Ukrainian diplomacy and the anti-corruption system have faced a major scandal. Former State Secretary of the Ministry of Foreign Affairs of Ukraine, Alexander Bankov, has been remanded in custody. The court chose detention as the preventive measure for 60 days. The alternative to arrest is a bail of 10 million hryvnias.
Scheme with Donors and Shell Companies
The investigation suspects the high-ranking official of fraud and money laundering. According to law enforcement, Bankov's criminal activity began in the first days of the full-scale invasion. Using his status and trust, he convinced foreign donors and employees of diplomatic missions to transfer financial aid intended for Ukraine to accounts of public organizations under his control.
Then a complex financial chain was launched. Funds were transferred to the accounts of fictitious individual entrepreneurs (FOPs). Through conversion centers, the funds were cashed out and spent on the personal needs of the scheme's participants. The investigation showed that funds totaling 37.3 million hryvnias could have been laundered through controlled companies and firms.
Context of the Fight Against Corruption
Bankov's arrest comes against the backdrop of intensified work by law enforcement agencies on corruption cases in government bodies. At the end of June, the National Anti-Corruption Bureau of Ukraine (NABU) detained current People's Deputy from the 'Servant of the People' party, Serhiy Kuzminych. The deputy had evaded participation in court hearings regarding a bribery case for four years.
Also in July, NABU and the Specialized Anti-Corruption Prosecutor's Office (SAP) announced suspicion against a group of eight individuals. They are accused of appropriating more than 150 million hryvnias allocated to the National Guard of Ukraine. These events indicate extensive work by security forces to expose financial fraud during the war.
