scholarly journals Legal regulation of cryptocurrency in Ukraine

2021 ◽  
pp. 26-29
Author(s):  
Nataliia TURCHYN ◽  
Artem TURCHYN
Keyword(s):  
Legal Regulation ◽  
Business Environment ◽  
Weapons Of Mass Destruction ◽  
Electronic Money ◽  
Investment Tool ◽  
Financing Of Terrorism ◽  
Definition Of ◽  
Financial Monitoring ◽  
Financial Transactions ◽  
High Degree

Introduction. Cryptocurrency is a relatively new financial market instrument, but due to a lack of the fundamental principles of the legal regulation and legal regulation of market of cryptocurrency, individuals and legal entities, who have at their disposal the virtual assets are effectively deprived of an effective way to protect their ownership of such assets. The following key features of cryptocurrency are outlined: lack of control and restrictions on financial transactions, anonymity, the possibility of using it as an investment tool, the speed of transactions, a high degree of security. The purpose of the paper is explores the question of definition of legal essence, the maintenance of cryptocurrency is investigated. Results. Nature and legal uncertainty does not allow it to be identified with any of the related concepts (money, securities, currency value, means of payment, currency, money surrogate, etc.). That is, cryptocurrencies are currently in Ukraine outside the scope of legal regulation. The analysis of definition of a concept of cryptocurrency in the draft law on circulation of cryptocurrencies in Ukraine is carried out; prospects for the legislative implementation of cryptocurrency in Ukraine, in addition, the author draws attention to the novelties of the legislation on financial monitoring, namely certain provisions of the Law of Ukraine “On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Weapons of Mass Destruction Proliferation”. Conclusion. The analysis of the characteristics of cryptocurrency leads to a conclusion that the cryptocurrency can be understood as electronic money. The paper presents a vision of further trends in the use of cryptocurrency in everyday life and business environment, opens up an opportunity for further research in the field of the cryptocurrency market, further development of Ukraine and integration to the world financial system.

scholarly journals Problematic aspects of financial monitoring by specially designated subjects

2021 ◽  
pp. 9-12
Author(s):  
Serhii IVANYTSKYI
Keyword(s):  
Legal Regulation ◽  
Theoretical Research ◽  
Weapons Of Mass Destruction ◽  
Legal Person ◽  
Practical Implementation ◽  
Mass Destruction ◽  
Or Management ◽  
The Law ◽  
Financing Of Terrorism ◽  
Financial Monitoring

Introduction. The paper stated that in the new Law of Ukraine “On preventing and countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction”, the domestic legislator used a number of general formulations with a broad and vague content, which may complicate its practical implementation and necessitates the theoretical research of these issues within the framework of this paper. The purpose of the paper is to analyze the state of legal regulation of the implementation by certain specially defined subjects of primary financial monitoring of obligations to prevent and counteract the legalization (laundering) of proceeds from crime, the financing of terrorism and the proliferation of weapons of mass destruction, as well as to formulate recommendations for making appropriate changes to the legislation. Results. In paragraph 1 of part 1 of art. 10 of the Law of Ukraine “On preventing and countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” does not disclose the content of the terminology turnover “creation, operation or management of legal persons”. Conclusion. In order to clarify the terminology in paragraph 1 of part 1 of article 10 of the Law of Ukraine “On preventing and countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction”, it is advisable to amend it by adding after the words “other similar legal entities” the words “including, performing the functions of a director or secretary of a legal person, its trustee/owner/manager, nominee shareholder/owner/holder”.

scholarly journals Features of legal regulation of the implementation of primary financial monitoring by attorney offices and attorney associations

2021 ◽  
pp. 104-110
Author(s):  
Igor Tovkun ◽  
Viktoriya Slivnaya
Keyword(s):  
Large Scale ◽  
Legal Regulation ◽  
Weapons Of Mass Destruction ◽  
Main Body ◽  
Mass Destruction ◽  
Basic Law ◽  
The Law ◽  
Financing Of Terrorism ◽  
Broad Interpretation ◽  
Financial Monitoring

