1. Згідно пункту 21) статті 1 Закону України «Про запобігання та протидію легалізації (відмиванню) доходів, одержаних злочинним шляхом, фінансуванню тероризму та фінансуванню розповсюдження зброї масового знищення» клієнтом є, зокрема, будь-яка особа, що є стороною договору. Просимо роз’яснити про сторону якого саме договору йде мова у випадку коли суб’єктом первинного фінансового моніторингу виступає: 1) торговець цінними паперами; 2) депозитарна установа.

Пунктом 21 статті 1 Закону України визначено, зокрема, що клієнтом є будь-яка особа, яка є стороною договору.
Враховуючи, що відповідно до Закону України суб’єктами первинного фінансового моніторингу (далі – СПФМ) є професійні учасники фондового ринку (ринку цінних паперів), які надають фінансові та інші послуг у сфері розміщення та обігу цінних паперів, обліку прав на цінні папери та прав за цінними паперами в рамках Закону України «Про фінансові послуги та державне регулювання ринків фінансових послуг» та Закону України «Про цінні папери та фондовий ринок» то в даному випадку клієнтом СПФМ виступає особа, яка є стороною за договором про надання фінансових послуг та інших послуг, зокрема, для торговця цінними паперами це:
особа, в інтересах та за рахунок якої діє торговець на підставі відповідного договору;
особа, що укладає з торговцем договір купівлі-продажу (міни) цінних паперів або інших фінансових інструментів.
Для депозитарної установи клієнтом є депонент.

2. Чи є обов’язковим здійснення торговцем цінними паперами ідентифікації особи, з якою у торговця цінними паперами відсутні ділові відносини та яка є стороною дилерського договору або договору на виконання, якщо сума такого договору менша ніж 150000 гривень, або суми, еквівалентної зазначеній сумі, у тому числі в іноземній валюті, банківських металах, інших активах?

Відповідно до частини третьої статті 9 Закону України ідентифікація та верифікація клієнта здійснюється , зокрема у разі встановлення ділових відносин та проведення разової фінансової операції без встановлення ділових відносин з клієнтами на суму, що дорівнює чи перевищує 150000 гривень, або суму, еквівалентну зазначеній сумі, у тому числі в іноземній валюті, банківських металах, інших активах.
Таким чином, у разі проведення фінансових операцій зі стороною, з якою у торговця цінними паперами не встановлені ділові відносини, йому необхідно проводити ідентифікацію такої особи у випадку якщо операція проводиться на суму, що дорівнює чи перевищує 150000 гривень, або суму, еквівалентну зазначеній сумі, у тому числі в іноземній валюті, банківських металах, інших активах.

3. Просимо роз’яснити чи може суб’єкт первинного фінансового моніторингу при ідентифікації визначити дані, що дають змогу встановити кінцевого бенефіціарного власника (контролера), на підставі інформації про таку особу, одержаної від клієнта та засвідченої ним (наприклад, опитувальник чи довідка, яка створена та засвідчена самим клієнтом)?

Відповідно до частини дев’ятої та десятої статті 9 Закону України СПФМ під час ідентифікації та верифікації встановлюють, зокрема, дані, що дають змогу встановити кінцевих бенефіціарних власників (контролерів).

Відповідно до абзацу 3 частини сьомої статті 9 Закону України з метою встановлення кінцевого бенефіціарного власника (контролера) СПФМ витребовує у клієнта – юридичної особи інформацію та/або документи, що підтверджують наявність структури власності такого клієнта.

Відповідно до пункту 35 частини першої статті 1 Закону України структура власності – документально підтверджена система взаємовідносин юридичних та фізичних осіб, що дає змогу встановити всіх наявних кінцевих бенефіціарних власників (контролерів), у тому числі відносини контролю між ними щодо цієї юридичної особи, або відсутність кінцевих бенефіціарних власників (контролерів).

Законом України не визначено, що структура власності є офіційним документом.

Таким чином, СПФМ може встановлювати кінцевого бенефіціарного власника (контролера) клієнта ,на підставі документа довільної форми (у тому числі опитувальника/довідки клієнта), який надається клієнтом та визначає його структуру власності.

