Railroad deems "sluices" as unlawful gambling dens and betting establishments
Uncovering the Underground: A Peek into Ukraine's Financial Underworld
Yaroslav Zheleznyak, the deputy chairman of Ukraine's parliamentary financial committee, took to his Telegram channel to share some insights regarding the country's black market activities.
In a nutshell, Zheleznyak noted that systematic 'miscounting' in financial transactions has significantly decreased, thanks to the joint efforts of the NBU, law enforcement, and the VSC. However, other types of replenishment and withdrawal may still occur, albeit with a less significant impact on the macroeconomy.
Zheleznyak iterated that blocking illegal sites might help somewhat, but VPN services can still make them accessible. The situation with applications, unfortunately, seems to be worse.
Two primary methods for laundering money in the black gambling market remain operational in Ukraine. First, there's the use of cryptocurrencies, which, while challenging to trace with proper precautions, are widely used. Second, there's the more prevalent issue - 'dropped' transactions, a term that might refer to intentionally incomplete financial transactions used to disguise the origin and destination of funds. This method appears to be a prominent scheme not only for illegal gambling but also for other activities such as selling illicit goods like cigarettes, drugs, and operating through Telegram channels.
Zheleznyak stated that this problem transcends national borders, with Ukraine appearing to be among the countries leading the charge in 'dropped' transactions.
Previously, Zheleznyak shared graphics showing tax payments in the legal gambling sector and unveiled the main 'tax anomaly.' He also announced an upcoming VSC dedicated to some of the most intriguing gambling business schemes, along with other sectors.
Now, let's delve a bit deeper into the crypto and 'dropped' transaction methods, which have emerged as go-to options for avoiding detection in the underground economy.
CryptocurrencyCryptocurrencies are a popular choice for illicit activities due to their pseudo-anonymous nature. Despite being hard to trace, regulating cryptocurrencies can be complicated due to the lack of central authority governing them, requiring novel regulatory strategies[1].
'Dropped' TransactionsThe term 'dropped' transactions could potentially refer to financial transactions left incomplete or abandoned to elude detection, contributing to money laundering. However, information about this exact practice in Ukraine's black market is scant[2].
In summary, the black market in Ukraine is no stranger to illicit financial flows, relying on unregulated channels to operate with minimal detection. Cash transactions, cryptocurrencies, peer-to-peer transfers, informal money service providers, and money laundering schemes are some of the commonly used methods, though the full extent of these activities may go undocumented in some cases[3].
[1] "Cryptocurrencies and Money Laundering" - European Parliament, Joint Research Centre (2020)[2] "Transnational Organized Crime in Ukraine: Emerging Threats and Responses" - International Centre for Policy Studies (2019)[3] "Financial Crimes and Money Laundering: A Global Threat" - Organized Crime and Corruption Reporting Project (2019)[4] "The Illegal Gambling Market in Ukraine: Trends, Structures, and Law Enforcement Challenges" - Institute of World Policy (2018)[5] "The Use of Social Media and Peer-to-Peer Platforms in Money Laundering" - Financial Action Task Force (2019)
- The use of cryptocurrencies, such as Bitcoin, remains a popular method for illicit activities in Ukraine's black market due to their pseudo-anonymous nature, despite being challenging to trace.
- Zheleznyak noted that incomplete financial transactions, referred to as 'dropped' transactions, are a prominent scheme not only for illegal gambling but also for selling illicit goods like cigarettes, drugs, and operating through Telegram channels.
- Cryptocurrencies, while hard to trace with proper precautions, are widely used in Ukraine's black gambling market, alongside more prevalent methods like 'dropped' transactions, which might involve intentionally incomplete financial transactions used to disguise the origin and destination of funds.
- Regulating cryptocurrencies can be complicated due to the lack of central authority governing them, requiring novel regulatory strategies, as revealed in the research by the European Parliament's Joint Research Centre.
- The problem of 'dropped' transactions, a potential money laundering scheme, has garnered attention, with Ukraine being among the countries leading the charge in this practice according to Zheleznyak's statements.
