The law on reforming ARMA will enter into force upon its publication and will mark the start of a genuine transformation of the Asset Recovery and Management Agency — something we have been advocating for years. Despite strong resistance from ARMA itself, the public outcry and support from international partners have laid a solid foundation for an effective system of asset tracing and management.
A detailed review of the law’s provisions is forthcoming, but for now, let’s examine the transitional arrangements, specifically, how the new framework will be implemented.
1. Launch of independent external audit of ARMA
From the moment the law takes effect, a Commission must begin forming to conduct an independent external audit of the National Agency’s operations. This Commission is then required to deliver its conclusions on ARMA’s effectiveness within 10 months.
The Cabinet of Ministers will form the Commission based on proposals from development partners. The government must make its decision at an open meeting no later than 14 days after receiving those proposals.
That decision must include a list of three appointed Commission members, as well as a list of alternate candidates.
2. Transitional period for managing seized assets
The key changes to the process of selecting asset managers will come into effect six months after the law enters into force. In the meantime, the Cabinet of Ministers must develop bylaws and update the electronic procurement system accordingly.
Until then, assets will continue to be transferred to legal entities or individual entrepreneurs selected through open competition, under the existing public procurement rules. Any ongoing selection procedures for asset managers that have not yet concluded will be considered void. Also, any contracts that were signed but not yet executed due to pending conditions will be subject to early termination. In such cases, the ARMA will have 10 working days after the new provisions take effect to cancel the relevant tenders and terminate the contracts. It must also initiate new selection procedures in accordance with the updated rules.
After six months and 20 working days, the ARMA is required to publish a call for pre-qualification of candidates to manage simple assets under the new procedures.
3. Identifying legacy assets
The ARMA will have six months from the law’s effective date to identify assets that had been transferred to the agency prior to that date but had not yet been assigned to managers. The aim is to assess the characteristics, market value, and economic potential of these assets to determine whether they can be effectively managed.
If any of these assets are deemed unsuitable for effective management, the ARMA must submit a substantiated request to the prosecutor to change the management method. If effective management is possible, the ARMA must announce a new selection process for a manager within 40 working days of completing the identification.
4. Leadership and remuneration changes
Until a new ARMA Head is appointed under the updated procedures, the Cabinet of Ministers has the authority to terminate the current Head’s mandate early. Grounds for such a decision may include inefficient asset management, unlawful use of assets, or a risk of losses to the state.
The revised salary structure for the Head and Deputy Heads will only take effect after the appointment of a new Head.
5. Changes to public oversight
Once the law enters into force, the current Public Council at ARMA will be dissolved. Within three months, the Cabinet of Ministers must take steps to establish a new Public Oversight Council for the ARMA.
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The ARMA reform is another step toward building a robust system for managing assets obtained through corruption and other crimes. While full implementation of the new mechanisms will take time, the foundations for transparent and effective asset management are already in place. The success of the reform will depend on the quality of law enforcement and the willingness of all stakeholders to embrace change. Ultimately, the goal is not only to preserve the value of seized assets but also to ensure their lawful and efficient use.
In addition, for the reform to be fully operational, amendments to Ukraine’s Criminal Procedure Code will be necessary, as the new asset management procedures require proper procedural support.
