Ukraine improved international positions in the anti-money laundering and countering the financing of terrorism
Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) published approved 2nd progress report of Ukraine in a framework of the 5th round of evaluation in the prevention and counteraction the anti-money laundering and financing of terrorism (AML/CFT) on the 28th of August 2020.
The report demonstrates positive dynamics of Ukraine in the process of approximation of national legislation in the AML/CFT to international standards.
The MONEYVAL Committee analyzed a number of legislative, regulatory and institutional measures taken by Ukraine to address the shortcomings identified by the Council of Europe as a result of an on-site evaluation in 2017.
At present, ratings have been assigned from negative (“Partially compliant”) to positive (“Largely compliant”) compliance with the following FATF Recommendations:
- Recommendation 5 “Offence of Terrorist Financing”, as a result of changes in the Law regarding the counteraction against terrorism and its financing;
- Recommendation 35 “Sanctions”, due to a significant increase in liability for reporting institutions for legislative violations in the AML/CFT established by the Law.
The MONEYVAL Committee notes Ukraine’s progress in two key areas: improving criminal law provisions related to the offence of terrorism financing and enhancing sanctions against financial institutions and other entities for non-compliance with the AML/CFT legislation.
At the same time, the MONEYVAL focuses on further measures that will be taken to increase ratings in five more areas: the latest technologies (Recommendation 15), financial sanctions related to terrorism (Recommendation 6); financial sanctions related to the financing of proliferation of weapons of mass destruction (Recommendation 7); regulation and supervision of the non-financial professions and occupations (Recommendation 28); maintenance of national statistics on AML/CFT (Recommendation 33).
State Tax Service of Ukraine participates on a permanent basis in the Council for the Prevention and Counteraction the Anti-Money Laundering, the Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction formed in accordance with the Resolution of the Cabinet of Ministers of Ukraine as of 08.09.2016 № 613 and jointly with the State Financial Monitoring Service of Ukraine and other interested state bodies take measures in accordance with the developed Action Plan to improve national financial monitoring system based on results of the 5th round of MONEYVAL evaluation, approved in April 2018 and supported by the Order of the Cabinet of Ministers of Ukraine as of 29.05.2018 № 16465/1 / 1- 18.
