Money laundering

Money laundering is a term used to describe actions aimed at disguising the source of funds and property obtained through criminal means and transferring them from criminal to legal circulation.

Money laundering is a secondary financial crime committed to conceal the primary one – the illegal receipt of “dirty” money.

There are hundreds of ways to legalize the proceeds of crime, for example, using offshore companies – this way helps criminals to steal and move large amounts of money between different jurisdictions without being noticed.

Another way, more modern, is the use of cryptocurrencies and virtual funds. They can provide a higher degree of anonymity compared to traditional non-cash payment methods, as well as the possibility of making anonymous transfers if the identity of the sender and recipient is not properly established.

In Ukraine, Articles 209 and 209-1 of the Criminal Code provide for criminal liability for legalization (laundering) of the proceeds of crime and intentional violation of the requirements of the legislation on prevention and counteraction to legalization (laundering) of the proceeds of crime, terrorist financing and financing of proliferation of weapons of mass destruction, respectively.

The maximum penalty for money laundering is imprisonment for 8 to 12 years with deprivation of the right to hold certain positions or engage in certain activities for up to three years and confiscation of property (Article 209 of the Criminal Code of Ukraine) and a fine of 3,000 to 5,000 tax-free minimum incomes (TFMI 2024 = 1,514.00 UAH) with deprivation of the right to hold certain positions or engage in certain activities for up to three years (Article 209-1 of the Criminal Code of Ukraine).

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