ЕФЕКТИВНІСТЬ ФОРМАЛЬНИХ ПРАВИЛ ФІНАНСОВОГО МОНІТОРИНГУ

Abstract

This study evaluates the effectiveness of the system of formal rules of financial monitoring and determines the criteria for the expediency of their reform. It was determined that in a generalized form, two components of the financial monitoring system can be distinguished: control over financial flows and control over citizens’ expenses. It is shown that the formal rules of financial monitoring are characterized by a significant level of target and transactional inefficiency. If the targeted ineffectiveness of formal financial monitoring rules is due to the impossibility of the monitoring system covering all financial flows and expenses of citizens, then the main reason for the transactional ineffectiveness of formal financial monitoring rules is the creation of additional bureaucratic procedures and an increase in the level of relevant transaction costs. It was established that the proper functioning of the financial monitoring system is impossible without additional mechanisms of investigation and appeals regarding identified dubious transactions. The functioning of these mechanisms is regulated by the formal rules of financial investigations. The inefficiency of the latter may cause the conditional inefficiency of the formal rules of financial monitoring. It is shown that, depending on the goal pursued during the implementation of the financial monitoring system, various measures can be applied to increase the effectiveness of the formal rules of financial monitoring. In the case of introducing a financial monitoring system to combat the shadow economy and tax evasion, reforming the formal rules of financial monitoring involves delegating basic monitoring functions to players who can implement these functions with the lowest transaction costs of bureaucratic procedures. In the case of introducing a system of financial monitoring to stop certain types of illegal activities, reforming the formal rules of financial monitoring is impractical. Instead of a partial reform, the formal rules of financial monitoring should be completely replaced by formal rules that eliminate the immediate causes of the emergence and spread of the relevant types of illegal activities.