BRAMA, December 1, 2002, 1:00 am ET
Press Release
Verkhovna Rada of Ukraine adopts the Law of Ukraine
"On Prevention and Counteraction of Legalization (Laundering)
of Proceed from Crime"
Washington, DC — On November 28, 2002, the Law of Ukraine "On Prevention and Counteraction of Legalization (Laundering) of Proceed from Crime" was adopted by Verkhovna Rada (Parliament) of Ukraine.
The Law is based upon the Strasburg Convention of 1990 on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (http://conventions.coe.int/Treaty/EN/Treaties/Html/141.htm). The provisions of this bill reflect the requirements of the internationally recognized 40 recommendations on counter money laundering and 8 Special recommendations on terrorist finance of the Financial Action Task Force (FATF) (http://www.fatf-gafi.org). Bill brings Ukraine's money-laundering legislation in line with world standards.
The bill specifically provides for establishment of a two-tier financial monitoring system over considerable and suspicious transactions including mandatory suspicious activity reporting (SAR), setting the criteria of the financial transactions to be subject of financial monitoring, determining tasks, functions and power scope of the Financial Intelligence Unit of Ukraine. The bill also defines liability for non-complying with its provisions, and requires amending relevant legislation.
The adoption of the bill and implementing acts of the Government of Ukraine is yet another step of Ukraine in international efforts to fight money laundering and financing terrorism in particular.
The bill was drafted in close cooperation with the experts of the World Bank, IMF, as well as the US Department of Justice and Department of the Treasury.
With money laundering and other criminal activities rapidly taking on staggering international dimensions, the cooperation between Ukrainian and US law enforcement agencies proves to be of tremendous importance. The bill upon taking effect would be a substantial means in addition to such bilateral instruments as Mutual Legal Assistance Treaty of 1998 and Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime of 1990 for tracking down criminals, bringing them to justice and restoring violated rights.
The law enforcement agencies of the two countries are heavily involved in the investigating a series of money laundering activities committed both on the territory of Ukraine and the US. The rewarding result of such cooperation was already displayed in 2000, when the Government of Ukraine received $1 Million compensation for damages inflicted by the U.S.-based company.
The bill expands the possibilities of law enforcement agencies of Ukraine in their international efforts to fight money laundering, and prevent legalization of proceed from crime.
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