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Motivation: The motivation for this research work is its potential to identify critical issues with far-reaching implications for economic security, governance and development, and to contribute to more informed decision-making in the area of countering the financing of terrorism. Aim: The purpose of this research paper is to analyse the impact of the FATF (Financial Action Task Force) standards on crime and anti-corruption efforts and the effective implementation of the legal framework in countries. Results: The article examines the relationship between crime, corruption, terrorism and FATF standards in 54 countries. Based on the regression analysis, the influence of crime, terrorism and perception of corruption on the effectiveness and compliance with FATF standards is investigated. The specific coefficients show that the perception of terrorism and corruption have a statistically significant negative and positive impact on the dependent variable, respectively, while the impact of the crime index is not statistically significant. By examining the impact of crime rates and anti-corruption efforts on FATF standards and the effective implementation of legal frameworks in countries, the study aims to provide information that can inform decision-making. Understanding how these factors interact can help to improve anti-money laundering and counter-terrorist financing strategies at both the national and international levels, including the improvement of financial monitoring systems. Understanding the relationship between crime, corruption and terrorism can have practical implications for various stakeholders, including law enforcement, government officials and international organisations. The findings are important for the implementation of effective measures to combat money laundering and terrorist financing, improve governance, security and overall socio-economic stability. [ABSTRACT FROM AUTHOR]

The study characterizes financial monitoring as part of the system for preventing and counteracting the legalization of income and the financing of terrorism. The purpose of the research is to study the experience of how national financial monitoring systems function (in the UK, USA, China, Georgia, Moldova, Pakistan, Poland and Ukraine) in order to determine development directions and identify implementation opportunities in domestic practice. The research methods include induction, analysis and synthesis, static, comparative and graphical methods. The research methodology is based on the analysis of official static data and information materials from the official websites of international organizations and competent national authorities. The article analyzes the statistical data of the state bodies of Ukraine in terms of their activities in the field of combating the financing of terrorism. It also constructs profiles to assess the effectiveness of anti‑money laundering systems as well as the handling of proceeds of crime and financing of terrorism in a number of countries, following the FATF (Financial Action Task Force) methodology. The results demonstrate that all national financial monitoring systems must comply with the requirements of the FATF. However, it is also necessary to consider the national characteristics of each country. Directions for further improvement of the financial monitoring system in Ukraine have been identified, i.e., enhance international cooperation, prevent the use of legal entities and organizations for criminal purposes, improve investigation and prosecution procedures for money laundering, especially considering international assistance received in the fight against Russian aggression, review investigation procedures and criminal prosecution in financing terrorism, and apply financial sanctions for the financing of terrorism.

An important aspect of combating the financing of international terrorism is the development of the financial monitoring system. It allows to identify, prevent and stop financial flows used to support terrorist groups. Characterization of the consequences of financing international terrorism is a key vector in the development of such a system. It allows to reveal the essence of this problem and to determine effective ways of improving the existing approaches to financial monitoring. The purpose of the article is to reveal the consequences of terrorism, which are the main vectors of the development of financial monitoring. In the research process, such methods as analysis and synthesis, structural-logical, critical analysis, systematic generalization, induction and deduction were used. The theoretical basis of the research was the works of domestic and foreign scientists devoted to the indicated problems. The article identifies the problem of combating international terrorism in the context of research into the consequences of terrorist activity. It has been confirmed that the death rate from terrorism has remained quite high in recent years, although the number of terrorist attacks has decreased. This is due to the development and use of technologies that cause more dangerous consequences. The temporary problem of assessing the consequences of terrorism has been determined. In addition to direct material costs, there are costs that become apparent after a certain period of time. The assessment of the consequences of a terrorist act can be complicated by the impossibility of quickly reaching the place of the terrorist attack. It was determined that the analysis of the consequences of terrorist financing should be carried out on the basis of an assessment of the impact of both committed terrorist acts and the laundering of illegally obtained income on various spheres. The influence of terrorist activity on the economic, social and political spheres, as well as on the demographic situation, on the position of the state in the international arena, is reflected on the example of the experience of foreign countries (primarily, Israel and the USA).

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The article proves the relevance of studying the subjects of financial monitoring of cryptocurrency circulation in Ukraine and their powers. Based on the analysis of scientific developments on the outlined issues, the author substantiates the absence of systematic scientific developments on the outlined issues. The purpose of the article is to substantiate proposals for clarifying the subjects of financial monitoring of cryptocurrency circulation in Ukraine and their powers. The author clarifies the classification of subjects of financial monitoring of cryptocurrency circulation. According to the first criterion, «level of financial monitoring», the law distinguishes between subjects of general monitoring (the State Financial Monitoring Service of Ukraine, the Ministry of Digital Transformation, the National Bank of Ukraine, the National Securities and Stock Market Commission) and internal monitoring (banks, insurance and other financial institutions, exchanges and other participants in the virtual asset market, and individuals). According to the second criterion, «time of conduct», financial monitoring of cryptocurrency circulation is divided into preliminary, current and subsequent, and the subjects of these types of financial monitoring are identified accordingly. Based on the results of the study, the author suggests that the Law of Ukraine «On Prevention and Counteraction to Legalisation (Laundering) of Proceeds of Crime, Terrorist Financing and Financing of Proliferation of Weapons of Mass Destruction» should be amended to provide for the division of subjects of financial monitoring of cryptocurrency circulation not by types of virtual assets, but by levels of such monitoring (general, internal), and also depending on the time of its conduct (preliminary, current, subsequent). When improving this Law, it is advisable to: define the mechanism for financial monitoring of cryptocurrency circulation, which should cover the entirety of the specified types of virtual assets; specify the powers of the subjects of each type of financial monitoring. The author concludes that, taking into account the novelties of legislation and the author’s own proposals, it is advisable to include a separate set of such entities as subjects of financial monitoring of cryptocurrency circulation in Ukraine, which is the scientific novelty of this study. At the same time, as a direction for further research, it is necessary to note the development of a model for financial monitoring of cryptocurrency circulation, taking into account important developments of the European experience in this context. [ABSTRACT FROM AUTHOR]

