Following the results of the conducted in the first half of 2018 research of risks related to the use of non-profit organizations in ML and/or FT schemes, the SFMS has prepared the survey on the use of non-profit organizations for illegal purposes.
The results of the research indicate that non-profit organizations may be used directly for the purpose of committing a predicate offence and/or for ML and/or FT, as well as may serve as a cover for the illegal activities of other related entities.
The advantage of the use of non-profit organizations in criminal schemes (committing predicate offences, ML, FT) is that criminals may benefit twice: firstly, create a means for such unlawful actions, and, secondly, provide cover for their activities.
In 2017, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) conducted the 5th round of mutual evaluation of the Ukrainian AML/CFT system. Following the results of this evaluation, among other things, the risk of the use of non-profit organizations for illegal purposes has been emphasized. The results of this research may be used to reduce potential ML and\or FT risks with the participation of non-profit organizations.
Also, this research may assist state authorities and private sector to identify risks of the use of non-private organizations for illegal purposes.
The represented survey is published on the official SFMS’s web-site (www.sdfm.gov.ua) in section «Organization of financial monitoring/Methodical recommendations on financial monitoring organization.”