The issue of economic and legal prerequisites for the emergence and development of compliance in the sphere of banking activities

Abstract

The article examines the issue of prerequisites for the emergence and development of compliance, which is becoming increasingly widespread in the sphere of business in Ukraine. Compliance control is a necessary and mandatory element of the activities of Western companies, both financial and representatives of other areas of business. Compliance came to Ukraine relatively recently and has not become widespread in domestic business. The issue of compliance is relatively new not only for domestic financial science and law enforcement practice, but also for industries, agriculture, and medicine in the framework of control, prevention and prevention of risks associated with non­compliance with the requirements, rules, and regulations of the law. That is why in the field of ensuring banking security, it is necessary to comply with the requirements of the legislation regulating relations in the field of banking activity, with the aim of increasing the efficiency of operations, increasing competitiveness and investment attractiveness. Failure to comply with this requirement may cause irreversible consequences for the banking institution itself, for the state, as well as for investors, partners, shareholders and customers. Prevention of these negative consequences is the task of an effective banking compliance system as an element of Ukraine's economic security. For a better understanding of the meaning of the compliance procedure, in the article, the author singles out the economic and legal prerequisites for the emergence of compliance, its importance, development in Ukraine, and the consequences of applying this procedure. Recently, the banking system of Ukraine has been significantly affected by changes in economic conditions, namely military actions that caused a decrease in assets, created a large number of risks and threats for banking institutions. The current state of Ukrainian control over compliance with legislation in the compliance system in banking requires research and a critical analysis of its regulatory framework in Ukraine to determine effective directions for the development of legislation in this area. The author analyzed international compliance documents that define the principles of compliance, contain recommendations for building an effective compliance function, establish mechanisms for the implementation and functioning of the compliance control system, regulate issues of identification, assessment, management, and timely notification when compliance risks are identified.