Ukraine has taken a significant step in the direction of transparency and fighting corruption, becoming one of the first countries in the world to disclose information about the beneficial owners of companies and make it publicly available. On 14 October 2014, the relevant Law of Ukraine “On Prevention and Fighting the Legalisation (Laundering) of Criminal Proceeds, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction” was adopted, according to which all legal entities are required to submit to the Unified State Register of Legal Entities, individuals-entrepreneurs and public formations (hereinafter referred to as EDR) information about their ultimate beneficial owners. This historic initiative was an unequivocal breakthrough for Ukraine in ensuring transparency and openness in the field of disclosure of ownership of legal entities. This Law brought Ukraine’s antimoney laundering and terrorist financing system up to international standards (the implementation of EU Directive 2015/849). The availability of information on beneficial owners has not only increased trust in government regulation, but has also made the country an example for other countries seeking to fight corruption and ensure a fair and transparent business environment. The law improved the system of financial monitoring, in particular regarding the application of a risk-oriented approach by subjects of primary financial monitoring. International organizations and the world community understand the importance of disclosure of information about the beneficial owners of companies, therefore it is reflected in a number of international legal acts. Ukraine is actively implementing international standards into national legislation, which confirms the high level of Ukraine’s obligations to the international community in the fight against corruption and financial crimes. [ABSTRACT FROM AUTHOR]

Given the recognition of the priority of the European integration and North Atlantic vectors of modern state-building and law-making processes in most countries of the world, the issue of "high terminological quality", "terminological purity", with the implementation of relevant international and European legal standards for the formation of "basic terminology", the basis for combating the legalisation of "dirty money" is not only relevant, but also of paramount importance, as it plays the role of "key provisions" of the entire regulatory framework. The purpose of the study is to analyse the existing international legal and European standards and national regulatory models for defining "politically exposed persons", with the aim of identifying "defects in their quality" and formulating proposals for their elimination. The object of the study is social relations directly related to the state financial monitoring of politically exposed persons. The subject of the study is the regulatory models for determining politically exposed persons in terms of state financial monitoring. The methodological basis was formed by both general scientific and special research methods, which made it possible to present a comprehensive cross-section of the relevant issue. Results. The "quality" of the regulatory definition of PEPs implies the following: a) consideration of international legal and European standards for preventing and combating the legalisation of "dirty money" as a "basis" for national thematic rulemaking; b) regulatory distinction between "main PEPs", with criteria that allow determining the "uniqueness" of their legal status, and "additional PEPs" (persons who do not have the main features of PEPs, but may potentially be involved in relations with them); c) "criterionality" of the "main PEPs" is directly related to the "influential" position and significant public functions performed by the person (it is mandatory to have these positions enshrined in the law, with the corresponding correlation of functions); d) delimitation of "additional PEPs", with the identification of those persons who are "related" by family and other relations with the "main PEP". For each category of such persons, the guideline is to standardise their list, which makes it impossible to vary the interpretation of the relevant provisions and diversify law enforcement practice.

The need to take into account imbalances among regional indicators in the development of state policy for financing national projects makes it necessary to develop a methodology that will enable objective assessment of the effectiveness of socially significant projects in Russia. This paper reports the development of a methodology for financial monitoring of national project implementations in the constituent entities of the Russian Federation, taking into account the correlation of their target indicators and using cluster analysis and methods in mathematical statistics. The proposed methodology was tested on health and demography national project data obtained from the Federal Treasury of Russia, the Federal State Statistics Service and the Accounts Chamber for 2020–2021. The analysis of public funding for national projects based on centralization indices and target indicators for their implementation enabled classifying the regions of Russia according to the levels of effectiveness and the financial risks of implementing the projects. The results of the study correspond to the actual effectiveness of national projects and can be used in the development of flexible state policy in financing national projects, taking into account the level of the target indicators achieved.

The aim of the article is to study the problems/shortcomings, current challenges and opportunities in order to ensure an efficient and comprehensive approach to improving the system of financial monitoring in Ukrainian banks and, further on, assessing compliance risks. Based on the carried out analysis of scientific works of a number of scholars, normative legal acts of the National Bank of Ukraine, taking into account international practice, ways to improve the system of financial monitoring in Ukrainian banks, and assessment of compliance risks were considered. The article identifies the prerequisites that are of driving nature and require continuous improvement of the system of financial monitoring and compliance risks; the problems of prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction are analyzed, its difficulties and shortcomings are identified; the importance of effective interaction between the State bodies is emphasized; the measures of the State regulator – the National Bank of Ukraine – in the sphere of financial monitoring are analyzed; the principles that should be followed in the assessment of compliance risks are described; the external and internal factors that determine the efficiency of compliance are indicated. The necessity of improving the system of financial monitoring in the banks of Ukraine along with assessment of compliance risks is substantiated. Measures to improve the system of financial monitoring, including the assessment of compliance risks, are proposed, recommendations for the regulatory activities of the National Bank of Ukraine are presented. Prospects for further research in this direction are the improvement of: the system of financial monitoring and assessment of compliance risks, which can occur by amending the regulations in force in Ukraine, while taking into account international practice; the internal banking system for preventing and combating legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction in banks.

The article continues the analysis of the work of the model developed by the authors of forecasting money laundering rate. The purpose of the study is to compare the results of the forecast with the actual data. Authors used official data by the Ministry of Internal Affairs of the Russian Federation on economic crime rate for the period January 2011 – July 2022. In the last published work, a forecast was formed based on the seasonal integrated autoregression – moving average (SARIMA) model for 11 months of 2022 from February to December. This forecast for the past 6 months has been verified by comparison with the actual values by calculating the relative error and the RMSE (root mean square error). In comparison, the authors noted a rare distribution of registered cases for the last decade: an excess of the number of crimes in May over June. The result of the study may be used as an auxiliary tool in the analytical complexes of subjects of financial monitoring and supervisory authorities. The results reflected the high accuracy of the forecasts obtained for the sum of the periods, and the conclusion was also made about the importance of observing the seasonal structure of the dynamics of crimes for operational changes in the parameters of the model.

This article aims at studying the national legislation, recommendations of international organizations (intergovernmental bodies), as well as the opinions of scholars and practitioners on the implementation of financial monitoring in the practice of law. The authors define the achievement of this goal by fulfilling the tasks set and answering the question of the correlation between the obligation to conduct financial monitoring and the attorney-client privilege. This article is of undoubted relevance due to Ukraine's active implementation of European integration processes and transformation of legislation in the field of prevention and counteraction to money laundering and terrorist financing. Along with this development is the independent status of the attorney-at-law and the practice of law, the maintenance and provision of which are constantly relevant in the State. The authors draw attention to the current legal regulation of financial monitoring in the practice of law, as well as to the FATF recommendations, emphasizing the importance of such a legal phenomenon as financial monitoring. The authors define the area of functional responsibility of law firms, law firms and attorneys-at-law who practice law individually as specially designated subjects of primary financial monitoring. In addition, this article emphasizes the peculiarities of financial monitoring in the practice of law and expresses concerns about certain peculiarities. At the same time, the authors outline the lack of unity in the attitude toward the purpose of financial monitoring, as well as the presence of scepticism and both constructive and unjustified criticism by practising attorneys at law of financial monitoring in the practice of law, namely its legal regulation. The authors determine that the most important result of this study is the emphasis on the need for a balanced ratio of the objectives of financial monitoring and the preservation of the independence of the legal profession. Summarizing, the researchers argue that financial monitoring is a challenge of the time, the achievement of which should not be declarative, but real. The reality of the goals of financial monitoring should be achieved by all subjects of the latter, including attorneys-at-law. At the same time, the combination of the status of an advocate and a subject of primary financial monitoring should be balanced, taking into account independence as a principle of the practice of law. [ABSTRACT FROM AUTHOR]

