The Mechanism for Recording and Analyzing Information about the Risks Contained in the Reports of Suspicious Transactions: Foreign Experience

2021 ◽  
Vol 18 (1) ◽  
pp. 32-39
Author(s):  
V. V. Sergunina
Keyword(s):  
Money Laundering ◽  
System Analysis ◽  
Management Strategies ◽  
Foreign Experience ◽  
Suspicious Transaction ◽  
Risk Management Strategies ◽  
Financing Of Terrorism ◽  
Analysis System ◽  
Financial Monitoring ◽  
Monitoring Service

The article considers the foreign experience of functioning and application of the mechanism for accounting and analysis of information about risks contained in reports on suspicious transactions for the purpose of its further application in Russian conditions. The relevance is due to the need to improve the system for recording and analyzing information about risks contained in reports on suspicious transactions transmitted to in Rosfinmonitoring. Due to the involvement of noncredit nonfinancial organizations in the process of countering the proceeds of crime, the financing of ter- rorism and the financing of the proliferation of weapons of mass destruction, the number of incoming reports to the Federal financial monitoring service is only increasing. All messages received are evaluated to determine whether they are suspicious or not. However, as the number of messages increases, the existing mechanism becomes less effective, and it needs to be updated and refined.The analysis of foreign experience was carried out on the basis of methods of theoretical and practical analysis, system analysis, comparison and classification methods. The methodology combines a review of the literature, analysis of research results of scientific specialists to comprehensively cover the goal.The study revealed that the analysis of suspicious transaction reports is used to assess the application of the Anti-Money Laundering/Combating the Financing of Terrorism regime, the level of risk awareness and compliance with risk management strategies. Under Anti-Money Laundering / Combating the Financing of Terrorism, it is useful to consider best practices to develop a mechanism for recording and analyzing risk information contained in suspicious transaction reports submitted to the Federal financial monitoring service.

Suspicious transaction reporting: an Indian experience

2015 ◽  
Vol 18 (1) ◽  
pp. 2-16 ◽  
Author(s):  
B. Viritha ◽  
V. Mariappan ◽  
Irfan Ul Haq
Keyword(s):  
Money Laundering ◽  
Reporting System ◽  
Task Force ◽  
Annual Reports ◽  
Content Type ◽  
Suspicious Transaction ◽  
Financing Of Terrorism ◽  
Secondary Information ◽  
Financial Intelligence ◽  
The Impact

Purpose – The purpose of this paper is to assess the effectiveness of anti-money laundering (AML) reporting system in India in terms of Suspicious Transaction Reports (STRs) and its impact on countering money laundering through the conviction and confiscation. The main emphasis of financial action task force (FATF) guidelines on AML and countering of financing of terrorism (CFT) is the obligation of financial institutions and designated non-financial businesses and professions to instantaneously report the suspicious transactions to Financial Intelligence Unit (FIU), an agency with a mandate to deal with AML. Design/methodology/approach – It is a descriptive study to explore the outcome of the AML process. The study has used the secondary information published in the annual reports of FIU-India and FATF. The study period is 2006-2007 to 2011-2012. Findings – Though there is a significant increase in the STRs filed, the impact of AML is not realized in terms of neither AML-related convictions nor confiscations, since the enactment of the Prevention of Money Laundering Act (PMLA). However, the AML/CFT regime in India has just started earnestly, and it still has to go a long way before stabilizing and achieve tangible results. Research limitations/implications – In the Indian context, only few of the effectiveness indicators of the FATF methodology 2013 could be selected due to the limited availability of data, as much of the information maintained by various stakeholders, including reporting entities, FIU-India and other investigative and enforcement agencies, is kept confidential. Thus, it is difficult to establish the effectiveness of enforcement function of AML. Evaluation of effectiveness of AML is judged on the basis of convictions and confiscations. Originality/value – There is a dearth of studies assessing the reporting system under PMLA and thus this paper attempts to throw some insights on the outcome of AML chain, especially the impact of reporting suspicious transactions.

scholarly journals DEVELOPMENT OF UNIFIED PROCEDURES FOR FINANCIAL INSTITUTIONS IN ORDER TO PREVENT MONEY LAUNDERING AND TERRORISM FINANCING

