Financial Crime World

Ukraine Deemed Not the “Capital of the World” for Money Laundering and Child Sex Trafficking Despite Viral Claim

A recent social media post has sparked controversy, claiming that Ukraine is the “capital of the world” for money laundering and child sex trafficking. However, experts have disputed this claim, citing a lack of evidence to support it.

Human Trafficking: A Global Issue

According to Kristen Leanderson Abrams, senior director of combatting human trafficking at the McCain Institute, while several organizations track data on human trafficking, there is no exact country-by-country index for child sex trafficking. The International Labour Organization reported in 2015 that an estimated:

  • 6 million children were enslaved worldwide
    • 1.2 million trafficked
    • 1.8 million sexually exploited

Human Trafficking Index: Ukraine Classified as Tier 2

For human trafficking in general, the State Department’s annual Trafficking in Persons report is considered the “gold standard.” In its most recent report, Ukraine was classified as:

  • Tier 2, along with countries such as Denmark, Germany, and Japan
    • The report noted that while some government officials are complicit in human trafficking, the government has taken steps to prevent it

Money Laundering: A Global Problem

Experts agree that no country is completely free of money laundering. Lakshmi Kumar, policy director at Global Financial Integrity, stated that:

  • Depending on several factors such as size of economy, strength of judicial system, and type of government, the risk of money laundering can rise or fall dramatically
  • The Basel AML Index 2021 ranked Haiti as having the highest risk for money laundering due to its political chaos

However, Kumar emphasized the cross-border nature of money laundering:

  • Most illicit money leaves developing countries but finds a place in developed ones, such as:
    • US
    • Europe
    • UK
    • Canada
  • Therefore, looking at the transnational aspect of money laundering is crucial to understanding the activity

Conclusion: No Evidence for Ukraine’s Alleged Status

In conclusion, there is no evidence to support the claim that Ukraine is the “capital of the world” for money laundering and child sex trafficking. While these issues do occur within Ukraine’s borders, reports and indices indicate that they are more prevalent in many other countries.

This article has been fact-checked by USA TODAY and found to be FALSE.