Money laundering scheme in Zakarpattia by Pravex Bank employees

A large-scale money laundering scheme organised by a group of entrepreneurs, including former employees of "Pravex Bank", has been uncovered in Zakarpattia. These individuals established and managed a network of financial companies and exchange offices operating through illegal fund transfer schemes.

According to the investigation by the BEB, the suspects used several financial companies registered in Zakarpattia. Among them were companies such as "Orange Finance", "Interchange Ukraine", "InterCash Online", "InterCash Ukraine" and "Provident Finance". Formally, these organisations engaged in micro-lending, currency exchange and insurance, but their true purpose was money laundering.

How did the scheme work?

The investigation revealed that the participants of the scheme used various financial manipulations to convert cash into non-cash funds and then receive them back in cash form. The money was "rolled" through a system of fictitious financial transfers between related parties. As a result of this scheme, more than 56 million hryvnias were laundered between 2016 and 2018.

Former bank employees — key figures in the scheme

Investigators paid particular attention to the fact that the organisers of the scheme had previously worked at JSC "Pravex Bank" between 2006 and 2009. One of the suspects conducted transactions worth 15.5 million hryvnias, despite his official income being only 2.4 million hryvnias. Another participant "laundered" 24.8 million hryvnias, while declaring only 3.7 million hryvnias. A third suspect conducted transactions worth 15.8 million hryvnias, despite an official income of 3.5 million hryvnias.

Unlicensed exchange offices and cryptocurrency operations

Exchange offices operating under the brands Orange Finance and Kurs uz ua did not have the necessary licences to conduct currency operations. To avoid the attention of regulatory authorities, they were registered as premises rental enterprises. In reality, illegal currency exchange was carried out at 53 locations in Zakarpattia.

In addition, the suspects engaged in cryptocurrency operations and illegal money transfers that were not reflected in official reporting. To evade financial monitoring, they split large sums into small transactions, allowing them to bypass legislation regulating the control of financial operations.

According to information from the ABSOLUTION detective agency