NACP inspections: What you need to know

The National Agency on Corruption Prevention (NACP) is a key body of Ukraine’s anti-corruption infrastructure, which not only oversees compliance with financial control requirements, but also monitors lifestyles, verifies declarations, conflicts of interest, and related areas of ethical conduct of officials. In recent years, the agency’s approaches have become more systematic, and the circle of persons who may be subject to verification has expanded. Therefore, every declarant must know what exactly the NACP checks, how the procedure is carried out, and what rights a person under inspection has.

Legal grounds for inspections
The NACP’s activities are regulated by the Law of Ukraine “On Prevention of Corruption” and a number of by-laws, in particular the Procedure for conducting a full verification of declarations of persons authorized to perform functions of the state or local self-government. These rules define the main types of inspections, the procedure for initiating them, and the time limits for their conduct.

According to the law, the NACP has the right to conduct the following types of inspections:

• Automated logical and arithmetic control of declarations. This is the initial stage of verification, carried out automatically on the basis of an electronic declaration. Algorithms identify declarations with signs of inconsistencies or risks.
• Full verification of declarations. Appointed by the NACP selectively or in the presence of risks of inaccurate declaration, indications of a conflict of interest, or significant discrepancies between income and assets.
• Monitoring of lifestyle. Verification of the conformity of the declarant’s actual standard of living with declared income. The NACP may conduct observations, analyze information from open sources, or request data from state bodies.
• Verification of a potential or actual conflict of interest. Conducted upon receipt of information about possible violations of restrictions established by anti-corruption legislation.

Grounds for initiating an inspection
An NACP inspection may be initiated automatically (based on algorithmic risk analysis) or manually, upon applications from citizens, subjects of journalistic investigations, or on the basis of official reports of corruption manifestations.

Typical grounds include:

1. Detection of discrepancies between declared income and actual data of tax authorities.
2. Data from open sources about acquisition of property or assets that exceed official income.
3. Information about possible violations of restrictions on combining positions or receiving gifts.
4. A conflict of interest that may arise in the exercise of official powers.

At the same time, it is important that the declarant must be informed about the start of a full verification, and the process itself is carried out in compliance with procedural safeguards.

Rights and obligations of a person during verification
A person subject to verification has a number of procedural rights:

• To receive notification of the start of verification.
• To submit written explanations, additional documents, or supporting information.
• To use legal assistance.
• To demand compliance with time limits and confidentiality of data.

At the same time, the law provides for obligations: to provide reliable data at the NACP’s request, not to obstruct the inspection, and to provide requested information in a timely manner. Failure to provide explanations or documents may be considered obstruction, which constitutes a separate administrative offense.

Procedure for full verification of a declaration
A full verification lasts up to 120 days and may be extended for another 60 days. It includes:

• Analysis of the accuracy of the submitted information.
• Verification of the existence of a conflict of interest.
• Clarification of the conformity of lifestyle to income.
• Examination of the sources of origin of assets.

The NACP has the right to obtain information from state registers, banks, tax authorities, as well as to use interagency requests. If the agency identifies significant inconsistencies, it may apply to law enforcement bodies or a court.

The results of the inspection are formalized in an NACP opinion, which establishes whether a violation is present or absent. Based on its results, the following are possible:

• Referral of materials to NABU, the SBI, or the police.
• Drawing up a protocol on an administrative offense.
• Submission of a proposal to the head of the institution to eliminate the violation.

Consequences of inspection results
If the fact of failure to submit a declaration or submission of inaccurate information is established, liability arises – administrative or criminal, depending on the amount of unjustified assets or the degree of distortion of information.

Criminal liability (Article 366-2 of the Criminal Code of Ukraine) arises in the event of knowingly submitting inaccurate data in a declaration in an amount exceeding 1.3 million UAH or intentional failure to submit a declaration.
Administrative liability (Article 172-6 of the Code of Ukraine on Administrative Offenses) applies if the inaccurate information is below this threshold.

In addition, the detection of unjustified assets may be grounds for initiating proceedings in the High Anti-Corruption Court and confiscation of property.

Lifestyle monitoring: a thin line between control and interference
One of the most delicate areas of the NACP’s activity is lifestyle monitoring. In practice, the agency may analyze publications on social networks, journalistic investigations, and data from open cadastral or transport registers. If an obvious discrepancy between lifestyle and income is detected, the NACP initiates a request to the declarant demanding an explanation of the source of funds.

Such actions are particularly relevant for officials who declare minimal income but show signs of significant expenditures, such as purchase of luxury housing, cars, or jewelry. At the same time, legislation requires the NACP to maintain a balance between the right to privacy and the public interest in control.

Practical tips for declarants

1. Check data before submitting a declaration. Reconcile information on income, real estate, corporate rights, and vehicles.
2. Keep documents. Proof of ownership or sources of income may be decisive in case of an inspection.
3. Respond promptly to NACP requests. Ignoring or delaying a response worsens the situation.
4. Consult a lawyer. Professional support helps avoid careless explanations or procedural mistakes.
5. Avoid formal violations, such as late submission of a declaration or failure to promptly report significant changes in property status.

Conclusion
NACP inspections are an integral part of the anti-corruption prevention mechanism, aimed not only at punishment but also at fostering a culture of financial transparency. Knowing one’s rights, timely responses to the agency’s requests, and proper legal support help minimize risks and protect the reputation of a civil servant or local official.

Author – Svitlana Krutorohova, attorney at the Law Firm “Legal Company WINNER”.
If you have questions or problems related to NACP inspections, preparation or correction of a declaration, contact the specialists of WINNER Law Firm – they will help assess risks, prepare a response to the agency’s request, and provide full legal support for the procedure.