Problem setting. According to the current Law of Ukraine «On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction», attorney offices and attorney associations are also included in the system of primary financial monitoring entities. However, with the entry into force on April 28, 2020, the updated version of the Law changed the procedure and conditions for financial monitoring, assigning a broader list of responsibilities, a number of grounds for prosecution for violating the Law, increased threshold transactions and more. The analysis of such innovations raised the question of the legal certainty and indisputability of some of these provisions. Therefore, the relevance of this work is to determine how successful the provisions of the new version of this Law have been in practice and how they have affected the implementation of primary financial monitoring by attorney offices and attorney associations over the past year. Target research. The purpose of the work is to analyze the provisions of the current Law, which have become novelties in the process of financial monitoring by attorney offices and attorney associations, to identify their problems that arise in practice and arise due to legislative inaccuracies or gaps, and to suggest solutions. Analysis of recent research and publication. The issue of changes for attorney offices and attorney associations as subjects of primary financial monitoring has become an active focus of many lawyers. Examples of authors who pay attention to this problem are Bilousov A.I., Panchyshyn A.D., Andrusyak V.V., Gaivoronskaya V.V., Pavlunenko K.L., Nechiporuk S.I., Onishchenko V.S., Bets N.P., Drozdov O.O., Drozdova O.G. and other. Article’s main body. One of the primary responsibilities of primary financial monitoring entities is to register. The Law does not contain more specific provisions on the terms of such duty and other conditions of registration. This issue was partially resolved by the adoption of the Resolution «Some issues of the organization of financial monitoring» of September 9, 2020. However, since it came into force only on January 1, 2021, the question arises as to the registration of those lawyers whose relations with clients were subject to financial monitoring and arose from the entry into force of the Basic Law. In addition, the question arose as to whether those attorney offices and attorney associations whose activities were aimed exclusively at providing protection, representing clients or advising them were obliged to register with a specially authorized body. After all, among the actions that the law allows not to perform in the case of providing such services, there is no exemption from the obligation to register. A topical issue for advocacy during the initial financial monitoring of their clients is the preservation of legal secrecy in this process. Lawyers see some uncertainty in national law in the possibility of a broad interpretation of the concept of «advising on the protection and representation of the client», as this is the basis that frees attorney offices and attorney associations from the obligations of primary financial monitoring of their clients. A similar generality is characteristic of the definition of «suspicion» in the Law, the existence of which the subjects of primary financial monitoring are obliged to report. As a result, attorney offices and attorney associations are effectively responsible for gathering information against their clients on a large scale. Conclusions and prospect of development. Adoption in 2019 of a new version of the Law «On Prevention and Counteraction to Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction» was aimed at a correct and useful goal. However, the legislator did not take into account all the issues that may arise in practice in the process of carrying out such activities. Some norms of the updated legislation also turned out to be imperfect. Based on this, it is necessary to define at the regulatory level all the requirements for registration of special financial monitoring entities by a special authorized body, to establish clearer rules for notification of suspicion by attorney offices and attorney associations and conditions for exemption from this obligation.

scholarly journals Organization and Methodological Support of Financial Monitoring in an Auditing Firm: New Requirements

2020 ◽  
pp. 55-69
Author(s):  
О. LUBENCHENKO
Keyword(s):  
Asset Management ◽  
Weapons Of Mass Destruction ◽  
Regulatory Requirements ◽  
Corporate Rights ◽  
Previous Edition ◽  
Regulatory Bodies ◽  
The Law ◽  
Financing Of Terrorism ◽  
Financial Monitoring ◽  
Responsible Person