4. Чи є керівник юридичної особи, який не володіє прямо або опосередковано часткою у юридичній особі, правом голосу особою, яка має можливість здійснювати вирішальний вплив на управління або господарську діяльність відповідної юридичної особи (кінцевим бенефіціарним власником (контролером)?

Згідно з пунктом 20 частини першої статті 1 Закону України кінцевий бенефіціарний власник (контролер) – фізична особа, яка незалежно від формального володіння має можливість здійснювати вирішальний вплив на управління або господарську діяльність юридичної особи безпосередньо або через інших осіб, що здійснюється, зокрема, шляхом реалізації права володіння або користування всіма активами чи їх значною часткою, права вирішального впливу на формування складу, результати голосування, а також вчинення правочинів, які надають можливість визначати умови господарської діяльності, давати обов’язкові до виконання вказівки або виконувати функції органу управління, або яка має можливість здійснювати вплив шляхом прямого або опосередкованого (через іншу фізичну чи юридичну особу) володіння однією особою самостійно або спільно з пов’язаними фізичними та/або юридичними особами часткою в юридичній особі у розмірі 25 чи більше відсотків статутного капіталу або прав голосу в юридичній особі.

Вищенаведена норма Закону однозначно встановлює, що володіння однією особою  самостійно або   спільно   з пов’язаними  фізичними  та/або юридичними особами часткою в юридичній особі у розмірі 25 чи більше відсотків статутного капіталу або прав голосу в юридичній особі не є обов’язковою умовою, яка дає змогу визначити належність фізичної особи до кінцевого бенефіціарного власника (контролера).

5. Чи можливою є ситуація, коли у юридичної особи відсутній кінцевий бенефіціарних власник (контролер)? Чи є надана клієнтом інформація про відсутність у юридичної особи кінцевого бенефіціарного власника (контролера) достатньою для з’ясування суб’єктом первинного фінансового моніторингу в процесі ідентифікації даних про кінцевого бенефіціарного власника (контролера)?

У разі якщо структура власності не дає можливість встановити кінцевого бенефіціарного власника (контролера) який володіє клієнтом, або є прямим опосередкованим власником чи опосередкованим власником спільно з пов’язаними особами то СПФМ встановлює фізичну особу, яка не володіє часткою у розмірі 25 чи більше відсотків статутного капіталу компанії, але яка має можливість здійснювати вирішальний вплив на управління або господарську діяльність компанії у спосіб, визначений зазначеною нормою Закону.

Слід зазначити, що кінцевий бенефіціарний власник (контролер) у юридичної особи може бути відсутній у випадку якщо клієнт є юридичною особою управління яким здійснюється колегіальним органом управління.

Враховуючи викладене, суб’єкт первинного фінансового моніторингу повинен вжити всіх необхідних заходів у відношенні клієнта – юридичної особи щодо встановлення кінцевих бенефіціарних власників (контролерів) або факту їх відсутності.

Financial monitoring

Financial monitoring – a set of measures carried out by the subjects of financial monitoring in the area of ​​prevention and counteraction to legalization (laundering) of proceeds from crime or terrorist financing, including state financial monitoring and initial financial monitoring.

The subjects of initial financial monitoring are:

  • banks, insurance companies, credit unions, pawnbrokers and others. financial institutions;
  • payment organizations, payment system members, acquiring and clearing institutions;
  • commodity, stock, etc. exchanges;
  • professional securities market participants;
  • asset management company;
  • postal operators and other institutions that carry out financial transactions for the transfer of funds;
  • branches or representative offices of foreign business entities that provide financial services on the territory of Ukraine;
  • business entities that provide intermediary services in the course of real estate purchase and sale operations;
  • business entities that trade in cash for precious metals and precious stones and products from them, if the amount of the financial transaction is equal to or exceeds the amount specified by the legislation;
  • business entities conducting lotteries and gambling, including casinos, electronic casinos;
  • notaries, lawyers, auditors, audit firms, individuals – entrepreneurs who provide accounting services, business entities that provide legal services (with the exception of persons providing services in the framework of labor relations), in cases provided for by law;
  • other legal entities which, by their legal status, are not financial institutions but provide separate financial services.