The moderating effect of parental income on parental financial monitoring and financial literacy is increasingly becoming important. This study determined whether the relationship between parental financial monitoring and financial literacy is moderated by parental income. Quantitative research approach was adopted. Self-administered questionnaire was used to collect data. Moderated regression analysis was used to analyse data. The results showed that Parental income moderated the relationship of Parental financial monitoring with financial knowledge, financial behaviour, and financial attitude. Furthermore, the results indicated that parental income did not moderate the relationship of Parental financial monitoring and financial decision-making. Therefore, the overall results indicated that the relationship between parental financial monitoring and financial literacy is moderated by parental income. This study is the first to investigate whether the relationship between parental financial monitoring and financial literacy is moderated by parental income. This study concluded by providing recommendations and suggestions for future research. [ABSTRACT FROM AUTHOR]

This article examines the current state of financial monitoring as a tool for combating and preventing money laundering and corruption. The use of blockchain technology is becoming increasingly prevalent in the field of financial monitoring for legal compliance. It offers a range of benefits, including improved accuracy, transparency, and security in tracking financial transactions. However, its adoption also poses several challenges, such as data privacy concerns, regulatory compliance, and the need for skilled personnel to operate and maintain these systems. This article explores the opportunities and challenges of leveraging blockchain technology to enhance legal compliance and financial monitoring. It also examines its key features and potential applications in financial monitoring. With the increasing adoption of this technology, the financial monitoring landscape is set to transform in the coming years, paving the way for a more efficient and effective way to combat and prevent money laundering and corruption. [ABSTRACT FROM AUTHOR]

The object of the research is the financial transactions that are subject to financial monitoring. Today, financial monitoring is an integral part of the activities of Ukrainian banks, especially during the period of martial law, since it is through banks that the process of laundering proceeds from crime most often occurs. The article discusses the peculiarities of analyzing financial transactions subject to financial monitoring in wartime. In particular, the author outlines the trends in the banking system. Given the current challenges, in par- ticular, martial law in Ukraine, the author analyzes the dynamics of submission by banks of reports on financial transactions subject to financial monitoring, including in terms of financial monitoring features, and investigates the factors that affect their number. A forecast of the volume of reports is made. The author analyzes the recom- mendations of the State Financial Monitoring Service of Ukraine (SFMS), which contribute to the improvement of customer service processes in banks in order to counteract money laundering and terrorist financing. The authors also provide the main tools used for money laundering, terrorist financing, etc. during the war. The author describes the impact of money laundering and terrorist financing on the financial security of the state. The military aggression of the russian federation against Ukraine has had a significant impact on money laun- dering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. Due to untimely/ non-operational or inefficient/poor quality analysis and appropriate response of banks to financial transactions that are subject to financial monitoring, this direction in the activities of banks requires special attention. In the current situation, there are new challenges and threats that have signs of criminal acts and fraud: - financing of war and terrorism/separatism; laundering the proceeds of corruption ; - embezzlement of budget funds and funds of state enterprises; - laundering of proceeds from crimes related to fraudulent acquisition of funds of citizens and legal entities by deception, including under the guise of assistance to the Armed Forces of Ukraine. The authors propose to improve the legislative and regulatory acts in the field of financial monitoring and to introduce penalties for bank employees for improper performance of their duties at the legislative level. The authors also focus on the proper automation of processes in banks. [ABSTRACT FROM AUTHOR]

The aim of the article is to study the problems/shortcomings, current challenges and opportunities in order to ensure an efficient and comprehensive approach to improving the system of financial monitoring in Ukrainian banks and, further on, assessing compliance risks. Based on the carried out analysis of scientific works of a number of scholars, normative legal acts of the National Bank of Ukraine, taking into account international practice, ways to improve the system of financial monitoring in Ukrainian banks, and assessment of compliance risks were considered. The article identifies the prerequisites that are of driving nature and require continuous improvement of the system of financial monitoring and compliance risks; the problems of prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction are analyzed, its difficulties and shortcomings are identified; the importance of effective interaction between the State bodies is emphasized; the measures of the State regulator – the National Bank of Ukraine – in the sphere of financial monitoring are analyzed; the principles that should be followed in the assessment of compliance risks are described; the external and internal factors that determine the efficiency of compliance are indicated. The necessity of improving the system of financial monitoring in the banks of Ukraine along with assessment of compliance risks is substantiated. Measures to improve the system of financial monitoring, including the assessment of compliance risks, are proposed, recommendations for the regulatory activities of the National Bank of Ukraine are presented. Prospects for further research in this direction are the improvement of: the system of financial monitoring and assessment of compliance risks, which can occur by amending the regulations in force in Ukraine, while taking into account international practice; the internal banking system for preventing and combating legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction in banks. [ABSTRACT FROM AUTHOR]

The growing risks of financing terrorism in the conditions of martial law necessitates the strengthening of financial monitoring. Accountants, business entities providing accounting services, and their related entities of audit activities are among the specially defined subjects of primary financial monitoring. Determining the level of riskiness of financial transactions is an essential function of an accountant. It, therefore, requires measures to increase the general and special competence of accounting specialists in financial monitoring. The article aims to determine the approaches and directions of regulatory and methodical support of financial monitoring of accountants as specially defined subjects following international standards. The requirements of FATF international standards and the national regulation system of specially defined professions regarding the fulfillment of financial monitoring requirements were analyzed. Special attention is paid to studying the risk-oriented approach in the financial monitoring system. A comparison was made of the results of sectoral risk assessments regarding the use by subjects of primary financial monitoring for money laundering according to the National risk assessments. The dynamics of the number of individual entrepreneurs who provide accounting services and are registered with the State Financial Monitoring Service of Ukraine were evaluated. With the help of the Google Trends search tool, the results of national risk assessments and the level of interest in financial monitoring carried out by accountants in different countries were evaluated. An example of a risk matrix of client-accounting service combinations was presented, which can be developed based on a risk analysis of the experience and activities of an individual accountant. It was noted that the dilemma of the choice of accountants between the interests of the client and the requirements of financial monitoring is related to the professional judgment of accounting specialists and their increased functional responsibility within the limits of current legislation and international standards.

