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 has established specialized anti-corruption institutions to address grand corruption, with recent improvements in leadership selection across these agencies. The State Anti-Corruption Program for 2023-2025 outlines extensive measures to combat corruption, although implementation has been slow. Despite ongoing challenges, including pervasive human trafficking and arms trafficking exacerbated by war, the government has shown resilience in governance and efforts to combat corruption, while civil society remains active despite risks.

Ukraine's economy faces significant challenges due to Russia's ongoing invasion, yet it remains attractive to investors due to its large consumer market, educated workforce, and natural resources. The government is actively pursuing reforms to align with EU standards and improve the business climate, while reconstruction efforts are expected to draw substantial investments. Despite issues like corruption and an unreliable judicial system, opportunities for investment, especially in sectors like agriculture and technology, continue to emerge.

Despite the ongoing challenges posed by Russia's full-scale invasion, Ukraine's investment climate remains attractive due to its large consumer market, educated workforce, and abundant natural resources. The Ukrainian government is actively pursuing reforms to improve the business environment and align with EU standards, while reconstruction efforts are expected to draw significant investment from various sources. Additionally, initiatives like UkraineInvest and the Advantage Ukraine platform aim to facilitate foreign direct investment, indicating a strong commitment to enhancing the investment landscape.