2019 ◽  
Vol 2 (87) ◽  
pp. 141
Author(s):  
Suzanna Kalinina
Keyword(s):  
Risk Management ◽  
Public Relations ◽  
Money Laundering ◽  
Financial Institutions ◽  
Financial Institution ◽  
Legal Regulation ◽  
Graphical Analysis ◽  
Terrorism Financing ◽  
Financing Of Terrorism ◽  
Financial Monitoring

The relevance of the topic is confirmed by the changes taking place in the financial monitoring system: the expansion of the financial monitoring range of procedures complication´s supervisory bodies aimed at countering money laundering and financing of terrorism, the creation of specialized international and European requirements, which causes changes in the legal regulation of public relations in this area, both at the level of the Estonian Republic, and at international level. Taking into account these changes, financial institutions are a subject to significant legal risks. The purpose of this topic is to improve the financial institution risk management system, in the field of anti-money laundering and countering financing of terrorism. The theoretical and methodological basis of the study are the provisions and conclusions regarding anti-money laundering and countering financing of terrorism risk management issues contained in the research works of different Estonian and Russian authors; as well as the author analysed anti money laundering and counter terrorism financing legal acts and revealed the main recommendations to financial institutions for preventing money laundering and terrorism financing.  The author analyses reasons, which affect licenses withdrawal due to breach of money laundering. The nature of the tasks and the system approach to their solution determined the use of the following research methods in the research: analysis and synthesis, grouping and classification, scientific generalization, expert assessments and graphical analysis.

scholarly journals The Methodological Instrumentarium for Assessing Compliance Risks of Financial Monitoring of Banks

2020 ◽  
Vol 11 (514) ◽  
pp. 296-309
Author(s):  
I. M. Chmutova ◽  
◽  
O. S. Bezrodna ◽  
D. I. Nechyporenko ◽  
◽  
...  
Keyword(s):  
Control Systems ◽  
Money Laundering ◽  
Implementation Process ◽  
Risk Level ◽  
Characteristics Method ◽  
Analytical Research ◽  
Business Functions ◽  
Financing Of Terrorism ◽  
Integral Assessment ◽  
Financial Monitoring

The article examines the essence and directions of identification of compliance risks of banks. The criteria for assessing compliance risks of financial monitoring of banks are purported to be: the level of development of the compliance system; experience in applying influence measures to banks by the NBU for violation of the requirements of legislation in the field of prevention and counteraction to money laundering and financing of terrorism (in the form of written warnings and fines); operational risk level and staff turnover. The defined directions of assessment include result factors (taking into account cases of risk materialization) and the factors that make the compliance function implementation process uncertain. The sequence and methodological instrumentarium for assessing compliance risks of financial monitoring of banks are presented, which provides for: formation of a database for analytical research by means of digitization of data (using coefficient approach and binary characteristics method); consolidation of the results of computation of indicators for the integral assessment of the researched phenomenon (by building up a composite indicator by means of the weighted amounts method). Based on information on the activities of individual banks, which during 2014-2020 belonged to the category of systemically important, practical approbation of the developed methodological instrumentarium was carried out. Recommendations on minimization of compliance risks of banks in the field of financial monitoring are formed, including: improvement of intrabank control systems; ensuring uninterrupted work and thorough training of staff; introduction of operational algorithms of actions to identify the reasons for their involvement in the processes of money laundering; using a risk-oriented approach to test business functions; introduction of effective monitoring systems and expansion of the list of compliance risk management instruments.

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 The Eurasian Group on Combating Money Laundering and Financing of Terrorism as a Component of International Anti-Money Laundering System

2018 ◽  
Vol 3 (2) ◽  
pp. 485
Author(s):  
Yurieva A.
Keyword(s):  
Money Laundering ◽  
Technical Assistance ◽  
International Training ◽  
History Of ◽  
Financing Of Terrorism ◽  
Financial Monitoring ◽  
And Training ◽  
Structure And Functions

