In Q1 2017, based on the findings of on-site and off-site supervision inspections, the National Bank of Ukraine reported to the law enforcement authorities about suspicious financial transactions carried out by customers of 18 banks.
According to statistical reports on AML issues submitted by banks to the NBU, in Q1 2017, banks reported to the State Financial Monitoring Service of Ukraine about over 1.7 million financial transactions that are subject to financial monitoring, which was 37% more than in the same period of the previous year.
Notifications about financial transactions involving cash, as well as financial transactions carried out by persons assigned to the high risk group by banks.
Such transactions amounting to or exceeding UAH 150,000 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.
“Obviously, cash payments are a commonly used form of payment and most cases such payments are legal. However, under the applicable law, transactions amounting to or exceeding UAH 150,000 are subject to financial monitoring. Therefore, the NBU as the regulator verifies banks’ compliance with AML/CFT laws and whether banks have taken sufficient measures to prevent illegal transactions (including by suspending and rejecting such transactions). In addition, the NBU closely cooperates with the law enforcement authorities and the State Fiscal Service of Ukraine,” said Director of the NBU Financial Monitoring Department Ihor Bereza.
Banks have become more efficient in preventing sham transactions due to a comprehensive analysis and a thorough verification of information about customers’ financial transactions. As a side note, this was made possible due to the adoption of the Regulation On Banks’ Analysis and Verification of Documents (Information) Regarding Financial Transactions and Their Participants approved by NBU Board Resolution No. 369 of 15 August 2016.