20 Jun 2022 15:53

Ukraine needs more reform to improve compliance with FATF standards - European Commission

MOSCOW. June 20 (Interfax) - While Ukraine's anti-money laundering legislation partially reflects the Financial Action Task Force (FATF) standards and relevant international legislation, some of recommendations from the Council of Europe's Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) still remain outstanding, the European Commission said.

"Further reforms are needed to improve Ukraine's compliance with FATF standards, in particular those related to virtual assets, ultimate beneficial ownership, and supervision of non-banking businesses and professions," Ukrainian media reported with reference to the European Commission's Opinion on Ukraine's application for EU membership.

For those reasons, Ukraine has continued to report to MONEYVAL under an enhanced follow-up procedure, it said.

The European Commission also called for more progress in the investigation and prosecution of major money laundering schemes in Ukraine.

"Putting in place a comprehensive framework for the fight against financial crime and money laundering, and ensuring its effective implementation, are crucial to address the significant risks they pose," it said.

As regards the Asset Recovery and Management Agency (ARMA) set up by Ukraine, the European Commission pointed out that it has not had a permanent head since the end of 2019.

"Legislation related to the management of seized assets should be improved and a relevant national strategy on asset recovery adopted," the European Commission said.