Following the results of the research on risks related to the use of non-profit organizations in ML and/or TF schemes conducted in 2019, the SFMS has prepared the survey on “Use of non-profit organizations for illegal purposes”.

The results of the research indicate that non-profit organizations may be used directly for the purpose of committing a predicate offence and/or for ML and/or TF, as well as may serve as a cover for the illegal activities of other related entities.

The advantage of the use of non-profit organizations in criminal schemes (committing predicate offences, ML and TF) is that criminals may benefit twice: firstly, create means for such unlawful actions, and, secondly, provide a cover for their activities.

According to the results of conducted MONEYVAL 5th round of mutual evaluation of Ukraine in AML/CFT area, Ukraine has a fairly good understanding its ML/TF risks, but the knowledge on NPO sector use for illegal purposes needs to be constantly updated.

Understanding the threats and ways of NPOs misuse and evaluating the relevant risks will allow to mitigate the possibility of using such organizations by terrorists.

The results of this survey may be used to reduce potential ML and\or TF risks and prevent using non-profit organizations for illegal purposes.

The represented survey is available on the official SFMS’s web-site (www.fiu.gov.ua, Ukrainian ver.) in section «Financial monitoring»/«Methodology»/ «Recommendations»/«Methodological recommendations of the organization of financial monitoring».

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