievements in this direction are scant and even ephemeral. The biggest debate in Ukrainian society has created by establishing of the Special Anticorruption Court. Indeed, on the one hand, the arguments against the creation of such a court are not without logic. Because, all courts in Ukraine should be non-corruption, independent from other branches of government and should make legal decisions. This is confirmed by the content and essence of the Basic Principles of the Independence of the Judiciary, which are approved by the UN General Assembly Resolution 40/146 of December 13, 198543. Thus, according to the principle of independence of the judiciary, such independence must be guaranteed by the state and enshrined in the constitution or laws of the country. State and other institutions must respect and uphold the independence of the judiciary. At the same time, the judiciary must make its decisions impartially, on the basis of facts and in accordance with the law, with the exception of any direct or indirect restrictions, unlawful influence, pressure, threats or obstacles, wherever they come out and which they would not be motivated. Also, the judiciary should have jurisdiction in all matters of a judicial nature and the exclusive right to determine whether the matter submitted for its consideration is within the scope of its competence, which is enshrined in the law. In addition, no unlawful interference in the judicial procedure should be allowed. And each person should have the right to be tried by ordinary courts or tribunals in accordance with lawful procedures. Tribunals that do not use legally established judicial procedures should not be created, and that are replaced the ordinary courts and tribunals of a legal nature by themself. At the same time, the principle of independence of the judiciary gives the courts the right and duty to ensure the fairness of the trial and respect the rights of the parties. And the state is obliged to allocate enough resources to enable the judiciary to properly perform its functions44.

43 Основні принципи незалежності судової влади, які схвалені резолюцією Генеральної Асамблеї ООН 40/146 від 13 грудня 1985 р. Международное публичное право. Сборник документов. Том 2. Москва : Издательство БЕК, 1996. С. 124–125. 44 Основні принципи незалежності судової влади, які схвалені резолюцією Генеральної Асамблеї ООН 40/146 від 13 грудня 1985 р. Международное публичное право. Сборник документов. Том 2. Москва : Издательство БЕК, 1996. С. 124–125.

441 On the other hand, the creation of such Special Anticorruption Court, although not directly excluded in accordance with these principles, it is still desirable the integrity, competence and independence of the whole judiciary in the state, and not only such a specialized court. It is also worth noting that the main task in the process of overcoming and counteracting corruption is not the number of special state bodies and institutions in this area, but the quality of performance of their functions. So, according to the Ukrainian experience, these bodies are very ineffective in fulfilling their duties. From our point of view, based on the analysis of the work of these state bodies, this situation is conditioned, firstly, by the personal ambitions of their leaders; secondly, by various sources of influence on their leadership; and, third, by the crossing of their functions and powers (insufficiently clear and specifically defined limits of their authority, which leads to their duplication); and hence, fourthly, the emergence of a conflict of interests between these bodies.

CONCLUSIONS Recently, under the pressure of the international community, significant steps have been taken in Ukraine to prevent and counteract to corruption and money laundering. In particular, a number of authorities have been established to promote following the legislation in this area, to prevent corruption and punish offenders. However, as it is known, due to their activities, extremely small funds were returned to the budget, which do not correspond to the scope of corrupt acts, and the amounts of money received from such acts. Moreover, virtually all cases against high-ranking officials who are suspected of committing corrupt acts are closed or actually “collapsed”. However, as it is known, due to their activities, extremely small funds were returned to the budget, which do not correspond to the scope of corrupt acts, and the amounts of money received from such acts. Moreover, virtually all cases against high-ranking officials who are suspected of committing corrupt acts are closed or actually “collapsed”. From our point of view, after solving the problem of establishing peace in the Donbass, the problem of overcoming corruption at the highest levels of Ukrainian government is its top priority. So, today Ukraine ranks first among the most corrupt countries in Europe. To summarize, we note that, in our opinion, it is necessary to take real steps to prevent and counteract corruption in our country, rather than immitate them. For this, first of all, it is necessary not only to create a number of special state bodies, but also to improve the efficiency of their work. In particular, contradictions in their work should be eliminated, as well as duplication of powers and functions,

442 namely conflict of proxies. In addition, the society is waiting for the sentences passed by the top corruptors and their execution. Secondly, as public experience shows, corruption can have different forms of manifestation. However, the financial component is almost always present in corrupt acts. Thirdly, in Ukraine, the fight against the use of the banking system for the legalization of receipts from crime is of particular urgency. This is due to the need to ensure the transparency of the banking system of Ukraine, to increase the attractiveness of the Ukrainian economy for foreign investors, to improve the international image of Ukraine, to overcome the barriers to Ukraine’s recognition of the state with a market economy, decriminalization and de- shadowing of economic relations, expansion of relations with financial institutions of FATF` states members, contributing to the filling of the profitable part of the state budget. Fourthly, to date, in Ukraine, an anti-corruption system and system against the use of the banking system for the legalization of illegal receipts have actually been created in Ukraine. In order to improve its efficiency, it is necessary to improve and more effectively apply the mechanism of income and expenditure control, as well as property, especially top officials and their families. Fifth, Ukraine’s current legislation in the area of prevention and counteraction of corruption contains some inaccuracies that need to be removed. Sixth, cooperation with relevant state authorities of other countries and international organizations plays an important role in this matter. Seventh, courts play a leading role in the fight against corruption. Judicial reform carried out in Ukraine has not achieved its goal, including eradicating corruption in the judiciary itself. From our point of view, the choice of judges by the society, including by local communities, can contribute to solving this problem. And the formation of a generally effective, honest, professional judicial system without corruption may help to eliminate the issue of creating a special anti-corruption court.

SUMMARY The article is devoted to the analysis of world experience and the current state of development of the legal system and institutions in Ukraine in the context of their ability to prevent and counteract corruption and money laundering. Corruption is a shameful phenomenon that, like rust, has fueled all the spheres of Ukrainian society. Corruption is of the highest magnitude at the highest levels of state power, what is very dangerous for the development of the country. Recently, under the pressure of the international community, significant steps have been taken in Ukraine to prevent and counteract

443 corruption and money laundering. In particular, a number of authorities have been established to promote following the legislation in this area, to prevent corruption and punish offenders. However, as it is known, due to their activities, extremely small funds were returned to the budget, which do not correspond to the scope of corrupt acts, and the amounts of money received from such acts. Moreover, virtually all cases against high-ranking officials who are suspected of committing corruption offenses are closed or actually “collapsed”. Consequently, we believe that, having analyzed world experience and, first of all, the experience of the EU countries in the field of prevention and counteraction to corruption and money laundering, the state authorities should take real steps in the struggle against these negative phenomena, rather than their imitation.

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Information about author: Sheremetieva O. Yu., Candidate of Juridical Sciences, Associate Professor, Associate Professor of the International and Europe Law Department Kyiv National Economic University named after Vadym Hetman 54/1, Peremohy Ave, Kyiv, Ukraine

446 The project was implemented with the support of

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