The requirements to implementation of financial monitoring by auditing entities, as specified by the Law of Ukraine “On prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction” from 06.12.2019 No 361-ІХ, enforced on 28.04.2020, are analyzed. The existence of unclear interpretations of some notions in the this Law of Ukraine or heavy financial sanctions that may be imposed on auditing entities call for elaboration and introduction of internal firm documents concerned with financial monitoring. While in the previous edition of the above Law of Ukraine the features of financial monitoring organization were specified for auditing entities in case of rendering certain categories of services to a client (realty transactions; asset management; raising funds to establish legal entities, support to their operation and management, buying and selling of corporate rights), they are not found in the updated edition of this Law of Ukraine. Therefore, auditing entities need to rely upon general norms of the Law of Ukraine in organizing financial monitoring. A series of administrative documents were elaborated for this purpose: the order on assignment of a person responsible for carrying out financial monitoring; the conclusion of business character test for the candidate on the position of the responsible person, the Rules for financial monitoring of an auditing entity, and the monthly fact sheet of the responsible person about the results of carried out measures on financial monitoring.    The developed Rules of financial monitoring cover all the regulatory requirements for the implementation of financial monitoring, with the possibility of making change in case of need. The Rules must be informed to the staff of an auditing entity, engaged in rendering auditing and non-auditing services, through the involvement in internal training on financial monitoring issues. Apart from the Rules, it is proposed to supplement the working documents supporting the financial monitoring procedures by the following sections: (i) “Documentary support to financial monitoring of auditing entities”; (ii) “Personnel and personnel training on financial monitoring issues”; (iii) “Documentary support to interactions with the State Service of Financial Monitoring of Ukraine, ministries and administrative departments”, which are supposed to help auditing entities to fully observe the regulatory requirements and avoid heavy financial sanctions on the part of controlling and regulatory bodies.  

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.

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 FATF requirements on regulation of cryptocurrencies: problems of implementation into national legislation

2020 ◽  
pp. 1-19
Author(s):  
Veronika Andreevna Kinsburskaya
Keyword(s):  
Service Providers ◽  
Task Force ◽  
Legal Regulation ◽  
International Standards ◽  
Financial Assets ◽  
Federal Law ◽  
National Legislation ◽  
Explanatory Note ◽  
Financing Of Terrorism ◽  
Financial Monitoring

The object of this research is the international standards AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) for the sphere of virtual assets (cryptocurrencies) developed by FATF (Financial Action Task Force), and possibilities of their effective implementation into the national legislation. The author examines new revision of the Recommendation 15 and Glossary (of October 2018), explanatory note to new revision of the Recommendation 15, and implementation guidance of the risk-oriented approach towards virtual assets and service providers in the sphere of virtual assets (of June 2019); considers provisions of the Federal Law of July 31, 2020 No.259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts of the Russian Federation” becoming effective in January 2021. Based on the analysis of most recent international and Russian acts on the questions of legal regulation of cryptocurrencies turnover, the need is underlined for introducing amendments to the Russian legislation with regards to exercising financial monitoring of transactions with cryptocurrencies in Russia. The author indicates certain fundamental aspects related to collection and validation of personally identifying information on the holders of cryptocurrency and tracing of their transactions.

World Monetary System Transformation: the Future for Crypto Currency?

2018 ◽  
Vol 2018 (2) ◽  
pp. 75-93 ◽  
Author(s):  
Natalia Shchegoleva ◽  
Olga Terenteva
Keyword(s):  
Financial Services ◽  
Third Party ◽  
System Transformation ◽  
Federal Law ◽  
Electronic Money ◽  
Monetary System ◽  
Blockchain Technology ◽  
Rapid Spread ◽  
Definition Of ◽  
High Degree

