Economic Security Bureau of Ukraine reform: what results to expect and when it can happen

GRIGOL KATAMADZE

President of the Taxpayers Association of Ukraine

What is needed for the reboot of the Economic Security Bureau (hereinafter — ESB) to meet the expectations of domestic business and Ukrainian society in general is described in the column by Grigol Katamadze, President of the Taxpayers Association of Ukraine, Vice President of the Taxpayers Association of Europe, member of the Supervisory Board of the Ukrainian Business Council.

On June 20, the Verkhovna Rada passed a bill to reboot the Economic Security Bureau (ESB). In the first reading, the Cabinet of Ministers’ draft was initially rejected by the parliament. The joint efforts of business, MPs, and think tanks have improved it to the point that international partners and MPs have supported the updated draft. However, what results can we expect, when will they happen, and what else is still missing from our system?

It is worth noting that the adopted draft law concerns the procedure for electing the ESB management: the chairman and deputies. It is extremely important that these changes take place. Business will closely monitor the competitions that will be held in the near future.

However, the principles of the Bureau’s work are directly determined by the law adopted in 2021, which is still in force today.

Therefore, for several years now, society and the business community have been insisting on returning to the principles of the single analytical body with a law enforcement function that were laid down when it was created.

The powers of the ESB include:

* Identifying risk areas in the economy by analyzing structured and unstructured data;

*Assessing risks and threats to the economic security of the state, developing ways to minimize and eliminate them;

* submitting proposals for amendments to regulatory acts to eliminate the preconditions for creating schemes of illegal activities in the economic sphere;

*Ensuring economic security of the state by preventing, detecting, suppressing, and investigating criminal offenses that infringe on the functioning of the state’s economy;

*collecting and analyzing information on offenses affecting the economic security of the state and identifying ways to prevent their occurrence in the future;

*planning measures to combat criminal offenses under its jurisdiction;

*detecting and investigating offenses related to the receipt and use of international technical assistance;

*preparation of analytical conclusions and recommendations for government agencies to improve the efficiency of their decision-making in regulating relations in the economic sphere.

Unfortunately, our law enforcement system is a legacy of the Soviet system, which works as follows: a crime is committed and the relevant authorities respond to the fact that it has occurred. When we talk about the successful work of the law enforcement system in the Western world, we should understand that a slightly different system has been operating there for many decades. Successful countries have ILP (Intelligence Led Policing), which is intelligence-driven policing. And this prevention is enshrined in the law on the Economic Security Bureau. If the ESB works effectively, this is exactly how the system should work.

The analytical function should become the key area of the body’s activity. And the government should do everything to strengthen these functions, for example, by providing the ESB with free access to existing state information systems.

In order to comply with and fulfill the above requirements, we need high-quality specialists, highly qualified employees. People who understand how the state exists and how it should work. Therefore, re-certification and recruitment of new employees must take place, which is also provided for by the adopted law.

To evaluate the changes, it is necessary to establish performance criteria for the renewed Economic Security Bureau, to define the so-called KPIs that will be subject to constant monitoring.

At various times, business representatives have reported unlawful pressure from law enforcement agencies. Therefore, in parallel with the start of the bureau’s reboot, steps should be taken to amend the Criminal Procedure Code to:

*limiting the powers of the National Police and the ESB in terms of giving instructions to the authorized representatives of the Security Service of Ukraine;

* providing opportunities to appeal to the investigating judge against any actions or omissions, including decisions of the investigator and prosecutor;

Prohibiting reopening of proceedings on the same grounds after a positive decision for business, as a result of appealing against previous actions of law enforcement agencies;

* responsible storage and immediate return of seized property to owners after a court decision;

* selection of a reasonable and proportionate level of bail and preventive measures;

*prohibiting the seizure of material assets that are not specified in the investigating judge’s ruling;

allowing the seizure of critical property of labor means that are part of economic activity only on exceptional grounds;

* imposing on investigating judges the obligation to check and ensure that pre-trial investigation bodies comply with the requirements of jurisdiction;

* return of pre-trial investigation terms and the procedure for their extension in factual criminal proceedings, except for serious and especially serious crimes under the jurisdiction of the National Anti-Corruption Bureau.

The state must understand that qualified employees are not enough for the Bureau to work efficiently, and that it needs adequate financial support. Realizing the very difficult situation with financing of state structures, the authorities, together with the new, already renewed, leadership of the ESB, should make every effort to obtain international technical assistance and sponsorship. In this case, it may even be possible to send employees for short-term training in successful countries where they fight economic crimes efficiently.

Next and very important: The ESB should actively cooperate with the relevant structures and colleagues from different countries, such as the United States, the United Kingdom, and Italy.

We should not expect an economic miracle as soon as the new leadership is elected. It will not happen. If all the tools are used effectively and the above requirements are met, we can expect productive functioning in two years. Of course, there may be successful cases during this time, but a perfect system will not appear within the first six months or a year. During this period, the Bureau must demonstrate a trend of improvement in its work and justify the trust of business and society.

Source: https://www.rbc.ua/rus/news/reforma-beb-kih-rezultativ-chekati-i-koli-1719576234.html