scholarly journals METHODICAL FUNDAMENTALS OF ANALYSIS OF FINANCIAL OPERATIONS OF ILLEGAL INCOME LAUNDERING

2021 ◽  
Vol 12 (2) ◽  
pp. 160-167
Author(s):  
Iryna Moіseіenko ◽  
◽  
Iryna Koziy ◽  
Keyword(s):  
Money Laundering ◽  
Financial Control ◽  
Structural Dynamic ◽  
Financial Reports ◽  
Financial Flows ◽  
Legal Norms ◽  
Financial Monitoring ◽  
High Level ◽  
Financial Transactions ◽  
Practical Recommendations

Due to the high level of corruption, insufficient financial control and monitoring of money laundering operations in Ukraine, the financial system has become a very attractive target for illegal financial activities and illegal financial flows. This determines the relevance of the research in the field of financial investigations, the peculiarities of their organization in the field of financial monitoring. The purpose of the study is to determine the theoretical and methodological foundations of financial investigations to develop practical recommendations for improving the organization of financial investigations of dubious financial transactions. Methods: A normative method of comparative, structural-dynamic analysis of financial transactions monitoring data is used in the study as the method of analysis of financial transactions of money laundering. Results: The indicators of SPFM reports on financial transactions for 2015-2019, a number of financial reports on the risks of money laundering, and data on financial transactions in terms of signs of financial monitoring for 2014-2018 were analyzed. Conclusions. The methodological recommendations concern the organization of financial investigations in accordance with the updated legal norms in the field of financial monitoring of dubious financial transactions. The choice of research methods, the use of practical material on the organization of financial investigations in the field of financial monitoring, recommendations for improving the methodological support of financial investigations are positive aspects of the research.

Classification of financial monitoring objects: criteria and indicators of suspicion

2021 ◽  
Author(s):  
Maria Perepelytsya
Keyword(s):  
Money Laundering ◽  
Legal Regulation ◽  
Economic Security ◽  
The State ◽  
Criteria And Indicators ◽  
Legal Norms ◽  
Financial Monitoring ◽  
Financial Transactions ◽  
Subjective Rights

Problem setting. The problem of legalization (laundering) of money and other property acquired by criminal means is of great importance for Ukraine, because the criminalization of the economy is the main threat to the economic security of the state. In order to successfully combat this negative phenomenon, it is necessary to constantly develop and improve the processes of identification and analysis of financial transactions that are the objects of financial monitoring. Detection of such transactions requires clear criteria and indicators that allow you to quickly and accurately identify among the range of financial transactions those related to money laundering. The list of criteria and indicators of suspicion of financial transactions is large and sometimes ambiguous in terms of its interpretation and application. This issues is important because it is about the scope of law, the subjective rights of participants in financial transactions, the ownership of such persons in their assets and the level of trust in entities that provide financial and other services. The purpose of the research is to study the legal norms in the field of establishment and classification of financial monitoring objects – types of financial transactions depending on the criteria and indicators developed by the subjects of state financial monitoring and supplemented by the subjects of primary financial monitoring. Analysis of resent researches and publications. The solution of problems of legal regulation of the national system of financial monitoring in Ukraine (procedures, methods, risks, criteria, indicators etc.) was devoted to the works of such scientists as A. P. Gavrilishyn, I. M. Patyuta, B. M. Surkalo, O. E. Kostyuchenko, K. A. Kryvulya, Zh. I. Dovgan, I. G. Biryukova, V. M. Berizko and others. However, the issue of classifying financial monitoring objects according to the criteria and indicators of suspicion is important and necessary, because it is on such indicators that all activities in the field of financial monitoring are based and the results of such activities depend on their establishment. Article’s main body. The list of criteria and indicators of suspicion of financial transactions and their classification as objects of financial monitoring is quite wide. Their classification according to the relevant criteria is necessary and enshrined in law, which is important to prevent their unrestricted spread. At the same time, the subjects of state financial monitoring at their own discretion, but taking into account the main requirements of the legislation in the field of financial monitoring, develop and establish the grounds for classifying a financial transaction as an object of financial monitoring. In turn, the subjects of primary financial monitoring at their own discretion, but taking into account the rules and subjects of state financial monitoring, supplement, expand and improve this list in order, on the one hand, to prevent the legalization (laundering) of proceeds from illegal by and their entry into the financial system of the state and, on the other hand, compliance with the subjective rights of customers – participants in financial transactions. Conclusions. The article examines the legal norms in the field of establishment and classification of financial monitoring objects – types of financial transactions depending on the criteria and indicators developed by the subjects of state financial monitoring and supplemented by the subjects of primary financial monitoring. It is concluded that the identification of transactions that are the objects of financial monitoring requires clear criteria and indicators that allow you to quickly and accurately identify among the range of financial transactions those related to money laundering. Risk criteria by type of client, by geographical basis, by type of service (product), by service supply channel (product) are considered. Differentiated indicators of suspicion of financial transactions into indicators related to the activities or behavior of the client, indicators related to the financial operations of the client and indicators for different types of products (services). It is emphasized that the problem of defining clear and standard types of criteria and indicators of financial transactions is important and relevant in the current relations in the field of financial monitoring between the state and the participants of the respective financial transactions.

