The Security Service of Ukraine has exposed a large-scale scheme of laundering money, received from illegal activities in the temporarily occupied territory of the Autonomous Republic of Crimea. Perpetrators provided resort services to militants from separatist-held territories and Russian military, receiving millions in revenue each month.

SBU officers established that the scheme was organized by the management of the health resort located in Saky (temporarily occupied territory of the Autonomous Republic of Crimea). After the temporary annexation of the peninsula, the management board re-registered health resort in the occupation administration and signed an agreement with Russian Ministry of Defense.

When all the management board of health resort moved to Kyiv, only the general director stayed in the temporarily occupied territory. He is a deputy of the Saky city council from one of Russian key parties, membership in which he declares from July 1, 2014. At the same time, he did not apply to the Consulate of Ukraine regarding the change of citizenship.

In order Kyiv management of health resort to receive money, the perpetrators came up with a scheme. In Ukraine, they have registered a mirror legal entity, the heads and employees of which are citizens of Ukraine. Funds were transferred to its accounts to convert them in cash.

Money was legalized through the purchase and sale of securities.

During searches at the perpetrators’ residences, the following were seized:

• seals, stamps, prints;
• documentation, e-mail correspondence with accomplices from temporarily occupied territory of the Autonomous Republic of Crimea and other items certifying illegal activity.

Currently, one of the scheme organizers and his accomplice were served a suspicion notice for financial fraud.

Investigative actions are underway to establish involvement in the criminal activities of others.

The operation was carried out by the SBU Department for CI Protection of State Economic Interests jointly with Investigative Directorate of the Main Department of National Police under the supervision of Kyiv City Prosecutor’s Office.