FATF status

Ukraine is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Ukraine was undertaken by the Financial Action Task Force (FATF) in 2020. According to that Evaluation, Ukraine was deemed Compliant for 11 and Largely Compliant for 22 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Ukraine has established specialized anti-corruption institutions to address grand corruption, including the National Anti-Corruption Bureau and the High Anti-Corruption Court, although their effectiveness has historically depended on the integrity of their leadership. Recent improvements include the independent selection of leaders for all five institutions and the adoption of a comprehensive State Anti-Corruption Program for 2023-2025, which aims to implement 1,700 actions to combat corruption. Despite these advancements, challenges remain, such as the questionable appointment of ARMA's head and the ongoing issues of corruption and inefficiency that hinder foreign investment and fair competition.

Ukraine's economy faces significant challenges due to Russia's ongoing invasion, yet it remains attractive to investors due to its large consumer market, educated workforce, and natural resources. The government is implementing reforms to align with EU standards, which, combined with reconstruction efforts, is expected to draw substantial investment. Despite issues like corruption and an unreliable judicial system, sectors such as agriculture and technology continue to thrive, presenting opportunities for both local and foreign investors.

Despite the ongoing challenges posed by Russia's invasion, Ukraine remains an attractive destination for investors due to its large consumer market, educated workforce, and abundant natural resources. The Ukrainian government is actively implementing reforms to improve the business climate and align with EU standards, while reconstruction efforts are expected to draw significant investment, creating opportunities for both new and existing investors.