The Security Service of Ukraine, or the SBU, and the Prosecutor's Office have conducted 19 searches at the State Rail Transport Administration, or Ukrzaliznytsia, and confiscated over UAH 7 million (about $541,000 at the official forex rate) and $1 million in cash, SBU Chief Valentyn Nalyvaichenko said.

"A money laundering syndicate has been working at the State Rail Transport Administration of Ukraine for years. The danger is that every railway company, every contractor of the railways, every insurer has been incorporated by corrupt officials in one money laundering and public funds embezzlement system," the SBU press center quoted Nalyvaichenko as saying on Thursday.

"Over 100 officers 'beheaded' such a syndicated within one day. During the searches conducted at the private houses and garages of a high-ranking administration official today, investigators have inventoried and confiscated over UAH 7 million and over $1 million in cash, as well as the offshore documentation that proves the existence of a really huge criminal mechanism," Nalyvaichenko said.

"We're continuing the fight against corruption. Other industries and ministries are next in turn. This isn't the last special operation – such money laundering centers will be liquidated in future," Nalyvaichenko said.

Acting Head of Ukrzaliznytsia Maksym Blank wrote on his Facebook page that the searches ended and the SBU held a press conference on the issue and no one can add anything in the interests of investigators.

"This is very unpleasant when a search is conducted at your office or apartment. But if this allows controlling state officials, his personal dislike is insignificant. Finally, this is for what we fought: to have no 'the untouchables,' even if we are these untouchables," Blank said.

As reported, Ukrainian Prime Minister Arseniy Yatseniuk ordered to check the financial and economic operation of Ukrzaliznytsia. Ukrzaliznytsia Director General Borys Ostapiuk was suspended from the post for the period of the check.

Under the order of the prime minister, an interagency commission of the Infrastructure Ministry has been created, and representatives of the department responsible for anticorruption policy in the cabinet's secretariat are members of the commission.

MP Mykola Kruhlov (the Economic Development lawmaker group) has withdrawn its address with demand to check the operation of Ukrzaliznychpostach state enterprise and discharge its director Oleksandr Lozinsky and Director General of State Railway Administration of Ukraine (Ukrzaliznytsia) Borys Ostapiuk from their posts.

Recently the commission of Ukrzaliznytsia revealed facts of corruption at the central railway station of Kyiv. During the check conducted from September 25 to October 13, the operation of 32 ticket agents was checked, and facts of violation of labor and financial discipline were established with 23 of them.

The SBU has confirmed the fact of conducting a search in the central office of the Ukrzaliznytsia in Kyiv. A well-informed source also told Interfax-Ukraine that SBU representatives appeared in the building of state enterprise Ukrzaliznychpostach.