The subjects of state financial monitoring are:

  • National Bank of Ukraine,
  • Ministry of Finance of Ukraine,
  • Ministry of Justice of Ukraine,
  • Ministry of Transport and Communications of Ukraine
  • Ministry of Economy of Ukraine
  • National Securities and Stock Market Commission
  • State Commission for the Regulation of Financial Services of Ukraine,
  • State Financial Monitoring Service of Ukraine.

The National Securities and Stock Market Commission carries out state regulation and supervision in the field of prevention and counteraction to the legalization (laundering) of proceeds from crime or terrorist financing against stock exchanges, asset management companies and other professional stock market participants (except banks) respectively to the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, or Financing of Terrorism”.

In the area of ​​prevention and counteraction to the legalization (laundering) of proceeds from crime or terrorist financing, the NCCSF has the following powers:

  • to supervise the activity of entities of initial financial monitoring by, in particular, through planned and unscheduled inspections, including outgoing ones;
  • to provide methodological, methodological and other assistance to the entities of initial financial monitoring;
  • to carry out regulation and supervision, taking into account policies, procedures and control systems, risk assessments in order to determine the correspondence of measures taken by the entities of initial financial monitoring and to reduce risks during the activity of such entities;
  • to demand from subjects of initial financial monitoring the fulfillment of the requirements of the legislation regulating relations in the sphere of prevention and counteraction to legalization (laundering) of proceeds from crime or terrorist financing, and in case of revealing violations of the requirements of the legislation to take measures envisaged by law;
  • to check the organization of professional training of employees and heads of units responsible for financial monitoring;
  • to inform the Specially authorized body with the purpose of carrying out the tasks assigned to it regarding detected violations of the legislation in the area of ​​prevention and counteraction to the legalization (laundering) of proceeds from crime, or financing of terrorism and measures taken to eliminate them;
  • annually, but not later than January of the following year, to provide the Specially Authorized Body with general information on compliance with the requirements of the legislation on prevention and counteraction to the legalization (laundering) of proceeds from crime or terrorist financing, including violations detected, by the entities of initial financial monitoring and the steps taken to eliminate them;
  • to ensure the storage of information received from the subjects of initial financial monitoring and law enforcement agencies;
  • to coordinate with the Specially authorized body drafting of any legal acts on issues related to the fulfillment of the requirements of the law;
  • submit to the Specially Authorized Body information, in particular, the documents necessary for the performance of the tasks assigned to it (with the
  • exception of information about the personal life of citizens), in accordance with the procedure established by the legislation;
  • in cases established by law, take measures to prevent the formation of statutory funds of the relevant entities of initial financial monitoring at the expense of funds whose origin can not be confirmed;
  • to use the information of the Specially Authorized Body on the grounds for violating the requirements of the legislation in the area of ​​prevention and counteraction to the legalization (laundering) of proceeds from crime, or terrorist financing for the establishment of such violations, by the subjects of initial financial monitoring.

In accordance with the Procedure for monitoring compliance by professional stock market participants (securities market) with the requirements of the legislation in the field of prevention and counteraction to the legalization (laundering) of proceeds from crime, terrorist financing and financing of the proliferation of weapons of mass destruction, approved by the decision of the National Commission on Securities and Stock July 17, 2015 No. 1038 and registered with the Ministry of Justice of Ukraine on August 6, 2015 under No. 955/27400, the grounds for conducting a scheduled check-out by the Commission of the subject and initial financial monitoring to comply with the requirements of the legislation in the field of prevention and counteraction to the legalization (laundering) of the proceeds from crime, the financing of terrorism and financing of the proliferation of weapons of mass destruction is to include it in the schedule of audits of entities of initial financial monitoring for the corresponding quarter. The plan is approved by the order of the Chairman of the Commission or the person performing his duties and is published on the official website of the Commission.

