09:31 GMT24 November 2020
Listen Live
    Europe
    Get short URL
    0 104
    Subscribe

    According to a US State Department annual report on money laundering and financial crimes, Ukraine should address the rise of cybercrime and related transnational organized crime activities in the country.

    Ukrainian national currency hryvnia
    © Sputnik / Sergei Kirkach
    WASHINGTON (Sputnik) — Ukraine should work to combat a rise in cybercrime and organized crime that use corruption in the country’s financial institutions to launder money, according to a US State Department annual report on money laundering and financial crimes.

    “Ukraine should address the rise of cybercrime and related transnational organized crime activities by examining the significant amounts of US currency which appear to be diverted into this region using financial institutions,” the report, published on Wednesday, said.

    The report noted that corruption, financial crimes and money laundering remain an issue despite recent progress in countering them.

    “In Ukraine, significant vulnerabilities to money laundering have been identified in foreign economic activities, credit and finance, the fuel and energy industry, and the metal and mineral resources markets,” the report said.

    The State Department explained that the illicit proceeds are primarily generated through corruption, fictitious entrepreneurship and fraud, trafficking, organized crime, prostitution, cybercrime and tax evasion.

    The report stated corruption in Ukraine’s judicial system enables transnational organized crime to operate in the country.

    “Ukraine should increase prosecution of large-scale financial crimes, corruption, and money laundering schemes. It also should improve implementation of its provisions for asset freezing, confiscation, and forfeiture,” it said.

    The State Department noted that Ukraine should work to implement international treaty obligations to report and clamp down on money laundering and financial crimes.

    “While Ukraine has signed and ratified international treaties, implementation is weak in many instances,” the State Department said.

    Ukraine ranks 142 out of 175 countries on Transparency International’s corruption index.

    Related:

    Highly Skilled Russian Hackers a Threat to Financial System - State Dep't
    Tags:
    U.S. Department of State, criminal gang, money-laundering, cyber security, Ukraine
    Community standardsDiscussion