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, with recent improvements in leadership selection. The State Anti-Corruption Program for 2023-2025 outlines a comprehensive action plan to combat corruption, although only a fraction of the measures have been implemented as of March 2024. Despite ongoing challenges, including issues with asset recovery and the effectiveness of anti-corruption laws, the appointment of experienced leaders marks progress in strengthening these institutions.

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 and enhance the business climate, while reconstruction efforts are expected to draw substantial investments. Despite issues like corruption and an unreliable judicial system, sectors such as agriculture and technology continue to thrive, indicating resilience and potential for growth.

Despite the ongoing challenges posed by Russia's invasion, Ukraine's investment climate remains attractive due to its large consumer market, educated workforce, and abundant natural resources. The Ukrainian government is actively implementing reforms to align with EU standards, which enhances the business environment and offers potential opportunities for investors, particularly in sectors like agriculture and technology. Furthermore, the anticipated reconstruction of Ukraine is expected to draw significant investments, creating substantial opportunities for both new and existing investors.