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Legal entity EDRPOU Checking Unit Check Date Validation Status Basis of verification

The subjects of initial financial monitoring during the implementation of internal financial monitoring are faced with the implementation of certain norms of legislation in the area of ​​combating money laundering or terrorist financing.

In accordance with the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorist Financing”, the Commission ensures the provision of methodological, methodological and other assistance to the entities of initial financial monitoring.

In particular, during the year 2016, 27 letters were sent to the Commission with requests for clarification on financial monitoring issues. Among the 75 questions sent by the above mentioned letters, questions of identifying, verifying, studying and clarifying information about clients and identifying and registering financial transactions subject to financial monitoring were raised most often.

In order to provide methodological assistance to the LFMI and its strict compliance with the requirements of legislation in the field of financial monitoring, the Commission publishes clarifications on the most problematic issues sent to the NCSSM.

Recommendations on risk management of clients of entities of initial financial monitoring

The Commission recommends that the subjects of initial financial monitoring – securities traders and asset management companies – set the level of risk “high” to such clients:

  1. issuers of securities that have not placed regular annual information in the Public Information Center of the SSMSC during the last two years;
  2. issuers of CII securities (in the case of public placement of securities), for which there is no, for the last two years, information in the Public Information Center of the SSMSC;
  3. issuers whose circulation of securities has been stopped on any stock exchange or suspended the introduction of changes to the depository record system for the entire issue of securities;
  4. issuers of securities regarding which information is available on the official website of the SSMSC on the drawing up of the act of absence at the location;
  5. persons who enter into deals with securities of issuers, specified in clauses 1-4;
  6. persons who during the maintenance process do not provide the full amount of information necessary for carrying out the risk assessment of the client;
  7. to non-resident persons who have registered place (location) in the country – an aggressor.

At the same time, these Recommendations are one of the elements aimed at eliminating the shortcomings identified in the Report on the National Evaluation of Money Laundering and Terrorist Financing in Ukraine and related to the securities market.

Recommendations to entities of initial financial monitoring – professional participants of the stock market (securities market) (except banks) regarding the risks of distance services

In accordance with clause 4 of clause 2 of Section VІІ of the Regulation on the implementation of financial monitoring by professional participants in the securities market, approved by the decision of the NCSSMF dated March 17, 2016, No. 309 and registered with the Ministry of Justice of Ukraine on April 13, 2016, No. 551/28681, measures aimed at The assignment of an operation to that which is subject to financial monitoring or which may be related concerns or is intended to finance terrorist financing and the financing of the proliferation of weapons of mass destruction is determined by the Rules (section on pores the basis for actions to identify financial transactions subject to financial monitoring that may be related to, or are intended to finance terrorism and financing the proliferation of weapons of mass destruction) and, in particular, include the management of risks associated with the introduction or use of new and existing information products, business practices or technologies, including those that provide financial transactions without direct contact with the client.

Paragraph 23 of the second part of Article 6 of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and Financing the Proliferation of Weapons of Mass Destruction” stipulates that an entity of initial financial monitoring is required to carry out risk management, with the introduction or use of new and existing information products, business practices or technologies, including those that ensure the conduct of financial transactions without direct contact with the client.

Also, according to Section V of the Risk Criteria for Legalization (Laundering) of the Proceeds from Crime, Terrorist Financing and the Financing of the Proliferation of Weapons of Mass Destruction, approved by the order of the Ministry of Finance of Ukraine of 08.07.2017 No. 584 “On Approval of the Risk Criteria for Legalization (Laundering) of Income Received crime, financing of terrorism and financing of the proliferation of weapons of mass destruction “, the risk assessment of the client is carried out, in particular, by the type of goods and services provided by the subjects of the primary financial monitoring if this is a distant service.

The latest financial instruments enable a financial institution to provide its customers with convenient, fast and high-quality services at a negligible expense.

At the same time, despite the significant benefits of such resources, financial institutions use technologies that allow the provision of services remotely, in particular without direct contact with the client, can have significant risks of using for money laundering and terrorist financing purposes.

