Financial Intelligence Unit Research Articles

РОЛЬ МІЖНАРОДНОЇ СПІВПРАЦІ ДЕРЖАВНИХ ОРГАНІВ У СФЕРІ ЗНИЖЕННЯ ТА УПРАВЛІННЯ РІВНЕМ КОРУПЦІЇ В УКРАЇНІ

In the current conditions of development of market mechanisms for regulating the domestic economy, the issue of the impact of negative factors is more relevant than ever. In addition to Russia's military aggression, the introduction of martial law, and a significant number of forced restrictions on the activities of individuals and legal entities, the negative impact is also exerted by factors related to corruption, illegal enrichment, raiding, concealment of income or part thereof, money laundering, terrorist financing, etc. This situation necessitates the development of measures to reduce corruption, as well as the establishment of ongoing cooperation with international organizations to combat corruption. The purpose of the article is to determine the directions of international cooperation in the field of preventing manifestations of corruption in Ukraine, to study the effectiveness of such cooperation as one of the directions for reducing the level of corruption and the shadow economy, taking into account national and international anti-corruption programs, international experience in combating the legalization of income, money laundering or concealment of profits. The theoretical and practical basis of the study was the research of domestic scholars in the field of international cooperation in the field of combating corruption, legalization of the economy, analytical reports and data of the National Agency for the Prevention of Corruption and the National Anti-Corruption Bureau of Ukraine, indicators and benefits of cooperation between international organizations. Strategically important countries for Ukraine in recent years have become: Latvia, Germany, Poland, Montenegro, Moldova, and Lithuania. The most active organizations in terms of cooperation are: Financial Action Task Force on Money Laundering (FAFT); Egmont Group of Financial Intelligence Units; Council of Europe (Council of Europe Committee on the Evaluation of Anti-Money Laundering and Counter-Terrorist Financing Measures (MONEYVAL)); European Union; United Nations; World Bank; NATO; Organization for Security and Cooperation in Europe (OSCE); Organization for Economic Cooperation and Development (OECD); other international organizations in the field of financial monitoring. The most important areas of cooperation between domestic and international organizations in the field of combating corruption are: the creation of joint projects to combat money laundering and terrorist financing in Ukraine, the development of programs to combat money laundering and concealment of income, joint operations to expose terrorist financing schemes, the war in Ukraine, etc.

A Simulation Game for Anti-money Laundering (AML) Using Unity

With increasing demand of anti-money laundering (AML) regulation in Fintech, AML is one of the key factors in FinTech and its regulatory technologies (RegTech). Presently, as research and education on AML focus on financial institutions and authority, the individual is vulnerable to money laundering (ML) by being money mules with lack of awareness. Therefore, this paper illustrates the design of a 2-player simulation game for AML, which integrates the game-based learning model with plots including introduction stories, player actions and ending stories. In the game, a player role-plays either a money launderer or AML specialist. Within 6 in-game months, the former needs to perform ML with a target goal while the latter needs to identify the former’s actions and restrict him to achieve his goal.
 For actions of the money launderer, this paper integrates the criminal order with the PLI model (placement, layering and integration) to simulate the full ML circle. The criminal order provides return to the attacker if he completes it within the time limit. Each layer in the PLI model is expanded with middle processes for the methodology. The attacker uses shell companies to hide his identity and support each transaction for ML with apparently legitimate reasons.
 For actions of the AML specialist, this paper integrates the AML transaction monitoring with the Financial Action Task Force (FATF)’s Forty Recommendation. The defender needs to perform AML transaction monitoring with identifying suspicious financial activities based on money flow. Then, he needs to identify the actual beneficial owner of suspected companies with their share distributions. Both money flows and share distributions are visualized in data charts. Later, the defender shall report suspicious companies to the Financial Intelligence Unit (FIU), which will return the investigation result at the beginning of the next in-game month.

