December 20, 2002
Ottawa, December 20, 2002 - The Financial Transactions and Reports Analysis
Centre of Canada (FINTRAC) today issued an advisory to all Canadian
financial institutions, money service businesses and other entities, who are
subject to the requirements of the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act, alerting them to the risk of doing business with
individuals and companies based in the Ukraine.
This follows the decision of the Financial Action Task Force (FATF), at its
October 2002 meeting, to place countermeasures against the Ukraine if it
failed to enact appropriate anti-money laundering legislation by December
Canada is a member of the FATF and strongly supports its efforts
to combat money laundering and terrorist financing.
Financial transactions emanating from, or destined to, the Ukraine should be
viewed by reporting entities as potentially suspicious. Reporting entities
are urged to exercise an enhanced level of scrutiny when dealing with
transactions involving this jurisdiction.
In September 2001, the FATF identified the Ukraine as a Non-cooperative
Country and Territory (NCCT) because it lacked comprehensive anti-money
laundering legislation, including the failure to establish an efficient
mandatory suspicious transaction reporting regime and proper customer
On December 7, 2002, the Ukraine enacted the Law of Ukraine on Prevention
and Counteraction of the Legalization (Laundering) of the Proceeds from
This legislation, however, does not meet international standards and does
not address the main deficiencies identified by the FATF in September 2001.
The Office of the Superintendent of Financial Institutions (OSFI) has also
issued an advisory to all federally regulated financial institutions.
For a copy of the letter visit: www.osfi-bsif.gc.ca.
To link to the FATF website, please refer to: www.oecd.org (PDF Format).
FINTRAC is an independent federal government agency with a mandate to
collect, analyze, assess and, where appropriate, disclose information in
order to assist in the detection, prevention and deterrence of money
laundering and the financing of terrorist activities.