Ukraine

New Documents

The State Financial Monitoring Service of Ukraine announced the publication guidelines on the management of business relations with politically exposed persons pursuant to the EU anti-money laundering directives.

The State Financial Monitoring Service of Ukraine adopted a regulation on approving the national anti-money laundering, counterterrorist financing and counter proliferation financing monitoring system for the period ending in 2023 and the related action plan.

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. Department of State categorizes Ukraine as a major money laundering jurisdiction. Rampant corruption, fraud, trafficking in drugs, arms, and persons, organized crime, prostitution, cybercrime and tax evasion serve as the means for producing illicit funds. Money Launderers often use cash and the informal economy to transfer funds and help further organized crime syndicates. Criminals additionally use other methodologies, including real estate, insurance, financial institutions and shell companies. Schemes using financial instruments, including liquid and illiquid securities, lending and deposit transactions, debentures and fictitious contracts are also common. According to the State Department, the British Virgin Islands, Cyprus and other offshore tax havens are often used to obscure ownership, evade taxes or mask illicit profits. Also, Ukraine’s ineffective state institutions and criminal justice system allow financial criminals to thrive and proceed undetected. Ukraine's convictions involving financial crimes increased in 2018 including two cases of money laundering under its criminal code. From Jan. to Sept. 2018, Ukraine obtained 17 convictions under its anti-money laundering statute but all 17 are under appeal. Ukraine additionally filed cases relating to 105 other financial crimes incidents but no additional data is available.
Source: 2019 International Narcotics Control Strategy Report (INCSR)  

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 11 High : 0
Largely Compliant : 21 Substantial : 2
Partially Compliant : 7 Moderate : 8
Non-Compliant : 0 Low : 1
Not-Applicable : 1

Ukraine's technical compliance was re-rated in a Sept. 6, 2019 follow-up report

BASEL i

Rank : 67/141
Score : 5.23/10

TRANSPARENCY INTERNATIONAL i

Rank : 126/180
Score : 30/100

Tax Justice Network i

Rank : 70/133
Score : 65/100