The Conceptual Framework for the Formation of a Risk-Based System for Combating Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction

Vnukova, Nataliya; Andriichenko, Zhanna O.; Hontar, Daria

doi:10.32983/2222-0712-2018-4-201-215

Cited by 3 publications

(1 citation statement)

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“…Вітчизняні вчені також не залишаються осторонь цих нагальних питань. В останні роки простежується посилена увага до проблем визначення впливу державного регулювання i нагляду на розвиток ризикорієнтованої системи фінансового моніторингу України [10], імплементація ризик-орієнтованого підходу в діяльності державних органів -суб'єктів державного фінансового моніторингу [3], дослідження міжнародного досвіду використання ризик-орієнтованого підходу [22], визначення концептуальних засад формування ризик-орієнтованої системи ПВК/ФТ [21], оцінювання й управління ризиками відмивання коштів, фінансування тероризму та імплементації ризик-орієнтованого підходу [4].…”

Section: літературний оглядunclassified

Implementation of state financial monitoring based on risk-oriented indicators in the activities of financial institutions

Andriichenko

2020

Development Management

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The article examines the systems of risks of various types of financial institutions and focuses on the absence of the risk of legalization among them. This risk is considered separately within the framework of a special system of relations in the field of combating money laundering, financing of terrorism and financing the proliferation of weapons of mass destruction. The evolution of criteria for assessing the risk of a financial institution to be involved in legalization is analyzed, risk-oriented indicators of the activities of financial institutions used to assess their risk profile are generalized. It is established that one of the regulators in the financial services market, the National Securities and Stock Market Commission, uses outdated, formal, and ineffective criteria for assessing the risks of a financial institution to be involved in money laundering. However, the other regulator, the NBU, has already carried out the process of adapting state financial monitoring to the requirements of FATF and AMLD4 and developed risk-oriented indicators of financial institutions’ activities, used to assess their risk profile. Strengthening the control by the subjects of state financial monitoring over the risk profile of a financial institution and its overall financial monitoring system will help to increase the efficiency of state financial monitoring. It is proposed to unify risk-oriented features and introduce identical financial monitoring mechanisms for all participants in the financial services markets, considering the specifics of their activities, as well as including the risk of legalization in the risk system of a financial institution in order to improve the efficiency of the financial monitoring system.

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Section: літературний оглядunclassified

Implementation of state financial monitoring based on risk-oriented indicators in the activities of financial institutions

Andriichenko

2020

Development Management

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Search for statistically approved criteria for identifying money laundering risk

LEBID

Veits

2020

Banks and Bank Systems

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The paper focuses on the theoretical justification and theoretical foundations of using statistical criteria for identifying money laundering risk as a tool to prevent and counteract the legalization of bank clients’ proceeds. The hypothesis is that the coefficient of variation can be appropriately used as an identifier for money laundering risk. To prove this hypothesis, a special methodology was used: generalization, grouping, statistical analysis of time series, and correlation analysis – to identify and analyze the hidden signs of the customer income legalization in the financial activities of a bank; mathematical statistics and scaling – to determine the quantitative values of risk levels for the use of bank services for legalizing customer income. The analysis of financial activities of 32 Ukrainian banks aimed at identifying money-laundering risks showed that banks in which the National Bank of Ukraine revealed suspicious transactions with money-laundering features (16 operating banks) had much higher coefficients of variation in the volume of cash flows, in cash flows for on-demand accounts of economic entities, in cash flows of on-demand accounts for individuals, compared with banks in which violations of legislation in the field of financial monitoring were revealed (eight banks), and with banks where violations were not found (eight banks). This proves that sudden changes in customer transaction volume can be a sign of money laundering risk. AcknowledgmentState grant for fundamental scientific research “Risk-oriented approach in countering money laundering, terrorist financing and proliferation of weapons of mass destruction” (state registration number 0118U000058).

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Financial Monitoring of Payment Card Transactions

Vnukova

Avanesian

2022

LaI

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The relevance of determining the impact of international standards on the development of financial investigations is determined by the need to build an effective financial monitoring system and improve the effectiveness of coordination of the activities of financial monitoring entities, in particular, at the state level. The aim of the study is to develop theoretical provisions and practical skills to determine the essence of financial monitoring and development of the direction of financial investigations to counter money-laundering and the financing of terrorism. It has been established that cash is widespread in criminal money laundering schemes. In the context of a sufficiently large amount of cash in the economy, which is used on a scale taking into account the nature and specifics of their activities, identifying and combatting money-laundering of criminal proceeds using cash is a difficult task. Given the constant introduction of legislative restrictions and increased control of the financial system by public authorities, intruders are developing new or improving existing money laundering schemes, aiming to give illegal financial transactions the most legal appearance. At the same time, both at the level of public authorities and at the level of primary financial monitoring entities, new methods and approaches to identifying money laundering schemes are constantly being introduced and improved. The organization of financial investigations has become more important since the introduction of international FATF standards.

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The Conceptual Framework for the Formation of a Risk-Based System for Combating Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction

Cited by 3 publications

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Implementation of state financial monitoring based on risk-oriented indicators in the activities of financial institutions

Implementation of state financial monitoring based on risk-oriented indicators in the activities of financial institutions

Search for statistically approved criteria for identifying money laundering risk

Financial Monitoring of Payment Card Transactions

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