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, for the 9 months of 2018, the SFMS prepared 752 cases (388 case referrals and 364 additional case referrals), which were submitted to:
- Prosecution authorities 130 cases (33 case referrals and 97 additional case referrals);
- State Fiscal Service of Ukraine 155 cases (129 case referrals and 26 additional case referrals);
- Internal Affairs Authorities of Ukraine 86 cases (71 case referrals and 15 additional case referrals);
- Security Service Authorities of Ukraine 132 cases (75 case referrals and 57 additional case referrals);
- National Anti-Corruption Bureau of Ukraine 249 cases (80 case referrals and 169 additional case referrals).
The abovementioned case referrals contain information regarding financial transactions related to legalization (laundering) of the proceeds from crime and commitment of other criminal offenses, defined by the Criminal Code of Ukraine, amounting to UAH 328.5 billion.
The SFMS pays special attention to investigation of money laundering from corruption, theft and appropriation of state funds and property.
Thus for the 9 months of 2018 the SFMS has submitted 266 such cases to the law enforcement authorities (83 case referrals and 183 additional case referrals), in particular to:
- National Anti-Corruption Bureau of Ukraine – 249 cases;
- Prosecution authorities of Ukraine – 11 cases;
- Security Service Authorities of Ukraine – 6 cases.
In addition, 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 for the 9 months of 2018 the SFMS has submitted 91 such cases to the law enforcement authorities (39 case referrals and 52 additional case referrals), in particular to:
- Prosecution authorities of Ukraine – 89 cases;
- Security Service Authorities of Ukraine – 2 cases.
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, for the 9 months of 2018 the SFMS submitted to the law-enforcement authorities 74 cases (34 case referrals and 40 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:
- 31 case referrals(7 case referrals and 24 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;
- 7 case referrals(5 case referrals and 2 additional case referrals), related to the financial transactions conducted by the persons, included to the Attachments of the National Security and Defense Council of Ukraine Resolution of 28.04.2017 and of 21.06.2018, implemented by the Decrees of the President of Ukraine of 15.05.2017 №133/2017 and of 21.06.2018 № 176/2018;
- 10 case referrals(9 case referrals and 1 additional case referral), 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;
- 25 case referrals(12 case referrals and 13 additional case referrals), related to suspicions in financing of illegal armed formations of occupied regions of Donetsk and Luhansk oblasts);
- 1 case referral, related to suspicions in violation of sanction regime regarding North Korea.
Materials are sent to the Security Service of Ukraine and the Prosecutor General’s Office of Ukraine.
For the 9 months of 2018, the SFMS submitted 36 cases regarding the suspension of financial transactions (expense financial transactions). Following the results of the 77 decisions made it was suspended funds amounting to UAH 28.8 million.
In order to increase the efficiency of interagency cooperation, for the 9 months 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 22 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 as well as Protocol on deregistration reporting entities due to termination of their activity with the National Securities and Stock Market Commission.
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 70 educational events held for more than 2545 people – national financial monitoring system participants;
- 3 meetings of the Working Group on problematic Issues of the reporting entities - banking and non-banking Institutions was held.
As part of the coordination of cooperation with the public, the SFMS has organized 4 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» general information was provided to the Cabinet of Ministers of Ukraine 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 9 months 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.
In particular, at the 25th Plenary Meeting of the Egmont Group of Financial Intelligence Units, held from September 24 to 27, 2018 in Sydney, Australia the State Financial Monitoring Service of Ukraine investigation won the «Best Egmont Case Award (BECA)» contest.
Press-service of the SFMS