A money-laundering operation where farmers were making under-the-table payments was uncovered in the Kyiv region

Detectives from the Territorial Directorate of the State Security Service in the Kyiv Region, in collaboration with Cyberpolice operatives, uncovered a large-scale money-laundering operation used to facilitate shadow transactions in the agricultural sector.

According to the investigation, more than 60 controlled companies showing signs of being shell companies were involved in the illegal scheme. Through this network, the suspects helped companies in the real sector of the economy conceal their income and evade taxes.

The scheme operated in the agricultural products trade sector. Goods were purchased from producers in cash, without recording the corresponding transactions in accounting or tax records.

To subsequently sell the products in Ukraine or export them, the scheme’s participants prepared documents on behalf of the controlled companies containing false information about the origin, value, and characteristics of the goods.

In this way, a fictitious history of origin was created for the products, after which the proceeds from their sale were diverted into the shadow economy.

This allowed the participants in the scheme to conceal their actual income and reduce the amount of taxes that should have been paid to the state budget.

According to the investigation, the participants converted part of the proceeds into virtual assets.

In this way, they attempted to conceal the source of the money and evade financial monitoring.

The pre-trial investigation is currently ongoing. BEB detectives are identifying all individuals who may be involved in the organization and operation of the money-laundering center.

Law enforcement officials are also determining which companies may have used its services and are investigating the flow and origin of the funds.

Operational support was provided by officers from the Cyberpolice Department of the National Police of Ukraine.

Prosecutors from the Kyiv Regional Prosecutor’s Office are overseeing the proceedings.

This was reported by the BEB press center.

Previously, law enforcement officials uncovered and shut down a criminal organization that had established a “money-laundering center” to launder funds and evade taxes. Among the scheme’s clients was a company that carried out defense contracts for the Ministry of Defense and the National Guard.

The Economic Security Bureau dismantled a large-scale “money-laundering center” that had been operating since at least 2020 and provided services to hundreds of companies throughout Ukraine.