Financial monitoring as a condition for ensuring the state security of the country: concepts, components, stages of development

Abstract

The purpose of the study is to reveal the theoretical aspects of the system of preventing and combating money laundering and terrorist financing, determining the main directions and consequences of the development of the financial monitoring system as a whole and its components. At the present stage, international terrorism has intensified. Legalization of illicit proceeds and terrorist financing is one of the threats to national security. Financial monitoring is an effective tool for overcoming this threat in the world. The system of prevention and counteraction to legalization (laundering) of proceeds and financing of terrorism consists of financial monitoring and law enforcement unit. Institutional, methodological, organizational and normative-legal support is allocated as parts of financial monitoring. Institutional support is a key component of the financial monitoring system. Its elements affect other components of the system, determine the effectiveness of its operation. The characteristics and stages of development of institutional support are given. To determine the effectiveness of the financial monitoring system, it is advisable to use indicators of institutional support. The analysis of these indicators showed the effectiveness of the domestic financial monitoring system. The conclusions are to substantiate the areas for further improvement of the components of the financial monitoring system: for institutional support – the need to further establish the procedure for exchanging information with law enforcement agencies and state regulators is justified; for regulatory and legal support – the expediency of adopting regulatory and legal documents that will consolidate the legal status of new objects of financial monitoring is reflected; for organizational support – the expediency of expanding the requirements for training is reflected. This training should take into account the latest changes in legislation in the field of preventing and combating money laundering and terrorist financing.