The research topic is related to the comparative analysis of the mechanisms of functioning of AML/CFT systems of the Russian Federation and the Republic of Kazakhstan.The object of the study is the mechanisms of functioning of the Countering money laundering and terrorist financing AML/CFT systems of the Russian Federation and the Republic of Kazakhstan in terms of identifying and reducing the risks of money laundering and terrorist financing of ML/FT. The subject of the study is a set of economic relations related to the functioning of the national AML/CFT systems of the Russian Federation and the Republic of Kazakhstan to identify and reduce the risks of money laun-dering and terrorist financing of ML/FT. The purpose of the study is to conduct a comparative analysis of the mechanisms of functioning of the Countering money laundering and terrorist financing AML/CFT systems of the Russian Federation and the Republic of Kazakhstan. The purpose of the study is to analyze and compare the mechanisms of functioning of the Countering Money laundering and terrorist financing AML/CFT of the Russian Federation and the Republic of Kazakhstan.Results of the work – for the first time a comparative analysis was carried out and problem areas of AML/CFT systems of the Russian Federation and the Republic of Kazakhstan were identified. The value of the conducted research is to contribute to the further development and improvement of the national financial monitoring system of the Republic of Kazakhstan by identifying inconsisten-cies in the AML/CFT systems of the two countries and determining the points of their convergence and harmonization. Practical significance – the results of the comparative analysis will contribute to taking into account the current problems and prospects for the development of national AML/CFT systems of the Russian Federation and the Republic of Kazakhstan, will assist in eliminating the shortcomings inherent in these systems in terms of identifying and reducing the risks of ML/FT.

The purpose of the article is to distinguish between the regulatory and legal approaches to the interpretation of the definitions of "supervision" and "control"; to establish the general purpose of control and supervision over the activities of non-bank financial institutions; to consider the methods of regulatory and legal regulation of verification and identification of the client when concluding a loan agreement. The scientific discussion on the problem of legal regulation of control and supervision over the activities of non-banking financial institutions is presented. It is established that the need to form an effective state regulation of the development of the national economy and economic institutions in a market environment leads to the creation of an effective system of financial control. The concepts of "financial control" and "control function of finance" are distinguished. It is determined that the basis of the control function of finance is the movement of financial resources, and through the implementation of financial control the possibility of influencing the process of production, accounting and consumption is realized. The conclusion is made that rating agencies and credit history bureaus should become necessary elements of the system of state regulation and supervision by the National Bank of Ukraine over the activities of non-state financial institutions, which should occupy a mandatory place in information stories related to the regulation of supervision and the use of other administrative and legal means of control over the activities of non-state financial institutions. Results. The concepts of control and supervision over the activities of non-banking financial institutions are distinguished; the peculiarities of the formation of rating agencies and ensuring the effective operation of credit history bureaus are established; indicative criteria for assessing the necessary degree of supervision over the activities of a credit company were determined, which include: the book value of assets; market share of the credit company; the number of previous violations of the law. It is established that the main control and supervisory functions of the National Bank of Ukraine are: protection of clients' rights, compliance with the standards of service provision and requirements for their advertising; ensuring transparency and disclosure of information; ensuring impeccable business reputation of owners and managers; counteracting anti-competitive activities; combating abuse and illegal activities; control over the exercise of their powers.

The purpose of the article is to study the current status of financial monitoring carried out in the securities market of Ukraine. The article analyzes the activities of the entities of the State-based financial monitoring and primary financial monitoring in the stock market of Ukraine. Their main functions and tasks in the financial monitoring system are distinguished. Based on the carried out research, it is concluded that securities are often used in illegal schemes (withdrawal of assets outside Ukraine, minimization of tax liabilities, tax evasion, etc.) that precede the laundering of criminal income. One of the risky instruments of the financial market was also the purchase and sale of domestic government bonds. On the one hand, this type of securities can be considered one of the most reliable financial instruments due to its high liquidity and wide range of applications. At the same time, the high demand and peculiarities of execution of contracts concluded on the stock exchange for the purchase/sale of domestic government bonds make them attractive in schemes of legalization of illegal income, especially for public figures who must declare their wealth. Considering the nature of reports of violations of securities transactions, it can be concluded that there is a high proportion of possible schemes for legalizing dirty funds. Under martial law, there have been significant changes in the process of identification and verification of clients of the primary financial monitoring entities in order to simplify the purchase of government securities. Thus it is worth noting that the largest share of violations of financial legislation falls on government bonds, which have become available to various categories of investors (including individuals). This fact may contribute to the emergence of new schemes for laundering (legalization) of proceeds from crime. Therefore, the entities of the State-based financial monitoring should develop a system of hedging risks regarding the placement of government bonds among different categories of investors. This is especially true of the over-the-counter market. It is worth noting that this segment of the stock market is under the partial control of the national depository of the NBU. Therefore, it is proposed to create an entity in the securities market that would adopt the functions of controlling and preventing fraudulent and manipulative actions with securities.

Financial monitoring plays a pivotal role in the overall effectiveness of an antimoney laundering (AML) system. This article explores the place and role of financial monitoring in preventing and detecting money laundering activities. The authors highlighted the significance of effective financial monitoring in meeting regulatory compliance requirements. The definition of the role and place of financial monitoring in the fight against the legalisation of corruption proceeds are updated, considering the tasks and requirements set before Ukraine as a candidate country for the European Union and the challenges caused by the state of war. The article aims to analyse and provide an understanding of the importance of financial monitoring in the broader context of combating money laundering. The authors used different methods and approaches depending on the nature of the research, such as literature review, legal and doctrinal analysis, and comparative analysisб dialectical method, method of analysis and synthesis and method of terminological analysis. The findings of this research underscore the criticality of financial monitoring in safeguarding the integrity of the financial system and protecting economies from the harmful effects of money laundering. By understanding the place and role of financial monitoring within the broader AML framework, financial institutions, policymakers, and regulators can enhance their efforts to combat money laundering and ensure a safer and more secure economic environment. [ABSTRACT FROM AUTHOR]

