Charity organization laundered millions: what the State Financial Monitoring Service uncovered
23 April 05:55
The State Financial Monitoring Service of Ukraine, in collaboration with law enforcement agencies, has uncovered a fraudulent scheme organized by a charity registered in Ukraine. According to the agency’s head, Philip Pronin, the perpetrators used donations from citizens and businesses to enrich themselves rather than to support the army, reports "Komersant Ukrainian"
The total amount of the uncovered fraud exceeds 12 million hryvnias.
How the scheme worked
According to information released by the State Financial Monitoring Service, the scheme worked as follows: individuals and companies transferred funds as charitable donations, after which the organization transferred them to counterparties linked to so-called drop schemes and the subsequent cashing out of the money. According to investigators, it was through such transactions that the money laundering took place.
Separately, Philip Pronin reported an incident in which a luxury car was imported into Ukraine under the guise of humanitarian aid.
Subsequently, this vehicle was registered to an individual whose official income, according to the State Financial Monitoring Service, did not allow for such an expensive purchase.
The agency believes this may indicate the illegal use of the humanitarian aid mechanism.
What the State Financial Monitoring Service Says
According to the agency’s head, the evidence gathered points not only to possible money laundering but also to the abuse of the humanitarian status of certain transactions.
As a result, as Pronin noted, the money that donors transferred to support the troops may never have reached its intended recipients.
Such cases generate significant public outcry because they involve money that people and businesses donated to support the army during the war.
The State Financial Monitoring Service uncovered the case in collaboration with law enforcement agencies, so investigators will now determine the circumstances. At the time of publication, the amount of the alleged fraud, a description of the scheme, and a specific episode involving the import of a luxury car under the guise of humanitarian aid had been publicly disclosed. No information regarding specific individuals under suspicion has been released in public statements yet.
