of August 23, 2016 No. 608-r
About approval of Strategy of reforming of reporting system in the sphere of prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction
Approve the Strategy of reforming of reporting system in the sphere of prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction which is applied.
Prime Minister of Ukraine
Approved by the Order of the Cabinet of Ministers of Ukraine of August 23, 2016 No. 608-r
In world practice three models of monitoring of financial transactions on their belonging to money laundering or financing of terrorism are effective.
The first model assumes the notification of authorized body on all financial transactions which amount exceeds normative set limit.
The second model provides informing on the financial transactions causing suspicion.
The essence of the third model consists in prohibition on implementation of large financial transactions with cash without participation of financial institutions.
In Ukraine all three models are applied. At the same time the second model which provides application of the approach based on risk assessment of money laundering and financing of terrorism is most effective. Broader application of the specified model will allow subjects of primary financial monitoring and subjects of the state financial monitoring to be more effective and productive in use of resources.
Introduction of the approach based on risk assessment demands from subjects of primary financial monitoring of clear understanding of risks and capability objectively to carry out their assessment.
Analysis of situation
For the purpose of implementation of updated recommendations of FATF by Ukraine by the Verkhovna Rada of Ukraine the Law of Ukraine "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction" is adopted (further the Law).
Analysis results of observance by subjects of primary financial monitoring of requirements of the Law demonstrate that accomplishment of some requirements to representation of Gosfinmonitoring of information on financial transactions is too burdensome for subjects of primary financial monitoring and it is inefficient, and also leads to significant increase in amount of expenses of subjects of primary financial monitoring by holding procedures of financial monitoring. From total quantity of signs of obligatory and internal financial monitoring only 10-15 percent are used by subjects of primary financial monitoring in case of submission of information on financial transactions of Gosfinmonitoring.
Increase in number of the messages arriving to Gosfinmonitoring from subjects of primary financial monitoring led to decrease in efficiency of their processing.
The procedure of giving by subjects of primary financial monitoring of information on financial transactions of Gosfinmonitoring is difficult, contains a lot of information which taking into account openness of many state registers is not always necessary Gosfinmonitoring.
In 2015 about 89 percent of information provided by subjects of primary financial monitoring of Gosfinmonitoring are information on financial transactions which are subject to obligatory financial monitoring.
Thus, transition to the new reporting structure providing focusing of subjects of primary financial monitoring on financial transactions concerning which there was suspicion based on assessment and risk analysis will allow to increase considerably probability of detection of suspicious financial transactions and illegal financial flows.
At the same time taking into account that the procedure of submission of information of Gosfinmonitoring did not change more than ten years, and the number of the messages provided by subjects of primary financial monitoring to Gosfinmonitoring for the specified period increased in tens of times, the question of simplification of such procedure for the purpose of its maximum automation regarding obligatory financial monitoring is urgent.
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 38000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.