Large-scale special operation BEB: how the scheme to launder 18 billion UAH through hundreds of companies worked

Detectives of the Bureau of Economic Security of Ukraine, together with the National Police of Ukraine, have uncovered one of the largest tax evasion and money laundering schemes in recent years. According to the investigation, about 18 billion hryvnias of shadow financial flows passed through the so-called “conversion center”.

How the scheme was built

The criminal organization has been operating since at least 2020 and had a clearly structured structure. An extensive network was used to carry out illegal activities:

over 500 controlled business entities
about 100 fictitious enterprises
almost 400 individual entrepreneurs

These structures formed an artificial VAT tax credit, which allowed client companies to significantly reduce their tax burden.

The center’s services were used by more than 200 enterprises throughout Ukraine, which converted non-cash funds into cash and legalized goods of dubious origin, including petroleum products.

International scale and cryptocurrency

The scheme was not limited to the territory of Ukraine. It was integrated into the financial flows of:

European Union countries

United Arab Emirates

At least 20 non-resident companies were used to withdraw funds abroad, as well as a wide network of exchangers. Part of the money was converted into cryptocurrency, which significantly complicated their tracking and financial control.

Roles of participants

The organizer of the scheme is a person who is currently hiding abroad. According to the investigation, he coordinated all activities and involved a team of accomplices, including:

financial analysts

accountants

lawyers and registrars of enterprises

persons who searched for fake individual entrepreneurs

Each participant performed a clearly defined function, which ensured the stability and scalability of illegal activities.

Results of searches and investigations

During about 40 searches in different regions of Ukraine, law enforcement officers seized:

over 5 million UAH in cash

300 thousand USD

20 thousand EUR

dozens of seals of fictitious enterprises

cars used in the scheme

Law enforcement officers have already reported the organizer (in absentia) and key participants — the financial director, accountants and other suspects — about their suspicions. Some of them have been detained, three people are in custody.

Tax losses and legal consequences

Only in individual established episodes, tax evasion of more than 56 million UAH has been documented. At the same time, the real losses of the state may be much greater given the total amount of “exiled” funds.

The pre-trial investigation is ongoing under the procedural guidance of the prosecutor’s office. The organizer is planned to be put on the international wanted list.