U.S. no longer lists Ukraine as money-laundering concern

Embassy of the United States

KYIV - The Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) announced on April 15 that they have rescinded the designation of Ukraine as a primary money-laundering concern pursuant to Section 311 of the U.S.A. PATRIOT Act.

The United States had not yet imposed sanctions on Ukraine after a decision by the Financial Action Task Force (FATF) in December 2002 recommending that FATF members impose sanctions.

The United States suspended the process of imposing sanctions based on important steps taken by Ukraine to improve its anti-money laundering regime in response to consistent international vigilance and U.S. action under Section 311.

Section 311 of the U.S.A. PATRIOT Act gives the secretary of the treasury the authority to designate a foreign jurisdiction, a foreign financial institution, a type of account or a type of transaction to be a primary money-laundering concern. Once designated, the secretary can require U.S. financial institutions to take appropriate countermeasures against the concern.

In December of 2002 the Treasury Department made the first designations under Section 311, designating both Nauru and Ukraine as primary money-laundering concerns. Potential countermeasures against Ukraine had not been implemented and, therefore, there is no need to lift them.

Although Treasury has rescinded the designation under Section 311, U.S. financial institutions are reminded that the revocation of the designation does not affect existing guidance issued by FinCEN or obligations arising under the Bank Secrecy Act with respect to accounts and transactions involving Ukraine. Furthermore, Ukraine remains on the non-cooperative countries and territories list of the Financial Action Task Force.

The Treasury Department is encouraged by Ukraine's efforts to improve its anti-money laundering regime and looks forward to effective enforcement of its new anti-money laundering laws.

Copyright © The Ukrainian Weekly, April 20, 2003, No. 16, Vol. LXXI

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