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Informing on the results of the State Financial Monitoring Service of Ukraine work for 9 months of 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, for 9 months of 2017, the SFMS has prepared 518 referrals (of them 263 case referrals and 255 additional case referrals) which have been submitted to

- Prosecutor’s office of Ukraine – 70 case referrals and 117 additional case referrals;

-  State Fiscal Service of Ukraine – 73 case referrals and 34 additional case referrals;

-  Internal affairs authorities of Ukraine -  35 case referrals and 18 additional case referrals;

-  Security Service of Ukraine -  57 case referrals and 38 additional case referrals;

-  National anti-corruption Bureau of Ukraine - 28 case referrals and 48 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 45.2 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, for 9 months of 2017, the SFMS has submitted 164 such referrals (51 case referrals and 113 additional case referrals) to law enforcement authorities, in particular to:

  • National Anti-Corruption Bureau of Ukraine - 76 referrals;
  • Prosecutor"s Office of Ukraine - 79 referrals;
  • Internal affairs authorities of Ukraine - 1 referral;
  • Security Service of Ukraine - 8 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 15.0 billion.

    For the whole period of investigations (March 2014 - September 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, 711 referrals (160 case referrals and 551 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 216.7 billion.


Following the results of the measures taken, the SFMS during the investigation, has blocked on the accounts of individuals and legal entities that have connection with Viktor Yanukovych and former high-ranking officials, funds in the equivalent of USD 1.54 billion.


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 107.19 million, EUR 15.87 million and Swiss francs 135.01 million, in particular, in the following countries: Austria, Great Britain, Latvia, Cyprus, Italy, Liechtenstein, Switzerland and the Netherlands.


Pursuant to the legislation of Ukraine, the SFMS (as a financial intelligence unit) together with law enforcement authorities, takes measures aimed at preventing and countering to the financing of terrorist activities (separatism).


Thus, within 9 months of 2017, the SFMS has submitted to  law-enforcement authorities 46 referrals (of them 27 case referrals and 19 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.


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 766.85 million.


During 9 months of 2017, the SFMS has blocked in 23 cases (referrals) funds regarding financial transactions of persons who, according to information from law enforcement authorities, may be involved in the financing of terrorism (separatism), in a total amount equivalent to UAH 47.63 million.


For the whole period of investigations (March 2014 - September 2017) concerning financial transactions that may be related to the financing of terrorism (separatism), 198 referrals (141 case referrals and 57 additional case referrals) have been  prepared and submitted to law enforcement authorities of Ukraine.


Within the framework of interagency coordination, on August 30, 2017 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 conducted in 2016.


Currently, the SFMs is taking active measures to implement the tasks set out in the Action Plan, in terms of legislative, organizational, institutional, practical and international work.


Also, 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.


Within the framework of cooperation with the MONEYVAL, as a key office of the Council of Europe for combating money laundering and terrorist financing, the "face-to-face" meetings between the delegation of Ukraine and the MONEYVAL’s experts were held in Strasbourg from 2 to 4 October 2017.


During these meetings, the draft MER of Ukraine within the 5th round of evaluation was discussed in detail, as well as the explanations to the comments received from the FATF Secretariat and other reviewers of the draft Report were provided.


The MONEYVAL’s experts has been provided with additional information and statistics to upgrade the ratings of the effectiveness of the national system of Ukraine in the area of ​​prevention and counteraction to the legalization (laundering) of the proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction and technical compliance with the FATF Recommendations.


Thus, the draft MER of Ukraine is in the active phase of finalization and will be submitted for consideration and approval at the 55th MONEYVAL Plenary meeting in December 2017.


The issue of ensuring cooperation with the MONEYVAL and coordinating the activities of state authorities in this area is under constant control of the SFMS.

 

Press-service of the SFMS
 presa@sdfm.gov.ua
 www.sdfm.gov.ua