A “money-laundering empire” with a turnover of up to 18 billion hryvnias has been uncovered in Ukraine
27 April 15:13
Law enforcement officials in Ukraine have announced the dismantling of one of the largest money-laundering schemes. The scheme involved a network of over 500 affiliated companies and sole proprietorships that had been operating for several years across various regions
This was reported by the Economic Security Bureau of Ukraine and the Office of the Prosecutor General of Ukraine, according to "Komersant Ukrainian".
BEB Head Oleksandr Tsivinsky described the scale of the scheme as a “shadow empire with a turnover of up to 18 billion hryvnia.”
According to him, it had been operating since at least 2020 and spanned five regions.
“Over 500 controlled companies and sole proprietorships, more than 200 client enterprises,” he specified.
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How the scheme worked
Companies were issued fictitious documents for the purchase of goods or services that did not actually exist. This allowed them to reduce taxes, particularly VAT, and convert funds into cash. Most often, such transactions were disguised as fuel trade to appear plausible.
The prosecutor’s office explains:
“The total amount of converted funds may exceed 18 billion hryvnias.”
At the same time, tax evasion based solely on documented cases is estimated at approximately 56–57 million hryvnias.
The money passed through a vast network—over 90 shell companies in Ukraine and about 20 foreign companies. Afterward, the funds were converted into cash and returned to clients, particularly through currency exchange offices.
Investigators believe the ringleader was a native of Luhansk Oblast who acted alongside his mother and several accomplices. Accountants responsible for documentation and financial oversight were also involved in the scheme. The ringleader himself is currently on the run.
During nearly 40 searches, law enforcement officers seized large sums of cash in hryvnias, dollars, and euros, as well as equipment, bank cards, and documentation. Some of the suspects have already had preventive measures imposed on them—ranging from detention with bail to house arrest.
The BEB states that such operations are becoming a priority target for the state.
“Our firm stance is that the era of currency exchange centers is coming to an end,” Tsivinsky emphasized.
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The organizers and participants have been notified of their suspicion of creating and participating in a criminal organization, fictitious registration of businesses, tax evasion, and document forgery (Parts 1 and 2 of Article 255, Part 2 of Article 205-1, Part 5 of Article 27, and Parts 1–3 of Article 212, Parts 3 and 4 of Article 358 of the Criminal Code of Ukraine).
The accountants are charged with aiding and abetting these crimes.
Separately, the head of the enterprise who used this scheme has been charged (Part 1 of Article 212 of the Criminal Code of Ukraine).
In accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent of a crime and may not be subjected to criminal punishment until their guilt is proven in accordance with the law and established by a court conviction.
It should be recalled that earlier, the Security Service of Ukraine, in cooperation with the prosecutor’s office, dismantled a large-scale scheme for the illegal laundering of funds in various regions of the country.
According to the investigation, between 2023 and 2025, the suspects “laundered” over 1.5 billion hryvnias, a significant portion of which was embezzled from the state budget.
