Банківський сектор відіграє вирішальну роль у механізмі функціонування економіки. З огляду на це, поширення явищ легалізації кримінальних доходів та залучення банків до таких ризиками відмивання грошей з огляду на появу нових високоризикованих фінансових інструментів. The banking sector plays a crucial role in the mechanism of functioning of the economy. Against this background, the spread of criminal proceeds and the involvement of banks in such operations pose a threat to the financial security of the state. Given the current economic situation in Ukraine, it should be noted a significant level of risk of using banks for money laundering purposes. The methodology for conducting transactions on the legalization of criminal proceeds with the use of banks has been systematized by analyzing data on banking sector activity and the volume of suspicious transactions published by financial sector regulators. Effective implementation the systems of control and comprehensive assessment of risks associated with the laundering of criminal proceeds by banks will allow banking institutions to apply the necessary methods of protection and verification in a timely manner both in the process of customer identification (verification) and financial transactions monitoring during the whole period of business relations. A formalized scheme for identifying probable risks will allow attention to be focused on those clients whose risk level is rated as high in the context of money laundering. Nowadays the antimoney laundering system in Ukraine is preferably focused on the detection of suspicious financial transactions, while at the same time the level of criminal liability of their beneficiaries and confiscation of criminal funds remains relatively low. The extent to which banks are involved in criminal revenue legalization operations is highly dependent on the level of the economy affection by shadow and criminal money flows. Prospective directions for further research deal with the identification of ways to reduce the volume of shadow economic activity, which will help to reduce the risk of using banks in various money laundering schemes. At the same time, given the emergence of new high-risk financial instruments, the issue of improving banking procedures for managing money laundering risks is also relevant.

Over the last few years, virtual assets have become more widespread in the market, which has manifested itself both in the growth of transactions with them and in the rapid growth of the capitalization of the cryptocurrency market. The international community and individual governments have introduced regulations for the virtual asset market, but the degree of transparency remains low. This poses risks of using virtual assets as a tool for various schemes of money laundering or terrorist financing. The purpose of the article is to identify potential vulnerabilities of virtual currencies to the impact of shadow cash flows, as well as to assess existing approaches to regulating their circulation and prevent the use of these assets for money laundering purposes. The article highlights the standards developed in world practice for determining the legal status of virtual currencies and their state regulation, assesses the process of introducing regulation of the circulation of virtual assets in Ukraine. Imperfect regulation and insufficient experience in market monitoring lead to the vulnerability of virtual assets to their use in the movement of illicit cash flows, in particular in the schemes of money laundering. The authors identified some other vulnerabilities in virtual currencies, including the possibility of their use for financial fraud, tax evasion, instability of virtual currencies, limited control over their circulation, as well as the low level of protection of the rights of market participants. Overcoming these vulnerabilities requires a combination of public and private sector efforts, which should be aimed at creating safeguards for criminal capital to enter the virtual asset market, as well as to ensure market transparency and protect the interests of participants from potential losses and possible fraud. The virtual asset market is an innovative and promising segment of the financial market, so we consider the important task of its effective regulation to stimulate legal transactions and clearly separate them from illegal transactions.

The control of financial and tangible resources using is one of the key tasks of management. Financial control has significant matter in the public sector, because clear standards maintenance in the budget sector contributes to the achievement of social stability, economic security and a high level of social welfare. The society’s faith to the government and state authorities vastly depends on efficiency of the financial control. This highlights the topicality of the financial control role in providing economic stability of the state. The paper deals with research of economic essence of state financial control, and role of public audit in the financial sector of the state. The ways of public financial audit development are considered. Ukraine has not introduced single methodological background for building an effective audit system in the public administration sector yet, so the necessity of new theoretical and practical approaches to the public sector audit development is indubitable. The authors’ approach to public audit classification is based on distinguishing of external and internal audits, as well as the main types of public audit, namely financial audit, audit of efficiency and operational audit. This classification could be useful for different state authorities’ activity, which are in charge of public financial control. The business entities, budgetary institutions and entities of state and communal ownership have to be the objects of financial audit; audit of efficiency should be oriented towards the assessment of the implementation of local budgets and development programs: and operational audit has to be directed onto verification of individual business transactions. The author have developed methodical approach to the general assessment of the effectiveness of public financial control and audit, which involves the application of appropriate ratios of effectiveness of control and effectiveness of public audit.

Activities to counter laundering the money, obtained by criminal means, require constant monitoring of the market, monitoring the activities of financial and non-financial institutions in order to prevent capital loss and financing of terrorism, as methods of money laundering are gaining new features every year. The article is aimed at systematizing the latest money laundering schemes appearing in the financial market and developing measures to prevent the implementation of such schemes through financial institutions. An analysis of data by the State Financial Monitoring Service of Ukraine (SFMS) on the number of detected suspicious financial operations showed that the large majority of reports concerning such operations comes from banks. In view of this, the role of banks in countering the legalization of criminal income in Ukraine remains decisive today. The expansion of the range of financial instruments led to the emergence of new money laundering schemes. Such schemes can be based on P2P technologies, implemented through crowdfunding platforms, in particular through crowdinvestment. The authors also focused on the possibilities of using cryptocurrencies and online gambling tools for the purposes of legalizing criminal revenues. The peculiarities of applying the risk-oriented approach in the process of due diligent verification of clients of financial institutions and the operations they carry out, as well as the list of threats to financial institutions in case of their joining the money laundering activities, are determined. Such threats are manifested in reputational and legal aspects, and in the future inevitably lead to financial losses. The use of the latest technologies for the legalization of criminal income requires banks and non-bank institutions to improve the software used to detect and register suspicious transactions, improve cybersecurity, as well as maintain a high level of qualification of employees. The State own regulators should ensure proper control over the activities of highly risky financial infrastructure entities, as well as raise public awareness of the risks and consequences of criminal capital legalization.

No abstract