The new season of youth-focused events began with a session on the topic of money mules.
On 11 September, the event “Who Are Money Mules and What Does Youth Have to Do With It?” took place, featuring speaker Mark Karandas, Associate Fellow at the CFI and member of the Financial Integrity Platform – Young Leaders Chapter, who shared insights on the role of young people in preventing financial crime.
With the growth of cashless and online transactions, the number of fraudulent schemes is also increasing. The speed and convenience of digital payments attract criminals who exploit young people as tools for money laundering.
Young people are both one of the most vulnerable groups and key allies in combating financial crime. To reduce risks, it is important to raise awareness about the methods of recruiting so-called “money mules”.
Money mules are individuals who help criminals launder illegally obtained funds by allowing their bank cards to be used as “transit” accounts for illicit money.
A person can become a money mule either knowingly or unknowingly, but the consequences are equally serious in both cases, namely: criminal liability, blocked accounts, and future restrictions on access to financial services. It is through such intermediaries that criminals carry out fraudulent transactions, steal money, finance terrorism, circulate drugs, and support the operations of illegal gambling platforms.
Illegally acquired funds are transferred to a mule’s bank card and then quickly split into smaller amounts (for example, 1,000, 600, or 200 UAH) and sent to dozens of other accounts to make it harder to trace the origin of the money. After this, the funds can be withdrawn in cash or transferred to accounts linked to conversion centres or shell companies.
Money mules often work together with conversion centres — shadow schemes set up through networks of fictitious enterprises with the purpose of turning non-cash funds into cash, avoiding taxes, and legalising money of illicit origin.
In such schemes, bank card details are collected and handed over to organisers, who legalise unlawful transactions by disguising them as fictitious services. Such actions are punishable under Article 205-1 of the Criminal Code of Ukraine.
The account of a private entrepreneur or a company is linked to a specific bank. Part of the profit from each transaction remains in the branch, so banks are sometimes reluctant to co-operate with state authorities in order not to lose revenue. This complicates the blocking process.
To avoid becoming involved in financial fraud schemes, follow these simple rules: never hand over your bank cards or their details to third parties, avoid suspicious “easy money” offers, verify the sources of funds, and follow the advice of banks and official institutions. If something seems questionable — it is better to refuse, to protect yourself and your finances.
Money mules are one of the serious threats to Ukraine’s financial system. Young people and the elderly are particularly vulnerable, as they may be targeted for recruitment or unintentionally take part in such schemes. That is why raising awareness, explaining the rules of safe use of banking services, and informing about the risks are necessary steps in countering financial crime.
10-11 July 2025
