Abstract
The aim of the research is to develop a scientific and methodical approach, which consists in the timely identification of systemic risks connected with the legalization of the proceeds of crime, their formalization, assessing and monitoring in order to prevent these transactions occurrence. The article analyzes the state of the Ukrainian economy in terms of its level of shadow economy, the corruption index, and the amount of illegal withdrawal of funds from the country. The key ways and methods of money laundering in Ukraine are defined. The components of the process of illegal withdrawal of funds abroad have been studied as well as key drivers and methods of shadow economy have been identified. The theoretical foundations of the development of the of formalization and assessment model of systemic risks of hiding proceeds are highlighted.
Highlights
To date, the problem of legalization of the proceeds of crime is a challenge for the financial and economic stability of many countries
In our opinion, it is necessary to consider the risk of legalization of proceeds of crime as the possibility of a transaction related to the legalization of proceeds that were illegally withdrawn abroad
Practical approval of the proposed approach to the risk assessment of hiding proceeds will be carried out using the example of investment channels for withdrawal of funds
Summary
The problem of legalization of the proceeds of crime is a challenge for the financial and economic stability of many countries. Stable activity of the financial system of the country is possible through providing the effective mechanisms and measures on deterring and combating money laundering at the level of different agents of the national economy and financial institutions (Lyeonov at al., 2018; Vasylieva at al., 2018; Polko, 2016). There is the process of bringing the existing legislative and regulatory framework in compliance with the requirements of the international standards of the national system for combating the legalization of the proceeds of crime and terrorism financing. In order to determine the areas of activity and channels for the financial flows transferring, where the probability of money laundering and terrorism financing is the highest one, it is necessary to analyze and assess the risk of these transactions (Buriak at al., 2015). The implementation of a risk assessment approach is possible due to the cooperation of competent authorities and financial institutions (Vasylyeva at al., 2014)
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