European Commission proposes replacing State Financial Monitoring Service leadership due to inefficiency

Decline in service efficiency recorded in annual report

The European Commission, in its annual Ukraine 2026 Report, which is part of the EU enlargement package, recorded a decline in the efficiency of the State Financial Monitoring Service (SFMS). The document covers the period from September 2025 to September 2026 and contains assessments of Ukraine's progress on negotiation chapters regarding readiness for accession to the European Union.

The activities of the State Financial Monitoring Service were analysed within Chapter 24, "Justice, Freedom and Security", specifically during the assessment of investigations and the criminalisation of money laundering.

Statistics show negative dynamics

The report states that in 2025, the State Financial Monitoring Service transferred 1,441 consolidated materials to law enforcement agencies and the prosecutor's office, a higher figure than in 2024 (when there were 1,053). Meanwhile, the number of materials transferred to the National Anti-Corruption Bureau of Ukraine decreased significantly.

There is also a decrease in the number of requests to foreign jurisdictions: 455 in 2025 compared to 621 the previous year. The share of criminal cases opened based on State Financial Monitoring Service materials fell to 2.5% of the total.

Recommendations for reform

«Для підвищення ефективності узагальнених матеріалів, а також комунікації та довіри між ДСФМ та правоохоронними органами, слід проводити регулярні незалежні аудити ефективності. Крім того, слід запровадити прозору та конкурентну процедуру відбору керівника ДСФМ, включаючи обмеження терміну його повноважень» (To improve the effectiveness of consolidated materials, as well as communication and trust between the SFMS and law enforcement agencies, regular independent efficiency audits should be conducted. In addition, a transparent and competitive procedure for selecting the head of the SFMS should be introduced, including a limitation on the term of their authority), the report states.

Thus, the European Commission drew attention to the reduction in the number of materials transferred to the NABU, the 26% decrease in the number of requests to foreign jurisdictions, and the low effectiveness of State Financial Monitoring Service materials on the basis of which criminal cases are opened.

Blocking of bills and trust issues

The report separately notes that legislative changes providing for the creation of registers of bank accounts and ultimate beneficial owners of trusts continue to be blocked in parliament.

Meanwhile, on 10 November 2026, the Verkhovna Rada adopted in the first reading Bill No. 14327, "On Amendments to Certain Legislative Acts of Ukraine to Ensure Compliance with the Acts of Law of the European Union and the Relevant Criteria Established by the European Payments Council, with a View to Ukraine's Accession to the Single Euro Payments Area (SEPA)". The document provides for the creation of the aforementioned registers.

During the consideration of the bill, representatives of certain parliamentary groups and factions stated that the State Financial Monitoring Service should not be granted access to the bank account register due to a lack of trust in its head, Filip Pronin. They also called for a reset of the institution, although, according to European requirements, access to such a register for financial intelligence is mandatory.

Updating the leadership of the State Financial Monitoring Service through a transparent and competitive competition, as noted in the material, may help implement the European Commission's recommendations and unblock further consideration of the bill on Ukraine's accession to SEPA.