Financial Crime Statistics and Trends in Ukraine: Experts Sound Alarm
Strengthening Anti-Money Laundering Efforts Ahead of Enhanced Assessment
A recent online workshop organized by the Centre for Financial Crime and Security Studies (CFCS) at RUSI has highlighted the importance of strengthening anti-money laundering (AML) efforts in Ukraine, ahead of its upcoming enhanced follow-up procedure and 6th round of the MONEYVAL mutual evaluation. The country’s commitment to EU reforms and its readiness for assessment have been a major focus of the workshop.
Key Stakeholders Attend Virtual Event
The virtual event, held under the Chatham House Rule, brought together key stakeholders from Ukrainian financial institutions and relevant authorities, including:
- Representatives from the State Financial Monitoring Service of Ukraine
- Ministry of Finance of Ukraine
- Prosecutor General’s Office
- Ministry of Digital Transformation of Ukraine
- Other relevant authorities
Experts Warn of Vulnerabilities in Ukraine’s Financial System
According to experts, Ukraine’s financial system remains vulnerable to financial crime, with corruption and money laundering remaining significant concerns. The country’s AML framework is still evolving, and there are concerns about its ability to effectively identify and report suspicious transactions.
Recommendations for Improved Coordination and Regulation
Workshop participants emphasized the need for:
- Improved coordination between authorities
- Enhanced public-private partnerships to combat financial crime
- Strengthening the national AML/CFT regime
- Increasing transparency in the financial sector
- Improving the regulatory framework
Ukraine’s Readiness for MONEYVAL Evaluation
Ukraine is expected to face a rigorous assessment, which will test its compliance with international standards and best practices in anti-money laundering and combating the financing of terrorism. Experts warn that failure to address these concerns could have serious consequences, including:
- Increased risks of money laundering and terrorist financing
- Reputational damage to the country’s financial sector
CFCS’s SMURF Project Aims to Strengthen Ukraine’s Financial Sector
The CFCS’s Supervising and Monitoring Ukraine’s Reconstruction Funds (SMURF) project, supported by the National Endowment for Democracy, aims to strengthen Ukraine’s financial sector resilience and integrity. The workshop is part of this initiative, which seeks to promote transparency, accountability, and good governance in Ukraine’s financial system.
Conclusion
As Ukraine prepares for its enhanced follow-up procedure and 6th round of the MONEYVAL mutual evaluation, it is imperative that the country takes concrete steps to strengthen its AML/CFT regime and address these pressing concerns.