Banking Risks of Money Laundering: Essence, Types and Management System

Mordan, Ye.; Бондаренко, Евгений Игоревич; Kalchenko, Ya.; Davydenko, Y.A.

doi:10.32702/2306-6806.2021.1.115

Cited by 3 publications

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“…The peculiarity of the current situation is the use of the banking system of Ukraine by criminal groups, which is actively adapted to maintain the level of the shadow economy and legalize illegally obtained funds. Particularly dangerous in the economic system are intermediary firms and so-called "conversion centers," whose activities are inextricably linked with banking institutions, which are directly used as a tool in banking operations to transfer non-cash money supply from the legal economy to the shadow economy and vice versa (Mordan et al, 2021).…”

Section: Resultsmentioning

confidence: 99%

Legalization of criminally obtained property committed by organized criminal groups: European and Ukrainian standards

Orlovskyi

2023

Jurídicas

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The phenomenon of money laundering as a result of the actions of criminal groups is a negative factor in the global development of the international community. The need for this study is due to the increase in the scale of such criminal acts that negatively affect the development of the state, threatening the rule of law and security of the state in general and society in particular; lack of legislative and practical basis for combating this phenomenon. Therefore, the purpose of the study is to define the concept and the essence of money laundering by organized criminal groups and elaborate scientifically sound measures to combat this phenomenon in terms of European and Ukrainian dimensions. Several methods were used in the study, in particular: dialectical, system-structural, historical-legal and formal-logical. Leading research method was comparative method, which helped to characterize the specifics of criminal law protection of public relations arising from money laundering in Ukraine, Western European countries, and the United States. The authors determine the national policy of Ukraine against crimes committed by organized groups is characterized by the obsolescence of the regulatory and legal framework, gaps in the organization of combating such types of crimes, reduction of special units in the police, and insufficient level of cooperation of state bodies. The collected original empirical material will allow theorists in this field to continue their research and effectively counteract this negative phenomenon.

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Section: Resultsmentioning

confidence: 99%

Legalization of criminally obtained property committed by organized criminal groups: European and Ukrainian standards

Orlovskyi

2023

Jurídicas

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“…Аналіз останніх досліджень і публікацій дав змогу виявити, що вивчення сутності та основних аспектів ризику участі банків у нелегальних схемах, а також дослідження методик управління даним ризиком здійснювали такі науковці як Н. В. Москаленко [4], О. В. Смагло [8], С. Б. Єгоричева, М. І. Худокормова [11], О. В. Уткіна [9], Є. Ю. Мордань [3], Є. І. Шаманіна та інші. Незважаючи на наявність численних публікацій присвячених дослідженню ризику участі банків у нелегальних схемах, на сьогодні чітких методик вимірювання даного ризику немає у зв'язку з закритістю необхідної внутрішньої інформації банку щодо клієнтів та їх операцій.…”

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Risk Assessment of Banks' Participation in Illegal Schemes

