State Financial Monitoring Service of Ukraine http://www.fiu.gov.ua/ /en/pages/dijalnist/funkcional/news/derzhfinmonitoring-do-peremogi-ukrajini-razom-26-04-2024.html News 2024-04-26 12:30:00   /en/pages/dijalnist/funkcional/news/Informuvanna-pro-resultaty-roboty-Derzhfinmonitoryngu-za-1-kvatal-2024-roku.html The State Financial Monitoring Service of Ukraine (SFMS), as the financial intelligence unit of Ukraine, under wartime takes enhanced practical and organizational measures to counteract to... News 2024-04-23 09:30:00 The State Financial Monitoring Service of Ukraine (SFMS), as the financial intelligence unit of Ukraine, under wartime takes enhanced practical and organizational measures to counteract to legalization (laundering) of the proceeds from crime, financing of terrorism and financing of proliferation of the weapons of mass destruction (hereinafter – AML/CFT/CPF), which are based on the implementation of: - the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction”, acts of the Cabinet of Ministers of Ukraine and the Ministry of Finance of Ukraine; - Action Plan aimed at preventing and/or mitigating the negative consequences of the risks identified by the results of the third national AML/CFT/CPF risk assessment for the period up to 2026 (Order of the CMU dated 27.12.2023 № 1207-p); - The SFMS Strategic Development Programme for up to 2024; - The SFMS Activity Priorities for the period of martial law, approved by the Ministry of Finance of Ukraine. This work is carried out in coordination with national and international partners in terms of taking effective practical steps, including those of an international legal nature, in order to impose effective sanctions on the terrorist state’s actions. Continuing the work started after imposition of wartime, the SFMS official website has published key statistical data on the work of the financial intelligence unit in the international and domestic arena on a weekly basis. Collection and processing of information During the 1st quarter of 2024, the SFMS registered 377 503 reports on financial transactions subject to financial monitoring, received from the reporting entities, including: - 61 263 suspicious transactions (activities) reports; - 315 751 threshold transactions reports; - 105 threshold and suspicious transactions (activities) reports; - 384 reports on the request for financial transactions monitoring. Analytical research   In the 1st quarter of 2024, the SFMS sent 273 referrals to law enforcement agencies (148 case referrals and 125 additional case referrals), in particular to: - the Security Service of Ukraine – 71 referrals (41 case referrals and 30 additional case referrals); - the National Police bodies – 65 referrals (52 case referrals and 13 additional case referrals); - the National Anti-Corruption Bureau of Ukraine – 49 referrals (10 case referrals and 39 additional case referrals); - the State Bureau of Investigation – 40 referrals (14 case referrals and 26 additional case referrals); - the Economic Security Bureau of Ukraine – 28 referrals (21 case referrals and 7 additional case referrals); - the prosecutors’ offices – 20 referrals (10 case referrals and 10 additional case referrals). In these referrals, the amount of financial transactions that may be related to legalization of funds and commission of a criminal offense amounted to UAH 21,8 billion. In the 1st quarter of 2024, the amount of financial transactions suspended and blocked funds by the SFMS is equivalent to more than UAH 2,1 billion. Currently, the main activity of the SFMS is the detection of financial transactions and persons related to the financing of terrorism/separatism, military aggression by the RF against Ukraine, forcible change or overthrow of the constitutional order or seizure of state power, change of the boundaries of the territory or state border. Thus, in the 1st quarter of 2024, the SFMS sent 38 such referrals to law enforcement agencies, which were divided into the following components (5 referrals containing several components): - 4 case referrals containing suspicions of financial transactions or their participants that may be related to the financing of terrorism/separatism; - 1 case referral containing information on the freezing of the assets of a client included in the list of persons related to terrorist activities or subject to international sanctions; - 16 referrals (15 case referrals and 1 additional case referral) containing suspicions of financial transactions or their participants that may be related to the military aggression of the RF against Ukraine and the implementation of collaborative activities on suspicion of treason, forcible change or overthrow of the constitutional order or seizure of state power, change of territory or state border, including with the participation of 1 non-profit organization; - 22 referrals (14 case referrals and 8 additional case referrals) containing suspicions of financial transactions or their participants subject to restrictive measures (sanctions). Within the framework of international cooperation on information exchange, as well as the identification and suspension/freezing of assets belonging to persons who organize, ensure and provoke the conduct of an aggressive war of the RF against Ukraine, and other persons, the SFMS carries out constant analytical work, within the framework of which, in particular, 15 requests have been submitted to 13 foreign financial intelligence units. Joint analytical researches are ongoing. In addition, a representative of the SFMS participates in the operative group Task Force to identify and seize assets belonging to persons who organize, support and provoke the RF’s aggressive war against Ukraine, both in Ukraine and abroad, for the purpose of their further transfer to the state budget of Ukraine to rebuild its destroyed infrastructure. The SFMS also conducts financial investigations into the laundering of funds of corruption, embezzlement and misappropriation of public funds and property. Thus, in the 1st quarter of 2024, the SFMS sent to law enforcement agencies 64 referrals (14 case referrals and 50 additional case referrals), that are related to the suspicion of corruption, in particular to: - the National Anti-Corruption Bureau of Ukraine – 49 referrals (10 case referrals and 39 additional case referrals); - the State Bureau of Investigation – 13 referrals (2 case referrals and 11 additional case referrals); - the Prosecutor General’s Office – 1 case referral; - the Economic Security Bureau of Ukraine – 1 case referral. In these referrals, the amount of financial transactions that may be related to legalization of funds and commission of a criminal offense was UAH 6,9 billion. Cooperation with financial monitoring entities and public In the framework of cooperation with the private sector, the SFMS continues testing the exchange of information with the reporting entities by means of the Information and Telecommunication System “Electronic Cabinet of the Financial Monitoring System”, implemented with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI). At the same time, during the period of martial law, the SFMS is focused on cooperation with public. Therefore, on February 23, 2024, the sixth meeting of the Public Council under the SFMS took place. During the meeting, the representative of the SFMS informed attendees about the implementation by the SFMS in 2023 of the state AML/CFT/CPF policy under martial law. In addition, for the implementation of part two of Article 36 of the Law of Ukraine “On prevention and counteraction to legalization (laundering) of the proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction”, the SFMS submitted report on the AML/CFT/CPF state for 2023 (hereinafter – the Report) to the Verkhovna Rada of Ukraine. The Report contains information on the results of the activities of the AML/CFT/CPF system participants for 2023, taking into account the armed aggression of the RF against Ukraine. In addition, pursuant to clause 14 of the Procedure for forming and publishing the complex administrative reporting in the area of preventing and counteracting to legalization (laundering) of the proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 692 of August 05, 2020, the comprehensive administrative reporting for 2023 was published on the official website of the SFMS. At the same time, on January 