This article is about the Eurasian Group on Combating Money Laundering and financing of terrorism. The history of group is studied, as well as its structure and functions. The examples of the results of group’s activities are presented, the conclusion is made about its role in the region and the role of Russia in group’s development. Keywords: Combating Money Laundering and financing of terrorism, FATF, FATF-style regional body, The Eurasian Group on Combating Money Laundering and financing of terrorism, Technical assistance and training, The International training and methodology center for financial monitoring

scholarly journals FATF Guidance on Effective Oversight in the AML/CFT System

2018 ◽  
Vol 3 (2) ◽  
pp. 190 ◽  
Author(s):  
Andronov M.Y. ◽  
Leonov P.Y.
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Limited Resources ◽  
Financial Action Task Force ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
The One ◽  
Financial Monitoring ◽  
Fourth Round ◽  
Oriented Approach

Fourth round of mutual evaluations of the FATF (financial action task force on money laundering, the Financial Action Task Force on Money Laundering, FATF) was held already in 38 countries around the world. In 2018 Russia will be cheсked.One of the elements of anti-money laundering system is the oversight activities. FATF gives guidance on its effective building. It should be provided with the risk-oriented approach. On the one hand, in order to apply its limited resources to the most dangerous areas. On the other hand, does not interfere the development of legal entrepreneurs with redundant oversight actions.The purpose of this article is to attract attention of specialists for financial monitoring to Guide FATF on the application of risk-oriented approach to oversight for AML/CFT purposes. Keywords: Legalization, countering the financing of terrorism, supervision in the sphere of AML, risk-oriented approach

Features of the Organization of Internal Control in Order to Counter the Legalization of Criminal Proceeds in Leasing Companies

2019 ◽  
Vol 8 (3) ◽  
pp. 67-74
Author(s):  
Елена Карпова ◽  
Elena Karpova
Keyword(s):  
Money Laundering ◽  
Russian Federation ◽  
Internal Control ◽  
Moderate Level ◽  
Control Rules ◽  
Terrorism Financing ◽  
The Subject ◽  
The Russian Federation ◽  
Financial Monitoring ◽  
Monitoring Service

The article describes the features of the functioning of leasing companies as subjects of primary financial monitoring, which necessitates their registration in the Federal Financial Monitoring Service of the Russian Federation (Rosfinmonitoring). The subject of the research is the compliance of leasing companies with the requirements of the Russian legislation aimed at countering the legalization of illicit gains (money laundering) and terrorism financing (AML / CFT) in terms of organizing and effectively implementing internal control for AML / CFT purposes. An analysis of the interaction between employees responsible for compliance with and implementation of internal control rules has been carried out. The study showed that leasing companies are characterized by a moderate level of risk of involvement in the process of laundering criminal proceeds.

scholarly journals MONITORING SISTEM BERBASIS WEB KEAMANAN TRANSAKSI PENGIRIMAN UANG PADA PENYELENGGARA TRANSFER DANA DENGAN MENGGUNAKAN PERATURAN BANK INDONESIA ANTI PENCUCIAN UANG & PENCEGAHAN PENDANAAN TERORISME

Petir ◽  
2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Rahmat Rian Hidayat ◽  
Dwiki Jatikusumo
Keyword(s):  
Money Laundering ◽  
Foreign Currency ◽  
Service Providers ◽  
Weapons Of Mass Destruction ◽  
Mass Destruction ◽  
Currency Exchange ◽  
System Service ◽  
Suspicious Transaction ◽  
Analysis Center ◽  
Financing Of Terrorism

PT BETANET as Non-Bank Fund Transfer Provider has an obligation to comply the provisions of 19/10 / PBI / 2017 concerning about  Anti-Money Laundering and Combating the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction. (AML/CFTWMD) for Non-Bank Payment System Service Providers and Non-Bank Foreign Currency Exchange Business Operators. Having Remittance partners abroad and Domestic transactions with an average of 50 thousand transactions per month, BETANET must have a special AML & CFT unit to ensure that fund transfer activities are complies with the PBI about AML & CFT. The duties of the AML & CFT Unit are routinely ensure that funds transfer transactions which are deemed suspicious or not. The parameter of suspicious transaction has been set out in the policy. However, the current conditions of BETANET, it does not have a monitoring system which is integrated with the Host Remittance System. It means that the AML & CFT activities are still carried out manually every day, so that it will create several risks such as Operational risk, Reputation risk, Legal risk. Judging from these conditions and problems, this study will propose to build a security system for web-based fund transfer transactions. Based on the results of system monitoring, there is no need to do manual checking for suspicious transactions. The AML & CFT Officer will get an Alert or Notification to the Email automatically every day. So they can run the next process such as Enhanced Due Diligenced (EDD) to partners if any suspicious transaction found. It helps Financial Transaction Reporting and Analysis Center (FTRAC) for transactions of Suspected Terrorist Lists and Terrorist Organizations (STLTO), as well as the List of Anti-Money Laundering and Combating the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction. (AML/CFTWMD)

