The SBU cyber specialists disrupted the activities of an interregional conversion center in Zhytomyr region. During 2020-2021, the perpetrators managed to divert almost UAH 200 m. (USD 7.4 m.) into non-observed economy sector. The information on financing of the DNR terrorist organization is being checked.

 Allegedly, a Kyiv resident and three residents of Zhytomyr region were involved in the organization of the conversion center. They were engaged in tax evasion and money laundering for several dozen commercial entities in Zhytomyr, Kyiv, and Donetsk regions.

 In particular, the dealers used details of more than 40 controlled dummy companies to execute virtual chain transactions. Some of the companies were registered by residents of Donetsk region.

The SBU investigators are checking the information related to possible financing of the DNR terrorist organization.

To transfer money into cash, the perpetrators involved hundreds of people who, for money, agreed to issue bank cards and withdraw cash.

Technically, the dealers complied with the financial monitoring regulations: no more than UAH 400,000 (USD 15,000) was transferred at a time.

During six simultaneous searches, the law enforcement seized from the suspects:

• accounting records;
• computers;
• seals of dummy companies;
• several dozen applications for opening bank accounts;
• 150 bank cards issued to fictitious persons.

The investigation is ongoing upon the facts of financing of terrorism and sham business.

The operation was conducted by the SBU cyber specialists, investigators of the SBU Office in Zhytomyr region, under the supervision of Zhytomyr Region Prosecutor's Office.