ORDER OF THE CABINET OF MINISTERS OF UKRAINE

of August 23, 2016 No. 608-r

About approval of Strategy of reforming of reporting system in the field 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 field 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.

Approved by the Order of the Cabinet of Ministers of Ukraine of August 23, 2016 No. 608-r

The strategy of reforming of reporting system in the field 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

General part

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.

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