23, 2024, the SFMS held a meeting with representatives of the NPO sector as part of the implementation of the tasks of the Working Group on National Risk Assessment, where they discussed Ukraine’s compliance with the requirements of FATF Recommendation 8 and raising awareness by NPO of the existing risks for NPO sector to be involved (used) for money laundering or terrorist financing. In addition, within the framework of interagency cooperation, representatives of the SFMS took part in the workshop “Mission Possible. Determining the Ultimate Beneficial Owner (UBO) in Public and Charitable Organizations under the New Rules” (March 26, 2024). International events Based on open sources of information, the SFMS has prepared a visualization «Global picture of protection of the international financial system from the ML/FT/PF risks generated by the RF as a result of the invasion of Ukraine». This visualization demonstrates the state of the AML/CFT/CPF Global International Financial System before and after the RF invasion of Ukraine, as of February 2024, specifically: - a disruption of ties between key international organizations and jurisdictions with RF, which is aimed at ensuring the integrity and stability of the global international financial system; - the RF’s deliberate destructive steps to destroy the international financial system’s security infrastructure, in particular by creating gateways to it for countries under sanctions of the UN Security Council and «blacklisted» by the FATF; - the RF’s actions contradict the conclusions of the 2019 Mutual Evaluation Report and require a response from the FATF. Cooperation with the Financial Action Task Force (FATF) During the 1st quarter of 2024, there was a constant exchange of information between the SFMS and the FATF regarding the situation in Ukraine related to the full-scale invasion of the RF. From February 19 to 23, 2024, the SFMS, with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, took part in the regular FATF Plenary meeting and the relevant Working groups’ meetings held in Paris (France). Following the consideration of the issue of sanctions against the RF, the FATF issued a Statement, which is published on the official FATF website. According to the statement, FATF members note with concern the potential risks to the international financial system, including growing financial connectivity of Russia with countries subject to FATF countermeasures, risks of proliferation financing, and malicious cyber activities and ransomware attacks. Due to the gravity of these risks, many FATF members are taking proactive measures to protect themselves and the global financial system. The FATF calls upon all jurisdictions to continue to remain vigilant due to the above-mentioned risks. As they have done since the Russian Federation commenced its war of aggression, FATF members will continue to monitor the situation and the risks posed to the global financial system. As a suspended member of the FATF, the Russian Federation still remains accountable for its obligation to implement the FATF Standards. In addition, given the second anniversary of the beginning of the RF’s aggression against Ukraine, the FATF recalls its Statement of 24 February 2023. The outcomes of this FATF meeting are available on the official website of the SFMS in the section Main/Activity/International Cooperation/Statements of International organizations. Moreover, the SFMS has summarized all FATF Statements on the RF’s risks since the beginning of its full-scale invasion of Ukraine. Cooperation with the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) In the reporting quarter, the SFMS cooperated with MONEYVAL in the preparation of the typological study “Proceeds and Conflicts”. Ukraine is a team leader of the project aimed at identifying trends and typologies of money laundering/terrorist financing related to military conflicts, as well as sharing best practices and potential risk mitigation actions. The project will examine scenarios before, during and after military conflicts that fuel financial crimes, as well as illegitimate methods of conflicts financing. Among the issues to be investigated under the typology are the analysis of the use of crowdfunding, virtual assets, online payment systems, and the procurement of dual-use goods to obtain funds or assets to support conflicts. Sanctions evasion schemes, such as concealment or disguise of ownership of legal entities, corruption, fraud and misappropriation, will also be considered. The project team, in addition to Ukraine, includes representatives from Jersey, Lithuania and the Republic of Moldova. Cooperation with the Egmont Group of Financial Intelligence Units (EG) From January 30 to February 1, 2024, with the assistance of the Special Representative of the OSCE Chairman-in-Office - Project Coordinator in Ukraine, the representatives of the SFMS took part in the Egmont Working and Regional Group meetings, held in Saint Julian’s, the Republic of Malta. Within the framework of these meetings, the representatives of the SFMS held working meetings with the Interim Chair of the Egmont Group and the Regional Representative of the Europe II Regional Group. At the same time, a representative of the SFMS took part in a Joint Council of Europe and Egmont Group Training of Trainers Strategic Analysis Course based on the course of the Egmont Centre of FIU Excellence and Leadership (ECOFEL) (March 11-13, 2024, Strasbourg, France). As a reminder, the participation of the RF’s Financial Intelligence Unit in the Egmont Group has been suspended since October 18, 2023. Other international activities of the financial intelligence Representatives of the SFMS took part in: - the online presentation of the methodology for preparation of the NPO Sectoral Risk Assessments (Greenacre), developed by the EU AML/CFT Global Facility (January 17, 2024); - online meeting with representatives of the «Finance Against Slavery and Trafficking» initiative (FAST) (January 24, 2024); - online expert meeting with an international expert from the Council of Europe to discuss the technical document “Assessment of the Response of the Government of Ukraine to the Requirements of FATF Recommendation 8 and Immediate Outcome 10” (March 05, 2024); - workshop on legislative support related to virtual assets, organized by the Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) (February 05 - 09, 2024, Warsaw, Poland); - Virtual Assets Task Force workshop, and meetings on IT issues (March 11-15, 2024, Warsaw, Poland); - Conference of the Council of Europe “Enhancing the Strategic Analysis function of the FIUs – experiences, needs and challenges” (Warsaw, Poland, March 20-21, 2024). /en/pages/dijalnist/funkcional/news/FATF-opublikovano-deklaracziyu-ministriv-grupi-z-rozrobki-finansovix-zaxodiv-borotbi-z-vidmivannyam-groshej-FATF.html On April 18, 2024, following the Ministerial Meeting of the Financial Action Task Force (FATF) in Washington, DC, the FATF issued a Declaration in which FATF Ministers reaffirmed their unwavering... News 2024-04-19 15:30:00 On April 18, 2024, following the Ministerial Meeting of the Financial Action Task Force (FATF) in Washington, DC, the FATF issued a Declaration in which FATF Ministers reaffirmed their unwavering commitment to combat financial crime, and fully support the FATF as the global standard-setter for preventing and combatting money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction (AML/CFT/CPF). In the Declaration, the Ministers recall the February 2023 FATF Public Statement on the suspension of the Russian Federation’s membership, noting that ongoing, illegal, unprovoked and unjustified invasion of Ukraine runs counter to the FATF’s core principles and represents a gross violation of the commitment upon which FATF Ministers agree to implement and support the FATF Standards as well as call upon all jurisdictions to remain vigilant of threats to the integrity, safety and security of the international financial system arising from the Russian Federation’s war against Ukraine. In the context of the implementation of the FATF standards, Ministers noted that despite significant progress made, there continue to be gaps in effective implementation of the FATF Standards and committed to swiftly implement measures to improve effectiveness of outcomes in tackling money laundering, terrorism financing