Informing on the results of the State Financial Monitoring Service of Ukraine work for 2017
The SFMS as a financial intelligence unit of Ukraine takes enhanced practical measures aimed at counteraction to the legalization (laundering) of the proceeds from crime, terrorist financing and financing of proliferation of weapon of mass destruction. In particular, during 2017, the SFMS has prepared 712 referrals (of them 382 case referrals and 330 additional case referrals) which have been submitted to:
- Prosecutor’s office of Ukraine - 233 case referrals (of them 87 case referrals and 146 additional case referrals);
- State Fiscal Service of Ukraine – 172 case referrals (of them 125 case referrals and 47 additional case referrals);
- Security Service of Ukraine - 132 case referrals (of them 80 case referrals and 52 additional case referrals);
- National anti-corruption Bureau of Ukraine - 101 case referrals (of them 36 case referrals and 65 additional case referrals);
- Internal affairs authorities of Ukraine - 74 case referrals (of them 54 case referrals and 20 additional case referrals).
In these referrals, the amount of financial transactions that may be related to the legalization of money and the commission of another crime, determined by the Criminal Code of Ukraine, is UAH 59,4 billion.
The SFMS continues the active work on investigation of money laundering facts from corrupt acts, embezzlement and appropriation of state funds and property, including by the former President of Ukraine Viktor Yanukovych, his close friends, other officials and their related persons.
Thus, during 2017, the SFMS has submitted 211 such referrals (63 case referrals and 148 additional case referrals) to law enforcement authorities, in particular to:
- National Anti-Corruption Bureau of Ukraine – 101 referrals;
- Prosecutor"s Office of Ukraine – 98 referrals;
- State Fiscal Service of Ukraine – 1 referral;
- Internal affairs authorities of Ukraine – 1 referral;
- Security Service of Ukraine – 10 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 is UAH 16,2 billion.
The participants of suspicious financial transactions in these materials were persons authorized to perform functions of the state or local self-government (and equated with them) and related to them persons.
For the whole period of investigations (March 2014 - December 2017) regarding investigation of money laundering from corruption, embezzlement and appropriation of state funds and property, including by the former President of Ukraine Viktor Yanukovych, his close relatives, other officials and related to them persons, 758 referrals (172 case referrals and 586 additional additional case referrals) were sent to the law enforcement authorities of Ukraine by the SFMS.
The amount of financial transactions that may be related to the legalization of the proceeds from crime and may be related to the commission of another crime specified in the Criminal Code of Ukraine according to these referrals is UAH 217,9 billion.
Following the results of the measures taken by the SFMS and Prosecutor General’s Office during the investigation regarding the appropriate blocking and arrest of assets on the accounts of individuals and legal entities that have links with Viktor Yanukovych and former high-ranking officials, in 2017 by court decisions funds in the equivalent of USD 1.5 billion were confiscated into the state budget.
In addition, the SFMS focuses on the search and blocking of assets of former high-ranking officials abroad.
According to the financial intelligence units of other countries, the assets of former high-ranking officials of local authorities, local self-government authorities of Ukraine and related persons were blocked in the total amount of USD 107.2 million, EUR 15.9 million and Swiss francs 135.0 million, in particular, in the following countries: Austria, Great Britain, Latvia, Cyprus, Italy, Liechtenstein, Switzerland and the Netherlands.
The SFMS pays a lot of attention to financial transactions conducted with the participation of politically exposed persons and their related persons for the purpose of detecting money laundering cases.
Thus, within 2017, the SFMS has submitted to law-enforcement authorities 99 referrals (of them 65 case referrals and 34 additional case referrals) regarding financial transactions conducted with the participation of politically exposed persons and high ranking officials.
In these referrals, the amount of financial transactions that may be related to the legalization of the proceeds and the commission of another crime, determined by the Criminal Code of Ukraine, is UAH 3,5 billion.
Pursuant to the legislation of Ukraine, the SFMS together with law enforcement authorities, takes measures aimed at preventing and countering to the financing of terrorist activities and separatism.
Thus, within 2017, the SFMS has submitted to law-enforcement authorities 69 referrals (of them 41 case referrals and 28 additional case referrals) regarding financial transactions of persons which, according to information from law enforcement authorities, may be involved in the financing of terrorism (separatism) and/or 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:
- 14 case referrals (of them 9 case referrals and 5 additional case referrals), which contained information, including from the Internet, on collecting or donating funds for charity and assistance to a terrorist and separatist group. These case referrals were submitted to the Security Service of Ukraine and the Prosecutor General"s Office of Ukraine;
- 6 case referrals, related to suspicions in the conduction of financial transactions by persons involved in the activities of the IDIL or other extremist groups, which have illegal contacts in the territory of Ukraine. These case referrals were submitted to the Security Service of Ukraine.
