The National Bank of Ukraine was actively involved in the design of the project led by the Independent Association of the Banks of Ukraine, which was aimed at setting up regular and prompt communications and sharing experience in monitoring AML/CFT compliance.

The first step in implementing this project was to publish the best practices of banks in countering  money laundering, which were compiled into one document posted on the IABU’s website.

“The NBU supports an initiative by the banking community and actions of the IABU that has  assumed the responsibility to review, summarize and publish best practices building on  experience gained by banks in implementing AML/CFT compliance laws and regulations. This will allow banks to promptly receive information about such practices and adopt them in  their day-to-day activities. The NBU is grateful to those involved in the preparation of this document that I am confident will  be used as guidelines for monitoring AML/CFT compliance,” said Director of the NBU Financial Monitoring Department Ihor Bereza.

Banks follow recommendations to prevent customers from performing risky sham transactions that should be thoroughly monitored on a continuous basis, not in a perfunctory manner. In addition, practical recommendations show that banks apply a risk-based approach in different dimensions.

The idea of compiling a manual on AML/CFT Compliance is not new. It is actively used in the US and Europe. The Joint Money Laundering Steering Group (JMLSG), which comprises the leading UK Trade Associations in the financial services industry, was established in the UK.  Its aim is to compile best practices and guidelines in countering  money laundering in order to identify sham transactions used to siphon off capital and avoid providing information about the origin of the funds.

Mr Bereza said that the NBU remains firmly committed to working closely with the banking community on projects designed to improve AML/CFT compliance supervision.

In 2017, the NBU modified risk management requirements in the area of AML/CTF compliance.  The amendments to this effect  were introduced by  NBU Board  Resolution No. 42 of 25 May 2017 On Approval of Amendments to the Regulation on Financial Monitoring by Banks.