and proliferation financing. The Ministerial Declaration also states that further effort is required on supervision and preventive measures, beneficial ownership transparency, investigating and prosecuting money laundering, and confiscating the proceeds of crime. Ministers reaffirmed their commitment to support jurisdictions to put in place the tools needed to protect the financial system and the broader economy from the threats of illicit finance. Ministers also committed to fully, swiftly and effectively implementing the FATF Standards and hold accountable any members that fail to do so. Considering the serious ongoing threat of terrorism in many regions of the world, the FATF will also continue its strategic focus on countering terrorist financing, and encourage all jurisdictions to strengthen cooperation to better detect, investigate, prosecute and disrupt terrorist financiers. Ministers highlighted the significant threat posed by the proliferation of weapons of mass destruction (WMD) to international peace and security. Noting the FATF’s reinforcement of the global response to this threat by adopting measures to help countries and the private sector to identify and assess risks of any breach, they encouraged all jurisdictions to implement these measures to prevent WMD proliferators from raising and moving funds. Ministers also committed to supporting countries, including the Global Network, in their effective implementation of the FATF standards and monitoring evolutions in finance and technology. Given that Ukraine is involved in the FATF meetings, especially in the context of issues related to the sanctions against Russia, Igor Cherkaskyi, Head of the State Financial Monitoring Service of Ukraine, positively noted that the Ministerial Declaration focused on and once again condemned the Russian aggression against Ukraine. “We remain convinced that it is necessary to consolidate joint decisive efforts for stronger and more convincing steps aimed at ensuring the integrity and security of the Global financial system from the risks and threats posed by the Russian Federation”, Igor Cherkaskyi noted. FATF Ministers will meet next in April 2026. /en/pages/dijalnist/funkcional/news/vidbuvsya-mizhvidomchij-naczionalnij-forum-strategiya-rozvitku-sistemi-finansovogo-monitoringu-v-ukrajini-2024-2026.html On April 18, 2024, a National Interagency Forum “Strategy for the development of the financial monitoring system in Ukraine 2024-2026” was held, organized by the State Financial Monitoring Service of... News 2024-04-18 14:39:00 On April 18, 2024, a National Interagency Forum “Strategy for the development of the financial monitoring system in Ukraine 2024-2026” was held, organized by the State Financial Monitoring Service of Ukraine and the Academy of Financial Monitoring with the support of the Special Representative of the OSCE Chairman-in-Office - Project Coordinator in Ukraine. The forum was held in a virtual format with the participation of representatives of the public and private sectors, including the non-profit sector. A wide range of issues were discussed during the event devoted to the specifics of the strategy for developing the AML/CFT system as well as actual development trends in this area. Opening remarks at the Forum were made by the Special Representative of the OSCE Chairman-in-Office - Project Coordinator in Ukraine, the First Deputy Minister of Finance of Ukraine and the First Deputy Head of the State Financial Monitoring Service of Ukraine. According to the agenda, the Forum participants heard presentations from representatives of the Ministry of Finance, the State Financial Monitoring Service, the Prosecutor General’s Office, the National Bank of Ukraine, the National Securities and Stock Market Commission, the National Anti-Corruption Bureau of Ukraine, the Academy of Financial Monitoring, etc. The following issues were considered and discussed: the main trends in the formation of state policy in the field of financial monitoring; conceptual foundations of the financial monitoring system development strategy and the National Action Plan until 2026, approved by the Order of the Government of Ukraine No. 1207 of December 27, 2023; development of the state financial monitoring system in the banking sector, the financial services market and crypto-assets market; reforming the professional training system of the financial intelligence system; formation of complex administrative reporting as a base of quantitative information for the National Risk Assessment. The ways to improve the system of investigating money laundering and terrorist financing crimes and the specifics of financial investigations as a tool to fight corruption were separately considered. In the conditions of martial law, the financial monitoring system functions and adapts its activity priorities and resources to perform tasks, including for countering the aggressor country and ensuring the imposition of sanctions on it. _____________________________________________ /en/pages/dijalnist/funkcional/news/shhodo-publichnogo-zvitu-golovi-derzhfinmonitoringu-za-2023-rik.html Pursuant to Article 45 of the Law of Ukraine “On Civil Service” and Typical Procedure for Public Reporting of the Head of the Executive Body, approved by Order of the National Agency of Ukraine on... News 2024-04-05 15:30:00 Pursuant to Article 45 of the Law of Ukraine “On Civil Service” and Typical Procedure for Public Reporting of the Head of the Executive Body, approved by Order of the National Agency of Ukraine on Civil Service of 20.12.2016 No. 277 and registered with the Ministry of Justice of Ukraine on 11.01.2017 No. 28/29896, taking into account the introduction of the martial law in Ukraine and its consequences, the materials of the Public Report of the Head of the SFMS Igor Cherkaskyi for 2023 are presented. These materials cover the activities of the SFMS in the implementation of the AML/CFT/CPF state policy which is carried out in the conditions of Russia’s full-scale armed aggression (bloody war) against Ukraine. The SFMS, together with state institutions, reporting entities and civil society, continued to take measures at the international and domestic levels to impose sanctions on Russia as a sponsor of terrorism. On a daily basis, a set of practical measures has been implemented to identify and block collaborators, traitors and those who contribute to the financing of Russia’s aggression. International cooperation has been intensified, and this work has yielded results. Russia’s membership in the FATF and the Egmont Group of Financial Intelligence Units was suspended. Russia’s actions were recognized as those run counter to the FATF principles and a gross violation of the FATF Standards. We continue to implement measures to isolate the terrorist country on the international arena. Also, cooperation with foreign regulators for preventive measures regarding Russia’s business has been deepened, uninterrupted collection, processing and analysis of suspicious financial transactions and support of legal steps in the area of combating money laundering on the way to Ukraine’s EU accession have been ensured. Last year, as part of national interagency activities, the SFMS prepared and submitted to law enforcement agencies more than 1,100 referrals for over UAH 100 billion of suspicious transactions. Financial transactions for more than UAH 4 billion were blocked on more than 800 accounts of collaborators and other persons, and more than 50 cases of suspected treason were investigated. In addition, at the end of 2023, the Government approved an Action Plan developed by the SFMS and supported by the Ministry of Finance of Ukraine to reduce the negative impact of risks that were identified as a result of the third National Risk Assessment. In the current and subsequent years, the SFMS will carry out coordination work to implement this Plan. In addition, in 2023, the SFMS summarized the AML/CFT/CPF administrative reporting, conducted a regular typological study, and ensured further training of AML/CFT/CPF specialists on the basis of the Academy of Financial Monitoring. As part of public relations, the SFMS official website and social media pages provided prompt weekly information to civil society on the results of the SFMS activities during martial law, as well as quarterly reporting on the results of its work. Separately, at