Abstract
Current trends in Ukrainian society, the decline of economic development and, on the other hand, digitalization, development of financial services and innovation lead to a review and rethinking of the causes and consequences of criminal activity in the financial and economic sphere. FinTech innovations provide the latest tools to protect financial transactions, and, as the range of services expands, provide more targets for cybercriminals. The goals of cybercriminals, in turn, are often financial in nature, as the goals of criminals, for example, are not only to obtain confidential information, but also to use it for their own benefit or to meet the needs of a third party. Funds obtained illegally should be legalized for their quiet further use. All these processes to some extent depend on the available financial infrastructure - the existing financial organizations-service providers. The purpose of this study is to determine the relationship between FinTech innovation, financial crime, cybercrime and money laundering by building an economic and mathematical model, taking into account the functioning of financial institutions as major intermediaries in the financial services market. The method of structural modeling of interrelations between processes was chosen as the basic for research. Missed values were predicted using a simple mean, the results were generated by analysis, synthesis, comparison and logical generalization. STATISTICA statistical software was used for simulation. The study found that the development of FinTech will lead to a reduction in financial offenses. If the number of cybercrimes and the number of crimes for money laundering increase, so will the number of financial crimes, but the impact of money laundering is stronger. The growth of fintech innovation will lead to an increase in cybercrime. With formalized linkages between these processes, law enforcement and government regulators will be able to better plan and manage the development of fintech innovation, risk-based digitalisation of the economy, and additional security measures.
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