NBU begins unscheduled inspections of banks due to collateral for Galushchenko

The National Bank of Ukraine has begun unscheduled inspections of banks that served clients involved in the transfer of funds to deposit bail for former Minister of Energy and Justice Herman Galushchenko. The regulator is checking whether financial institutions properly complied with financial monitoring requirements.

According to the NBU, the inspections started on August 24.

The basis for them was materials published by the National Anti-Corruption Bureau and the Specialized Anti-Corruption Prosecutor’s Office.

What exactly is the National Bank checking

The regulator is finding out how banks served individuals who transferred funds to the account of the High Anti-Corruption Court to deposit bail.

Particular attention is paid to compliance with the requirements of the legislation in the field of financial monitoring – in particular, checking the origin of funds and client transactions.

The NBU is not currently reporting how many banks were inspected and which financial institutions are involved.

Inspections related to NABU and SAPO materials

The regulator’s new supervisory actions are taking place against the backdrop of a large-scale special operation by NABU and SAPO called “Forest Gump”.

According to the investigation, people’s deputies, officials and other individuals are involved in this case.

NABU previously reported about about UAH 150 million in cash, which, according to the investigation, could have been put into legal circulation through a number of shell company accounts for the subsequent payment of bail for one of the defendants in the “Midas” case.

It was the circumstances of the movement of these funds that became one of the reasons for increased attention to the banking sector.

Searches were conducted in the case and suspects were served

As part of the “Forest Gump” operation, NABU and SAPO conducted a number of searches.

In particular, investigative actions were carried out on the former deputy head of the President’s Office Iryna Mudra, who later reported that she had been declared suspicious and served with a petition for the election of a preventive measure.

It was also reported that searches were carried out on the premises of MP Vadym Stolar and the chairman of the supervisory board of Sense Bank.

The NABU called a separate part of the investigation “Themis”. According to the investigation, it concerns a possible scheme for the raider seizure of real estate and other assets through unauthorized interference in the information systems of the Ministry of Justice.

Possible consequences for banks based on the results of inspections

Unscheduled inspections by the NBU must establish whether banks fulfilled their obligations when conducting relevant financial transactions.

If the regulator detects violations of financial monitoring requirements, financial institutions may be subject to measures of influence provided for by law.

So far, the National Bank has not reported either the preliminary results of the inspections or the deadlines for their completion.