The purpose of the research is to explore the role of emerging technologies in combating criminal activities, particularly in digital identification and financial monitoring. The article aims to highlight how these new technologies can enhance the effectiveness of law enforcement agencies and financial institutions in detecting and preventing crime. Methods. The methodological basis of the research was a set of methods of scientific knowledge. In particular, the phenomenological method allowed the author to analyse national, international, and foreign law legal sources. The analytical method was used during the analysis of the conceptual and categorical apparatus, the definitions of "artificial intelligence", "digital identification", "blockchain", etc. The author also used the method of analysis and generalisation, which made it possible to clarify and generalise views on the essence and types of digital identification for further use in financial monitoring. Results. The article discusses various technological advancements, such as biometric identification systems, blockchain technology, artificial intelligence, and data analytics, and their application in the fight against crime. It explores how digital identification systems can help verify individuals' identities more securely and efficiently, reducing the risk of identity theft and fraud. Additionally, it examines how financial monitoring tools can enable authorities to track suspicious transactions, detect money laundering activities, and disrupt the financing of criminal organisations. The article also addresses potential concerns and challenges associated with using these technologies, such as privacy issues, data security, and ethical considerations. Conclusions. New technologies such as biometrics (e.g., fingerprints, facial recognition, iris scans) and blockchain-based systems can improve digital identification processes. These technologies offer increased security, reduced fraud, and streamlined identity verification procedures, preventing theft and other related crimes. Advanced data analytics, machine learning, and artificial intelligence algorithms can be utilised to enhance financial monitoring systems. These technologies enable faster and more accurate identification of suspicious transactions, money laundering activities, and financial crimes. Automated systems can analyse vast amounts of data and detect patterns that would be difficult for humans to identify, thereby assisting law enforcement agencies in combatting financial crimes. [ABSTRACT FROM AUTHOR]

The article examines the theoretical and applied foundations of the assessment of financial and economic security in the system of financial monitoring of the enterprise's activity. It is emphasized that the financial monitoring of the enterprise's activity characterizes the functional mechanism of constant monitoring of the enterprise's financial indicators, which includes obtaining, systematization, and analysis of financial information in order to establish cause-and-effect relationships, based on the comparison of analytical data of the enterprise's functioning with normative ones. Monitoring of the financial activity of the enterprise must be carried out at various stages of financial management in order to make key managerial financial decisions. It is noted that in the economic literature there are various methods of assessing the level of financial and economic security of economic entities, which are based mainly on the ratio analysis of financial statements. Analyzing these methods, it is advisable not to allow an excessive number of coefficients, since, duplicating each other, they do not bring much benefit to the formation of a holistic picture of the level of financial and economic security. Monitoring of the effectiveness of the financial and economic security of the enterprise is based on methods of assessing the probability of bankruptcy. Based on the obtained results of the use of models for assessing the probability of bankruptcy, it was established that the investigated enterprise is not in danger of bankruptcy. However, there is a gradual decrease in estimated indicators, and if the company does not take measures to maintain financial and economic security in proper condition, it may enter the risk zone. Attention is focused on the fact that in order to diagnose crisis situations, the enterprise needs constant monitoring of factors that cause internal and external threats to financial and economic security. Measures that can be aimed at neutralizing the threat of a financial crisis are proposed. In general, the assessment of financial and economic security as a component of the system of financial monitoring of the enterprise's activity must be considered as an important tool for its sustainable development and successful functioning. [ABSTRACT FROM AUTHOR]

Innovation clusters have a significant stimulating effect on the development and introduction of innovations in the economy. The implementation of innovative activities within the innovation cluster allows creating an innovative product or service by the efforts of all cluster subjects, which involves harmonious cooperation between them in the process of implementing innovative activities. However, a feature of the cluster functioning is the presence of competition between individual entities of the cluster, which leads to the complication of cluster management. In particular, the significant complexity and need to harmonize relations actualizes the problem of information support for the process of making managerial decisions both at the level of the cluster and at the level of individual cluster participants. It is the system of financial monitoring and accounting that should provide the management of the cluster with adequate information that characterizes the economic activity of the cluster in general and its individual elements. But the implementation of financial monitoring and accounting is associated with certain risks that must be taken into account in the process of modeling monitoring and accounting at the cluster level. The purpose of the study is the analysis of the security aspect of modeling and implementation of financial monitoring and accounting within the innovation cluster, as well as the development of a methodology for assessing the financial state of the innovation cluster, taking into account the security aspect. The basis of the research is empirical data six national enterprises participating in the innovation cluster that characterize the economic activity of enterprises participating in the innovation cluster. The obtained data allow us to characterize the financial state and process of innovative activity of the enterprises that are part of the innovative cluster. Analytical methods were used during the research: method of factor analysis, and method of comparative analysis. The Fishburne method was used to develop an integral indicator of the cluster's financial condition. As a result of the analysis, the risks that the participants of the innovation cluster may face in the process of financial monitoring and organization of accounting of innovative activities within the cluster were determined. The identified risks were grouped by the level of negative impact on the functioning of the innovation cluster. Taking into account the mentioned risks, a methodology for assessing the financial state of an innovation cluster using an integral indicator is proposed, which allows taking into account the characteristics of individual cluster participants. Thanks to the proposed approach, the probability of realizing the identified risks can be reduced, as well as the use of the proposed assessment methodology allows to improve the quality of information support of the management decision-making process both at the level of the innovation cluster and at the level of its individual participants. In conditions of high uncertainty inherent in the current state of the national economy, managing an innovation cluster is a difficult task and requires high-quality information resources to ensure the process of management decision-making. The source of information on the cluster financial condition is the system of financial monitoring and accounting of economic activities of cluster participants. Risks that arise in the process of modeling financial monitoring and accounting can be divided into three groups according to the level of negative impact: critical risks, moderate risks, and minor risks. The use of an integral indicator, which takes into account the characteristics of individual cluster participants, allows to reduce the probability of the realization of risks and to achieve an increase in the efficiency of cluster management. [ABSTRACT FROM AUTHOR]

The article suggests model for predicting the level of money laundering on the basis of data from the Ministry of Internal Affairs of the Russian Federation on the state of economic crime in Russia since the beginning of 2011. Using a seasonally integrated autoregressive moving average (SARIMA) model, it compares different regression models for the research tasks (linear regression, logistic regression, autoregressive and SARIMA). The necessity of taking into account seasonal regularities in the structure of money laundering was underlined, and the SARIMA model with the lowest deviations from the actual values was chosen. The necessity of taking into account seasonal regularities in the structure of money laundering was underlined, and the SARIMA model with the lowest deviations from the actual values was chosen. The article presents the results of data analysis using the method of least squares, calculating the mean squared error (MSE). High accuracy of short-term forecasts was noted: the deviation from the actual number of cases is about three cases (with the average number of cases being 68 over the last 10 years). The forecasting model can be recommended for implementation in the analytical complexes of financial monitoring and supervisory authorities.

