Modernizing Enforcement Proceedings: 5 Reasons to Support Draft Law No. 9363
Andrii Haichenko, Deputy Minister of Justice for Enforcement Service Affairs
Let's imagine a typical situation: a debtor has paid a debt of 10,000 UAH through Privat24. The state/private enforcement officer manually verifies the payment, prepares documents, sends letters to the bank to lift the seizure of accounts. These actions take several days, sometimes even a week.
Today, over 15% of citizens' calls to the hotline of the State Enforcement Service of the Ministry of Justice (0800 35 69 17) relate to lifting seizures from property or funds after full debt payment. Due to the lack of an appropriate legislative framework, we are forced to administer this process manually.
This creates an additional burden both for citizens and for enforcement officers. Meanwhile, the absence of automated interaction with financial institutions results in delays and slow data updates across the system.
The Ministry of Justice outlined an algorithm for deep modernization of enforcement proceedings in Bill No. 9363, which was registered in the Verkhovna Rada on June 7, 2023. The document passed the first reading and is ready for final adoption as a Law this month.
Here are 5 arguments why parliament should support Bill No. 9363 in the second reading.
1. A Fundamentally New Level of Enforcement Efficiency
The key innovation of the bill is the implementation of automatic actions in the enforcement process, including:
- automatic lifting of seizures from accounts after full debt repayment;
- automatic interaction of the Unified Register of Debtors with other registers;
-automatic updating of data in the Unified Register of Debtors.
In practice, this will reduce response time from days to hours, and in some cases to minutes.
2. Less Manual Management — Fewer Corruption Risks
Automation reduces the influence of the human factor, which is one of the main sources of corruption risks. Lifting seizures from accounts will happen automatically, without the possibility for enforcement officers to influence or delay the process.
All actions will be recorded in the automated enforcement proceedings system, ensuring transparency and the possibility of control by the Ministry of Justice, courts, and proceedings parties.
3. Protection of Citizens’ Rights
Conscientious debtors will no longer suffer from bureaucratic delays. Once a debt is repaid, the seizure on the account will be lifted automatically. This will promote legal fairness, reduce pressure on individuals, and help businesses avoid unjustified financial restrictions.
4. Synchronization with Other Registers
The bill provides for integration with key state registers and financial institutions. This will allow faster identification of debtors' property, updating of information, and more efficient execution of court decisions.
5. Favorable Investment Climate
An efficient and transparent enforcement system sends a strong signal to investors about the state’s ability to protect creditors’ rights and uphold financial obligations. This strengthens trust in the judiciary and helps build a stable business environment.
Responsibility for Reforms
The Government and relevant committees of the Verkhovna Rada of Ukraine have done great work for the adoption of Bill No. 9363. This is a real reform of enforcement proceedings that ensures speed, transparency, fairness, and predictability of state decisions. The adoption of this bill is a step towards European standards in the execution of decisions, strengthening the trust of citizens and business in the state.