Ukraine: New law tries to avoid NCCT sanctions.
Those who want to separate tax evasion and money laundering might have secured victory in Ukraine, but as the FATF meets, is that victory pyrrhic?
Ukraine's Deputies have disputed the terms of counter-money laundering laws for about 18 months but have at last passed a law that they hope will satisfy the FATF and avoid sanctions. The law was signed on 7 December.
Reports circulating in Ukraine say that the main reason that the law was delayed was the insistence of some Deputies that tax evasion be excluded. Seemingly, in an attempt to get law into place before the FATF impose sanctions, the question of tax evasion has been left out of account: some have argued that tax evasion and money laundering are not connected.
The law has a transaction reporting element - but both cash and non-cash transactions are reportable: cash transactions exceeding Hr 100,000 (USD18,750, approx) and non-cash transactions above Hr 300,000 (USD55,000, approx) must be reported.
The FATF meets today (20 December 2002) to decide if Ukraine and Nigeria have done enough to avoid the ire of its members.
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