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The growing risks of financing terrorism in the conditions of martial law necessitates the strengthening of financial monitoring. Accountants, business entities providing accounting services, and their related entities of audit activities are among the specially defined subjects of primary financial monitoring. Determining the level of riskiness of financial transactions is an essential function of an accountant. It, therefore, requires measures to increase the general and special competence of accounting specialists in financial monitoring. The article aims to determine the approaches and directions of regulatory and methodical support of financial monitoring of accountants as specially defined subjects following international standards. The requirements of FATF international standards and the national regulation system of specially defined professions regarding the fulfillment of financial monitoring requirements were analyzed. Special attention is paid to studying the risk-oriented approach in the financial monitoring system. A comparison was made of the results of sectoral risk assessments regarding the use by subjects of primary financial monitoring for money laundering according to the National risk assessments. The dynamics of the number of individual entrepreneurs who provide accounting services and are registered with the State Financial Monitoring Service of Ukraine were evaluated. With the help of the Google Trends search tool, the results of national risk assessments and the level of interest in financial monitoring carried out by accountants in different countries were evaluated. An example of a risk matrix of client-accounting service combinations was presented, which can be developed based on a risk analysis of the experience and activities of an individual accountant. It was noted that the dilemma of the choice of accountants between the interests of the client and the requirements of financial monitoring is related to the professional judgment of accounting specialists and their increased functional responsibility within the limits of current legislation and international standards. [ABSTRACT FROM AUTHOR]

The article examines the issues of risk-oriented supervision in the activities of the Federal Tax Service, which is an integral part of the state financial monitoring of Russia. Modern practice shows that the increased pressure of tax services on taxpayers causes the growth of the «shadow sector» in the economy, at the expense of small and medium-sized enterprises experiencing uncertainty before the supervisory authorities. The strategy of increasing the number of office and field audits has little effect in motivating tax payments. Taxes are an integral institutional element of a market economy, which is both an economic and a legal category. The economic content of taxes consists in the redistribution of the gross national product and reflects the relationship to mobilize part of the income that is formed in the private sector at the disposal of the state. As a result, tax evasion, which is one of the predicate crimes, by organizations causes the growth of the shadow economy and contributes to the processes of money laundering. In this regard, the tasks of justifying the need to modernize the risk management system when implementing tax control in Russia and analyzing the introduction of a modern risk-based approach to tax supervision in order to stabilize the country’s financial system are very relevant. The purpose of the article is to formulate conclusions on the effectiveness of the application of the risk-based approach in the supervisory activities of the Federal Tax Service.

Purpose: The aim of the paper is to understand the spectrum of information generated by registration IT systems for the implementation of financial monitoring in enterprise management. Design/methodology/approach: To accomplish the objective of the study, the critical analysis of literature, descriptive analysis and case study were used. The article presents the information functionality of the registration module in the SAP system in relation to the implementation of financial monitoring in the integrated environment. The theoretical part presents the role of information from IT systems in financial monitoring. In the subsequent part of the study, the attention is paid to information opportunities of the integrated registration systems in enterprises. The case study shows the selected areas of information from the SAP system related to the implementation of the purchase process. Findings: The publication deepens the understanding of the spectrum of information generated by registration IT systems for the implementation of financial monitoring in enterprise management. The main contribution of the article is the in-depth understanding of the possibility of financial monitoring construction using registration IT systems. Originality/value: The problem of the potential of registration modules of the integrated IT environment in the practical building of financial monitoring of the enterprise is not new. However, it is still very important and up-to-date due to its impact on decision-making in terms of the implementation of modern IT systems supporting enterprise management. [ABSTRACT FROM AUTHOR]

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The article discusses the urgent problem of money laundering. In an effort to circumvent the law and avoid justice, seeking to circumvent the law and avoid justice, criminals resort to a wide variety of ways and methods of money laundering. However, typical patterns or patterns in the organization of shadow financial services schemes can be traced. The study of typologies of money laundering is considered by the international anti-money laundering community as one of the areas that ensure the strategic superiority of state bodies in the fight against this phenomenon.The purpose of the study is to identify trends in money laundering in foreign economic transactions and methods of counteraction. The research method is typological analysis. For a long time, the study of typologies in financial monitoring was of an empirical nature, an attempt was made in this article to systematize and scientifically interpret the accumulated knowledge. The article examines examples of typologies of export-import transactions, including “carousel” commodity schemes, highlights the indicators of this type of money laundering schemes. The regulatory authorities can adopt the research results.

The article analyzes the regulatory and legal framework and carries out scientific research and investigates theoretical issues of financial monitoring in the context of accounting and auditing practice in Ukraine. To achieve the goals of the scientific article, the author applied and used the systematic approach as one of the fundamental methods of scientific research, the hypothesis method and other general scientific and special research methods. The theoretical and conceptual foundations, regulatory and legal basis of financial monitoring in the context of accounting and auditing practice are traced. The represented research question, the regularity of testing the hypotheses accepted in the research, the need to develop theoretical foundations caused the division of the process of writing the article into specific stages and the selection of appropriate methods in each of them. It is noted that in conducting financial monitoring in the context of accounting and auditing practice in Ukraine, relevant knowledge of the regulatory and legal framework with the need to combine it with business practice is at the fore. It is proven that in order to achieve the goal of financial monitoring in the context of accounting and auditing practices, it is necessary to take into account not only the requirements of the regulatory and legal framework, but also the possibility of a conflict of interests of accountants and auditors and customers of their services. Based on the literature review, the peculiarities of financial monitoring as a concept were investigated. Suggestions for overcoming existing contradictions are given. The main results of the research are the substantiation and development of the theoretical foundations of financial monitoring in the context of accounting and auditing practice in Ukraine. The practical value of the theoretical results lies in their production orientation. The implementation of these proposals in economic activity will significantly increase the level of elements of financial monitoring in the context of accounting and auditing practice. The article will be useful to employees of accounting services, audit firms and all interested persons who are related to financial monitoring. [ABSTRACT FROM AUTHOR]

The high probability of risk transfer from banks to their counterparties in the field of non-state pension provision (pension account owners, non-state pension funds, insurance companies, asset management companies, etc.) determines the relevance of this study. The paper aims to develop a toolkit for identifying the compliance risk volatility for pension custodian banks based on causal modeling.This toolkit contributes to: 1) tentative cognitive mapping of the causal relationship between the compliance risks of pension custodian banks in the field of financial monitoring and financial and reputational risks to assess their acceptability by stakeholders in non-state pension programs, and 2) impulse modeling. The created toolkit is based on the performance data provided by Ukrainian banks, as well as on the reports of the National Bank of Ukraine. Apparently, an increase in penalty rates by 0.1% would reduce the compliance risks for banks by 0.03%, and the number of violations in financial monitoring (specifically the improper assessment/reassessment of customer risks) by 0.01%. In turn, the compliance risk volatility inherent in custodian banks affects the variability of their reputational and financial risks. Thus, reducing the compliance risks by 0.1% would improve the reputation of banks and increase their regulatory capital by 0.01%.The study findings substantiate the use of the created toolkit to supplement the risk profile components for pension custodian banks, thereby demonstrating the potential volatility of their compliance risks and their consequences for banks and individual groups of their stakeholders. AcknowledgmentThe work is prepared and financed within the framework of the state budget research work No. 45/20202021 “Formation of a risk-oriented system of accumulative pension provision” (DR No. 0120U101508).