scholarly journals Analysis of typologies of money laundering in fulfillment of export transactions

Upravlenie ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 72-79
Author(s):  
J. M. Beketnova
Keyword(s):  
Money Laundering ◽  
Systematic Approach ◽  
Practical Experience ◽  
State Control ◽  
Individual Subject ◽  
Current Trends ◽  
Heterogeneous Nature ◽  
Proceeds Of Crime ◽  
Financial Monitoring ◽  
High Level

Despite the high level of state control, the sphere of international trade is attractive to malefactors and can be used to with-draw dirty money abroad, or invest it in the legal economy under the guise of honestly earned income. To successfully solve the problem of laundering the proceeds of crime in the course of foreign economic transactions, a systematic approach and scientific understanding of the empirically obtained results are required. The purpose of the article is to study the current trends in the laundering of proceeds from crime in the conduct of foreign economic activity and methods of counteraction.The paper considers the application of typological analysis in economics and other sciences. The author considers and systematizes typologies of legalization of monetary funds by means of price manipulations – by indicating the underestimated or overstated customs value of goods in the accompanying documentation, as well as by performing pseudo-export operations. The study concludes that the money laundering schemes have typical features, and the typological analysis can increase the effectiveness of the efforts of state bodies in the fight against illegal operations. The article defines the specificity of the analysis of financial monitoring objects, which is due to the high latency of deviant subjects and their activities, the large volume and heterogeneous nature of the information requiring analysis and interpretation, high requirements for professional knowledge and practical experience of expert analysts, as well as significant time costs for the analysis of each individual subject.

scholarly journals INSTITUTIONS OF CIVIL SOCIETY AS SUBJECTS OF FIGHT AGAINST FINANCIAL CRIMES

2020 ◽  
pp. 109-117
Author(s):  
Oleksandra Vasylchyshyn ◽  
Olena Sydorovych
Keyword(s):  
Civil Society ◽  
Money Laundering ◽  
The State ◽  
Financial Crime ◽  
Resource Potential ◽  
Established Procedure ◽  
Financial Crimes ◽  
Financial Monitoring ◽  
Monitoring Service ◽  
Financial Transactions

The article considers the legislative rights of civil society institutions to interact with the state. The influence of financial crimes on the functioning and development of the state, as well as the possibility of the influence of civil society institutions on the detection and detection of financial crimes has been studied. The activity of the State Financial Monitoring Service on detection and processing of information of risky financial transactions and its cooperation with foreign divisions of financial investigations is described. The most popular countries in which there are entities with a suspicious reputation for financial transactions are identified. It is emphasized that the human and resource potential of civil society institutions will contribute to the detection of money laundering operations. It is also determined that the legalization of criminal proceeds is a financial crime that encroaches on the established procedure for conducting financial transactions, and hence on the interests of the state.

scholarly journals Financial monitoring of football sector: money laundering and countermeasures

