Ukraine Country Summary

FATF Status

Ukraine is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Ukraine was undertaken by the Financial Action Task Force (FATF) in 2020. According to that Evaluation, Ukraine was deemed Compliant for 11 and Largely Compliant for 22 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Ukraine is grappling with significant challenges related to crime and corruption, despite the establishment of specialized anti-corruption institutions aimed at addressing grand corruption. While recent improvements in leadership appointments within these institutions signal progress, the effectiveness of anti-corruption efforts remains contingent on the integrity of their leaders and the ongoing influence of oligarchs and criminal networks in the country.

The ongoing conflict has exacerbated various criminal activities, including human trafficking, arms trafficking, and cyber crimes, while the judicial system struggles with corruption and a lack of independence. However, the government has shown resilience by organizing defense and economic measures during wartime, fostering increased trust in officials and cooperation between civil society and public authorities, despite the risks faced by civil society representatives in occupied territories.

Despite the ongoing challenges posed by Russia's full-scale invasion, Ukraine remains an attractive destination for both existing and new investors due to its large consumer market, educated workforce, and rich natural resources. The Ukrainian government is actively pursuing reforms to enhance the business climate and align with EU standards, which is expected to further integrate Ukraine into the European market and attract significant investment for reconstruction efforts. While issues such as corruption and an unreliable judicial system persist, the potential for high returns in a recovering economy continues to draw interest from investors willing to navigate the associated risks.