Current legislation requires banks to continuously monitor all financial transactions of their customers - both legal entities and individuals. However, despite penalties, in the form of multimillion fines and written warnings most Ukrainian banks do not meet the requirements of the National Bank of Ukraine for development, approval and implementation of internal documents on financial monitoring. The purpose of the article is to summarize the practical experience of the banks in compliance with the policy of risk control of the bank's clients in the financial monitoring system. The sample of this study is 75 Ukrainian banks. The internal documents of existing Ukrainian banks on issues of internal bank financial monitoring were analyzed. The components of the risk control policy of the bank's clients were selected and the information on the completeness of the risk control policy of the bank's clients in the existing banks of Ukraine was summarized. The completeness of the risk-control policy of the bank's clients is determined at thefollowing stages: grouping of components of the risk-control policy of the bank's clients; clustering of Ukrainian banks according to the level of completeness of the bank's clients risk control policy. The method of cluster analysis identified groups of banks for the level of full risk-control of their clients. The four clusters with certain asymmetric distributions in their banks were identified. According to the results of generalization of practical experience of banks in compliance with the risk control policy of the bank's clients in the financial monitoring system, namely internal documents of existing banks on internal financial monitoring, it was found that some banks did not have actually developed internal policies or rules on compliance with the requirements of risk control legislation in the field of financial monitoring.

The article carries out a study of theoretical and methodological principles of the formation of a universal and effective mechanism of financial monitoring, the main direction of which is towards increasing the efficiency of functioning of housing and communal enterprises of Ukraine. It is identified that in the conditions of the financial and economic crisis, the problems of adapting the activities of housing and communal enterprises to changes in the socio-economic situation in the country, which is the most important factor of their sustainable development, are becoming especially significant. Scientific opinions on the definition of the category of «financial monitoring» are generalized. The authors’ own closer definition of this concept is presented. The category of «financial monitoring» is examined from the viewpoint of three approaches: process, managerial, and structural. An improved mechanism of financial monitoring of housing and communal enterprises is formed, which is represented by a set of instruments, means and methods of organizing activities for the regular collection of actual information on controlled indicators, its analysis, development of recommendations for making managerial decisions with the subsequent evaluation of their efficiency, as well as forecasting further dynamics. It is proved that the problems analyzed in the article, which can become a threat to the effective functioning of the formed mechanism, can be solved by the creation of a single financial monitoring service within the financial and economic unit of housing and communal enterprises. The implementation of the principles of this service will create motivation to increase the number of monitoring participants by establishing stable feedback between housing and communal enterprises and relevant monitoring services.

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.

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.

The research is aimed at further developing the theoretical provisions, elaborating the methodological approaches together with scientific-practical recommendations as to the formation of models of the risk control on the part of client, taking into account the likelihood of implementation of network schemes in order to protect against money laundering and financing terrorism. The article closer defines the essence of the concepts of «model of the risk control on the part of client» (taking into account the main components of the model of the risk control on the part of client) and «network scheme». In addition, a classification of existing network schemes of legalization (laundering) of proceeds of crime is provided, on the basis of which a methodical approach to the formation of risk-control models is proposed, taking into account the likelihood of implementation of network schemes to ensure money laundering and financing terrorism. The proposed methodical approach includes four main stages: definition of the basis and components of the model; formation of an array of data for the assessment of risk control models of the bank’s clients; formalization of relationships and formation of a model for assessing risk control of client; assessment of the effectiveness of risk control models of the bank’s clients. A combined (combination of a single- and two-tier model) model of risk control of the bank’s clients given the likelihood of implementation of network schemes to protect against money laundering and financing terrorism based on a fuzzy cognitive card containing 28 components (conceptions) is specified. The effectiveness of the model of risk control of the bank’s clients regarding the implementation of network schemes by applying a script approach taking into account the variables of management factors, which include fines, written notifications and measures to minimize risks as to the initial risk of the bank’s client, is determined.

Microfinance is a way to fight poverty, and therefore is of high social significance. The microfinance sector in Russia is progressing. However, the engagement of microfinance organizations in illegal financial transactions associated with fraud, illegal creditors, money laundering, significantly limits their potential and has negative impact on their development. The aim of the paper is to study the possibilities to automate detection of unscrupulous microfinance organizations based on machine learning methods in order to promptly identify and suppress illegal activities by regulatory authorities. The author cites common fraudulent schemes involving microfinance organizations, including a scheme for cashing out maternity capital, a fraudulent lending scheme against real estate. The author carried out a comparative analysis of the results obtained by classification methods — the logistic regression method, decision trees (algorithms of two-class decision forest, Adaboost), support vector machine (algorithm of two-class support vector machine), neural network methods (algorithm of two-class neural network), Bayesian networks (algorithm of two-class Bayes network). The two-class support vector machine provided the most accurate results. The author analysed the data on microfinance institutions published by the Bank of Russia, the MFOs themselves, and banki.ru. The author concludes that the research results can be of further use by the Bank of Russia and Rosfinmonitoring to automate detection of unscrupulous microfinance organizations.

With the growing socio-economic threats associated with the risk of involving second-tier banks in the legalization of illegal income, it is necessary to create an effective financial monitoring system to reduce this risk. Aim of the research is to propose and test a model of financial security management in second-tier banks in Kazakhstan, based on a combination of clustering models and recursive least squares, which allows for three-level processing of incoming information in banks in order to identify hidden data that pose a financial threat to the activities of second-tier banks. The research methodology is based on a combination of APC-III clustering algorithm models and the recursive least squares (RLS) method, with the algorithm slightly modified in accordance with the OECD recommendations. This ap proach made it possible to consider the operations of banks at three levels and, during transitions, identify suspicious transactions that require immediate examination by the bank’s management. Application of the model made it possible to reveal that, on average, about a third of banks’ operations can be classified as suspicious, which means they require careful study. In our case, we selected 200 cases from the original data mixed with 70 suspicious transactions to study the model. As a result of statistical processing of banking operations, 90 operational data were identified, of which 27 turned out to be suspicious, that is, about 30% of verified transactions were found suspicious. As a result of providing this information, the bank was able to identify 19 transactions aimed at money laundering.