Unauthorized debiting of bank accounts, fraud with payment cards, interference with Internet banking, distribution of computer viruses, DDoS attacks on Internet resources, fraud in information networks – this is not an exhaustive list of cybercrime, that is, crimes in the field of information and computers computer technology.

One of the main criteria for increasing the risk is the complexity of identifying persons using such services.

Taking into account the above, the subjects of initial financial monitoring – professional participants of the stock market (securities market) (except for banks) should take measures to limit the risk of using remote services for the purpose of legalization (laundering) of proceeds from crime or terrorist financing, in particular:

  • to conduct the proper identification, verification of clients (representatives of clients), studying clients, clarification / additional clarification of information about clients in providing remote services;
  • Ensuring risk management for criminalization of criminal incomes / terrorist financing;
  • To establish the internal documents for analyzing the particulars in order to identify financial transactions subject to financial monitoring carried out using new and existing information products, business practices or technologies, including those that provide financial transactions without direct contact with the client (if available );
  • to identify and register financial transactions subject to financial monitoring or for which there are reasonable grounds for suspecting that they are related to or intended to finance terrorist financing or the financing of the proliferation of weapons of mass destruction;
  • take steps to ensure the authentication of the person who initiates a financial transaction for the use of upgraded and reliable systems.

 

International Agencies on Combating Money Laundering and Terrorism Financing

Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)

The Eurasian group on combating money laundering and financing of terrorism (EAG) is a FATF-style regional body which comprises 9 countries: Belarus, India, Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Turkmenistan, and Uzbekistan. EAG is an associate member of the FATF.

12 more states and 17 international and regional organizations have observer status within the EAG.

EAG’s activities aim at assisting the countries of the region in establishing the appropriate legal and institutional frameworks for combating money laundering and financing of terrorism according to the FATF standards.

As part of this effort, EAG conducts mutual evaluations of the national AML/CFT (anti-money laundering and counter financing of terrorism) systems of its countries based on the FATF methodology, explores the typology of money laundering and terrorism financing, and implements technical assistance programs for the Group member states, including staff trainings.

Egmont Group of Financial Intelligence Units

In 1995, a group of Financial Intelligence Units (FIUs) met at the Egmont-Arenberg Palace in Brussels and decided to establish an informal network of FIUs for the stimulation of international cooperation. Currently it is known as the Egmont Group of Financial Intelligence Units. Its FIUs regularly meet to seek ways of cooperation, in particular in terms of information exchange, training and sharing of expertise.

The objectives of the Egmont Group are to hold meetings for FIUs from around the world in order to enhance cooperation on the anti-money laundering and counter financing of terrorism and facilitate the implementation of national programs in this area. This includes the following:

  • Expansion and systematization of international cooperation on mutual information exchange;
  • FIUs’ efficiency improvement by offering training and facilitation of staff exchange in order to improve the experience and capabilities of the FIU staff;
  • Improvement of quality and safety of communication between the FIUs through the use of technologies such as the Egmont Secure Website;
  • Better coordination and assistance between the operating divisions of the member FIUs;
  • Improvement of operational autonomy of the FIUs; and
  • Promotion of formation of FIUs in jurisdictions with existing or emerging AML/CFT programs.

Egmont Group Structure and Organization

The operational structure of the Egmont Group consists of the heads of the FIUs, Egmont Committee, Working Groups, and Egmont Group Secretariat.

Heads of the FIUs

The HoFIUs comprise the Egmont Group’s governing body; making decisions on any matters that affect the Group’s membership, structure, budget and principles. The HoFIUs reach decisions by consensus.

Egmont Committee

The Egmont Committee serves as the consultation and coordination mechanism for the HoFIUs and the Working Groups. Its primary functions include assisting the Egmont Group in a range of activities, from internal coordination and administration, to representation in the international arena. It also oversees the work of the Egmont Group Secretariat. The Egmont Committee is comprised of permanent and regional members. The Egmont Committee is currently made up of the Chair of the Egmont Group, two Vice-Chairs, the Chairs of the five working groups, regional representatives from Africa, Asia, Europe, the Americas and Oceania, a representative of the Financial Crime Investigation Network (FinCEN, the U.S.), a representative of the host of the Egmont Secure Website, and the Executive Secretary of the Egmont Group.