Rapid spread of cryptocurrencies and the underlying technologies (blockchain) can transform the global financial system, as cryptocurrency has the potential to become a universal global currency. The article makes the conclusion concerning the timeliness and importance of cryptocurrency legitimization in Russia, which alongside the identified shortcomings contains significant competitive preferences for the banking industry, financial services market as well as for the state, drawing on quality blockchain technology mastering. The paper recommends to clarify the definition of electronic money in the Federal law «On National Payment System» under which a transaction with the cryptocurrency eliminates a third party intermediation. According to the authors, the spread of cryptocurrencies and the use of the blockchain technology will with a high degree of probability result in the transformation of the world monetary system due to the development of cryptoeconomy.

scholarly journals The Influence of the Features of Legal Families on the Properties of the Corporate Regulatory System

2021 ◽  
Vol 1 ◽  
pp. 3-7
Author(s):  
G. V. Druzhinin ◽  
Keyword(s):  
Social Relations ◽  
Regulatory System ◽  
Legal Regulation ◽  
Social Regulation ◽  
Anglo Saxon ◽  
Leading Role ◽  
Definition Of ◽  
Corporate Social ◽  
High Degree ◽  
Peremptory Norms

The paper investigates the issue of the peculiarities of the corporate regulatory system in the Romano-Germanic and Anglo-Saxon legal family. The structure of social regulation is described, which is represented by such elements as corporate-regulatory, legal, traditional, religious, moral and ethical subsystems. It is noted that at the heart of each subsystem there is a social norm, which is a system-forming element of the subsystem. The definition of the corporate regulatory system has been formulated, according to which this definition is understood as a set of internally coordinated and interrelated phenomena operating in society and having a regulatory, organizing and stabilizing effect on corporate social relations, the behavior of participants in corporate relations, as well as the activities of corporate organizations. It is indicated that the influence of the legal family on the corporate regulatory system is manifested, firstly, in the peculiarities of corporate regulation, and secondly, in the peculiarities of corporate organizations, at the stages of establishment and functioning. The concept of a legal family is analyzed, a set of national legal systems united by a common historical formation, structure, sources, leading branches and legal institutions, law enforcement, conceptual and categorical apparatus of legal science. It has been established that for countries belonging to the Romano-Germanic legal family, in the corporate-regulatory subsystem, the influence of the legal family is expressed in the primacy of legal regulation over corporate regulation, a high degree of state interference in internal corporate regulation issues, as by consolidating peremptory norms, the inclusion of which in corporate bylaws are mandatory and model bylaws. It was revealed that in the countries of the Anglo-Saxon legal family, there is a high degree of autonomy of corporate organizations, while the leading role in corporate regulation is played by contractual mechanisms, historically the corporation was considered as a pooling of capital.

Responsible for the laundering (legalization) of the proceeds of corruption under the legislation of foreign States

2020 ◽  
Author(s):  
Ilya Vlasov ◽  
Natal'ya Vlasova ◽  
Natalya Golovanova ◽  
Anatoliy Kapustin ◽  
Artem Cirin
Keyword(s):  
World Bank ◽  
International Organizations ◽  
Legal Regulation ◽  
International Standards ◽  
Weapons Of Mass Destruction ◽  
Mass Destruction ◽  
Close Link ◽  
Proceeds Of Crime ◽  
Financing Of Terrorism ◽  
International Instruments

The risks of global and international regional (i.e. supranational) character associated with the extension of the economic and social base of terrorism and proliferation of weapons of mass destruction. Numerous studies demonstrate the close link between corruption and money laundering. In this manual presents an analysis of international-legal regulation of responsibility for laundering (legalization) of the proceeds of corruption. Considered global, international instruments, documents of regional international organizations. Particular emphasis is placed on the institutional mechanisms of counteracting laundering (legalization) of the proceeds of corruption, which include international organizations involved in the establishment and implementation of international standards (FATF, world Bank, the Egmont group, Basel Committee, Wolfsberg group, regional fatfstyle, etc.). For civil servants, employees of public organizations, scientists, teachers and graduate students, as well as for anyone interested in the issues of counteraction to laundering of proceeds of crime, financing of terrorism and corruption.

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.

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