DEVELOPMENT OF THE FINANCIAL MONITORING SYSTEM AS A COMPONENT OF FORMATION OF EFFECTIVE CONTROL AND SECURITY IN UKRAINE

Abstract

The article considers the problem of legalization (laundering) of proceeds from crime and terrorist financing, which is a global threat to economic and political security in the world and in Ukraine in particular. In the domestic economy, this problem is complicated by a number of factors, in particular: the high level of the shadow economy, corruption, protracted military conflict and occupation of part of the territory, political instability and low business culture. The solution to these problems is possible through the organization of an effective system of public financial monitoring, which will help curb the growth of organized crime by taking measures to prevent money laundering, financing the production of weapons of mass destruction and terrorism. Given the above issues, the paper reveals the essence, objectives, functions and role of financial monitoring in ensuring economic security. The authors analyze the legal framework for the formation of financial monitoring in Ukraine, emphasize the positive trends of its development, as well as, taking into account foreign experience, suggest ways to improve it. An analysis of financial indicators that reflect the financial transactions that are subject to financial monitoring during 2011 – 2020 and emphasizes that the banking system plays an important role in combating money laundering and financing of criminal activities. The role of the National Bank of Ukraine in conducting systematic monitoring of the activities of banking institutions and non-banking financial organizations is determined, the activity of domestic subjects of primary financial monitoring in general is assessed. It is noted that the effectiveness of the national risk assessment system directly depends on effective cooperation on a joint basis of the subjects of state financial monitoring, the subjects of primary financial monitoring, law enforcement agencies and non-financial institutions. It is argued that in order to preserve and develop market principles of the financial system and security of Ukraine, it is necessary to develop a comprehensive system of financial monitoring as an important factor in increasing the level of national security.