“Mindgate”: the National Bank could not explain where the packages with dollars seized during the searches came from
18 November 19:16
EXCLUSIVE
The National Financial Regulator reported that “starting from February 24, 2022, banks are not allowed to issue cash foreign currency to customers in a package of USD 100 banknotes with the issuer’s marking.” This is the response that EP journalists received to their inquiry.
The NBU also added that from the same date, for the period of martial law in Ukraine, there is a restriction on cash withdrawals per day. It is an amount not exceeding UAH 100 thousand in equivalent (approximately $2,380 at the current exchange rate – ed.).
They also noted that this restriction on the amount of cash withdrawals applies to both individuals and legal entities. Banks are not allowed to circumvent it.
How the dollar circulation control system works, why the FBI got involved in the Mindich case, and what risks exist for the person involved in the scandal, [Kommersant] asked economist Oleg Pendzin.
“These are definitely not Ukrainian banks”
Speaking about the appearance of dollars in plastic packages with logos of American banks in the materials related to the case of businessman Mindich, the expert is unequivocal: such banknotes could not have come from Ukrainian banks.
Ukrainian banks have not been importing cash from the United States for a long time. Even if there are any import operations, it is immediately opened and transferred. That is, the money arrives in the package of the Ukrainian bank that made the order and the transfer,” explains Pendzin.
According to him, the appearance of whole bundles of dollars in the branded packaging of a bank from Arizona or any other American state “is impossible in a legal banking process. This indicates that the money could have passed through unofficial or offshore channels.
How the dollar system works and why the US controls all transactions
To understand why the FBI got involved in the case, it is worth understanding how the global dollar system works.
Any transaction with U.S. dollars – even if the cash is issued by a Ukrainian bank – is reflected in that bank’s correspondent account with a U.S. bank. There is no other way,” Penzin emphasizes.
“That is, if a bank or financial institution conducts transactions in dollars, it must have a bank account in the United States. This makes any transaction, even an indirect one, controlled by the American financial system.
That is why, the economist notes, any money laundering in dollars automatically falls under the jurisdiction of the United States.
US anti-money laundering legislation is much stricter than Ukrainian legislation. If there is evidence that the funds are of criminal origin, the investigation is transferred to the American justice system,” the expert emphasizes.
The FBI got involved: how Mindich’s dollar transactions reached the American level
According to Pendzin, Ukrainian law enforcement officers have handed over to the FBI all documents related to alleged money laundering in the Mindich case.
The NABU has already met with the FBI and handed over a full package of data. This means that the case can be transferred to the American level, where the jurisdiction is much stricter,” he notes.
“In fact, if the US investigation confirms that some of the transactions were conducted through US banks or their correspondent accounts, the suspect may become a defendant in a case in the United States.
How packing dollars can cost Mindich extradition
According to Pendzin, the situation may develop in a scenario similar to the one that happened to Ihor Kolomoisky.
Kolomoisky returned to Ukraine because he was suspected of money laundering under American jurisdiction. “The United States and Israel have an extradition treaty specifically for economic crimes, so it is almost impossible to escape in such cases,” the economist reminds.
He emphasizes that if the FBI opens a case against Mindich and recognizes the documents handed over by the Ukrainian side as evidence, extradition will be inevitable.
American law does not provide for the “absorption” of terms, as in Ukraine. There, the terms are added up, and life imprisonment is not an exception, but a common practice for major financial crimes,” the expert adds.
Why dollars appeared in the packaging of American banks
Most likely, Penzin explains, we are talking about offshore chains.
The money could be transferred through offshore companies such as Cyprus, the British Virgin Islands, and other jurisdictions. There they were laundered and cashed. But regardless of the route, they still passed through the American financial system,” he says.
“Thus, dollars with US bank packaging are possible evidence that the transactions had a direct connection to the United States, and thus could be subject to an FBI investigation.
Penzin summarizes:
“The Americans work as objectively as possible. If the documents handed over by the Ukrainians are proved to be evidence, Mindich will return to Ukraine under a new status, as a defendant in an international case. If there is not enough evidence, the case may be closed.
According to the expert, the key intrigue is whether the American side will recognize the NABU materials as sufficient for formal charges.
“We are still only seeing the tip of the iceberg. The main question is where exactly the chain of transactions took place and whether there is an American bank in it. If so, the situation for Mindic could become critical,” the economist summarizes.
Operation Midas: what you need to know about it
The NABU and SAPO operation got its name from the hero of Greek ancient mythology, King Midas, who turned everything he touched into gold.
It resulted in the exposure of a criminal organization that included current and former energy officials, a well-known businessman, and other accomplices. According to the investigation, the group built a large-scale mechanism of informal influence on strategic state-owned enterprises, primarily Energoatom, for systematic bribery and subsequent money laundering.
In the framework of the proceedings under Art. 208 of the CPC, five people were detained and seven were served suspicion notices. Among them:
- Timur Mindich (“Carlson”) – a businessman who is considered to be the head of the organization. He managed to leave Ukraine before the searches began;
- Igor Myroniuk (“Rocket”) – former advisor to the Minister of Energy;
- Dmytro Basov (“Tenor”) – Executive Director for Physical Protection and Security at Energoatom;
- four people from the back office involved in money laundering.
According to the investigation, the scheme was based on the “recovery” of 10-15% of the contract amount from Energoatom’s counterparties. The suppliers were allegedly forced to pay kickbacks under the threat of blocking payments for services or products already rendered or being excluded from the list of partners. Inside the group, this practice was called “barrier”. The former deputy head of the State Property Fund (later an advisor to the Minister of Energy) and a former security officer who served as the company’s executive director for security were involved in the implementation. Using their official connections, they influenced personnel decisions, procurement, and financial flows, effectively managing a strategic asset with annual revenues of over UAH 200 billion as “lookouts” without formal authority.
According to NABU, the money was legalized through a separate office in the center of Kyiv. The premises belonged to the family of former MP Andrii Derkach (who fled to Russia), who is involved in another case of the Bureau and the SAPO. The office allegedly kept “black accounting”, accumulated cash, and organized money laundering through a network of non-resident companies; a significant part of the transactions and cash withdrawals were carried out outside Ukraine. For services to external clients, the office took a percentage of the “driven” amounts. In total, about $100 million could have passed through the so-called “laundry” during the documentation period.
The special operation lasted more than 15 months, starting in the summer of 2024. The detectives collected a large amount of evidence, including thousands of hours of audio recordings; at the final stage, almost all NABU personnel were involved. Following court orders, more than 70 searches were conducted in Kyiv and the regions, and significant amounts of documents and cash were seized. Other participants are being identified; the investigation is ongoing.
Pre-trial restraints have been granted:
- former Advisor to the Minister of Energy of Ukraine (custody with an alternative of UAH 126 million bail)
- executive Director for Physical Protection and Security of NNEGC Energoatom JSC (custody with an alternative of UAH 40 million bail);
- chief accountant of the back office for money legalization (custody with an alternative of UAH 95 million bail);
- two back-office employees (custody with the alternative of UAH 25 million and UAH 12 million bail).
In addition, the former Deputy Prime Minister of Ukraine was served with a request to choose a custody as a measure of restraint.
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