The SSU has exposed and blocked a large-scale mechanism for financing occupant authorities established in the temporarily occupied territories by the aggressor state.

According to the investigation, a clandestine financial institution was operating in the temporarily occupied territory and ‘specialized’ in illegal transfer of funds to the government-controlled territory and back.

During almost 7 years of its operation, the total amount of funds transferred by this institution only through Ukrainian payment system reached UAH 87 mln (USD 3 mln).

Clients paid up to 7% for each transaction, from which the offenders systematically deducted taxes to the so-called ‘LNR budget’.

According to the investigation, the ‘financial institution’ was set up by an entrepreneur from Luhansk in 2015. In the absence of a banking system in the so-called L/DNR, the ‘financial center’ provided services of transferring cash from Ukrainian bank cards, replenishing e-wallets, currency exchange, international money transfers and other financial transactions.

During the searches in several towns in Luhansk region, the SSU seized from the accomplices of the organizers of the ‘financial center’:

• over 300 bank cards of ‘displaced persons’, who actually live or have died in the temporarily occupied territories;
• computer equipment and mobile phones with evidence of illegal activity;
• false accounting records;
• cash in various currencies, total amount of which is almost UAH 6 mln (USD 211,000).

As part of criminal proceedings, the SSU detained the organizer of the ‘financial center’.

The detainee has been notified of suspicion of crime under
Article 110-2.3 (financing the actions committed with the purpose of forcible change or overthrow of constitutional order or seizure of state power, change of borders of the territory or state border of Ukraine) of the CCU. The court has ruled to take the suspect into custody.

The decision is pending regarding seizing the confiscated funds and the suspect’s property, as well as serving suspicion notices to other individuals involved.

The SSU Main Directorate in Donetsk and Luhansk regions carried out the operation under the supervision of Luhansk Region Prosecutor’s Office.