MONEYVAL at the Council of Europe on 30th January published its report on the AML/CFT systems of Ukraine, saying that new legal provisions are required to render more dissuasive sentences for the crimes, more resources are needed, and high-level cases are to be investigated and prosecuted more actively.  Since the last evaluation in 2009, Ukraine has taken a number of welcome steps.  Ukrainian authorities demonstrate a reasonably good understanding of ML/FT risks. However, understanding could be enhanced in such areas as cross-border risks and risks posed by the non-profit sector and legal persons. Besides, more robust statistics should back up the risk analysis.  Ukraine faces considerable money laundering risks due to the corruption and illegal economic activities, including fictitious entrepreneurship, tax evasion and fraud. The sheer size of the shadow economy exacerbated by the widespread use of cash makes the country especially vulnerable.  Money laundering is still essentially seen as a “secondary level” crime, an adjunct to a predicate offence. Whenever a sentence for money laundering is given, it is almost always less than for the predicate offence. The sanctions generally need to be more dissuasive in practice.  As far as terrorism financing is concerned, Ukraine has introduced it as a separate offence and is putting a system in place for countering it. However, there are still technical deficiencies that need to be addressed to bring the framework in line with international standards.  Ukraine is to report back to MONEYVAL at the first Plenary in 2019 about the implementation of its recommendations under enhanced follow-up procedures.

The report is at –

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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