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16 April 2003

U.S. Says Ukraine No Longer Primary Money Laundering Concern

(Treasury Dept. encouraged by Ukraine's efforts to address
deficiencies) (470)
As a result of "the important steps" Ukraine has taken "to address
deficiencies in their anti-money laundering regime," the Treasury
Department announced April 15 that it has rescinded the designation of
Ukraine as a primary money laundering concern under Section 311 of the
USA Patriot Act.
"Ukraine made several amendments to its key anti-money laundering laws
and has pledged to vigorously implement these changes," the Treasury
Department noted in a press release. At the same time, however, while
saying it is "encouraged by Ukraine's efforts," the Department pointed
out that Ukraine remains on the Financial Action Task Force's list of
non-cooperative countries and territories.
Following is the release:
(begin text)
Department of the Treasury
Washington, D.C.
www.treas.gov
April 15, 2003
TREASURY DEPARTMENT RESCINDS UKRAINE'S DESIGNATION AS A PRIMARY MONEY
LAUNDERING CONCERN
The Department of the Treasury and the Financial Crimes Enforcement
Network (FinCEN) today announced that they have rescinded the
designation of Ukraine as a primary money laundering concern pursuant
to Section 311 of the USA PATRIOT Act. This announcement marks a
recognition by the United States that the Ukraine has taken important
steps to improve their anti-money laundering regime in response to
consistent international vigilance and U.S. action under Section 311.
Section 311 of the USA PATRIOT Act gives the Secretary of the Treasury
the authority to designate a foreign jurisdiction, a foreign financial
institution, a type of account or a type of transaction to be a
primary money laundering concern. Once designated, the Secretary can
require U.S. financial institutions to take appropriate
countermeasures against the concern. In December of 2002, Treasury
made the first designations under Section 311, designating both Nauru
and Ukraine as primary money laundering concerns.
In a notice that will be published in the Federal Register later this
week, Treasury will announce the rescission of the designation of
Ukraine as a primary money laundering concern as a result of the
important steps they have taken to address deficiencies in their
anti-money laundering regime. Ukraine made several amendments to its
key anti-money laundering laws and has pledged to vigorously implement
these changes.
Although Treasury has rescinded the designation under Section 311,
U.S. financial institutions are reminded that the revocation of the
designation does not affect existing guidance issued by FinCEN or
obligations arising under the Bank Secrecy Act with respect to
accounts and transactions involving Ukraine. Furthermore, Ukraine
remains on the non-cooperative countries and territories list of the
Financial Action Task Force.
The Treasury Department is encouraged by Ukraine's efforts to improve
their anti-money laundering regime and looks forward to effective
enforcement of their new anti-money laundering laws.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)