The forum “Financial Monitoring in Ukraine: Challenges and Prospects” served as a platform for stakeholders in the system to discuss the current state of AML/CTF standards implementation and to jointly identify ways to improve the country’s financial monitoring framework.

One of the panel discussions focused on the topic “Challenges in Conducting Primary Financial Monitoring” and brought together representatives from the banking and insurance sectors, the FinTech industry, as well as the CFI.

During the panel discussion on primary financial monitoring, Oksana Ihnatenko, CFI’s Managing Director, highlighted several key areas that require improvement:

1. Application of a risk-based approach. Striking a balance between risk mitigation and effective monitoring remains a challenge, particularly when it comes to monitoring politically exposed persons (PEPs).
   
   
2. Designated non-financial businesses and professions (DNFBPs). Some DNFBPs, such as art dealers, require greater support and clearer communication to better understand and fulfill financial monitoring requirements.
   
   
3. Risks related to virtual assets. In the absence of a regulatory framework, financial monitoring cannot effectively track transactions involving virtual assets, creating significant risks for anti-money laundering efforts.
   
   

As part of the discussion, a representative of the CFI proposed building a strong public-private partnership (PPP) to combat financial crimes in Ukraine. Such a partnership could significantly enhance collaboration in the areas mentioned above. By fostering trust among stakeholders and improving long-term communication, it would be possible to implement innovative solutions and establish a hub for their development.