the SFMS Public Council meeting (February 23, 2024), members of civil society were informed in detail about the implementation of the AML/CFT/CPF state policy by the SFMS under martial law in 2023. The SFMS, together with national and international partners, with the support of the private sector, continues to take comprehensive measures with the aim of further imposing sanctions on Russia on the international arena and to take proactive steps to the complete Victory of Ukraine over the aggressor. The materials of the Public Report are available on the official website of the SFMS in the section Main/Activity/Functions/Activity reports/2023/Report of the State Financial Monitoring Service of Ukraine 2023. Glory to Ukraine! Glory to the Armed Forces of Ukraine! _____________________________ /en/pages/dijalnist/funkcional/news/kanada-zaprovadzhuje-posileni-zaxodi-obachnosti-shhodo-rf-u-finansovij-sferi.html On February 24, 2024, following the FATF Public Statement, Chrystia Freeland, the Deputy Prime Minister and Minister of Finance of Canada, issued a Directive on Financial Transactions Associated with... News 2024-02-29 16:00:00 On February 24, 2024, following the FATF Public Statement, Chrystia Freeland, the Deputy Prime Minister and Minister of Finance of Canada, issued a Directive on Financial Transactions Associated with Russia for Entities Regulated by the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (https://www.gazette.gc.ca/rp-pr/p1/2024/2024-02-24/html/notice-avis-eng.html#ne5). The Directive requires that every financial transaction related to Russia, regardless of its amount, be treated as a high-risk transaction and establishes corresponding enhanced obligations for due diligence, monitoring and record-keeping of such financial transactions. It applies to all transactions originating from or bound for Russia, and covers transfers using national and virtual currency. This decision is due to the fact that the anti-money laundering and anti-terrorist financing measures that Russia has implemented are ineffective and insufficient and, as a result there could be an adverse impact on the integrity of the Canadian financial system. In this regard, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) issued guidance explaining such financial transactions and measures for their verification and monitoring (https://fintrac-canafe.canada.ca/obligations/dir-rus-eng). In particular, transactions originating from or bound for Russia may include, but are not limited to: electronic funds transfers, remittances or other transfers that include a Russian originating or destination address - this may include transactions where the ordering person or entity, beneficiary, or third party details are Russian the activities of representatives of the Government of Russia (for example, transactions on an Embassy of Russia's bank account in Canada) receiving Russian ruble as a deposit to an account or for a virtual currency transaction conducting a foreign currency or virtual currency exchange transaction that includes Russian ruble (for example, Canadian dollar to Russian ruble, Russian ruble to US dollar, virtual currency to Russian ruble, etc.); and issuing or redeeming bank drafts or other negotiable instruments that include a Russian ruble component. As of today, the Directives of the Minister of Finance of Canada under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act apply to transactions with three countries - North Korea (since 2017), Iran (since 2020) and, since February 24 this year - Russia. These measures are in line with the risk-based approach envisaged by the FATF Standards, are aimed at protecting against reputational risks and threats to the integrity of the Canadian financial system, and more broadly implement the decisions and calls of international organizations. The SFMS expresses sincere gratitude to the partners from Canada, including the Financial Intelligence Unit of Canada (FINTRAC) for their consistent position on protecting the Global financial system from risks and threats emanating from Russia. In this context, we also note that on the eve of February 23, 2024, the U.S. Department of State published important guidance for businesses on the Risks and Considerations for Doing Business in the Russian Federation and Russia-Occupied Territories of Ukraine (https://www.state.gov/russia-business-advisory/). The SFMS, together with national and international partners, continues its work and calls up on other jurisdictions to take enhanced measures against Russia in relation to its risks and threats in the field of prevention and counteraction to money laundering, terrorist financing and financing the proliferation of weapons of mass destruction. /en/pages/dijalnist/funkcional/news/plenarne-zasidannya-FATF-pidtverdilo-potenczijni-riziki-rf-dlya-mizhnarodnoji-finansovoji-sistemi-ta-prodovzhilo-zupinennya-chlenstva-rf-v-organizacziji.html On February 19-23, 2024, the SFMS, under the quota of the Council of Europe's MONEYVAL Committee and with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, took part in the... News 2024-02-23 18:00:00 On February 19-23, 2024, the SFMS, under the quota of the Council of Europe's MONEYVAL Committee and with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, took part in the regular FATF Plenary meeting and the relevant Working Groups’ meetings held in Paris, France. These meetings took place on the eve of the second anniversary of the unprovoked, full-scale and bloody invasion of Ukraine by the RF. During the FATF Plenary week, a number of issues related to global AML/CFT/CPF measures taken by the FATF and its members were considered. It was important for Ukraine to consider further sanctions against the RF for its violation of the AML/CFT/CPF Standards, which create daily growing risks and threats as a result of its ongoing bloody aggression against Ukraine. Following the Plenary meeting, the FATF issued a Statement, which is available on its official website. According to the Statement, FATF members note with concern the potential risks to the international financial system, including the growing financial connectivity of Russia with countries subject to FATF countermeasures, risks of proliferation financing, and malicious cyber activities and ransomware attacks. Due to the gravity of these risks, many FATF members are taking proactive measures to protect themselves and the global financial system. The FATF calls upon all jurisdictions to continue to remain vigilant due to the above-mentioned risks. As they have done since the Russian Federation commenced its war of aggression, FATF members will continue to monitor the situation and the risks posed to the global financial system. As a suspended member of the FATF, the Russian Federation still remains accountable for its obligation to implement the FATF Standards. Also, taking into account the second anniversary of the beginning of the Russian aggression against Ukraine, the FATF recalls its Statement of 24 February 2023. In the framework of the meetings, the SFMS held significant number of bilateral meetings with delegations of the FATF member states and other participants of the Plenary, where further joint actions to protect the international financial system, including from the risks posed by the RF were discussed. At the end of the FATF Plenary meeting, the Head of the State Financial Monitoring Service of Ukraine, Igor Cherkaskyi, noted the unity of the positions of member states delegations on the upholding the decision to suspend RF's membership in the FATF. Igor Cherkaskyi also expressed his gratitude for the progress and confirmed that the work on studying the risks and threats posed by the RF to the global financial system continues. Communication with the FATF regarding the appropriate response will also be implemented. The State Financial Monitoring Service of Ukraine will continue to take measures to respond to the risks and threats posed by the RF in the area of money laundering, terrorist financing and financing the proliferation of weapons of mass destruction, as well as to impose sanctions on the aggressor country. /en/pages/dijalnist/funkcional/news/5721-derzhfinmonitoring-zabezpechuje-pidgotovku-do-chergovogo-zasidannya-FATF.html From February 19 to 23, the State Financial Monitoring Service of Ukraine (hereinafter – the SFMS) (under the quota