Procedure of the registration of vehicles improved
Subject of complaint: Ministry of Internal Affairs of Ukraine (MIA)
Complaint in brief: On July 7, 2015, the Complainant, Porsche Finance Ukraine, which engages in financial and operational leasing and car loan services, lodged a complaint with the BOC regarding 16 cases of misappropriation of mortgaged/leased vehicles by third parties using false documents registered with State Automobile Inspection (SAI) offices.
Action taken: After a detailed examination of the complaint, the BOC discussed it with the Ukrainian Union of Leasing Providers and came to the conclusion that there was a criminal scam widely used across the country to misappropriate cars. The Council also concluded that the only effective way to prevent this type of crime was to amend legislation regulating the procedure for state registration of vehicles.
In search of a resolution, the BOC turned to the Interior Ministry on October 8, 2015, with a recommendation to amend Bill #2567 “On MIA services and service centers,” which had been adopted by the Verkhovna Rada on July 14 in the first reading, to require SAI inspectors to check for existing encumbrances on vehicles with the State Registry of Encumbrances on Movable Property, prior to carrying out a registration. The BOC also insisted that similar amendments be made to Cabinet Resolution #1388 “On the procedure for state registration and delisting of cars, buses and self-propelled vehicles” dated September 7, 1998. Throughout the following year, the Council consistently and insistently coordinated these changes.
Result achieved: Thanks to BOC efforts on this issue, on October 5, 2016, PM Volodymyr Groysman approved the amendment of Cabinet Resolution #1388, which improved the procedure for state registration of vehicles. These amendments will prevent malpractice of third parties. The Case was successfully closed.