Since March of this year the State Financial Monitoring Service of Ukraine has been analyzing the financial transactions in order to detect and block assets stolen by former high-ranking officials.
The System analysis conducted by experts of the Financial Intelligence Unit (FIU) of Ukraine testified the following:
- financial transactions of 42 non-resident companies registered in Cyprus, Panama, UK, Belize, Seychelles (connected as business interests and with positional-constituent part) which own current and deposit accounts and securities accounts opened in the range of Ukrainian banks, and which are associated with V. Yanukovych, his close associates involved in legalization of proceeds in the especially large amount;
- in 2010-2013 via the accounts opened in the banks of one of the neighboring countries these non-resident companies withdrew funds in the total amount of 16 billion UAH, a significant part of which was used to purchase government bonds (the so-called currency government bonds).
The State Financial Monitoring Service of Ukraine has conducted a multistage and unprecedented complex investigation which involved financial intelligence of USA, UK, Latvia, Cyprus, Panama and has found that the above offshore companies are controlled by the specified high-ranking officials and persons authorized by them to manage companies and these funds and are engaged in legalization of criminal proceeds using modern financial instruments.
According to the article 17 of the law of Ukraine «On Prevention and Counteraction to Legalization (Laundering) of the Proceeds of Crime or Terrorist Financing» the State Financial Monitoring Service of Ukraine has blocked debit transactions on accounts of the abovementioned companies that enables (after conducting investigations by the law enforcement) returning into the state budget the assets misappropriated by the former President of Ukraine and his close associates.
The total amount of blocked funds of 19non-resident companies (in Ukrainian banks) is – USD 1.34 billion (equivalent in UAH - UAH 15.79 billion) including those on deposit and current accounts – UAH 378.42 million and USD 159.85 million and on the opened securities accounts – UAH 1.49 billion, and USD 1.02 billion.
Materials of the financial investigation were handed over to the Prosecutor General’s Office of Ukraine on the 10th of June 2014.
Blocking of accounts of the abovementioned non-resident companies executed by the State Financial Monitoring Service of Ukraine has been extended on 16th of June, 2014, via attachment based on representations by the General Prosecutor’s Office of Ukraine within the criminal proceedings under the Order of the Pechersk District court in Kyiv.
The State Financial Monitoring Service of Ukraine is working to identify other participants in the scheme and to block their assets.
The State Financial Monitoring Service of Ukraine continues its work on the identification and blocking of proceeds of corruption by the former President of Ukraine, his relatives and associated persons and shall further continue using all legal mechanisms to combat laundering of criminal money.
Reference: According to the Law of Ukraine “On Ratification of Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism” (as of 17.11.2010 No. 2698-VI) an agency specially authorized to fulfill functions of the financial intelligence unit of Ukraine is a central agency of executive power responsible for financial monitoring issues in Ukraine (the State Financial Monitoring Service of Ukraine).