2020 ◽  
pp. 160-164
Author(s):  
Ye. A. Sigayev ◽  
I. V. Selezneva ◽  
A. S. Duskaliyev
Keyword(s):  
Soviet Union ◽  
Money Laundering ◽  
International Organizations ◽  
Former Soviet Union ◽  
Shadow Economy ◽  
Economic Importance ◽  
The World ◽  
Financial Monitoring ◽  
Financial Transactions ◽  
Football Industry

The article is devoted to one of the poorly studied and at the same time relevant topics in the fight against the shadow economy - financial monitoring of the football sector. Criminal elements, mafia structures around the world are in constant search of new ways to legalize criminal proceeds. Sport is often is used by them to launder their “dirty” money. The last two to three decades have been associated with the enormous economic importance of sports. This is primarily about football. In general, it should be noted that money has begun to have a very serious impact on the world of sports. This influence of money on sports has, respectively, both positive and negative sides. The article examines certain problem areas that make the football sector vulnerable to money laundering. It is about corruption in football, the internal system of organization, financial transactions and football culture. Supranational and state structures develop and use complex measures to prevent “dirty” schemes in football. The article discusses vulnerabilities that need to be addressed to minimize the risks of money laundering in the football sector. For countries of the former Soviet Union, in particular Russia, Kazakhstan and other countries, football has always been and is a national sport. However, the football industry, as international experience shows, is also a field for laundering “dirty” money. Constant and painstaking work of financial monitoring bodies is needed to counteract the involvement of Kazakhstani sports in the process of money laundering. Also in this matter cooperation with specialized international organizations and other countries is of great importance.

Who are our owners? Exploring the ownership links of businesses to identify illicit financial flows

2021 ◽  
pp. 147737082098036
Author(s):  
Alberto Aziani ◽  
Joras Ferwerda ◽  
Michele Riccardi
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Economic Incentives ◽  
Tax Havens ◽  
Financial Flows ◽  
Holding Companies ◽  
Business Ownership ◽  
Cultural Proximity ◽  
Illicit Financial Flows ◽  
High Level

This article investigates the patterns of business ownership in Europe, using a unique dataset on the nationality of 28.7 million shareholders of companies registered in 41 European countries. By means of an exploratory multivariate analysis, it tests whether ownership links between different countries are driven exclusively by social and macroeconomic variables – such as trade or geographical or cultural proximity – or are also related to measures of financial secrecy, corruption and lack of compliance with anti-money laundering regulations. The results indicate that factors other than licit economic incentives explain the international ownership structure of European companies. European firms have an abnormal number (that is, above the predicted value) of owners from tax havens and countries with poor financial transparency, which may suggest the use of holding companies for money laundering and tax evasion and to conceal illicit financial flows. However, ceteris paribus, the number of owners is abnormal in countries where rule of law and the control of corruption are more effective, suggesting that a high level of corruption may be a cost in money laundering activities. The findings contribute to the current international debate on illicit financial flows – as framed by United Nations Sustainable Development Goal 16.4 – and can be used by public agencies and private actors to detect anomalies in business ownership and prevent potential financial crime schemes at corporate level.

TINJAUAN TENTANG KEWAJIBAN PELAPORAN TRANSAKSI KEUANGAN OLEH ADVOKAT DALAM KETENTUAN UNDANG-UNDANG NO. 18 TAHUN 2003 TENTANG ADVOKAT YANG TIDAK SEJALAN DENGAN PERATURAN PEMERINTAH NOMOR 43 TAHUN 2015 TENTANG PIHAK PELAPOR DALAM PEMBERANTASAN DAN PENCEGAHAN TINDAK PIDANA PENCUCIAN UANG

2019 ◽  
Vol 2 (2) ◽  
pp. 1290
Author(s):  
Narada Lukman ◽  
Tatang Ruchimat
Keyword(s):  
Money Laundering ◽  
Government Regulation ◽  
Legal Services ◽  
Legal Norms ◽  
Report Data ◽  
Hans Kelsen ◽  
Basic Norm ◽  
The Republic ◽  
The Right ◽  
Financial Transactions

