SBU investigates manipulation in the securities market and income legalizations through stock exchanges
The officials of the SBU Pre-trial Investigative Department and the Main Office in Kyiv and Kyiv region, in the framework of the initiated criminal proceeding, documented the facts of incomes laundering illegally received by using the number of Ukrainian stock exchanges.
The SBU operatives established that during 2017-18, stock officials through a number of controlled securities traders and bank institutions representatives organized a mechanism for legalization of illegal proceeds and withdrawal abroad. The transactions were carried out by using controlled non-residents through the purchase of domestic government bonds (T-bills) in the so-called "group report" mode.
The SBU officials documented that due to the developed scheme, during a short period of time, the dealers in the absence of stock exchanges control committed fictive financial transactions of sale and purchase of T-bills by controlled traders. Operations were conducted in the individuals interests who, in such an illegal manner, received legalized income, which, moreover, is not taxable under the law. The total offenders laundered money amount is more than UAH 100,000,000 (USD 3,571,428).
Within the framework of the criminal proceedings initiated under Part 2 Art. 205 and Part 3 Art. 209 of the Criminal Code of Ukraine, authorized investigations are ongoing in the stock exchanges offices and some officials’ residences.
SBU Press Centre
For the Attention of the SBU Head