During 2017, the SFMS has blocked in 31 cases (referrals) funds regarding financial transactions of persons who, according to information from law enforcement authorities, may be involved in the financing of terrorism and separatism, in a total amount equivalent to UAH 51,6 million.
For the whole period of investigations (March 2014 - December 2017) concerning financial transactions that may be related to the financing of terrorism (separatism), 221 referrals (155 case referrals and 66 additional case referrals) have been prepared and submitted to law enforcement authorities of Ukraine.
The result of the continuous operational analysis, which is shown above, is also the strategic synthesis and generalization of trends that are emerging at the national level in the area of Prevention and Counteraction to the Legalization (Laundering) of the Proceeds of Crime, Terrorism Financing and the Financing of Proliferation of Weapons of Mass Destruction.
SFMS, jointly with entities of state financial monitoring, as well as state authorities, including law enforcement agencies, has prepared typological research on the topic "Risks of using cash" and "Risks of terrorism and separatism". The indicated typological researches were published on the official website of the SFMS in the section "Typologies / Recommendations for the detection of money laundering schemes".
During the reporting year, the SFMS continued to coordinate work on upgrading the level of skills of specialists in the field of prevention and counteraction to the legalization (laundering) of proceeds of crime, terrorist financing and financing of proliferation of weapons of mass destruction on the basis of the State Training Institution :"Educational and Methodological Center for retraining and improvement of professional skill of specialists in financial monitoring issues in the area of combating legalization (laundering) of proceeds of crime and terrorist financing ", under the State Financial Monitoring Service. In 2017, 1853 specialists from the public and private sectors were trained at the center. It should be noted that on December the title of the Center was changed to the State Institution of Postgraduate Education "Academy of Financial Monitoring".
Also, in 2017, the SFMS continued to take legislative, organizational and institutional measures aimed at ensuring the stable and effective functioning of the national system for the prevention and counteraction of the legalization (laundering) of proceeds of crime, terrorist financing and financing of proliferation of weapons of mass destruction taking into account the National Risk Assessment (NRA)conducted in 2016.
Within the framework of interagency coordination, the Cabinet of Ministers of Ukraine adopted the Action Plan for 2017-2019 on the implementation of the Strategy for the Prevention and Counteraction to the Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing, and the Financing of Proliferation of Weapons of Mass Destruction for the period up to 2020.
The specified Action Plan was developed by the SFMS following the results of the first National Risk Assessment in the area of prevention and counteraction to the legalization (laundering) of the proceeds from crime and terrorist financing.
Also during 2017, the SFMS continues constructive cooperation with international institutions such as the FATF, the MONEYVAL, the European Union, the World Bank, the International Monetary Fund, the Egmont Group of Financial Intelligence Units, the United Nations.
In addition, the SFMS during reporting period concluded 4 Memoranda of Understanding with financial intelligence units of foreign countries, namely: FIU of Saint Lucia, FIU of the Eastern Republic of Uruguay, FIU of Togolese Republic and FIU of Afghanistan.
From March 23 to April 8 2017, the on-site visit of Evaluation team within the 5th Mutual Evaluation Round of the national system of counteraction to the legalization (laundering) of the proceeds from crime, terrorist financing and the financing of proliferation of weapons of mass destruction was organized by SFMS, which held over 70 expert meetings with relevant representatives of the Ukrainian authorities.
In the context of cooperation with the MONEYVAL Committee, as a key office of the Council of Europe on combating money laundering and terrorist financing, from December 4 to 7, 2017 in Strasbourg (French Republic), an expanded delegation of Ukraine, coordinated by the State Financial Monitoring Service participated in the activities of the 55th Plenary Meeting of the MONEYVAL Committee.
According to the results of this Plenary Meeting, the FIFTH ROUND MUTUAL EVALUATION REPORT was approved by the MONEYVAL Committee.
The MONEYVAL Committee has confirmed the significant level of operational and institutional capacity of the State Financial Monitoring Service of Ukraine for all ratings.
The issue of ensuring cooperation with the MONEYVAL and coordinating the activities of state authorities in the AML/CFT area is under constant control of the SFMS.
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