Parliament Approves Streamlining of Enforcement Proceedings Through Digitalization, Indicator of Ukraine Facility

The Verkhovna Rada of Ukraine has passed in the second reading and in its entirety bill No. 14005, which aims to optimize and digitalize the procedures for enforcing court decisions. This legislative move is an important indicator of the Ukraine Facility program and is directed towards modernizing asset recovery processes, as well as implementing recommendations from Council of Europe experts regarding the assurance of the right to a fair trial.

During the plenary session held on Tuesday, April 7, the bill garnered support from 250 members of parliament, with 14 voting against it and 8 abstaining. This demonstrates significant backing among lawmakers who recognize the importance of digitalization within Ukraine's legal system.

According to the explanatory note accompanying the bill, the approved changes include an expansion of the functionality of the Automated Enforcement Proceedings System (AEPS). This encompasses direct interaction between enforcement officers and state authorities, banks, financial institutions, and non-bank payment service providers. Additionally, automated interaction between the Unified Register of Debtors and other state registries will be introduced, greatly simplifying processes related to the enforcement of court decisions.

Under the new regulations, the presence of an individual’s information in the Unified Register of Debtors will serve as grounds for denying any actions regarding the alienation or encumbrance of their property. This means that debtors will not be able to freely dispose of their assets until their debts are settled. At the same time, the process of lifting restrictions will be automated: upon receipt of funds in the account of the state enforcement service or a private executor, the AEPS will independently generate a notification of debt settlement. This notification will serve as the basis for the immediate removal of information from the debtor registry and the lifting of the seizure on funds, electronic money, and securities.

The bill also amends several legislative acts, including laws on road traffic, notary services, banking, and the depository system. The implemented digital tools are expected to shorten the timeframes for enforcement actions and enhance the effectiveness of executing court decisions regarding both property and non-property obligations. This, in turn, is anticipated to positively impact the business climate in Ukraine, as it will simplify procedures for entrepreneurs and citizens.

As noted in the explanatory materials, the implementation of the law will contribute to the restoration of violated rights of citizens and legal entities by eliminating bureaucratic obstacles in the process of compulsory enforcement of court decisions. Thus, the innovations may represent a significant step towards increasing trust in the judicial system and ensuring justice in Ukraine.