Informing on the results of the SFMS work for the 1st quarter of 2021
Informing on the results of the State Financial Monitoring Service of Ukraine work for the 1st quarter of 2021
The SFMS as the financial intelligence unit of Ukraine, takes measures to combat the legalization (laundering) of the proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction.
In particular, for the 1st quarter of 2021, the SFMS has submitted 288 referrals (of them 186 case referrals and 102 additional case referrals) to law enforcement authorities which were sent for consideration to:
- the prosecutor’s offices - 15 referrals (of them 11 case referrals and 4 additional case referrals);
- the State Fiscal Service of Ukraine - 76 referrals (of them 45 case referrals and 31 additional case referrals);
- the National Police of Ukraine - 103 referrals (of them 91 case referrals and 12 additional case referrals);
- the Security Service of Ukraine - 55 referrals (of them 25 case referrals and 30 additional case referrals);
- the National Anti-Corruption Bureau of Ukraine - 27 referrals (of them 8 case referrals and 19 additional case referrals);
- the State Bureau of Investigations of Ukraine - 12 referrals (of them 6 case referrals and 6 additional case referrals).
In these referrals, the amount of financial transactions that may be related to the legalization of funds and the commission of another criminal offence, determined by the Criminal Code of Ukraine, is UAH 22,4 billion.
The SFMS pays particular attention to investigation of money laundering facts of corrupt acts, embezzlement and appropriation of state funds and property.
Thus, for the 1st quarter of 2021, the SFMS has submitted 43 such referrals (11 case referrals and 32 additional case referrals) to law enforcement authorities, which are related to suspicion of corruption, in particular to:
- the National Anti-Corruption Bureau of Ukraine - 27 referrals (of them 8 case referrals and 19 additional case referrals);
- the State Bureau of Investigations of Ukraine - 6 referrals (of them 3 case referrals and 3 additional case referrals);
- the Security Service of Ukraine - 10 additional case referrals.
In these referrals, the amount of suspicious financial transactions that may be related to the legalization (laundering) of funds or the commission of another criminal offense, determined by the Criminal Code of Ukraine, is UAH 1,3 billion.
Also, the SFMS on a regular basis pays special attention to the analysis of suspicious transactions that have signs of tax crimes, including using the mechanism of "counter-flows" and "twists".
Thus, for the 1st quarter of 2021, the SFMS has submitted to law enforcement agencies 20 referrals (of them 8 case referrals and 12 additional case referrals) which are related to the mechanism of "counter-flows", in particular to:
- the State Fiscal Service of Ukraine – 8 referrals;
- the Security Service of Ukraine – 11 referrals;
- the State Bureau of Investigations of Ukraine – 1 referral.
The total amount of "converted" funds on these referrals is UAH 3.5 billion.
In the course of these financial investigations, the SFMS suspended (blocked) funds in the amount of UAH 41.6 million.
Pursuant to the legislation of Ukraine, the SFMS (as the financial intelligence unit of Ukraine) in conjunction with law enforcement agencies, takes measures aimed at preventing and countering the financing of terrorist activities and separatism.
Thus, for the 1st quarter of 2021, the SFMS has submitted to law enforcement agencies 22 referrals (of them 14 case referrals and 8 additional case referrals) regarding financial transactions of persons which, according to law enforcement agencies information, may be involved in the financing of terrorism (separatism) and conducted with the participation of persons, who publicly call for violent change or overthrow of the constitutional order or change of boundaries of the territory or state border of Ukraine, as well as to whom international sanctions have been applied, including:
- 6 additional case referrals related to financial transactions with the participation of 2 individuals and 8 legal entities included in the annexes to the Decisions of the National Security and Defense Council of Ukraine, enacted by Decrees of the President of Ukraine of 14.12.2020 No. 546-27t (as amended by the Decision of the National Security and Defense Council of Ukraine of 28.01.2021, enacted by the Decree of the President of Ukraine of 28.01.2021 No. 29/2021), of 02.02.2021 No. 43/2021 and of 19.02.2021 No. 64/2021;
- 8 case referrals that contained information about 35 individuals suspected of involvement in criminal offenses - mercenary, encroachment on the territorial integrity and inviolability of Ukraine and the creation of paramilitary or armed groups unforeseen by the legislation;
- 2 case referrals related to suspicions of conducting financial transactions involving 3 individuals, allegedly involved in the financing of international terrorist organizations and/or extremist groups;
- 6 referrals (of them 4 case referrals and 2 additional case referrals) which contained information on financial transactions of 30 individuals and 2 legal entities suspected of terrorism/separatism and its financing (including financing of illegal armed groups in the temporarily occupied territories in Donetsk and Luhansk regions).
9 referrals of 22 submitted referrals contained information on identified relationships with the Russian Federation.
Mentioned referrals were sent to the Security Service of Ukraine.
In order to increase the effectiveness of interagency cooperation, during the reporting period, the SFMS was coordinating measures for the implementation by the relevant state authorities of the Action Plan to improve the national financial monitoring system based on the MONEYVAL 5th Round of Mutual Evaluation of Ukraine (hereinafter – the Action Plan). Thus, the SFMS has ensured a generalization of information provided by state and law enforcement authorities on the progress of the implementation of the Action Plan in 2020, and sent generalized information to the Cabinet of Ministers of Ukraine.
At the same time, in February 2021, the completed questionnaire on the Third Enhanced Follow-up Report following the results of the MONEYVAL 5th Round of Evaluation of Ukraine was sent to MONEYVAL. The Report is planned for consideration via “written procedure” in September this year.
Also, in the framework of interdepartmental cooperation, the SFMS in January signed an Agreement on interdepartmental cooperation between the SFMS and the Commission for Regulation of Gambling and Lotteries. The purpose of this Agreement is to establish cooperation and information exchange to prevent and combat the legalization (laundering) of the proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction in the area of organization and conducting of gambling and lotteries.
In addition, in order to enhance the public outreach about the national financial monitoring system in March 2021, the SFMS Report on the activities for 2020 was posted on the official website of the SFMS, and in early April 2021 the Head of the SFMS Igor Cherkaskyi presented Public report on the results of the SFMS's activities in 2020 to the public.
Also, the SFMS in the 1st quarter of 2021 actively contributed to the activities of the Public Council under the SFMS. Thus, during this period, one meeting of the Public Council was conducted by video conference, where Council members were informed about the implementation of the policy in the area of prevention and counteraction by the SFMS in 2020.
At the same time, within the framework of methodological work the SFMS’s experts:
- in conjunction with state regulators, have prepared recommendations for the reporting entities - non-banking institutions to submit the information on the termination of separate units from January 1, 2021 and clarifications on e-cabinets of the financial monitoring system;
- clarification for banking institutions on electronic interaction on financial monitoring issues, including L-type files (file-list).
Also, as part of educational work, during the 1st quarter of 2021, representatives of the SFMS took part in 21 educational events, which were attended by 686 persons.
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