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 the 1st quarter  of 2019, the SFMS has prepared 194 referrals (of them 109 case referrals and 85 additional case referrals) which have been submitted to:

- the Prosecutor’s offices of Ukraine – 24 referrals (of them 3 case referrals and 21  additional case referrals);

-  the State Fiscal Service of Ukraine – 35 referrals (of them 27 case referrals and 8 additional case referrals);

-  the Internal affairs authorities of Ukraine -  41 referrals (of them 34 case referrals and 7 additional case referrals);

-  the Security Service of Ukraine -  59 referrals (of them 36 case referrals and 23 additional case referrals;

- the National Anti-Corruption Bureau of Ukraine - 35 referrals (of them 9 case referrals and 26 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 10 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 2019, the SFMS has submitted 43 such referrals (9 case referrals and 34 additional case referrals) to law enforcement authorities, in particular to:

The National Anti-Corruption Bureau of Ukraine - 33 referrals;

the Prosecutor's Office of Ukraine - 8 referrals;

the Security Service of Ukraine - 2 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 1.9 billion.

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, for the 1st quarter of 2019, the SFMS has submitted to  law-enforcement authorities 25 referrals (of them 9 case referrals and 16 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, including:

-            10 referrals (10 additional case referrals) related to the implementation of financial transactions by individuals, whose identification data coincide with the identification data of the persons included in the List;

-            3 referrals (including 1 case referrals and 2 additional case referrals) related to the implementation of financial transactions by persons included in the annexes to the decision of the National Security and Defense Council of Ukraine dated April 28, 2017 (enacted by Decree of the President of Ukraine dated 15.05. 2017 No. 139/2017) and dated June 21, 2018 (enacted by Decree of the President of Ukraine dated June 21, 2018, No. 176/2018);

-            6 referrals (6 case referrals) related to suspicions in the conduct of financial transactions by persons involved in the activities of the international terrorist group "Islamic State of Iraq and Levant" or other extremist groups;

-            6 referrals (of them 2 case referrals and 4 additional case referrals) that may be associated with suspicion of financing illicit armed groups in the temporarily occupied territories in the Donetsk and Luhansk oblasts.

           Of the 25 transmitted referrals, 6 referrals contained information on identified relationships with the Russian Federation.

Referrals were sent to the Security Service of Ukraine.

For the 1st quarter of 2019, the SFMS in 17 cases (referrals) blocked funds of financial transactions of individuals who, according to information from law enforcement authorities, may be involved in the financing of terrorism, separatism, for a total amount equal to UAH 26,9 billion.

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 2018, and in January of this year, sent generalized information to the Cabinet of Ministers of Ukraine. In addition, the SFMS has taken measures for the preparation of the 1st follow-up report of Ukraine following the results of the MONEYVAL 5th round of mutual evaluation of Ukraine.

 

Also, during the 1st quarter of 2019, the representatives of the SFMS participated in 23 coordination meetings with the AML/CFT interested state authorities. At addition, the Memorandum on the general principles of cooperation in the area of counteraction to the legalization (laundering) of proceeds from crime, terrorist financing and financing of the proliferation of weapons of mass destruction was signed between the State Financial Monitoring Service of Ukraine and the National Institute for Strategic Researches.

In terms of coordination of cooperation with the public and private sector, the SFMS has organized the regular meeting of the Public Council under the SFMS and the ninth meeting of the Working Group on Problem Issues of the reporting entities - banking institutions.

 Within the framework of legislative initiatives, the SFMS during the reporting period has provided active support in the Verkhovna Rada of Ukraine of a registered Government draft Law “On Prevention and Counteraction of Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and Financing the Proliferation of Weapons of Mass Destruction” (№9417), which was supported by the profile committee of Parliament for consideration in the first reading.

The draft Law was designed to implement the provisions of the 4th Directive (EU) 2015/849 “On the prevention of the use of the financial system for money laundering and terrorist financing” and the provisions of Regulation (EU) 2015/847 “On information accompanying money transfers”.

Also, the SFMS has started the process of conducting the second round of the National AML/CFT Assessment based on the Methodology updated in 2018.

Within the framework of methodological work, during the 1st quarter of 2019, the representatives of the SFMS participated in 21 educational events, which involved about 730 persons.

In the direction of international cooperation, from the beginning of 2019, the SFMS signed Memoranda of Understanding in the area of counteraction to the legalization (laundering) of proceeds from crime, terrorist financing and financing of the proliferation of weapons of mass destruction with the FIU of the State of Kuwait and the FIU of the Republic of Austria.

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