Working Groups

In order to accomplish its mission of development, cooperation, and sharing of expertise, the Egmont Group created five working groups. The working groups meet periodically and report to the HoFIUs about their activities. The working groups and their functions are as follows:

  • Legal Working Group is responsible for considering potential member candidacies and managing all legal aspects and key issues within the Egmont Group, including cooperation between FIUs.
  • Working Group for New Members Attraction is responsible for the creation of a global FIU network by identifying FIU candidates for joining and cooperating with the Egmont Group to ensure that they meet the Egmont Group standards.
  • Training Working Group is responsible for establishing needs in trainings and opportunities for FIUs and their employees, as well as conducting training workshops for the Egmont Group members and non-member jurisdictions.
  • Operational Working Group is responsible for integrating the FIUs in developing typologies and long-term strategic, analytical projects.
  • IT Working Group is responsible for providing consultations and technical assistance to new or existing FIUs on development, improvement or modernization of their IT systems, as well as exploring the use of new software that may facilitate analytical work.

Egmont Group Secretariat
The Egmont Group Secretariat (EGS) was established in July 2007 and is based in Toronto, Canada. The Secretariat provides administrative and other support to the general activities of HoFIUs, the Egmont Committee, and Working Groups. The EGS is headed by the Executive Secretary whose appointment is endorsed by the HoFIUs, and reports directly to them through the Egmont Committee.

Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) was established in 1997 and its functioning was regulated by the general provisions of Resolution Res(2005)47 on committees and subordinate bodies, their terms of reference and working methods.
At their meeting on 13 October 2010, the Committee of Ministers adopted the Resolution CM/Res(2010)12 on the Statute of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). The statute elevates MONEYVAL as from 1 January 2011 to an independent monitoring mechanism within the Council of Europe answerable directly to the Committee of Ministers.

MONEYVAL Committee Objectives

The objectives of the MONEYVAL Committee are to ensure that its member countries have effective AML/CFT systems and comply with the relevant international standards.

Such standards are those set forth in the FATF Recommendations, the Special Recommendations on Terrorism Financing, including in the UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988), the UN Convention against Transnational Organized Crime, the UN Convention for the Suppression of the Financing of Terrorism (1999), Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorism financing and other implementing measures (26 October 2005), and the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (1990), entered into within the framework of the Council of Europe.

The MONEYVAL Committee evaluates the compliance of its member countries with all international standards in the legal, financial and law enforcement sectors by providing expert review in the course of mutual evaluations.

The Committee’s reports contain very detailed recommendations on how to improve the efficiency of the national AML/CFT regimes and the country’s ability to engage in international cooperation in this area. The MONEYVAL Committee also conducts typology research on methods, schemes and trends in money laundering and terrorism financing.

MONEYVAL Committee Structure

The Committee elects a chairman and a vice-chairman for a period of two years, as well as three other persons who comprise the Bureau. The Bureau makes preparations for the Committee’s work. The Committee’s activities are supported by the Secretariat provided for by the Council of Europe.

MONEYVAL Committee Members and Observers

The MONEYVAL Committee Statute states that the Committee should consist of representatives who are well-informed of their national AML/CFT regimes.
Currently the MONEYVAL Committee has 30 members who are subject to its evaluation procedure. In addition, the FATF appoints two delegations of two FATF member countries with one representative from each delegation with the renewable term of office for two years.
In addition, the below authorities, countries and organizations, which are authorized to nominate a representative to the Committee, have the MONEYVAL Committee observer status:

  • Parliamentary Assembly of the Council of Europe, Council of Europe Development Bank, European Committee on Crime Problems, Conference of the Parties to the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and Financing of Terrorism (CETS 198);
  • European Commission, and General Secretariat of the Council of the European Union;
  • Countries with the Council of Europe observer status (Canada, Japan, Mexico, USA).

