BEB uncovers conversion center in agricultural sector involving more than 60 fictitious companies

Detectives from the territorial department of the Bureau of Economic Security in Kyiv Oblast, together with operatives from the Cyberpolice, have uncovered a large-scale conversion center through which shadow financial transactions were carried out in the agricultural sector.

This was reported by the BEB.

“A large-scale conversion center through which shadow financial transactions were carried out in the agricultural sector has been uncovered by detectives of the BEB territorial department in Kyiv Oblast together with Cyberpolice operatives,” the agency’s statement reads.

More than 60 controlled enterprises showing signs of fictitious activity were involved in the scheme. Through these companies, the suspects helped real-sector businesses conceal income and evade taxes. The funds obtained were converted into cash and virtual assets.

Agricultural products were purchased from producers for cash without recording the transactions in accounting or tax records. To facilitate further sale of the goods in Ukraine and abroad, documents were drawn up containing false information about the origin, value, and characteristics of the products. In this way, a fictitious provenance history was created for the goods, and the proceeds from their sale were channeled into the shadow economy.

A portion of the money was converted into virtual assets in an attempt to conceal its origin and avoid financial monitoring.

The pre-trial investigation is ongoing. Investigators are establishing the full circle of individuals and enterprises that may have used the conversion center’s services, as well as tracing the movement and origin of the funds. Operational support was provided by officers of the Cyberpolice Department of the National Police of Ukraine. Procedural oversight is being carried out by prosecutors of the Kyiv Oblast Prosecutor’s Office.