Мордань¹,

Bukhtiarova²,

Кравченко³

2021

Efektyvna Ekonomika

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RISK ASSESSMENT OF BANKS' PARTICIPATION IN ILLEGAL SCHEMESУ статті визначено, що основними фінансовими посередниками при проведенні нелегальних схем є банки. З'ясовано, що більшість таких схем здійснюється з метою легалізації доходів одержаних злочинним шляхом, виведення капіталу за межі країни, ухилення від сплати податків, виведення готівки з рахунку в незаконний спосіб через фіктивні підприємства чи оплату неіснуючих товарів та послуг. Доведено, що виявити «схемні» операції досить непросто, але можливо, оскільки існує значна кількість факторів, що вказують на підозрілі дії клієнтів банку. Проведено аналіз ступеня ризиковості участі банківського сектору у нелегальних схемах шляхом визначення рівня ризику України та інших країн світу за допомогою Базельського індексу протидії відмиванню коштів. Також з метою оцінки рівня ризику участі банківського сектору у нелегальних схемах було дослідження обсяги поданих банками та небанківськими фінансовими установами повідомлень до ДСФМУ про фінансові операції, що підлягають фінансовому моніторингу та проаналізовано співвідношення готівкових операцій клієнтів банку до безготівкових. Було доведено та визначено, що необхідним у сфері боротьби з участю банків у нелегальних схемах є наявність чітко визначеної методики вимірювання та оцінювання ступеня даного ризику. Тому, базуючись на вже існуючих методиках, було запропоновано розрахунок інтегрального показника, який дає можливість оцінити рівень ризику участі банків у нелегальних схемах, а також виявити наявні та потенційні перешкоди та проблеми банку у даній сфері.The article states that today, despite the spread of the system of non-cash payments, there are many illegal schemes, the main participants of which are banks. In particular, it was found that most of these schemes are aimed at money laundering, capital evasion, tax evasion, illegal withdrawal of cash through fictitious businesses or payment for non-existent goods and services. It has been proven that it is not easy to detect "circuit" operations, but it is possible because there are a number of factors that indicate suspicious actions of the bank's customers. An analysis of the degree of riskiness of the banking sector's participation in illegal schemes by determining the level of risk in Ukraine and other countries using the Basel Anti-Money Laundering Index. Also, in order to assess the risk of participation of the banking sector in illegal schemes, the volume of notifications submitted by banks and non-banking financial institutions to the State Financial Monitoring Service of Ukraine on financial transactions subject to financial monitoring was analyzed and the ratio of cash transactions to bank customers as a result of the analysis, it was proved that today the level of this risk is assessed as high. Moreover, the trends observed in the financial market in recent years do not show positive changes. This can be confirmed by the high level of risk of Ukraine in accordance with the Basel Index and the National Risk Assessment, a significant number of reports subm...

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Modern determinants of assessing the risk of legalization of criminal proceeds in banks

Коваленко¹,

Yehorova²

2023

Fìnansi Ukr.

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Introduction. In recent years, there has been a tendency to simultaneously increase requirements in terms of reserve capital, combating money laundering and terrorist financing, which has led to a significant increase in the corresponding costs for banks around the world. Banks that provide services such as depositing, lending, transferring funds or assets from one institution to another without taking into account geographical restrictions are most often used for money laundering. Problem Statement. It has been proven that the entrenchment of shadow schemes by economic entities conducting various operations, the introduction of the latest technologies into the financial sphere, as well as the rapid development of the cryptocurrency market have led to a growing trends in legalization of criminal proceeds involving financial institutions. Purpose. Generalization of the key provisions and practices of international standards, analysis of the use of a risk-oriented approach by countries in ensuring countermeasures against money laundering and terrorist financing, systematization of the provisions of risk management of money laundering, financing of terrorism and proliferation of weapons of mass destruction in foreign practice and their introduction into domestic banking practice. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and cluster analysis. Results. The factors that form the risks of legalization of criminal proceeds are studied by such components as threats, vulnerability and consequences. The main components of the risk management system of the legalization of criminal proceeds are singled out, namely: stages of identification and analysis of the risk of legalization of criminal proceeds , principles, functions, risk assessment methods, security systems and strategies for managing the risks of legalization. The article proposes a methodology for assessing the risk of legalization of criminal proceeds in banks using the clustering method. Conclusions. The national money laundering risk assessment system should be based on a unified approach that provides for the identification of clients of financial institutions, the processing of information by regulatory and supervisory authorities, supervision by regulatory authorities and financial intelligence units and the assessment of AML/CFT risks, the comparison of data of financial institutions with data of law enforcement agencies to determine the vulnerabilities of the system of combating the legalization of criminal proceeds and financing of terrorism. Threats caused by the latest state of operation of Ukrainian banks, the development of measures to further reduce their involvement in money laundering and terrorist financing schemes require further research.

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Banking Risks of Money Laundering: Essence, Types and Management System

Cited by 3 publications

References 0 publications

Legalization of criminally obtained property committed by organized criminal groups: European and Ukrainian standards

Legalization of criminally obtained property committed by organized criminal groups: European and Ukrainian standards

Risk Assessment of Banks' Participation in Illegal Schemes

Modern determinants of assessing the risk of legalization of criminal proceeds in banks

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