The legal norms of any country are always multi-layered, where the norms below apply, are based on and come from higher norms, higher norms apply, are based and are sourced from even higher norms, up to a norm the highest is called the Basic Norm. Since the birth Republic of Indonesia with proclamation independence, as well as the adoption from the 1945 Constitution as the constitution the Indonesian State, the proof legal norm system the Republic of Indonesia, If we compare it with the theory of the level of legal norms (Stufen Theory) from Hans Kelsen and the theory of the level of legal norms, that Article 3 letter a of Government Regulation No. 43 of 2015 adheres to the Advocate Law No. 18 of 2003. Article 3 letter a Government Regulation reads "Advocates are required to report financial transactions to prevent money laundering, Advocates must report data or where the money they receive from their clients is" to ask the client about it does not feel it appropriate, because it is a secret from his client, in accordance with what is written in Article 19 which reads "Advocates have the right and obligation to keep everything confidential from their clients, including protection of files and documents against confiscation and protection against wiretapping", and Article 21 which reads "Advocates are entitled to an Honorarium for legal services that have been provided by their clients, based on the agreement of both parties".

Peculiarities of countering legalization of criminal income with the help of virtual assets: legislative regulation and practical implementation

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mykhailo Dumchikov ◽  
Oleg Reznik ◽  
Olha Bondarenko
Keyword(s):  
Money Laundering ◽  
Financial Control ◽  
Practical Implementation ◽  
Digital Goods ◽  
Content Type ◽  
Scientific Methods ◽  
Virtual Property ◽  
Legislative Regulation ◽  
General Scientific ◽  
Financial Monitoring

Purpose The purpose of this paper is to define and characterize peculiarities of countering the legalization of criminal income with the help of virtual assets. Design/methodology/approach The analysis of the legislative delineation and the realities of the practical implementation of the features of combating the legalization of criminal proceeds with the help of virtual assets in Ukraine was carried out with the help of general scientific methods of cognition. The systematic method helped identify the main ways to legalize criminal proceeds with the help of virtual assets. Using legal techniques, proposals will be formulated to amend draft legislation on legislative regulation of the concept of “virtual assets”. The generalization method was used to develop ways to combat the legalization of criminal proceeds with the help of virtual assets. The method of legal forecasting was used to substantiate the proposed areas of combating money laundering with the help of virtual assets. The method of extrapolation will be used to determine the possibility of implementing foreign experience in domestic practice to combat money laundering with the help of virtual assets. Findings One of the relatively new and increasingly popular ways of money laundering is to commit this act with the help of virtual assets. Methods of money laundering through virtual assets include services for the conversion of virtual assets, P2P exchange, gambling sites, virtual asset mixers and the use of fictitious internet sites selling digital goods. The difficulty of counteracting the legalization of criminal proceeds with the help of virtual assets is primarily due to the lack of legislative regulation of the concept of “virtual assets” in Ukraine. Yes, the draft law is currently being finalized. Besides, even the current edition is not evaluated by the authors as perfect. After all, the issue of the content of the concept of “virtual assets” and its relationship with virtual securities, cryptocurrency and virtual property remains unresolved. Originality/value One of the relatively new and increasingly popular ways of money laundering is to commit this act with the help of virtual assets. Methods of money laundering through virtual assets include services for the conversion of virtual assets, P2P exchange, gambling sites, virtual asset mixers and the use of fictitious internet sites selling digital goods. It is essential to intensify financial monitoring by financial control bodies over the activities of conversion service centers. Moreover, given the transnational nature of legalizing criminal proceeds, especially those committed through virtual assets, international cooperation in combating this crime is vital. The authors have proposed specific measures to ensure that a coherent consolidation of efforts can be built.

scholarly journals Evolution or regress of the size and scope of global phenomenon of money laundering

2020 ◽  
Vol 14 (1) ◽  
pp. 963-974
Author(s):  
Akad Al-Kasawnih
Keyword(s):  
Money Laundering ◽  
Deviant Behavior ◽  
Decision Makers ◽  
Financial Assets ◽  
Tax Havens ◽  
Financial Flows ◽  
Market Participants ◽  
The Subject ◽  
Economic Philosophy ◽  
Financial Transactions

