The Ministry of Finance intensifies the fight against money laundering and terrorist financing

On October 17 and 18, First Deputy Minister of Finance of Ukraine Denys Uliutin spoke at two events dedicated to discussions on improving the financial monitoring system in Ukraine and the fight against money laundering.

On Thursday, October 17, the Forum "Financial Monitoring in Ukraine: Challenges and Prospects" was organized by the Academy of Financial Monitoring with the support of the United States Agency for International Development (USAID) within the framework of the project "Promoting Integrity in the Public Sector" (Pro-Integrity) and the United Kingdom Agency for International Development (FCDO). The event brought together representatives of state and primary financial monitoring and the public sector to discuss ways to combat money laundering. Denys Uliutin emphasized that, despite the full-scale war, Ukraine continues to strengthen the legislative framework governing the fight against money laundering and terrorist financing, implementing the relevant requirements of EU Directives and Regulations, implementing relevant reforms and preparing for the next round of MONEYVAL* mutual evaluation.

He also outlined the results that the Ministry of Finance has already achieved in reforming the financial monitoring sector and the urgent need to adopt

• draft law No. 10072, prepared jointly with international experts, which should adapt Ukrainian legislation to certain standards of the Financial Action Task Force on Money Laundering (FATF) on financial sanctions;

• a draft law on the introduction of the Unified Register of Accounts of Individuals and Legal Entities prepared by the Ministry of Finance and currently being agreed with the relevant authorities, the implementation of which will facilitate the use of information, including financial information, to prevent criminal offenses.

"In order to achieve compliance with the EU membership criteria, the Ministry of Finance has initiated the issue of the need to implement a number of other important measures in the field of financial monitoring: ensuring transparency of trusts, corporate and other legal entities; applying a balanced approach to the regulation of virtual assets, and improving the effectiveness of the list of risky countries. The development of the new draft law within the framework of the Interagency Working Group on Ukraine's accession to the Single Euro Payments Area (SEPA) will help to solve a number of the above tasks," Denys Uliutin said.

He also emphasized the need to combat economic crime, such as miscellaneous and money laundering, at the training on October 18. The event was organized by the Council of Europe jointly with the Ministry of Finance of Ukraine to ensure compliance with the requirements of the anti-money laundering legislation by business entities operating in the field of gambling.

In 2022, the European Commission identified the gambling business as a sector with a high risk of money laundering and terrorist financing. Therefore, the Ministry of Finance is implementing practical steps to overcome the risks inherent in gambling and is tightening the requirements for verifying customers of gambling facilities and online resources.

"The Ministry of Finance is developing clear guidelines that will allow gambling businesses to identify and objectively assess their risks and the risks of their customers. Thus, the Ministry of Finance has already approved the Regulation on financial monitoring by business entities engaged in gambling. The document focuses on the implementation of due diligence to verify the identity of customers and understand their gambling behavior and monitor transactions, which will increase the security of gambling platforms. In addition, the Ministry of Finance is working on public-private partnerships - strategic financial monitoring arrangements concluded between the private and public sectors to share information and experience for the effective investigation of financial crimes. The need for such a partnership is spelled out in 30 FATF Recommendations," summarized Denys Uliutin.

For reference. The Ministry of Finance of Ukraine is the main body among the central executive authorities that forms and implements the state policy in the field of prevention and counteraction to legalization (laundering) of the proceeds of crime, terrorist financing and financing of the proliferation of weapons of mass destruction.

Money laundering is a process that allows concealing the illegal origin of money that is the proceeds of criminal activity and allows using such proceeds without endangering its source. The following criminal acts are in question: illegal arms trade, drug trafficking, bribery, and computer fraud.

The Ministry of Finance carries out state regulation and supervision in the field of prevention and counteraction in relation to audit entities; accountants; business entities providing accounting services; and providing taxation advice; provide intermediary and/or advisory services in real estate transactions; trade in precious metals and stones and products made of them for cash; conduct lotteries and/or gambling; trade in cultural property and/or provide intermediary services in such activities.

*MONEYVAL (the Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering and Counter-Terrorist Financing Measures) is the main European agency for combating money laundering and terrorist financing. The Committee regularly assesses states on international standards in the legal, financial and law enforcement fields in the context of compliance with and effective implementation of the FATF Recommendations. Ukraine became a member of MONEYVAL in 1997.