The article examines foreign and domestic experience in organizing financial monitoring systems, systematizes the requirements for its implementation in Ukraine. The basic legal norms, enshrined in the joint directives of the European Parliament and of the Council of the EU, and underlying the national financial monitoring systems of the EU countries and Ukraine have been also analyzed. Taking into account the fact that the risk-based approach is the main basis for the effective implementation of all FATF recommendations, the nature of the risk of money laundering / financing of terrorism and the criteria for their assessment have been investigated. A scheme of improving the process of financial monitoring in a bank has been developed, as well as a number of measures have been proposed to raise the level of adhering to the legislation in the field of anti-money laundering and counter-terrorist financing by the banking sector.

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.

The task analysis of the Federal Financial Monitoring Service has revealed that the money laundering risk assessment process is greatly limited by insufficient resources. The aim of the study is to increase the efficiency of decision-making processes by using visualization of financial monitoring data. The methodological basis of the study suggests to rank objects in order to map financial monitoring data. However, the objects of financial monitoring, such as business entities, professional securities market participants, have sets of characteristics, i.e. are of vector nature. As known, there is no mathematical definition of ordinal relations for vectors. The author used the method of principal component to estimate a scalar value of financial monitoring. The article provides a subject area modeling of financial monitoring, and the author used mathematical and methodological tools to map deviant objects of financial monitoring. The result of the study presents the geographical infographics of the money laundering process. The author refers to socio-economic regional maps obtained from various official sources (arbitration case files, the Unified State Register of Legal Entities, the crime rate in Russia from the Ministry of Internal Affairs). The maps include information about the business activity of the federal districts, regions with a propensity for illegal and legal financial activities, crime rate. The author concludes that the results of the study may serve as a powerful tool to support the strategic decision-making process and microanalysis of financial monitoring.

The article is aimed at studying the methodology for improving the system of the State regulation of economic security of the national economy. The relevance of development of the newest system of the State regulation of its economic security is substantiated. It is proposed to apply the game theory instrumentarium for a formalization of the system of measures of the State regulation of economic security of the national economy. The setting of the task of «game theory» is formulated as follows: identifying the existing conflict situation; a payment matrix is created that shows the quantitative results of the participants performances; the rules of the game are defined, causing consequences to each of the participants in the own «clean strategies». The dependence of a generalizing risk assessment of using banks to legalize criminal revenues from the level of threat to the national economy and the level of use of banks for the legalization of criminal revenues is formalized in the form of a built up linear multi-factor regression equation. A formalization of the strategies of behavior by both the State and economic agents is carried out. In order to determine the quantification of the level of use of banks for legalization of criminal revenues, the qualitative characteristic is checked out in terms of inspection of the income data regarding the conformity with the normal distribution law; a histogram of the distribution of values is built up, and, using the Chi-Square criterion, the compliance with of the normal distribution law is examined. A scaling of the intervals of values of the corresponding researched indicators is performed. The methodology of solving the set task is viewed with the use of the following criterion: minimax and maximin, respectively, together with their mathematical reflection; the mechanism of implementation of both the maximin and minimax strategies of the game «the State regulation of economic security of national economy» is visualized and analyzed.

Relevance of the research topic. The domestic securities market has significant opportunities for money laundering through its underdevelopment, significant level of shadowing and the overall financial and economic situation in the country. In such circumstances, the issue of the effectiveness improvement for financial monitoring as the main tool to counteract the income legalization and the holding of shadow operations on the securities market is relevant. Formulation of the problem. The low efficiency of the stock market of Ukraine, especially with regard to providing protection and transparency of investments, significantly reduces its competitiveness to obtain both foreign and domestic investments. Financial monitoring of securities transactions has key importance for effective development of the stock market in terms of its reliability and safety. Analysis of recent research and publications. Problems of financial monitoring in the aspect of ensuring financial and economic security and counteracting the legalization of illegally obtained proceeds, the financing of terrorism and the proliferation of mass impression weapons were investigated in the works of such scientists as O. Akimova, S. Butkevich, O. Glushchenko, S. Kuznetsov O. Kurishko, L. Klyusko, A. Khmelyuk and others. Selection of unexplored parts of the general problem. Considering the significant results of the research of the mentioned problems, the important object of financial monitoring, such as the securities market, is remained without the attention of the researchers though a considerable amount of shadow financial transactions is going on it. The purpose of the study is to analyze the current realities of financial monitoring in the Ukrainian securities market and to determine its development perspectives. Method or methodology for conducting research. The research was conducted on the basis of a systematic approach using methods of analysis, synthesis, comparison, generalization and extrapolation. Results of work. The peculiarities of primary and state financial monitoring on the securities market of Ukraine are determined. Key performance indicators of professional stock market participants as subjects of primary financial monitoring are analyzed, as well as indicators of activities of the NSSMC and SSFM of Ukraine in the field of financial monitoring on the securities market. The main typical violations of the legislation on financial monitoring in the stock market and the main types of securities used to launder “dirty” funds are highlighted. The field of application of results. The results of the study can be used in the preparation of drafts to the domestic legislation governing the implementation of financial monitoring, as well as in the preparation of state programs for the development of the domestic stock market. Conclusions. According to the results of the research, it is concluded that there are significant perspectives for the development of financial monitoring on the Ukrainian securities market. Considering the common violations in the field of the financial market monitoring legislation, control for customer risk management procedures should be enhanced as well as for procedures to identificate, verificate and clarify information about clients and their representatives. Considering the most common ways for “dirty” funds laundering in the securities market, its professional participants – the subjects of the primary financial monitoring should follow the NSSMC's recommendations for setting high level of risk for clients with certain characteristics.

In article the basic directions and mechanisms offinancial control ofactivity of the domestic enterprises and the organizations which are carrying out manufacture of the goods, work and rendering of services with a view of maintenance of diverse and multilevel requirements of a society, the state and citizens reveal. Increase of efficiency offinancial control, in fair opinion of the author, should be cost not only on the basis of strengthening offiscal functions of the numerous state structures which are carrying out control of execution ofbudgetary powers, but also, first ofall, on all-round state support state and the private enterprises creating a material basis of development of a society, the state and citizens, including, and in theform of the stimulatingfinancial control, capable to render by it the timely help.