26 April 2019, the presentation of the Public report of the Chairman of the State service for financial monitoring of Ukraine Igor Borisovich Cherkassky on the results of operations for the year 2018
As reported on the website of the scfm in the beginning of his speech the President of Ukraine outlined the main aspects of legal support of activities of the Service, its structure and informed about the main functions of FIU for the detection and freezing of assets obtained through criminal activity or related to terrorist financing.
The Chairman of the Service, it was stressed that the key result in 2018 was the victory in the contest “Best deal of the Egmont Group”, the results of which were announced in the framework of the 25 plenary meeting of the Egmont group in Sydney (Australia).
The fact that the international community recognized as the winner, touched multistage and unprecedented complexity of the investigation of corruption and money laundering by former Ukrainian officials that culminated in the confiscation of state income of approximately $ 1.5 billion. USA.
The second important event in 2018, was the adoption in December of this year at a meeting of the Cabinet of Ministers of Ukraine the draft law “On prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction”, which was developed with the participation of the SFMS of Ukraine with the purpose of implementation of the rules of the fourth Directive (EU) 2015/849 “On prevention of the use of the financial system for money laundering and terrorist financing” and Regulation (EU) 2015/847 “On information, which accompanies the remittances “.
The bill 19.12.2018 registered in the Verkhovna Rada of Ukraine under No. 9417.
Also, Igor Cherkassky addressed the issue of cooperation between the scfm and reporting entities, noting that the number of messages from all reporting entities within the last five years has increased from 1 million to over 10 million.
Marked on the work of the financial intelligence unit of Ukraine in the part of the generalization of typological research. In particular, in the reporting year, the Service published a typological study “Risks of using entities with opaque ownership structure in the schemes of laundering of proceeds derived from crime”, which aims to study the question of concealment of beneficial ownership in the schemes of laundering of proceeds derived from crime. This is a very relevant and sensitive topic that the SFMS of Ukraine continues to develop this year.
At the same time, the Chairman of the scfm elaborated on the work on increase of efficiency of interaction with law enforcement and intelligence authorities to which the FIU sends the corresponding generalized materials.
He stressed that in 2018, the law enforcement agencies sent 934 materials. Thus, in comparison with the previous period in 2018, the number transmitted by the FIU to law enforcement agencies generalized materials grew by 31.2%.
In these materials the amount of financial transactions that may be related to legalization of funds and with another offence defined in the Criminal code of Ukraine, is 347,4 billion.
Also noted that, in General, from March 2014 to December 2018 to law enforcement agencies was directed 3599 generalized materials.
The next important aspect of the activities of the FIU, which said Igor Borisovich Cherkassky was the issue of coordination of participants of system of financial monitoring.
Such coordination based on the implementation of the Strategy of development of system of financial monitoring to 2020, as happens at the information level, thanks to the Unified state information system, and through the activities of the Government Council for the issues of prevention and counteraction to legalization (laundering) of incomes obtained in a criminal way, terrorism financing and financing of proliferation of weapons of mass destruction, and cooperation with professional associations of entities of initial financial monitoring and the public.
The President of Ukraine also stressed that in 2018 the continued modernisation of the it system of the scfm.
Not paid attention to the office Chair such an important element of the work as a methodical assistance and cooperation with entities of initial financial monitoring.
It was noted that on the basis of the State institution of postgraduate education “Academy of financial monitoring,” which is located in the management Service only in 2018 1749 trained professionals in the public and private sectors.
Also, with the support of OSCE project Coordinator in Ukraine to 2018, was published Glossary on the issues of prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism, financing of proliferation of weapons of mass destruction and corruption and Methods of national risk assessment of money laundering and financing of terrorism in Ukraine, which was developed based on international standards and proposals of the Committee of the Council of Europe MONEYVAL.
In addition, with the assistance of anti-corruption initiatives of the EU in Ukraine (EUACI) released a compilation of the main international documents that are the basis for building and evaluating the system of prevention and counteraction to legalization (laundering) of incomes, financing of terrorism and financing of proliferation of weapons of mass destruction and the methodical recommendations for realtors in the form of infographics.
At the same time, Igor Borisovich Cherkassky noticed that in preparation for the second National assessment of the risks scfm a report on the results of the sectoral risk assessment of the use of the real estate market in the legalization (laundering) of incomes obtained in a criminal way and financing of terrorism. The main purpose of sectoral risk assessment was to identify the degree of compliance and effectiveness of legislative, methodological and practical activities undertaken in the country to protect and prevent (reduce) threats and vulnerabilities of legalization (laundering) of income on the real estate market.
Such sectoral risk assessment on what Ihor Cherkassky emphasized, should be conducted every SDFM and will be an integral part of the future National risk assessment, which will be held this year.
However, the President of Ukraine noted a significant amount of the SFMS at the international level. The service cooperates with many international organizations, particularly the FATF, MONEYVAL, the Egmont group of financial intelligence units, and others. Now scfm 76 signed memoranda of understanding with foreign financial intelligence units. In 2018, the Service has carried out active exchange financial information with foreign financial intelligence units.
In conclusion, the President of Ukraine informed about the plans for the future in the work of the scfm. Thus, an important area of work will be continued cooperation with the MONEYVAL Committee within the framework of the implementation of coordination activities for implementation of the national action plan for combating money laundering until 2019, and a plan of action to implement the recommendations of MONEYVAL Committee on the results of the assessment of Ukraine, the results of which in July the delegation of Ukraine will present in plenary meeting of MONEYVAL in the first report of progress.
After a public report by the head of the SFMS of Ukraine noted that the Service, as the coordinating body of the system of financial monitoring, with the aim of achieving effective results in their work, will remain open and ensure a constructive cooperation with state regulators, law enforcement agencies, the entities of initial financial monitoring and especially the institutions of civil society.
Separately, the head of scfm thanked each officer for contribution to the results achieved.
Report of the State service for financial monitoring of Ukraine for 2018 can be found on the official website of scfm in category “About the Service” — “SVT about the operation” — “2018”.