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 developed 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 leadership integrity. Recent improvements include the appointment of qualified leaders and the adoption of a comprehensive State Anti-Corruption Program for 2023-2025, which outlines numerous actions to combat corruption. However, pervasive corruption, market volatility, and political instability continue to pose significant risks for foreign investors, complicating business operations and undermining fair competition.

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 rich natural resources. The Ukrainian government is actively pursuing reforms to align with EU standards and improve the business environment, while reconstruction efforts are expected to draw significant investments, creating opportunities across various sectors, particularly agriculture and technology.

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.