of the Council of Europe's MONEYVAL Committee and with the support of the EU... News 2024-02-15 15:00:00 From February 19 to 23, the State Financial Monitoring Service of Ukraine (hereinafter – the SFMS) (under the quota of the Council of Europe's MONEYVAL Committee and with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project) will participate in the FATF Plenary and relevant Working group meetings in Paris (French Republic). These meetings will be held on the eve of the second anniversary of the unprovoked, full-scale and bloody invasion of Ukraine by the RF. During these meetings, among other issues on the agenda, it is planned to consider an important issue for Ukraine regarding the FATF’s further response to the violation by the RF of the AML/CFT/CPF Standards as a result of the ongoing Russian aggression against Ukraine. In this regard, the SFMS has prepared a visualization “Global picture of protection of the international financial system from the AML/CFT/CPF risks generated by the RF as a result of the invasion of Ukraine”. The visualization is available here. This visualization clearly demonstrates: the state of the Global AML/CFT/CPF financial system before and after the Russian invasion of Ukraine [as of February 2024]; changes in the functioning of key actors in the Global AML/CFT/CPF financial system before and after Russia’s invasion of Ukraine; disruption of ties between key international organizations and jurisdictions with the RF after its invasion, which is aimed at ensuring the integrity and stability of the Global AML/CFT/CPF financial system; targeted destructive steps to destroy the Global AML/CFT/CPF financial system’s security infrastructure, in particular by creating gateways to it for countries under sanctioned by the UN Security Council and blacklisted by the FATF. The SFMS fully ensures the fulfillment of its obligations to maintain the confidentiality of closed FATF processes. In this context, the visualization is based on the analysis of exclusively open sources information and public data. Currently, the focus should be on curbing Russia’s growing efforts to strengthen its ties with Iran and North Korea, which have direct signs of violations of UN Security Council Resolutions and, therefore, certain FATF Recommendations. In this regard, on the eve of the meetings, the Ministry of Finance of Ukraine jointly with the SFMS issued a press release, which can be found here. “A year since the FATF suspension, russia’s deliberate non-compliance with FATF principles and UN sanctions, increasing non-transparency and continued malicious cyber activities are making it one of the riskiest jurisdictions for financial crime. Indisputable evidence continues to mount that russia’s illicit activities threaten global peace and security. We are confident that FATF will treat this issue with utmost urgency during the upcoming plenary to help protect global financial security,” Head of the State Financial Monitoring Service of Ukraine Igor Cherkaskyi said. /en/pages/dijalnist/funkcional/news/predstavniki-derzhfinmonitoringu-vzyali-uchast-u-zasidannyax-robochix-i-regionalnix-grup-egmontskoji-grupi.html From 30 January to 1 February 2024, with the assistance of the OSCE Support Program for Ukraine, the representatives of the SFMS took part in the Egmont Working and Regional Group Meetings, which... News 2024-02-02 12:55:00 From 30 January to 1 February 2024, with the assistance of the OSCE Support Program for Ukraine, the representatives of the SFMS took part in the Egmont Working and Regional Group Meetings, which were held in Saint Julian’s, Republic of Malta. The representatives of the SFMS participated in the meetings of the Europe II Regional Group, the Egmont Working Group Meetings and the HoFIU meeting, where they focused their attention on the current development issues of the AML/CFT/CPF system. Within the framework of these meetings, the representatives of the SFMS held working meetings with the Interim Chair of the Egmont Group and the Regional Representative of the Europe II Regional Group. A number of meetings with partners were also held, where positions and further steps to maintain the integrity of global financial intelligence were agreed upon. In addition, in order to present the current threats of ML/FT, a presentation of a case related to the investigation of transactions using virtual assets and key conclusions were made. Also, the representatives of the SFMS took part in a workshop on tackling trade/service based money laundering and misuse of corporate structures, as well as on illicit financial flows from cyber-enabled fraud, held as part of the above-mentioned meetings. /en/pages/dijalnist/funkcional/news/Informuvannya-pro-rezultati-roboti-derzhfinmonitoringu-za-2023-rik.html The State Financial Monitoring Service of Ukraine (SFMS), as the Financial Intelligence Unit of Ukraine, under wartime takes enhanced practical and organizational measures to prevent and counteract... News 2024-01-22 09:30:00 The State Financial Monitoring Service of Ukraine (SFMS), as the Financial Intelligence Unit of Ukraine, under wartime takes enhanced practical and organizational measures to prevent and counteract to the legalization (laundering) of the proceeds of crime, the financing of terrorism and the financing of proliferation of the weapons of mass destruction (hereinafter – AML/CFT/CPF), which are based on the implementation of: - Law of Ukraine “On prevention and counteraction to the legalization (laundering) of the proceeds of crime, the financing of terrorism and the financing of proliferation of the weapons of mass destruction (hereinafter – Basic Law), acts of the Cabinet of Ministers of Ukraine and the Ministry of Finance of Ukraine; - On Approval of Main Directions of the Development of the Prevention and Counteraction to Legalization (Laundering) of the Proceeds of Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction system in Ukraine for up to 2023 and Action Plan for Their Implementation (Regulation of the CMU of 12 May 2021 No. 435r); - SFMS Strategic Development Programme for up to 2024; - SFMS Activity Priorities for the period of martial law, approved by the Ministry of Finance of Ukraine. This work is carried out in coordination with national and international partners in terms of taking effective practical steps, including those of an international legal nature, in order to impose effective sanctions on the actions of a terrorist state. On the official website of the SFMS, continuing the work started after the imposition of martial law, key statistical data on the work of the Financial Intelligence Unit in the international and domestic arena were published on a weekly basis. Collection and processing of information During 2023, the SFMS registered 1 429 594 reports on financial transactions, subject to financial monitoring received from the reporting entities, including: - 155 369 suspicious financial transactions (activities) reports; - 1 260 269 threshold transactions reports; - 178 threshold and suspicious transactions (activities) reports; - 13 778 reports on the request for financial transactions monitoring. Analytical research In 2023, the SFMS sent 1 122 referrals (608 case referrals and 514 additional case referrals) to law enforcement agencies, in particular to: - the Security Service of Ukraine – 348 referrals (194 case referrals and 154 additional case referrals); - the National Police of Ukraine – 278 referrals (212 case referrals and 66 additional case referrals); - the National Anti-Corruption Bureau of Ukraine – 167 referrals (47 case referral and 120 additional case referrals); - the Economic Security Bureau of Ukraine – 119 referrals (71 case referrals and 48 additional case referrals); - the State Bureau of Investigation – 109 referrals (54 case referrals and 55 additional case referrals); - the prosecutors’ offices – 101 referrals (30 case referrals and 71 additional case referrals). In these referrals, the amount of financial transactions that may be related to legalization of the proceeds and commission of a criminal offense totaled UAH 102,1 billion. In 2023, the amount of financial transactions suspended and funds blocked by the SFMS totaled the equivalent of UAH 4,1 billion. Currently, the main activity of the SFMS is the detection of financial transactions and persons related to the financing of