Revenue Allocation and the Development of Ukanafun Local Government Area of Akwa Ibom State

This research was carried out to examine revenue allocation and the development of Ukanafun, the Local Government area of Akwa Ibom State. The study was motivated by persistent crises in the fiscal relations among the three tiers of government in Nigeria, being that the Federal and State governments have exploited and stifled the effective performance of the local governments. Among others, the subsidiary objective was to examine the relationship between revenue allocation and the infrastructural development of Ukanafun local government Areas of Akwa Ibom State. The theoretical framework adopted in this work was the structural-functional theory, while data were gathered through qualitative and descriptive methods. Data gathered were analyzed through the use of content analysis. The major findings of the study revealed that that the total sum of N3,759,132,819.36 was allocated to Ukanafun L.G.A. from 2021 to 2023, while the local government council undertook about 6 infrastructure/healthcare-related projects in two and a half years. The study recommended, among others, that section 162 (6) of the constitution of the Federal Republic of Nigeria should be amended to cancel the State/Local joint account which will ensure financial autonomy for the councils. The Nigerian Financial Intelligence unit should be used effectively to address financial crime and to deter public officers from corrupt practices in the Ukanafun Local government area of Akwa Ibom State.

The Impact of Internal Audit on Improving Anti-Money Laundering (Aml) and Counter Terrorist Financing (Ctf) Controls in Nigeria

This peer review conceptual paper explores the impact of internal audit on improving anti-money laundering (AML) and counter-terrorist financing (CTF) controls in Nigeria. The study aims to examine the role of internal audit in enhancing AML/CFT controls and to identify any limitations or criticisms of internal audit in this context. The researchers conducted a search for research papers published between 2015 and 2023 on the impact of internal audit in improving and AML/CTFT suing the Google Scholar Search Engine, EBSCO Hosts, Science Direct, JStor and Emeralds. The Selection Criteria for the relevant articles are the keywords in the theme of the research. The selected journals were reviewed, analysed and synthesized. The paper concludes that internal audit plays a crucial role in improving AML/CFT controls in Nigeria and suggests that internal auditors should be more involved in the design and implementation of AML/CFT controls. The paper recommends that the internal auditor must be equipped with the in-depth knowledge of the various schemes through which criminals launder money and the evolution of the various money laundering and terrorism financing schemes and how ICT tools can be used to deter these white collar crimes. The study further recommends a stronger need for collaboration between the internal auditors and the Nigerian Financial Intelligence Unit (NFIU) and the AML/CTF Department of the Central Bank of Nigeria (CBN) for information sharing on new standards and best practices to combat money laundering and counter terrorism financing

Peculiarities of the functioning of the financial monitoring system in Ukraine

The paper examines the peculiarities of the functioning of the financial monitoring system in Ukraine. It is substantiated that in the conditions of the relentless development of Ukrainian society in accordance with world trends, the need to study the peculiarities of financial monitoring and conducting its operations in conditions of digitalization is an urgent issue, therefore the topic of the paper is quite relevant in today's conditions The purpose of the paper is to assess the specifics of financial monitoring in Ukraine and to substantiate proposals for its improvement in the context of active digitalization. It was noted that the central authority appointed to act in the specified area and perform the functions of the financial intelligence unit is the State Financial Monitoring Service of Ukraine. An analysis of the activity of the State Financial Monitoring Service of Ukraine was carried out in terms of operations carried out by it in recent years. The information system that ensures the work of the State Financial Monitoring Service in conditions of digitalization is presented. It is substantiated that at the current stage of development of Ukrainian society there are many problems and abuses in the field of financial monitoring. As a conclusion, proposals regarding the implementation of directions that will contribute to the activation of the implementation of digitalization in the field of financial monitoring in Ukraine are argued. In order to eliminate or minimize the problems that exist today in the field of financial monitoring, the paper proposes to implement the following directions: implement full-fledged transformational changes in monitoring processes in the state; create a favorable environment for the development of e-business; to form an infrastructure capable of ensuring an appropriate level of cyber security, development of cloud technologies and mobile Internet, quality service of subjects of primary financial monitoring; to form a data transmission system regarding information about possible risks that await subjects in the field of digitalization; to provide consulting and technological support to subjects in the field of using protected information and communication systems.

