About the SFMS
International aspects
According to FATF Recommendation 29 and Article 12 of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism ratified by Ukraine on November 17, 2010, countries should establish a financial intelligence unit (FIU) that serves as a national centre for the receipt and analysis of: (a) suspicious transaction reports; and (b) other information relevant to money laundering, associated predicate offences and terrorist financing, and for the dissemination of the results of that analysis.
According to the Law of Ukraine “On Ratification of the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism”, the State Financial Monitoring Service of Ukraine (the SFMS) is a body authorized by Ukraine to perform functions of the Financial Intelligence Unit (the FIU).
Legal status
The SFMS was created as a Financial Intelligence Unit designed for counteraction to the legalization of proceeds from crime and terrorist financing. The SFMS is of administrative model.
The SFMS was created and started its activity in 2002 in the structure of the Ministry of Finance of Ukraine with the status of the State Department of Financial Monitoring.
Since 2005, the SFMS is a central executive body.
The symbols of the SFMS were established by the Decree of the President of Ukraine as of 15.06.2006 No. 526/2006.
The emblem and the flag of the SFMS
Functional and directions of activity
Duties, rights, functions and powers of the SFMS are defined by the Law of Ukraine «On Prevention and Counteraction to the Legalization (Laundering) of Proceeds from Crime, Terrorist Financing, and Financing of Proliferation of Weapons of Mass Destruction» and the Regulation on the State Financial Monitoring Service of Ukraine, approved by the Resolution of the Cabinet of Ministers of Ukraine as of 29.07.2015 No. 537.
The activities of the SFMS are directed and coordinated by the Cabinet of Ministers of Ukraine through the Minister of Finance of Ukraine.
The main tasks and functions of the SFMS include:
- implementation of the state policy in the area of prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction;
- submission to the Minister of Finance proposals for ensuring the formation of the state policy in the area of prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction;
- gathering, processing and analysis of (operational and strategic) information on financial transactions subject to financial monitoring, other financial transactions or information, that may be related to suspicion of legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction;
- ensuring the functioning and development of the unified information system in the area of prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction;
- conducting national risk assessment;
- establishing cooperation, interaction and information exchange with the state authorities, the National Bank, the competent authorities of foreign states and the international organizations in the area of prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction;
- ensuring, in the established manner, the representation of Ukraine in the international organizations on issues concerning prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing, and financing of proliferation of weapons of mass destruction.
The key role of the SFMS is, that it processes STRs received from the reporting entities and in case of suspicion of money laundering or terrorist financing submits case referrals to law enforcement and intelligence agencies of Ukraine.
The SFMS actively cooperates with leading international organizations and agencies dealing with AML/CFT issues, such as: FATF, MONEYVAL, European Union, World Bank, International Monetary Fund, Egmont Group of Financial Intelligence Units, UN, etc.
From 2002, in the framework of cooperation with the Council of Europe, the SFMS experts, on a permanent basis, are taking part in the MONEYVAL Plenary meetings.
Today, the SFMS is cooperating with more than 150 financial intelligence units of other countries and receiving from foreign partners information that may be related to money laundering and terrorist financing.
The State Institution of Postgraduate Education “Academy of Financial Monitoring” operates within the scope of the SFMS management.
This educational institution is continuously providing professional development to specialists of regulatory, law enforcement, intelligence agencies, judges and private sector.
Official awards
The Order of the Ministry of Finance of Ukraine dated 30.07.2018 No. 655 established official incentive honors of the SFMS, which are awarded with the purpose of honoring personal achievements in the professional activity of the employees of the SFMS, enterprises, institutions, organizations being within the scope of its management.