International organizations and institutions:

  • Secretariat of the Financial Action Task Force on Money Laundering and Terrorism Financing (FATF);
  • International Police;
  • Commonwealth Secretariat;
  • IMF;
  • United Nations Office on Drugs and Crime;
  • United Nations Counter-Terrorism Committee;
  • World Bank;
  • European Bank for Reconstruction and Development;
  • Group of International Finance Centre Supervisors (formerly known as the Offshore Group of Banking Supervisors);
  • Egmont Group of Financial Intelligence Units;
  • Eurasian Group on Combating Money Laundering and Financing of Terrorism;
  • Other FATF regional organizations that are or will be FATF associate members on a reciprocal basis (currently only the Asia/Pacific Group on Money Laundering);
  • Other FATF members.

Cooperation with Other Bodies

MONEYVAL closely works with the below organizations:

  • FATF: MONEYVAL is a FATF observer that has been its associate member since June 2006. MONEYVAL benefits from its new status: for example, many countries can actively participate in the FATF meetings on the Council of Europe / MONEYVAL delegation.
  • International Monetary Fund and World Bank: Common methodology enables joint recognition of evaluations thereby avoiding duplication of evaluations in the same countries and overwork of national authorities on these tasks; other institutions, where MONEYVAL has the observer status (e.g. the Eurasian Group, established in 2004).

Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorism financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

The FATF has developed a series of Recommendations that are recognized as the international standard for combating money laundering and financing of terrorism and proliferation of weapons of mass destruction. They form the basis for a coordinated response to the threats to the financial system integrity and help to ensure a level playing field. First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003, and most recently in 2012 to ensure that they remain up to date and relevant, and they are intended to be of universal application.

The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorism financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. In collaboration with other international stakeholders, the FATF works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

The FATF’s decision making body, the FATF Plenary, meets three times per year.

Typologies of international organizations engaged in counteraction to the legalization (laundering) of proceeds from crime or terrorist financing

According to part three of Article 16 of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime or Terrorist Financing” internal financial monitoring is subject to operations in accordance with the typologies of international organizations engaged in counteraction to legalization (laundering) of incomes, obtained from crime, or financing of terrorism.

Subjects of initial financial monitoring may use the following references to information sources that contain the typologies of international organizations involved in counteraction to the legalization (laundering) of proceeds from crime or terrorist financing:

1. General characteristics and topics of typological research:
https://eurasiangroup.org/en/typologies-research-topics

2. FATF Typological Reports Directory:
https://eurasiangroup.org/en/fatf-typology-reports

3. Directory of Typological Reports MONEYVAL:
https://eurasiangroup.org/en/other-typological-reports

4. EAG Directory of Typological Reports:
https://eurasiangroup.org/en/eag-typology-reports

5. Catalog of typographic reports of ATG:
https://eurasiangroup.org/en/other-typological-reports

Recommendations for the Reporting Entities regarding the Risks Related to Financing Separatist or Terrorist Measures in the Territory of Ukraine

Due to the difficult situation in the eastern regions of Ukraine resulted in the seizure of hostages, civilian and military objects, aggravation of the social and political state and human losses, the pressing issue is to deprive persons connected with terrorist or separatist activities of financing sources.
According to Article 6 of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime or Terrorism Financing” (hereinafter referred to as the Law), the reporting entity (hereinafter referred to as the entity) shall:

  • Detect financial transactions that show sufficient grounds to suspect that they are related to, connected with or aimed at financing terrorism, and on the day of detection or attempted execution, inform the State Financial Monitoring Service of Ukraine and law-enforcement bodies specified by law, in particular, the Security Service of Ukraine thereof;
  • Classify their clients, taking into account the risk criteria defined by the State Financial Monitoring Service of Ukraine and the authorities that regulate and oversee their activities when processing financial transactions that may be related to legalization (laundering) of the proceeds from crime or terrorism financing, and take precautionary measures against clients, whose activities indicate the increased risk.