terrorism/separatism and military aggression by the Russian Federation (RF) against Ukraine (including the activities of sabotage and intelligence groups; collaborative activities; public calls by individuals to change or overthrow the constitutional order or change the boundaries of the territory or state border of Ukraine; persons subject to sanctions). Thus, in 2023, the SFMS sent to law enforcement agencies 267 referrals related to the financing of terrorism/separatism and military aggression by the RF against Ukraine. Such referrals are divided into the following components by the areas of investigation (32 referrals contain several components): - 33 referrals (23 case referrals and 10 additional case referrals) on financial transactions or their participants, in relation to which there are suspicions of terrorism/separatism and their financing (including the financing of illegal armed groups in the temporarily occupied territories of Ukraine); - 103 referrals (95 case referrals and 8 additional case referrals) on financial transactions or their participants that may be related to military aggression by the RF against Ukraine; collaboration activities; publicly calling for violent change or overthrow of the constitutional order or seizure of state power, change of territory or state border, including those with the participation of 9 non-profit organizations; - 163 referrals (59 case referrals and 104 additional case referrals) on legal entities and individuals or their associates, to whom restrictive measures (sanctions) were applied. Within the framework of international cooperation on information exchange, as well as the identification and suspension/freezing of assets belonging to persons who commit predicate offences, organize, support and provoke the conduct of an aggressive war of the RF against Ukraine, and to other persons, the SFMS carries out constant analytical work, within the framework of which, in particular 77 requests were submitted to 37 financial intelligence units of foreign countries. Joint analytical researches are ongoing. In addition, a representative of the SFMS participates in the Task Force to identify and seize assets belonging to persons who organize, support and provoke the RF’s aggressive war against Ukraine, both in Ukraine and abroad, for the purpose of their further transfer to the state budget of Ukraine to rebuild its destroyed infrastructure. Thus, in 2023, the SFMS detected information on the possession of 21 real estate objects (2 flats, 1 apartment, 1 condominium, 3 villas, 1 mansion and 13 other real estate objects), 2 yachts, 170 companies and 56 accounts by the subjects of the investigation and associates. The value of the individual assets, for which the relevant information is known, is equivalent to about USD 320,5 million. The SFMS does not disregard financial investigations into the laundering of the proceeds of corruption, embezzlement and misappropriation of public funds and property. Thus, in 2023, the SFMS sent to law enforcement agencies 250 referrals (86 case referrals and 164 additional case referrals) that are related to the suspicion of corruption, in particular: - the National Anti-Corruption Bureau of Ukraine – 167 referrals (47 case referral and 120 additional case referrals); - the State Bureau of Investigation – 42 referrals (18 case referral and 24 additional case referrals); - the Security Service of Ukraine – 20 referrals (10 case referral and 10 additional case referrals); - the National Police of Ukraine – 11 additional case referrals (4 case referral and 7 additional case referrals). - the Prosecutor General’s Office – 8 referrals (5 case referral and 3 additional case referrals); - the Economic Security Bureau of Ukraine – 2 case referrals. In these referrals, the amount of financial transactions that may be related to legalization of the proceeds and commission of a criminal offense totaled UAH 15,5 billion. In addition, the SFMS, using its own work experience, the practice of other participants of the national financial monitoring system, and the experience of international partners, prepared a typological study on the topic: “Risks and Threats of the Legalization (Laundering) of the Proceeds of Crime, Terrorist Financing in the Context of Military Aggression of the RF”. The typological study (distributed among the system participants) highlights the types of schemes for the legalization (laundering) of criminal proceeds and terrorist (separatism) financing, which are carried out under the conditions of the military aggression of the RF, reveals the indicators of suspicion, methods and tools of AML/CFT/CPF schemes, and also indicates the importance of applying a risk-based approach in order to identify the above-mentioned offences and develop strategies for their prevention and counteraction. Cooperation with financial monitoring entities and public As part of the legislative work, the SFMS, together with the Ministry of Finance of Ukraine and other stakeholders, developed an Action Plan to prevent the occurrence and/or reduce the negative consequences of risks identified as a result of the third national risk assessment in the field of AML/CFT/CPF, for the period up to 2026, which was approved by the Cabinet of Ministers of Ukraine on 27 December 2023. This plan contains a set of institutional, legislative, organizational and practical measures to improve the national system of prevention and counteraction in accordance with international standards and the system of strategic planning in this area. In addition, a representative of the SFMS has repeatedly participated in meetings of the committees of the Verkhovna Rada of Ukraine regarding draft laws on amendments to the Basic Law. In the framework of cooperation with the private sector, the SFMS continues testing the exchange of information with the reporting entities by means of the Information and Telecommunication System “the Financial Monitoring System Electronic Cabinet”, implemented with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI). Thus, the SFMS resumed testing the exchange of information with banking institutions using the formats of reports, specified in the Resolution of the National Bank of Ukraine of 26 August 2022 No. 193. Moreover, in September and December 2023, the SFMS updated its recommendations for banks and non-bankong institutions to submit information on financial transactions to the SFMS. These recommendations were updated following the amendments to the Basic Law. At the same time, during the period of martial law, the SFMS focuses on cooperation with the public. Therefore, on 29 March and 1 September 2023, the fourth and the fifth meeting of the Public Council under the SFMS took place. During the meetings, the representative of the SFMS informed attendees about the implementation by the SFMS in 2022 and 2023 of the AML/CFT/CPF state policy under martial law. Moreover, the Public Council’s members approved the Council’s work plan for 2024. In addition, for the implementation of part 2 of Article 36 of the AML/CFT/CPF Law of Ukraine of 6 December 2019 No. 361-ІХ, the SFMS submitted the report on the AML/CFT/CPF state for 2022 (hereinafter – the Report) to the Verkhovna Rada of Ukraine. The Report contains information on the activities results of the participants of the national AML/CFT/CPF system for 2022, taking into account conditions of the armed aggression of the RF against Ukraine. Furthermore, in accordance with Article 45 of the Law of Ukraine “On Civil Service” and the Standard Procedure for conducting a Public Report of the Head of an executive authority, approved by Order of the National Agency on Civil Service on 20 December 2016 No. 277 and registered with the Ministry of Justice of Ukraine on 11 January 2017 No. 28/29896, taking into account the imposition of martial law in Ukraine and the consequences of its introduction, in April 2023, the Head of the State Financial Monitoring Service of Ukraine presented a public report for 2022. In the field of methodological work of the SFMS, an international conference was held on 27-28 April 2023, organized by the SFMS with the support of the project “Strengthening Financial Monitoring System Preparedness to Fight Money Laundering and Financing of Terrorism Threats”, within the framework of the Organization for Security and Co-operation in Europe (OSCE) Support