Information operations · Information Warfare · Russia · Ukraine

Ukraine’s National Bank fines Sberbank’s subsidiary

Russia is laundering dirty money through Donbas and South Ossetia

A Unian article, Russian Sberbank’s Ukrainian subsidiary obliged to pay US$3.4 mln in fines, makes a stronger implication that Sberbank is laundering Russia’s dirty money through Donbas and possibly South Ossetia. 

“After receiving NBU’s preliminary conclusions on high risk activities totaling more than UAH 1 billion [$36.4 million], in particular, withdrawing cash from accounts of clients, legal entities, the bank [Sberbank’s subsidiary] did not stop such activities. The financial institution changed the cash withdrawals scheme and significantly increased the volume of transactions that may be associated with the legalization of criminal income and fictitious entrepreneurship,” the NBU’s press service said on January 2.

There is no doubt, this is part of a hybrid war fought between Ukraine and Russia.  This war is being fought by all parts of the Russian government, including finance and dirty money laundering. Russia does not abide by the law, therefore Ukraine, who does things legally, has only a few ways to fight back. 

This is part of an information war, exposing Russian illegal, immoral, and unethical actions against Ukraine, as part of a larger hybrid war being waged against Ukraine, a Russian whole-of-government war.

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Thursday, January 3, 2019 1:00:02 PM

The National Bank of Ukraine (NBU) press service reported that the NBU fined Sberbank’s subsidiary in the amount of 94.7 million hryvnias (more than 3.4 million) for violating financial monitoring legislation.

It is noted that the Ukrainian regulator fined Sberbank “for repetitive risky behavior in the field of financial monitoring for a total amount of over 3 billion UAH” (over $108 million).

According to the NBU, Sberbank allowed continuous major financial cash withdrawals from corporate accounts. According to the regulator, this may be associated with legalizing criminal cashflows and fictitious businesses. The NBU also adds that Sberbank conducted credit card settlements abroad for gambling companies.

In December 2018, the NBU revoked another Russian bank’s subsidiary, the VTB, banking license and decided to liquidate it. Earlier the regulator deemed it insolvent.