In Q1 2019, the National Bank of Ukraine (NBU), pursuant to Article 18 of the Law of Ukraine On the Procedural and Legal Framework for Combating Organized Crime, provided law enforcement authorities with information that may be indicative of organized criminal activities and can be used to detect, stop, and prevent such activities.
The information was obtained during financial monitoring inspections and inspections on compliance with the currency laws (hereinafter – currency control).
Thus, as of 31 March 2019, the NBU sent the following communications to law enforcement bodies:
- based on the results of financial monitoring – 4 letters to report on suspicious financial transactions by customers of 5 banks for the total amount exceeding UAH 3.7 billion
- based on the analysis of currency transactions – 1 letter containing information on the bank customers’ export transactions (exceeding UAH 16 billion) and possible failure to obtain the proceeds from exported products, which can prove infringement of the Law of Ukraine On Procedure for Settlements in Foreign Currency.
The NBU sent one notification to the National Anti-Corruption Bureau of Ukraine containing information that may bear evidence of criminal offences or be used to prevent, detect, cease, and investigate criminal offences that, in accordance with the Law, fall within the authority of the Bureau.
Additionally, based on the results of currency supervision, the NBU informed the law enforcement bodies of large-scale financial transactions of a bank’s clients for the total amount exceeding UAH 340.7 million and USD 105.6 million.
The communications to law enforcement bodies were largely related to financial transactions by bank customers that might relate them to capital withdrawal, legalization of criminal proceeds, conversion of cashless funds into cash, fictitious entrepreneurship, and tax evasion.
Moreover, last quarter, based on the Cooperation and Information Sharing Agreement between the State Financial Monitoring Service of Ukraine and the NBU, the NBU provided the authorized body with information obtained in the course of financial monitoring which may point to suspicions of legalization (laundering) of proceeds from crime, terrorism financing, and financing the proliferation of weapons of mass destruction.
Please, be reminded that the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) in its report confirmed that Ukraine is a reliable jurisdiction in combating money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction, and emphasized the high level of regulatory and supervisory activities in the banking sector.