Financial Crime World

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Financial Institution Risk Assessment in Ukraine: Experts Weigh In on Key Challenges

The Centre for Financial Crime and Security Studies (CFCS) at the Royal United Services Institute (RUSI) recently hosted an online workshop that brought together key stakeholders from Ukraine’s financial system to discuss the country’s preparedness for enhanced risk assessments. The event, held in February 2024, coincides with Ukraine’s efforts to strengthen anti-money laundering (AML) measures and implement European Union reforms.

Challenges Facing Ukraine

As Ukraine prepares for the upcoming enhanced follow-up procedure and 6th round of the MONEYVAL mutual evaluation, regional body of the Financial Action Task Force (FATF), experts emphasized the importance of addressing critical issues to ensure readiness. The workshop was part of CFCS’s Supervising and Monitoring Ukraine’s Reconstruction Funds (SMURF) project, supported by the National Endowment for Democracy.

Key Attendees

Representatives from leading Ukrainian financial institutions and authorities attended the workshop, held under the Chatham House Rule, including:

  • State Financial Monitoring Service of Ukraine
  • Ministry of Finance of Ukraine
  • Prosecutor General’s Office
  • Ministry of Digital Transformation of Ukraine
  • Other stakeholders from the financial sector

Workshop Objectives

The event aimed to provide a platform for stakeholders to share their perspectives on the country’s financial system resilience and integrity in light of Russia’s full-scale invasion two years ago. The report summarizes the key findings from the workshop, highlighting the challenges facing Ukraine as it prepares for enhanced risk assessments.

Key Findings

The workshop highlighted several critical issues that Ukraine needs to address to ensure its preparedness for enhanced risk assessments. These include:

  • Ensuring effective coordination between authorities and financial institutions
  • Strengthening AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) regulations and enforcement
  • Improving customer due diligence and Know Your Customer (KYC) procedures
  • Enhancing financial institution risk assessment and management practices
  • Increasing transparency and accountability in the financial system

By addressing these challenges, Ukraine can strengthen its financial system resilience and integrity, ultimately supporting its economic recovery and integration into the global economy.