Are EU banks doing business with Ukraine's crooked politicians?





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Published on Dec 21, 2013

All Ukrainian top politicians finance their luxurious life from European companies and banks?

European legislation contains a concept called PEP. Take Oleksandr Yanukovych. He's a junior PEP. Premier Azarov, an elderly PEP. NSC Secretary Andriy Kluyev and his brother Serhiy, two PEPs. Ukraine's entire Cabinet of Ministers, all PEPs. The Verkhovna Rada? Nothing but PEPs. And then there's the President of Ukraine, Viktor Yanukovych, the ultimate PEP.

Banks are supposed to figure out whether a client is a PEP or not, PEP being a new concept meaning Politically Exposed Person. Someone who is politically engaged. Under that term come all the heads of Ministries, members of the Verkhovna Rada, judges of higher courts—and, of course, their close relatives: sons, brothers, wives...and business partners.

A bank that has determined that their client is a PEP is obligated to then determine the source of the money that the client is placing. If any suspicions are raised at the bank about the legitimacy of the source of this money, the bank is supposed to refuse to work with that client. That's first.

Secondly, the bank should report on suspicious activities, called a Suspicious Activities Report, to the country's financial oversight agency.

Now for the most interesting bit. Ukraine's officials basically don't earn much money that isn't suspicious. If the son of the president, Oleksandr Yanukovych has seen his wealth increase by 7,280% in the three years since his father took office, that's suspect. If his father suddenly lives in luxury on 136 hectares of prime real estate, that's also suspect.

There are plenty of reasons to look into those European companies to which money is transferred from Ukraine and from which presidential luxuries are later paid.

Only you have to prove that, in order to own Mezhyhiria, Sukholuchchia and other such estates, Yanukovych used a foreign agent to launder his money.

Luckily, such a foreign agent exists. His name is Reinhard Proksch. He's a lawyer, a resident of the US and the director of several European firms that have direct links to some of Ukraine's main Eurointegrationists: Yanukovych, the Kluyev brothers, and the Azarov family.

Mezhyhiria, Sukholuchchia, the helicopters, the jets—they're all connected to a single individual abroad.

Lawyer Proksch in fact stands at the pinnacle of all the assets linked to Yanukovych, Azarov and the Kluyevs...and brings the entire web together. How? Reinhard Proksch runs three companies: P&A Corporation, Blythe Europe and Astute Partners.

Freezing the accounts of the companies controlled by Proksch will lead to a chain reaction, because we're not talking just about the companies directly in this corrupt network. A freeze will also hit those companies to whom money was being transferred. And so poor Viktor Yanukovych might not be able to buy his next crystal chandeliers, and Party of the Regions faithful Kluyev and Azarov won't be able to pay the utility bills on their Austrian estates.

We propose that EU countries, EU politicians and US politicians make use of those instruments that are already in place. All they need to do is to uphold their own laws! Laws that forbid their banks to do business with corrupt politicians.

With just a little bit of political will, Europe can easily make this winter the coldest one yet for Ukraine's grandees—no matter what Russia has promised.


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