The State Financial Monitoring Service of Ukraine as the Financial Intelligence Unit of Ukraine takes enhanced measures of a practical nature to counteract the legalization (laundering) of the proceeds from crime, financing of terrorism and financing of the proliferation of weapons of mass destruction.
In particular, in the first half of 2018, the SFMS prepared 438 cases (271 case referrals and 167 additional case referrals), which were submitted to:
- Prosecution authorities 88 cases (19 case referrals and 69 additional case referrals);
- State Fiscal Service of Ukraine 114 cases (94 case referrals and 20 additional case referrals);
- Internal Affairs Authorities of Ukraine 52 cases (42 case referrals and 10 additional case referrals);
- Security Service Authorities of Ukraine 83 cases (50 case referrals and 33 additional case referrals);
- National Anti-Corruption Bureau of Ukraine 101 cases (66 case referrals and 35 additional case referrals).
The abovementioned case referrals contain information regarding financial transactions related to legalization (laundering) of the proceeds from crime or commitment of other criminal offenses, defined by the Criminal Code of Ukraine, amounting to UAH 297.1 billion.
The SFMS continues to work on investigation of money laundering from corruption, theft and appropriation of state funds and property, including by Viktor Yanukovych, his relatives, other officials and their related persons.
The specified work is carried out within the framework of the continuation of in-depth measures taken in 2014-2017 on the blocking, arrest and confiscation of the state funds equivalent to USD 1.5 billion.
Thus in the first half of 2018 the SFMS has submitted 133 such cases to the law enforcement authorities (68 case referrals and 65 additional case referrals), in particular to:
- National Anti-Corruption Bureau of Ukraine – 101 cases;
- Prosecution authorities of Ukraine – 29 cases;
- Security Service Authorities of Ukraine – 3 cases.
The abovementioned case referrals content information regarding financial transactions related to legalization (laundering) or commitment of other criminal offenses, amounting to UAH 276,5 billion.
According to the legislation of Ukraine, the SFMS (as the Financial Intelligence Unit), together with law enforcement agencies, takes measures aimed at preventing and countering to the financing of terrorist activities, separatism.
Thus, in the first half of 2018 the SFMS submitted to the law-enforcement authorities 37 cases (16 case referrals and 21 additional case referrals) related to financial transactions of persons who may be involved in the financing of terrorism, separatism and/or persons who publicly call for the violent change or overthrow of the constitutional order or the change of borders of the territory or state border of Ukraine, including following:
- 17 cases (2 case referrals and 15 additional case referrals), related to the financial transactions conducted by natural persons whose identification data coincides with the identification data of persons included in the List;
- 5 cases (4 case referrals and 1 additional case referral), related to the financial transactions conducted by the persons, included to the Attachment of the National Security and Defense Council of Ukraine Resolution of 28.04.2017, implemented by the Decree of the President of Ukraine of 15.05.2017 №133/2017;
- 1 case, related to suspicions in the conduct of financial transactions by persons involved in the activities of the international terrorist group "Islamic State of Iraq and Levant" or other extremist groups;
- 8 cases (5 case referrals and 3 additional case referrals), related to suspicions in terrorism/separatism and its financing, using information from law enforcement authorities;
- 6 cases (4 case referrals and 2 additional case referrals), which may related to suspicions in financing illegal armed formations of occupied regions of Donetsk and Luhansk oblasts.
Materials are sent to the Security Service of Ukraine and the Prosecutor General’s Office of Ukraine.
In the first half of 2018 the SFMS in 21 cases blocked funds related to financial transactions of persons who, according to information from the law enforcement authorities, may be involved in financing of terrorism, separatism amounting to UAH 10,1 million.
In order to increase the efficiency of interagency cooperation, in the first half of 2018 the main focus was on the implementation of the Action Plan for the improvement of the national financial monitoring system, based on the results of the 5th round of mutual evaluation of Ukraine by the Committee of Experts of the Council of Europe - MONEYVAL.
The specified Action Plan was developed by the SFMS in cooperation with other interested bodies and in May of this year it was supported by the Cabinet of Ministers of Ukraine.
In addition, during the reporting period, the SFMS organized the fourth and fifth sessions of the Council on the prevention and counteraction to the legalization (Laundering) of the proceeds from crime, terrorist financing and the financing of the proliferation of weapons of mass destruction.
Also in the reporting period, the SFMS conducted 14 coordination meetings with interested agencies related to the issues of prevention and counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing, and it was concluded an Agreement on interagency and information cooperation with the State Bureau of Investigations.
Regarding the methodological provision of the system of financial monitoring, the SFMS enhanced measures for interaction with reporting entities, in particular:
- representatives of the SFMS took part in 53 educational events held for more than 2,707 people;
- 2 meetings of the Working Group on problematic Issues of the reporting entities - banking and non-banking Institutions.
As part of the coordination of cooperation with the public, the SFMS has organized 3 meetings of the Public Council of the SFMS, as well as signed a framework Memorandum on cooperation with the Notary Chamber of Ukraine.
To fulfill the Decree of the Cabinet of Ministers of Ukraine of 30.08.2017 № 601-р «On realization of the strategy on the development of the system on prevention and counteraction to legalization (laundering) of the proceeds from crime, terrorist financing and financing of the proliferation of weapons of mass destruction for the period up to 2020» it was provided to the Cabinet of Ministers of Ukraine general information on the state of realization of the plan of measures for 2017-2019 on the implementation of the Strategy.
In the context of international cooperation, during the first half of the 2018, the representatives of the SFMS effectively participated in the 56th Plenary Session of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism – MONEYVAL as well as in the Plenary Meetings of the Working Groups of the Egmont Group of Financial intelligence units.
Press-service of the SFMS