On Ukraine’ s prospects at FATF session

Has Ukraine done enough to expect a more favorable attitude from FATF at the coming session?

I would regard the matter at two angles. First, it is the enforcement of sanctions by many FATF members, including Canada. Ukraine was warned of money laundering problems over a year ago. No progress has been made and it left FATF no alternative but recommend sanctions. Second, the point in question is withdrawing Ukraine from the so- called blacklist of countries and territories recognized as uncooperative in combating money laundering. Seeing Ukraine on that list is a shame for all her friends, and the Ukrainians apparently feel the same. Let’s hope that the Ukrainian government will take the required measures in the next couple of months to help solve the problem.

Experts will say whether or not Ukraine has done enough to meet FATF requirements. This assessment will also be done in Ottawa. Since I am not an expert, I can’t comment on what Ukraine has accomplished. Although I am convinced that credibility will play an important role in a positive solution. Viktor Yanukovych’s cabinet did not inherit a lot of credibility from the previous government. Contrary to assurances, 18 months proved not enough for the previous cabinet to enact laws corresponding to the FATF requirements. The Ukrainian government will face the problem of combating shadow capital accumulated by criminal elements and oligarchs damaging Ukraine’s image abroad, operating contrary to the national interests and preventing the implementation of Ukrainian sovereignty in its territory.

Would you name those oligarchs?

I think that every Ukrainian knows them. The problem is not in one or two individuals. It is that the whole thing is getting to be a system — forces impeding Ukraine’s effective performance as a state.

You said that Ukrainian efforts in combating money laundering would be studied by experts. Meaning that Ukraine shouldn’t expect FATF to finally solve the problem at this session?

This will largely depend on findings on the newly enacted laws and assurances of the Ukrainian delegation.

Quite a few analysts insist that FATF will make a political decision, and that this will make lifting the sanctions impossible.

Absolutely not. Those using such arguments imply that the problem arose from abroad, yet this problem originates from within Ukraine and it must be solved in Ukraine. A real way to solve it is by taking large- scale measures to reform the economy, financial, and judicial sectors.

Does the Ukrainian government stand a chance of winning credibility now?

It certainly does. All it has to do is be as good as its word and not to promise things that will be hard to do...