The National Police have uncovered a money-laundering operation with a turnover of over 18 billion hryvnias
Officers from the Strategic Investigations Department of the National Police of Ukraine have uncovered a large-scale money-laundering operation used to minimise businesses’ tax liabilities.
According to the investigation, members of the criminal organisation involved over 500 shell companies, as well as around 400 sole traders. They used these entities to carry out fictitious transactions, creating an artificial VAT credit. The money was either withdrawn as cash or converted into cryptocurrency via a network of exchange platforms in Ukraine and abroad.
The scheme also involved over 20 non-resident companies registered in European Union countries and the United Arab Emirates. Financial transactions were carried out, in particular, in Kyiv, Prague, London, Berlin, Rome, Milan, Vienna, Athens, Warsaw, Frankfurt, Düsseldorf, Helsinki and Melbourne.
The investigation established that the organiser, who is based abroad, coordinated the centre’s activities. He entrusted the management of finances to his mother. Other participants were responsible for bookkeeping, financial transactions and finding frontmen for company registration.
Since 2022, over 200 companies in the real sector of the economy have used the services of the money-laundering centre. According to preliminary estimates, the total amount of laundered funds may exceed 18 billion hryvnias. Just four companies were helped to evade paying 56 million hryvnias in taxes.
Law enforcement officers carried out nearly 40 searches in the Poltava region and Kyiv. Cash, financial documentation, computer equipment, mobile phones and other data storage devices were seized.
The organiser and participants have been notified of suspicions under a number of articles of the Criminal Code of Ukraine, in particular for establishing and participating in a criminal organisation, tax evasion and forgery of documents. The organiser has been charged in absentia, and preparations are underway to place him on an international wanted list.
The issue of imposing preventive measures on the suspects is currently being decided. The pre-trial investigation is ongoing.
In accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent until their guilt has been proven in accordance with the law and established by a court conviction.
