Ukraine’s tax authorities uncovered signs of a massive capital flight and money laundering scheme disguised as international trade involving thousands of fake companies, the country’s State Tax Service reported June 2.More than 2,300 companies carried out over Hr 198 billion ($4.5 billion) in foreign trade transactions and then largely vanished, State Tax Service head Lesya Karnaukh wrote on social media. The majority — 1,243 companies — were involved in exporting goods.The tax service discovered the potential scheme after reviewing reports from Ukraine's National Bank regarding violations of statutory settlement deadlines covering 2024 through the first quarter of 2026.The bank maintains strict controls over cross-border currency transfers to keep capital in the embattled country following Russia’s 2022 full-scale invasion.Authorities became suspicious after discovering that many of the offending companies’ owners also headed hundreds of other companies, indicating straw man directors connected to a scheme, Karnaukh said."This is hardly a scenario that would be expected in legitimate business," she wrote."We identified seven individuals, each of whom simultaneously serves as a director or founder of more than 500 companies. Altogether, more than 7,000 business entities are under their control."
Thousands of bogus Ukrainian companies involved in massive capital flight scheme, tax authority says
More than 2,300 companies carried out over Hr 198 billion ($4.5 billion) in foreign trade transactions and then largely vanished, State Tax Service head Lesya Karnaukh wrote on social media. The majority — 1,243 companies — were involved in exporting goods.
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