AbstractThe challenges facing an international economy in which the importance of the tertiary and quaternary sectors greatly increases, sometimes to the detriment of the primary and secondary ones, in which the financial flows far outstrip the real economic ones and in which the picture of the market participants is changed radically, they are increasingly numerous, more complex and require another type of mechanism to meet them. An almost organic companion of the processes of liberalization of the cross-border economic and financial flows and of the deregulation required by the alignment with the dominant economic philosophy, the non-functionalist one, has been the phenomenon of proliferation of tax havens towards which more and more financial assets flows for decades. These developments are concomitant with the deepening of income inequalities, between states but also within them, with the amplification of the acute lack of resources which can deal with some of the effects of worrying climate developments, with the placing of analysts in the academic environment but also of the political decision makers. of the subject entitled “just transition”. The amplification of the financial transactions carried out through these areas of derogatory taxation, has led to the accumulation of great dissatisfaction among several segments of the company that demand the reform of the economic governance mechanisms so that one can hope to correct the blatant malfunctions and to bring to light and bring to light under the control of civil society of societal deviant behavior from public morality and economic rationality. As a result of scandals of great media relevance, there has been an increasing tendency in international society to take measures, both nationally and internationally, which will help reduce the money-laundering phenomenon. The author intends to analyze the effectiveness with which a series has been implemented and regulations meant to place under a stricter control the evolution of the money laundering phenomenon. The emphasis is on the particularities of money laundering through the Internet and Electronic Commerce because using such a mechanism through the use of electronic financial transfer, the huge growth in the size and speed of financial flows can reduce the chances of detecting the movement of illegal funds.

scholarly journals Features of the Newest Methods of Money Laundering Using Financial Institutions

2021 ◽  
Vol 3 (518) ◽  
pp. 132-140
Author(s):  
V. V. Rysin ◽  
◽  
A. R. Karpets ◽  
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Public Awareness ◽  
Legal Aspects ◽  
The State ◽  
Online Gambling ◽  
Financial Infrastructure ◽  
Financing Of Terrorism ◽  
Financial Monitoring ◽  
High Level

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.

scholarly journals How important is the lesson of the correlation between advancing the globalization process and intensifying the money laundering phenomenon?

2019 ◽  
Vol 13 (1) ◽  
pp. 1267-1276
Author(s):  
Akad AL-Kasawnih
Keyword(s):  
Money Laundering ◽  
Negative Impact ◽  
Pearson Correlation ◽  
Economic Globalization ◽  
Financial Flows ◽  
Hidden Economy ◽  
Negative Effect ◽  
Independent Variable ◽  
Numerical Indicator ◽  
Financial Transactions

Abstract It is true that advancing the globalization process generates a numerous negative externality. Such a negative effect is the proliferation of financial transactions carried out at or even beyond the limits of legality and fairness. The author of this study assumes that “the greater the cross-border financial flows, the greater the money-laundering operations and negative impact on the behavior of the economic actors”. The truism related to this correlation must be deeply understood and the lessons to be delivered must be learned in time. Hidden economy is perceived as all incomes generated in legitimate way but not disclosed to tax administrations, as well as activities such as drug trafficking, gambling, smuggling and others. What distinguishes our study is Quantitative and analytical analysis and to draw conclusions based on those results, through the adoption of a digital index on economic globalization, and the adoption of another numerical indicator of money laundering with its components and weights as well. Additionally, a statistical analysis of the relationship between economic globalization and money laundering will be based on “Pearson correlation coefficient” as we are going to adopt one variable (Economic Globalization) as an independent variable and other variable (Money Laundering) as a dependent variable. The KOF index of globalization will be adopted here, and the selected countries as a study samples will be given a ranking from 1 to 15 according to their degree of economic globalization. Results of my research shows that a negative weak relationship correlation between the degree of the economic globalization of the state and the phenomenon of money laundering which is represented by the size of the hidden economy, which means that the increase of the value for the independent variable (economic globalization) leads to the decline of the value for the dependent variable (money laundering).

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