Amidst criminal military aggression of the Russian Federation against Ukraine and commission of terrorist acts against the Ukrainian people by the occupying country, the most important thing is to ensure consolidation of the whole Ukrainian society and coordinated and smooth operation of all state authorities together with private sector institutions.

In this regard, the State Financial Monitoring Service of Ukraine is focusing its efforts on ensuring effective interagency coordination of the financial monitoring system and conducting further work.

The SFMS prepared and on March 11, 2022 communicated to reporting entities methodological recommendations on compliance with the legislation in the field of financial monitoring, in particular on appropriate AML/CFT/PF risks management during martial law.

Separately for reporting entities, on March 31, 2022, risk indicators of suspicious financial transactions were prepared and provided for internal use, which aim to increase the reporting entities’ attention during study and analysis of such transactions to confirm suspicions in terrorist financing.

In addition, on March 30, 2022, letters were sent to the reporting entities regarding recommendations on their implementation of preventive actions, in particular on strengthening financial supervision measures in relevant jurisdictions to monitor financial transactions of persons and enterprises subordinated (controlled or owned) and associated with residents of the Russian Federation, in order to prevent the spread of international terrorism, including the blocking of financial transactions and the freezing of assets.

In terms of international cooperation, during March of this year the SFMS has sent a number of appeals to the financial regulators of Barbados, Belize, BWO, Cyprus, Gibraltar, Guernsey, Isle of Man, Italy, Jersey, Liechtenstein, Monaco, Panama, Seychelles, Spain, Switzerland, UAE, Virgin Islands, Finland, Georgia, Turkey, Kazakhstan, Kyrgyzstan, Uzbekistan to strengthen financial supervision over business entities linked to the Russian Federation.

The representative of the SFMS continues to take an active part in the task force set up by the Prosecutor General’s Office to identify and seize assets belonging to those who organize, secure and provoke Russia’s aggressive war against Ukraine, both in Ukraine and abroad, in order to further transfer them to the state budget of Ukraine for the reconstruction of its destroyed infrastructure.

 Pertaining to legislative initiatives, the SFMS has prepared and sent for the approval the draft Order of the Ministry of Finance of Ukraine “On Amending Order of the Ministry of Finance of Ukraine of June 4, 2021 No. 322”, which provides for the postponement of this order entering into force till the first Monday of the fourth month after the cessation or abolition of the martial law.

Therefore, in case of adoption of this order, the reporting entities will be able to prepare more carefully for the process of submitting reports of financial transactions subject to financial monitoring, other information that may be related to financial monitoring, in new forms.

For the duration of martial law, we are determined to continue to work persistently and constructively with the Ministry of Finance of Ukraine and in coordination with other state authorities, the private sector and the public.

Glory to Ukraine!