NOTARIAL VERIFICATION OF THE SANCTIONS STATUS OF PARTIES TO A LEGAL TRANSACTION: LEGAL MECHANISMS AND IMPLEMENTATION CHALLENGES

Abstract

The purpose of the article is to determine the content and limits of a notary’s duty to verify restrictions that may affect the notarisation of legal transactions concerning property, corporate rights and other assets.

The study applies the formal legal method to analyse the rules governing notarial activity, sanctions policy and financial monitoring; the systemic method to clarify the relationship between notarial procedure, public-law control and the protection of civil circulation; and the comparative legal method to take into account European approaches to managing risks related to the assets of persons subject to restrictive measures. The empirical basis of the study consists of legislative provisions, data from open registers and typical models of notarial acts concerning the disposal of assets.

It is substantiated that the verification of sanctions status by a notary is not limited to a technical search for data in a register, but constitutes an element of the preventive function of the notariat. It is established that the most problematic cases arise when restrictions are imposed not on the direct party to a legal transaction, but on a person who may exercise decisive influence through the ownership structure, representation or related persons. It is determined that the State Register of Sanctions increases the accessibility of information; however, it does not eliminate the need for a legal assessment of property and corporate links. Particular attention is paid to the risks of erroneous identification, divergent interpretations of the scope of verification and excessive burdening of bona fide persons.

It is found that the absence of a unified algorithm of actions may lead to inconsistent notarial practice, delays in the notarisation of legal transactions and the unjustified transfer to the notary of functions similar to the investigation of hidden corporate links. It is proposed to consider verification as a multi-level procedure combining personal identification, analysis of representation, determination of the ultimate beneficial owner, documentation of the results and repeated verification before the performance of a notarial act. The need is emphasised for the development of methodological recommendations, integration of state registers, unification of evidence confirming that verification has been conducted, and a clear definition of the limits of notarial liability.