scholarly journals Improvement of regulatory and legal support of financial monitoring in Ukraine

2021 ◽  
Vol 2021 (7) ◽  
pp. 108-126
Author(s):  
Olga KUZMINSKA ◽  
◽  
Оlena ABESINOVA ◽  
Keyword(s):  
Money Laundering ◽  
National Economy ◽  
Task Force ◽  
Economic Security ◽  
Weapons Of Mass Destruction ◽  
Mass Destruction ◽  
Other Information ◽  
Information Law ◽  
Financing Of Terrorism ◽  
Financial Monitoring

In the publication according to the results of the analysis of the main international and national regulations of financial monitoring on the basis of the historical approach the directions of improvement of normative – legal maintenance in the field of prevention and counteraction to legalization of illegal incomes in Ukraine are outlined. The peculiarities of the main historical stages of the formation of the financial intelligence unit in Ukraine – the national center for analysis of information on suspicious transactions and other information on money laundering, terrorist financing, and financing the proliferation of weapons of mass destruction are discloses. The issues of implementation of the provisions of international normative acts regulating the sphere of counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction at the international level are highlighted, in particular, the standards developed by the Financial Action Task Force on Money Laundering (FATF) and the Directives of the European Parliament and the Council of the EU, United Nations documents, international conventions ratified by Ukraine. Considerable attention is paid to the need for further harmonization of national and international legislation in the field of financial monitoring. It is proposed to take into account the conceptual principles of behavioral economics when improving the regulatory and legal support of financial monitoring (bylaws), in particular regarding the application of risk-oriented approach when analyzing and identifying suspicious financial transactions and identifying the ultimate beneficial owner of the client. The necessity of scientific research in the researched field in the traditional professional directions: “Money, finance and credit” and “Administrative law and process; finance law; information law”, and in related scientific specialties: “Economics and management of the national economy” (in the field of “Economic security of the national economy”), and “Accounting, analysis and audit (by type of economic activity)” (in the areas of “Organization of auditing: the specifics of formation and the functioning of audit services”, and “Accounting and analytical operations, their standardization and unification”) is substantiated.

scholarly journals THE ROLE AND IMPORTANCE OF A COMPLIANCE OFFICER IN THE ACTIVITIES OF A FINANCIAL INSTITUTION IN ORDER TO PREVENT THE LEGALIZATION (LAUNDERING) OF CRIMINALLY ACQUIRED FUNDS AND THE FINANCING OF TERRORISM

2021 ◽  
Vol 1 (91) ◽  
pp. 16-22
Author(s):  
Suzanna Kalinina
Keyword(s):  
Risk Factors ◽  
Monitoring System ◽  
Money Laundering ◽  
Financial Institutions ◽  
Financial Institution ◽  
Terrorism Financing ◽  
Risks Factors ◽  
Financing Of Terrorism ◽  
Financial Monitoring ◽  
Compliance Officer

The relevance of the topic is confirmed by the changes taking place in the financial monitoring system: the complication of procedures aimed at countering money laundering and financing of terrorism, the creation of specialized international and European requirements and the changes of requirements for compliance specialists. Financial institutions more often face the incompetence the incompetence of these employees and their negligence. The author analysed anti money laundering and counter financing of terrorism legal acts, as well as revealed the main recommendations to financial institutions for preventing money laundering and terrorism financing. Based on scientific research, the main risk factors for using financial institutions for money laundering were identified. Based on these risks factors, the author identified the role and importance of a compliance officer in order to prevent the legalization (laundering) of criminally acquired funds and the financing of terrorism.

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