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, including the National Anti-Corruption Bureau and the High Anti-Corruption Court, with recent improvements in leadership selection. The State Anti-Corruption Program for 2023-2025 aims to implement 1,700 actions to combat corruption, with 18.7% of measures already executed as of March 2024. Despite ongoing challenges, including human trafficking and arms trafficking exacerbated by war, the government has shown resilience in governance and anti-corruption efforts, fostering increased trust among citizens.

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, which, combined with anticipated reconstruction investments, presents substantial opportunities for both new and existing investors. Despite issues like corruption and an unreliable judicial system, sectors such as agriculture and technology continue to thrive, showcasing Ukraine's potential for economic growth.

Despite the ongoing challenges posed by Russia's invasion, Ukraine remains an attractive destination for investors due to its large consumer market, educated workforce, and abundant natural resources. The Ukrainian government is actively pursuing reforms to improve the business climate and align with EU standards, which, coupled with anticipated reconstruction efforts, is expected to draw significant investment from various sectors. While issues such as corruption and an unreliable judicial system persist, the government's commitment to engaging with investors presents opportunities for those willing to navigate the risks.