Program for Ukraine and in cooperation with the EU Anti-Corruption Initiative in Ukraine (EUACI) on the following topic: “Supranational and National AML/CFT/CPF Systems: Challenges and Prospects”. The event was dedicated to discussion of the implementation peculiarities of anti-legalization legislation, taking into account the results of the third round of the AML/CFT/CPF National Risk Assessment, current challenges and identification of strategic priorities for the further evolution of the system of response to relevant threats, including in the context of the RF’s military aggression against Ukraine. On 7-8 December 2023, a Forum “Financial Monitoring 2023” was held in the city of Ternopil, organized by the SFMS and the Academy of Financial Monitoring with the support of the OSCE Support Program for Ukraine, the Council of Europe and the EU Anti-Corruption Initiative in Ukraine (EUACI). During the forum, the issues of current relevance to Ukraine were discussed, including the implementation specifics of anti-legalization legislation, taking into account modern trends in the development of Ukraine. In addition, to inform the reporting entities, law enforcement agencies, judicial authorities and the public, the SFMS translated and published the following editions in September 2023: - EU AML/CFT Global Facility Report on Typologies of Illicit Financial Abuse of the NPO Sector; - RUSI Guide to Conducting a National Proliferation Financing Risk Assessment; - FATF Virtual Assets: Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers; - FATF Guidance on Beneficial Ownership of Legal Persons; - MONEYVAL Typologies report on Money Laundering and Terrorist Financing Risks in the World of Virtual Assets. On 29 June and 21 December 2023, as part of the coordination work, the fifteenth and sixteenth meeting of the AML/CFT/CPF Council was held in the format of a video conference. The Council discussed the following: - the results of the SFMS participation in international events of the global AML/CFT system; - the results of the supervision of the reporting entities in the field of AML/CFT by the state financial monitoring entities, taking into account the riskbased approach and the problems accompanying it; - improvement of the mechanism for operational exchange of information between state authorities involved regarding the actual transfers of goods of military purpose and dual use (refusal of permit documents, absence from control lists, etc.) and the results of work on identifying signs (facts) of the risk of international transfer of goods of military purpose and dual use (other goods) in the context of AML/CFT/CPF; - optimization of working groups created under the Council. Representatives of the SFMS also took part in: the conference “Sanctions – an instrument of the state security policy”, held on the platform of the National Academy of the Security Service of Ukraine on 12 September2023; the National expert roundtable discussion “Monitoring and Investigating Trafficking in Cultural Property: Achievements and Challenges”, organized by the United Nations Office on Drugs and Crime (UNODC), together with the Ivan Franko National University of Lviv on 21 and 22 September 2023. International events The SFMS published a breakdown of risks posed by the RF to Global Financial Security and the World Order. This breakdown demonstrates the nature of the destructive impact of the terrorist war waged by the RF against Ukraine, and shows the place, role and actions of key institutions that ensure Global Financial Security and World Order. Its analysis makes it possible to draw parallels between violations by the RF of the Geneva Conventions and other special conventions under the mandate of the FATF and its Recommendations. The war crime of the RF has a devastating effect (red lines) on the World Order and Global Financial Security, the purpose of which is to protect human rights (including ensuring the financial security of states, international associations, unions, and mere human). Cooperation with the FATF In 2023, an exchange of information between the SFMS and the FATF regarding the situation in Ukraine related to the full-scale invasion of the RF was carried out. In the reporting period, the Head of the SFMS repeatedly sent official letters to the President of the FATF, Mr. Raja Kumar, with a detailed description of the threats and risks posed by the RF to the integrity of the international financial system and a call for appropriate actions. In cooperation with partners from the public and private sectors, the SFMS prepared video appeals to the FATF describing the terrorist risks that the RF poses to the international financial system. These video appeals were published on the SFMS’s page on the YouTube social network. In addition, on 26 October 2023, the website of the Royal United Services Institute (RUSI) published an article by Igor Cherkaskyi, Head of the State Financial Monitoring Service of Ukraine, entitled “We Must Go Further To Challenge Russia’s Disregard For International Norms”, which draws attention to the current issue of maintaining the security of the Global Network due to non-cooperative actions of the RF. In the period from 20 to 24 February 2023 and from 19 to 23 June 2023, the SFMS, with the support of the EU Anti-Corruption Initiative in Ukraine (EUACI) project, took part in the regular FATF Plenary meetings and the meetings of the relevant FATF Working Groups held in Paris (France). At the Plenary meeting held on 20-24 February 2023 the FATF adopted a Statement. According to the Statement, the FATF is deeply concerned by the reports of arms trade between the RF and the United Nations sanctioned jurisdictions, and malicious cyber-activities emanating from the RF. The FATF stated that the RF’s actions unacceptably run counter to the FATF core principles aiming to promote security, safety, and the integrity of the global financial system. They represent a gross violation of the commitment to international cooperation and mutual respect upon which the FATF Members have agreed to implement and support the FATF Standards. Therefore, the FATF decided to strengthen sanctions against the RF by suspending its membership in this organization. At the same time, the RF remains accountable for its obligation to implement the FATF Standards. The next FATF Plenary meeting, held on 19-23 June 2023, extended the suspension of RF’s membership in the FATF. According to the FATF official information, following the results of this FATF Plenary meeting, the RF’s war of aggression against Ukraine continues to run counter to FATF’s principles of promoting security, safety and the integrity of the global financial system and commitment to international cooperation and mutual respect upon which the FATF Members have agreed to implement and support the FATF Standards. The FATF meeting, held on 23-27 October 2023, confirmed that the suspension of the RF’s membership in the organization remains in effect. The full text of the results and statements of this Plenary meeting in Ukrainian can be found here. Following the statements published in March, April, June and October 2022, FATF once again reiterates that all jurisdictions should be alert to possible emerging risks from the circumvention of measures taken in order to protect the international financial system and take the necessary measures to mitigate these risks. As part of the preparations for the next FATF meeting to be held on 19-23 February 2024, the work of the SFMS and its partners continues. Cooperation with the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) The SFMS processed the drafts of Declaration of Ministers and high-level delegates of MONEYVAL and the MONEYVAL Strategy for 2023-2027, which were approved during the High-Level Meeting in Warsaw (Republic of Poland) on 25 April 2023. These documents outline the political and practical visions and role of the MONEYVAL in AML/CFT/CPF activities for the next 5 years, within the framework of which the Ministers of the member States and territories of MONEYVAL responsible for anti-money laundering policies have committed to improving the effectiveness of their regimes to prevent and combat money laundering, the financing of terrorism and the proliferation of weapons of mass destruction. In particular, in the Declaration (clause 3), ministers and high-level delegates of