The birth of the new anti-money laundering authority: harnessing the power of EU-wide supervision

PurposeThis paper aims to critically examine the European Union’s legislative initiative to establish an Anti-Money Laundering Authority (AMLA), which will introduce union-level supervision and provide support to national supervisors in the field of anti-money laundering and countering the financing of terrorism (AML/CFT), as well as to financial intelligence units (FIUs) in European Union (EU) member states. The paper discusses why this initiative was deemed necessary, which are the key objectives, rules and principles of AMLA and which challenges and opportunities will emerge as AMLA becomes operational.Design/methodology/approachThis paper draws on reports, legislation, legal scholarship and other open-source data on the EU legislative initiative to establish a new AMLA.FindingsAMLA will provide a comprehensive framework for EU-level AML/CFT supervision and for cooperation among FIUs. If all organisational challenges are properly addressed, the new authority will significantly enhance the EU’s ability to tackle money laundering and terrorism financing.Originality/valueTo the best of the author’s knowledge, this study is one of the first to examine the mission, governance and supervision mechanisms of the EU’s AMLA, as well as the challenges and opportunities associated with its functioning.

Is Bangladesh’s policy response to the growing e-commerce sector compatible with its commitment to fight predicate offences for money laundering?

PurposeThis study aims to investigate Bangladesh’s e-commerce regulations in light of the growing criticism that they are insufficient to curb predicate crimes like fraud and money laundering in the online marketplace.Design/methodology/approachThis study used the exploratory design to examine the latest ministerial directives and laws governing e-commerce in Bangladesh to determine why they cannot prevent fraudulent activities in this promising sector and identify potential solutions.FindingsBangladesh’s regulatory responses to e-commerce fraud prevention and detection are reactive and inadequate. Regulators are unwilling and unable to enforce available legal provisions for various reasons, including a lack of knowledge and coordination among the agencies.Research limitations/implicationsThis paper focuses solely on the legal and regulatory framework in place to combat e-commerce fraud. Other critical issues, such as consumer rights, privacy and data protection in e-commerce, are not addressed.Practical implicationsThe findings of this study will assist policymakers in revising current regulatory approaches to e-commerce to protect this sector from criminal abuse.Originality/valueThis study looked into the possibility of using a proactive risk-based approach in the e-commerce sector, similar to what the Bangladesh Financial Intelligence Unit does in the financial sector.

Anti-money-laundering oversight and banks’ reporting of suspicious transactions: some empirical evidence

AbstractWe investigate the relation between anti-money-laundering (AML) inspections and banks’ ability and effort to identify and report suspicious transactions. We do so by using detailed data from the Bank of Italy and the Italian Financial Intelligence Unit, which include information on (i) authorities’ on-site inspections and enforcement actions, (ii) quantity and quality of suspicious transactions reports filed by banks before and after inspections, and (iii) reports’ investigative follow-ups. We document an increase in banks’ reporting after an inspection. Crucially, the increase is not concentrated among low-quality reports, but is spread to reports which are relevant from both a financial and an investigative point of view. We thus overall observe a rise in the information conveyed by AML reports after the authorities’ intervention. On the mechanism of the effect, we provide some suggestive evidence that inspections induce an increase of both banks’ reporting effort as well as screening skills (JEL G28, K23, L51, M21).

