Implementation of State Anti-Corruption and Anti-Money Laundering Policy in the EU Member States

Models for Improving Public Administration in the Ukraine

Michele Sciurba

• Publisher: Edition Faust
• Year: 2018
• Edition: 1
• eBook ISBN:
  9783945400630
• Topic: Droit
• Subtopic: Commerce international

Money laundering schemes are constantly evolving, which requires public authorities to constantly up-date their knowledge and implement state-of-the-art measures to combat corruption. The monograph demonstrates how the Ukraine can improve its implementation of FATF recommendations to fight money laundering and corruption and how it can better organize the mechanisms of state regulation and the monitoring of financial activities.This monograph offers a new approach to implementing an anti-corruption strategy in Ukraine and suggests how the fight against corruption within government can be streamlined using modern methods and a risk-based approach. Drawing on the experience of EU countries through a comparative analysis of the rules and procedures for structuring public administration policy, this work proposes developing recommendations to strengthen the Ukrainian anti-money laundering and corruption policy. Corruption remains a widespread problem at various levels within Ukrainian public administration and it has significantly weakened public confidence in government and in the judicial system. In an international comparison of corruption in 180 countries, Ukraine ranks 130th, making it one of the most corrupt countries in the world.At the same time, Ukraine has an AML/CTF legal administrative framework in place that largely meets the current formal requirements of the FATF. The Ukraine has implemented AML and anti-corruption measures under the Council of Europe's Moneyval monitoring mechanism. In addition, Moneyval has been an associate member of the FATF since 2006. The National Bank of Ukraine (NBU) practices risk-based banking supervision and has made significant progress in creating transparency regarding the beneficial ownership of banks. In recent years, Ukraine has consistently removed criminal owners from the banking sector and established an efficient sanction regime in response to breaches of legal obligations, including the withdrawal of banking licenses. Furthermore, the establishment of a unified state register for beneficial ownership allows authorities to identify banking clients. In terms of mutual legal assistance on money laundering and corruption, the Ukraine has also made significant progress.Ultimately, the Ukrainian AML/CTF framework has been refined significantly in recent years. Today, there is a clear understanding of money laundering and terrorist financing risks in Ukraine both at the administrative level and at the level of the supervisory authorities. As a result, far-reaching legislation has been established. Nevertheless, this development cannot hide the fact that money laundering via shell companies is still part of everyday life in Ukraine. The Ukrainian criminal justice system continues to be heavily influenced by corruption and has failed to effectively combat it. Ukrainian cross-border prosecution of money laundering offences, in particular the confiscation of proceeds of crime in other countries, is ineffective due to a lack of experience and the absence of legislation spelling out direct areas of responsibility and formal procedures. Finally, a central problem is the lack of confiscation orders which impedes the efficient prosecution of corruption and money laundering.

ANNEX

List of Abbreviations

1st AMLD	First Anti-Money Laundering Directive
3rd AMLD	Third Anti-Money Laundering Directive
4th AMLD	Fourth Anti-Money Laundering Directive
AMF	Autorité des Marches Fanaciers
AML	Anti-Money Laundering
AML/CFT Council	The Council on Prevention and Counteraction to Legalization (Laundering) of the Proceeds from Crime, Terrorism Financing and the Financing of Proliferation of Weapons of Mass Destruction
APG	Asia/Pacific Group on Money Laundering
BCBS	Basel Committee on Banking Supervision
BOG	Bank of Greece
BOI	Bank of Italy
BSA	Bank Secrecy Act
CFATF	Caribbean Financial Action Task Force
CIS	Commonwealth of Independent States
CPIO	Central Prosecutorial Investigation Office
CTF	Counter-Terrorist Financing
CTIF-CFI	Belgian Financial Intelligence Processing Unit
DNA	National Anticorruption Directorate
EAG	Eurasian Group on Combating Money Laundering and Financing of Terrorism
EBRD	European Bank for Reconstruction and Development
ECA	European Court of Auditors
EU	European Union
EUR	Euro
FATF	Financial Action Task Force on Money Laundering
FBI	Federal Bureau of Investigation
FFB	Financial Fraud Bureau
FIU	Financial Intelligence Unit
G7	Group of Seven
G10	Group of Ten
GATT	General Agreement on Tariffs and Trade
GDP	Gross Domestic Product
GIFI	General Inspectorate of Financial Information
HCMC	Hellenic Capital Market Commission
IMF	International Monetary Fund
IMOLIN	International Money Laundering Information Network
Interpol	International Criminal Police Organization
KNAB	Corruption Prevention and Combating Bureau
LTL	Lithuanian Litas
MEP	Member of the European Parliament
MIA	Ministry of Internal Affairs
Moneyval	Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism
MSE	Medium and Small-Sized Enterprise
NABU	National Anti-Corruption Bureau of Ukraine
NAO	National Audit Office
NBU	National Bank of Ukraine
NGO	Non-Governmental Organization
OCC	Office of the Comptroller of the Currency
OCRC	Central Service for Combating Corruption
OCRGDF	Central Office against Aggravated Financial Crimes
OECD	Organization for Economic Cooperation and Development
PEP	Politically Exposed Person
SCPC	Central Service for the Prevention of Corruption
SFMS	State Financial Monitoring Service of Ukraine
SSU	Security Service of Ukraine
StaR	Stolen Asset Recovery Initiative
STT	Special Investigative Service
TRACFIN	Treatment of Information and Action against Clandestine Financial Network
UAH	Hrywnja
UIC	Italian Exchange Office
UK	United Kingdom
UN	United Nations
UNODC	United Nations Office on Drugs and Crime
US	United States
USD	United States Dollar
USSR	Union of Soviet Socialist Republics
WB	World Bank
WTO	World Trade Organization

Index

1st AMLD see Anti-Money Laundering Directive, 1st

3rd AMLD see Anti-Money Laundering Directive, 3rd

4th AMLD see Anti-Money Laundering Directive, 4th

Administrative Corruption 9, 15-16, 21, 25, 59, 70, 74-75, 115, 118, 120, 122, 124, 127-129

AMF see Autorité des Marches Fanaciers

Anti-Money Laundering Directive 62-66, 69, 93

Anti-Money Laundering Directive, 1st 62-63

Anti-Money Laundering Directive, 3rd 65

Anti-Money Laundering Directive, 4th 64, 66, 69

APG see Asia/Pacific Group on Money Laundering

Asia/Pacific Group on Money Laundering 28

Association Agreement 13-15, 51-52, 59, 62, 97-98, 111

Austria 65, 113

Autorité des Marches Fanaciers 72

Bank of Greece 65

Bank of Italy 65

Bank Secrecy Act 37

Basel Committee on Banking Supervision 63, 68, 93, 102

BCBS see Basel Committee on Banking Supervision

Belgian Financial Intelligence Processing Unit 65

Belgium 65, 74, 113

Bitcoin 119, 127

BOG see Bank of Greece

BOI see Bank of Italy

Brussels Treaty 62

BSA see Bank Secrecy Act

Budgetary Treaties 62

Cabinet of Min...

Table of contents

• Cover
• Title
• Copyright
• Contents
• Preface
• I. Introduction
• II. The Theoretical Basis of State Anti-Money Laundering (AML) Policy
• III. Implementation of State Anti-Corruption and AML Policy in the EU Member States
• IV. Improving State Anti-Corruption and AML Policy in Ukraine
• Annex