On 30 January 2018 Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) published the Fifth Round Mutual Evaluation Report on Ukraine.
The report confirms that Ukraine is a reliable jurisdiction in combating money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction, which does not require special control measures by MONEYVAL and the FATF.
There is a significant level of interagency and international cooperation of Ukraine on this issue.
Also, Report lays emphasis on the high level of banking sector supervision and regulation. “The National Bank of Ukraine (NBU) has a good understanding of risk and applies an adequate risk-based approach to the supervision of banks. Major efforts have been made by the NBU in ensuring transparency of beneficial ownership of banks and in removing criminals from control of banks,” the Report said.
MONEYVAL also notes: “The NBU has made a demonstrable difference to the level of compliance in the banking sector”. “Remedial actions are effective, proportionate”. “NBU resources appear to be directed at the areas of greatest risk in relation to banks and the quality of its supervision is highly regarded”.
Council of Europe experts also acknowledged the NBU’s role in implementation of the risk-based approach to building an anti-money laundering system in banking institutions. “The NBU also receives significant information to provide it with a broad understanding of FT risks of the risks of each bank and the sector ,” the document said.
Experts also pointed to a higher level of counteraction to money laundering and terrorist financing by the banking sector of Ukraine compared to nonbanking one: “As such, the banks generally appeared to have more comprehensive mitigation controls in place which, while varied, better identified threats posed and controlled those threats. Non-banking REs demonstrated narrower mitigation measures in response to risks identified,” the Report said.
“The purpose of MONEYVAL analysis is to evaluate the anti-money laundering and terrorist financing system in the country and determine how it works. It is gratifying that, according to the Report, Ukraine shows a “strong political will” for such counteraction. The NBU, which carries out comprehensive supervision of banks and uses a risk-based approach to monitoring of risky financial operations, also contributed to this,” said Ihor Bereza, Director of the National Bank of Ukraine’s Financial Monitoring Department.
By its monitoring regime, Ukraine is at the level of such FATF member countries as Australia, USA, Canada, Singapore, Denmark, Sweden and Switzerland.
MONEYVAL committee Report also includes some constructive remarks to the Ukrainian financial monitoring system. NBU is ready to work productively and take all steps which are recommended by MONEYVAL and will be approved by the government.
For reference:
MONEYVAL is the main European arbitrator for AML/CFT that conducts assessments of the states by all relevant international legal, financial and law enforcement standards. One of the main tasks of MONEYVAL Committee is a mutual assessment of its members’ compliance with FATF Recommendations in the area of prevention and counteraction to legalization (laundering) of the proceeds from crime, terrorism financing and financing of proliferation of weapons of mass destruction. Ukraine has been a MONEYVAL member since 1997.