Following the results of the conducted during 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 “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.
According to the results of conducted MONEYVAL 5th round of mutual evaluation of Ukrainian AML/CFT system, Ukraine has a fairly good understanding of its ML/FT risks, but the NPO sector used for illegal purposes needs constant updating of knowledge and its deepening.
The results of this research may be used to reduce potential ML and\or FT risks with the participation of non-profit organizations.
Understanding the threats and ways of NPOs illicit use and evaluating the risks involved will allow mitigating the possibility of their involvement in the laundering of criminal proceeds, terrorism and separatism financing.
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.”
Press-service of the SFMS