MONEYVAL member States and territories joined in strongly condemning the continued aggression of the RF against Ukraine and confirmed their full support for Ukraine and its people. These documents are available on the MONEYVAL official website, and their Ukrainian version on the SFMS official website. During 22-26 May and 11-15 December 2023, the representatives of Ukraine, coordinated by the SFMS, participated in the meetings of the Working Group on Evaluations and the 65th and 66th MONEYVAL Plenary meetings, which took place in Strasbourg (France). During the Plenary meetings, negotiations were held with MONEYVAL member states and observers. International partners were provided with information on the operation of the national AML/CFT/CPF system in the context of the aggressive war of the RF against Ukraine. Ukraine has confirmed compliance with all international obligations in the field of financial monitoring taking into account the objective circumstances of the AML/CFT/CPF system operation. Cooperation with the Egmont Group of Financial Intelligence Units (EG) The SFMS continues to cooperate with the EG on an ongoing basis to ensure its adequate response to violations of the EG Charter and the Principles for Information Exchange between Financial Intelligence Units caused by the RF terrorist war against Ukraine. Confidential communication is ensured with the leadership of the EG, its Secretariat and the EG member FIUs. From 31 January to 1 February 2023, a representative of the SFMS took part in the MSCWG meetings (Dakar, the Republic of Senegal). From 3 July to 6 July 2023 in Abu Dhabi (United Arab Emirates), with the assistance of the Special Representative of the OSCE Chairmanship - Project Co-ordinator in Ukraine, the representatives of the SFMS took part in the annual EG Plenary meetings. Within the framework of the current meetings, a consensus was reached on steps aimed at further strengthening the capacity of the EG community to withstand current challenges and discussing issues aimed at improving the effectiveness of bilateral and multilateral international cooperation between the FIUs of the EG, including within the framework of project initiatives of various working groups. Moreover, within the framework of these meetings, a new Memorandum of Understanding on cooperation in the exchange of information related to money or other assets laundering, associated predicate offenses and financing of terrorism was signed between the SFMS and the Superintendency of Banks through the Special Verification Intendancy (IVE) of the Republic of Guatemala. On 13 July 2023, the representatives of the SFMS took part in an online seminar on the FATF Recommendation 16 (wire transfers) organized by the EG Secretariat. On 18 October 2023, a virtual EG HoFIU meeting was held, where, in order to support the EG reputation in the global space of combating money laundering and terrorist financing, ensuring the cohesion of the AML/CFT ecosystem and protecting other interests and goals of the EG, the following was agreed upon: - to suspend the membership of Rosfinmonitoring (the FIU of the RF) in the EG for the time necessary to protect the interests of the EG and ensure the achievement of its goals; - to support the additional measures introduced by the HoFIU on 13 December 2022, as far as it is practically possible, taking into account the suspension. On 19 October 2023, the EG Chair issued a Statement, according to which the EG remains deeply concerned by the devastating effects of the current Russian military aggression against Ukraine and the negative impact on the SFMS (the FIU of Ukraine). This decision was preceded by the systematic and comprehensive work of the SFMS in the context of constant international contacts and negotiations, preparation and forwarding of relevant information to the management of the EG. Other international activities of the financial intelligence On 16 January 2023, a decision following the Plenary Session (15-17 November 2022) of the Conference of the Parties to the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (Warsaw Convention), where a representative of the SFMS took part online, was published on the official website of COP. In accordance with this decision, the RF, in particular, was deprived the right to vote on any issues, which do not concern the statutory functions, to be entrusted with any task of rapporteur, coordinator, head of a delegation representing the Conference. In addition, the SFMS representatives took part in: the basic training as part of the project “Innovative Policy Solutions to Mitigate Money Laundering Risks of Virtual Assets”, which took place on 2729 March 2023 in Vienna (Republic of Austria); - the FATF seminar on Nonconviction Based Confiscation, held virtually on 29 March 2023; - the meetings with the peer review mission of the European Commission on the general assessment of the legal and institutional framework and expert assessment on the fight against organized crime in Ukraine, which took place on 18 April 2023; - the meeting with the representatives of the European Commission to analyze the effectiveness of financial investigations by the competent authorities of Ukraine (21 April 2023), in the context of assessing Ukraine as a candidate country for European Union membership; - the study visit to Berlin (Germany) in order to study the German experience in conducting sectoral risk assessments and use these achievements in the course of the National Risk Assessment in Ukraine, which took place on 1822 April 2023 and was organized by the Center for Democracy and Rule of Law (CEDEM) within the framework of Ukraine Civil Society Sectoral Support Activity; - the conference “Securing the Integrity and Resilience of Ukraine’s Financial System”, held on 19 June 2023 in London, UK, where progress, impact, and effectiveness of the ongoing efforts in Ukraine by the government and civil society to build a solid and welldefended financial system in the face of financial abuses have been considered; - the seminar on “European experience in the introduction and circulation of virtual assets”, which took place on 1213 July 2023, within the framework of attracting external assistance from the European Commission under the TAEIX instrument and at the initiative of the NSSMC; - a meeting with representatives of the European Commission on the preparation of the Recovery Plan for Ukraine, in terms of combating money laundering, organized by the Ministry of Finance of Ukraine on 3 August 2023; - the meeting on ensuring the implementation of the recommendations of the European Commission, as stated in the European Commission’s Opinion on Ukraine’s application for membership of the European Union, in terms of ensuring the compliance of national antimoney laundering legislation with the FATF Recommendations 6 and 7, organized by the Ministry of Finance of Ukraine on 4 August 2023; - a meeting with representatives of development partners under international technical assistance projects to discuss the implementation of current and future project activities, which took place on 13 September 2023; - the Global NGO Sector Consultation: “Risk and Consequence: The Future of FATF Rec 8 for Financial Integrity and for Civil Society”, which took place on 2627 September 2023 in Germany; - the advanced training on virtual assets investigations, which took place in Vienna (Republic of Austria) on 1417 November 2023; - the Global Dialogue with the private sector, which was organized by the World Resources Institute in cooperation with UNODC and Interpol on 15 November 2023; - the working visits to the FIU of the Kingdom of Sweden and the FIU of the Kingdom of Denmark (OSCE) on 27 November – 1 December 2023, within the framework of which a Memorandum of Understanding with the Financial Intelligence Unit of the Kingdom of Sweden was signed on 27 November 2023. Also, Decision of the Council of the European Union (CFSP) 2023/2871 was published in the Official Journal of the EU on 18 December 2023 amending Decision 2014/145/CFSP concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine, with a list of natural and legal persons subject to sanctions within the framework of the adopted 12th package. According to the decision, the Financial Intelligence Unit of the RF and its head were included in the list of sanctioned persons of the terrorist state.