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In H1 2017, the National Bank of Ukraine Reported to the Law Enforcement Authorities about Suspicious Transactions by Customers of 22 Banks

The National Bank of Ukraine has sent 10 letters to the law enforcement agencies informing them about the suspicious financial transactions by the customers of 22 banks.

The NBU provided the law enforcement agencies with information, mostly pertaining to risky large-scale cash transactions, as well as transactions  involving the transfer of funds abroad  that can be indicative of taking capital out of the country.     

The National Bank of Ukraine is involved in continuous efforts to streamline the procedure for analyzing information on financial transactions by banks given the recent steps by taken by the regulator to relax FX controls and amendments to the rules for raising external financing by residents.  In particular,  the regulator has  expanded the list of indicators  used by banks to detect risky financial operations, as well as measures to be taken by banks to prevent capital outflows abroad through shadow schemes. Banks' responsibility  for carrying out  risky operations has been strengthened. Therefore, banks are  required to take sufficient measures to identify  the ultimate beneficial owners of legal entities,” said Director of Financial Monitoring Department Ihor Bereza.

Mr Bereza said that to prevent risks in the area of AML/CTF compliance the NBU put in place a risk-based approach allowing banks to assess the financial capacity of customers intending to perform financial operations.

Amendments to this effect were made to NBU Board Resolutions No. 369, 346, 247, and 417.

“These steps will favorably impact banks’ ability to analyze financial operations to identify suspicious or sham operations,” said Ihor Bereza.

The NBU cooperates with the law enforcement authorities on a continuous basis in accordance with the requirements of applicable laws.

Financial operations amounting to or exceeding UAH 150,000  and fit the description of risky operations are subject to financial monitoring as mandated by the  Law of Ukraine On Prevention and Counteraction of Legalization (Laundering) of the Proceeds from Crime or Terrorism Financing.

 

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