Economic Security Bureau liquidates conversion center with turnover of up to UAH 18 billion: scheme covered hundreds of companies and funds through EU and UAE
The Economic Security Bureau of Ukraine (ESBU) has dismantled a large-scale money-laundering operation with a turnover of up to UAH 18 billion, which served hundreds of businesses across Ukraine and was integrated into international financial flows. It was reported by the Economic Security Bureau’s press service.
According to the investigation, the scheme operated in several regions of the country and involved hundreds of real-sector enterprises. To carry it out, the perpetrators used an extensive network of controlled companies and sole proprietorships, through which they generated fictitious VAT credits and subsequently converted the funds into cash.
As investigators established, the organizer managed the group’s activities, distributing roles among participants — from financial operations to registering companies and recruiting front men. Some of the funds were transferred abroad through non-resident companies, particularly to EU countries and the UAE, or converted into crypto assets.
"Over 500 controlled companies and sole proprietorships were used to operate the scheme, through which more than 200 enterprises in the real sector of the economy were serviced. Funds were systematically transferred abroad through approximately 20 foreign companies registered in EU countries and the UAE. The total volume of financial flows that could have passed through this scheme amounts to UAH 18 billion,” emphasized ESBU Director Oleksandr Tsyvinskyi.
According to him, more than 40 searches were conducted in various regions of Ukraine as part of the investigation. Law enforcement officers seized accounting documents, equipment, bank cards, seals, and significant amounts of cash in various currencies.
"Our position remains firm: the era of conversion centers must come to an end. We are systematically dismantling not individual incidents, but the very infrastructure of the shadow economy," concluded Tsyvinskyi.
Currently, the organizer and other participants have been notified of suspicion under several articles of the Criminal Code of Ukraine. The organizer is in hiding abroad, and the procedure to place him on the international wanted list is underway. Four people have been detained, and three have been placed in pretrial detention.