Financial Crime World

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Ukraine’s Financial System Showcases Resilience Amid Regulatory Scrutiny

In a bid to bolster its financial integrity, Ukraine has made significant strides in recovering assets obtained through criminal means. According to a recent workshop, the country has been working tirelessly to develop the efficiency of pre-trial investigations and has achieved notable success in this regard.

Notable Achievements

  • The Prosecutor General’s Office reported that 7,832 criminal offenses related to anti-money laundering (AML) and combating the financing of terrorism (CTF) were investigated in 2023.
  • The established value of legalised property obtained by criminal means during this period was a staggering UAH 2,998,290,540 ($78,263,910), with UAH 212,426,030 ($5,544,923.50) seized so far.

Challenges and Recommendations

Despite these achievements, workshop participants emphasized the importance of taking a comprehensive approach during pre-trial investigations to ensure effectiveness in recovering assets. They noted that while accessing information about assets or accounts within Ukraine is swift, international cooperation can be delayed by prolonged procedures.

  • Workshop participants highlighted the significance of court judgments authorizing confiscation in asset recovery and urged relevant stakeholders in the country to take necessary measures to uphold high standards of technical compliance by passing relevant legislation and ensuring its implementation.
  • The international community, including the EU, is closely watching Ukraine’s progress in this regard.

Regulatory Scrutiny

Ukraine’s efforts have been closely monitored by regulators, with the Financial Action Task Force (FATF) issuing a Mutual Evaluation Report (MER) in 2020. The report identified several deficiencies in the country’s AML/CTF regime, which Ukraine has committed to addressing.

  • The ongoing impact of the FATF assessment serves as a reminder of the need for continuous reporting on efforts to address identified deficiencies.
  • With Ukraine’s next MONEYVAL Assessment not due until 2027, it is crucial that all relevant stakeholders take proactive steps to ensure compliance and effectiveness.

Conclusion

As the world watches, Ukraine’s financial system remains resilient in the face of regulatory scrutiny, demonstrating its commitment to combating financial crime and ensuring the integrity of its financial sector.