In view of the aforesaid, when establishing business relationships, the entity shall determine the client risk level under the relevant criteria, in particular, type of client, geographical location of the registration country or institution through which it transfers/receives assets, and type of goods or services.
The high risk level is assigned to clients included in the List of persons related to the terrorist activities or imposed international sanctions, generated by the State Financial Monitoring Service of Ukraine, and to clients that show sufficient grounds to suspect that they are involved in or related to terrorism financing.
Special attention shall be paid to the following clients:

  • Non-profit or charitable organizations (other than charitable organizations operating under the auspices of international organizations);
  • Public figures or related persons, including those with the wide range of powers in Ukraine;
  • Residents of the country that supports terrorist activities;
  • Leaders or founders of public or religious organizations, charitable foundations, foreign NGOs, affiliates or missions thereof that operate in the territory of Ukraine;
  • Those whose activities involve big cash turnovers;
  • Those that conduct transactions with funds or other property exclusively through a proxy;
  • Those that make payments for transactions via Internet technologies, electronic payment systems, money transfer systems or other alternative remote systems that make it impossible to fully identify the sender/recipient of funds;
  • Those that provide the entity with no additional details specified in the entity’s relevant by-laws;
  • Those that raise doubts regarding the authenticity of the documents submitted or identification data previously provided.

According to Article 9 of the Law, in respect of such persons, the entity shall:

  • Conduct in-depth identification and verify its identity, including owners;
  • Collect information in order to get insight into the client’s activities, nature and level of its operations;
  • Establish the core, nature and purpose of business relationships and, in case of suspicion, intensify the monitoring of the client’s transactions.

In view of the aforesaid, we consider it necessary for the entities to use the following criteria for the following payments from/to the client:

  • Made to Ukrainian banks from the country that supports international terrorist activities;
  • Made via the payment systems of the country that supports international terrorist activities;
  • Made in the currency of the country that supports international terrorist activity;
  • Made by NGOs of radical or other direction;
  • Made by individuals who are citizens of the country that supports international terrorist activity;
  • Made by legal entities registered in the territory of the country that supports international terrorist activities, or whose founders/participants or governing body members are citizens of the country that supports international terrorist activity.

In order to establish countries that support international terrorist activities, the entities may use any official means of information (including web-sites) of the Cabinet of Ministers of Ukraine, the National Bank of Ukraine, other government agencies, as well as international and inter-governmental organizations involved in combating money laundering or terrorism financing.
In view of the aforesaid, after processing transactions with the above features, the entity shall conduct the analysis and decide whether to send information on them to the State Financial Monitoring Service of Ukraine and the Security Service of Ukraine (Article 6 of the Law).
When analyzing financial transactions for the availability of suspicions that they are related to, connected with or aimed at financing terrorism, the entities shall clearly understand that terrorism financing may be carried out by terrorist organizations pretended to be official legal entities, a through the use of official legal entities as terrorism financing channels.
Thus, in order to reduce the entities’ risks of being used by criminals for terrorism financing, we recommend that the entities use the right to refuse to process a financial transaction in case if the financial transaction contains features of that being subject to financial monitoring under the Law, including those in respect of which there is a suspicion that they are related to, connected with or aimed at financing terrorism, and notify the State Financial Monitoring Service of Ukraine within one working day, but not later than the next working day after the refusal (Article 10 of the Law).
In order to reduce the risks of financing separatist or terrorist activities in the territory of Ukraine, the State Financial Monitoring Service of Ukraine also recommends that the entities suspend financial transactions conducted by the persons on the List of individuals from Ukraine and the countries that support international terrorist activities in relation to the application of economic sanctions to such individuals, and notify the State Financial Monitoring Service of Ukraine thereof (Article 17 of the Law).
Please follow this link to read the list of persons subject to sanctions by the Council of the European Union and the United States of America (including OFAC):

http://www.treasury.gov/ofac/downloads/prgrmlst.txt
http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx
http://www.treasury.gov/resource-center/sanctions/Programs/Pages/ukraine.aspx
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014D0238&rid=1
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2014:078:0006:0015:EN:PDF
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014D0151&rid=4
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0433&rid=1
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0477&from=EN
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2014_160_R_0004&from=EN
http://www.treasury.gov/resource-center/sanctions/Programs/Documents/31cfr589.pdf
http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20140716.aspx

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