On the issue of the financial intelligence of Ukraine in preventing the legalization of illegal income

The purpose of the paper is to determine the importance of financial intelligence in preventing criminal income and to study some aspects of the practical activities of this unit over the past 20 years in maintaining the economic security of the state. The methodological and information basis of the work are scientific works, scientific materials of periodicals. Based on the methodological approach, it is substantiated that an important stage in the development of financial intelligence in Ukraine is the conduct of national risk assessments, in particular with the application of international recommendations, best practices and guidelines and reports, respectively. The paper examines the operation of the Financial Intelligence Unit, which is the national center for receiving and analyzing suspicious transaction reports and other information related to money laundering, related predicate crimes and terrorist financing, and for disseminating the results of that analysis. It was established that the State Financial Monitoring Service of Ukraine is the central state body responsible for collecting. analyzing and transferring data on suspicious financial transactions to authorized bodies. The research carried out in the article made it possible to establish that conducting financial intelligence of illegal income and assets carried out through the financial system of Ukraine prevents losses to the state and society from the actions of organized groups and criminal organizations, eliminates any possibility of legalization (laundering) of income received by criminal by inhibiting the development of the economy, ensuring the economic security of the state.

In trust we share: The politics of financial intelligence sharing

Financial transactions data are increasingly considered valuable in the context of security threats, yet they are particularly privacy sensitive. At present, 166 Financial Intelligence Units (FIUs) worldwide are able to share financial intelligence via the Egmont Group, their joint platform. This paper analyses the politics and practices of transnational financial intelligence sharing, with a particular emphasis on the Egmont Group. We draw on literatures at the intersection between political economy and financial security to analyse how FIU practitioners rely on what we call ‘circuits of trust’ that enable them to engage in a politics of data-sharing. Drawing on semi-structured interviews and participant observation, we examine three practices: the role of trust in navigating the ‘legal grey zone’ in which FIU data are shared; the way in which trust circuits make intelligence sharing possible; and the implicit notions of (un)trustworthiness at work when FIUs share intelligence, leading to inclusion and exclusion. We aim to push forward the conversation about economic trust practices by observing how the circuit of trust operates in everyday practice, making the sharing of financial intelligence (im)possible.

ОРГАНІЗАЦІЯ ДІЯЛЬНОСТІ ДЕРЖАВНОЇ СЛУЖБИ ФІНАНСОВОГО МОНІТОРИНГУ УКРАЇНИ В СИСТЕМІ ЕКОНОМІЧНОГО КОНТРОЛЮ

The article provides a retrospective historical analysis of the formation of State Financial Monitoring. It is shown that its evolution was accompanied by an expansion of performed functions and an increase in institutional independence. Supranational and national documents in the field of prevention and countermeasures against legalization (laundering) of proceeds obtained through crime, financing of terrorism and proliferation of weapons of mass destruction are summarized. The duties, rights, functions and powers of State Financial Monitoring, its internal and international legal status as an "administrative-type" financial intelligence unit are defined. The organizational structure of State Financial Monitoring, including Management, Departments, Management and leading departments, is characterized, and their functions are summarized. The status of the permanent or temporary consultative, advisory and other auxiliary bodies created under it, the powers of general meetings of civil servants, the disciplinary commission, and the tender committee are determined. The budget status of State Financial Monitoring as a manager of budget funds of the third level in the system of the network of the main manager of funds of the Ministry of Finance of Ukraine has been determined. It is shown that in 2022, in terms of budget programs and individual expenditure items, the main specific weight of budget allocations falls on KPKV 3509010 "Leadership and management in the field of financial monitoring", and in the structure of budget allocations for economic expenses, the largest specific weight falls on labor wages. An assessment of the activities of the State Financial Monitoring Service for the implementation of a risk-oriented prevention and countermeasures system in accordance with the FATF Recommendations was provided. The purpose, procedure and stages of the National Risk Assessment are described. The main risks and threats of the national system of financial monitoring are identified, as well as the measures of the government aimed at reducing them are summarized. The areas of improvement of the activities of the State Financial Monitoring Service have been determined: increased attention to cross-border risks, risks of the activities of non-profit organizations and various types of legal entities; increasing the volume of information sources and improving the quality of the statistical base; concentration of attention on the risks caused by fictitious entrepreneurship, the shadow economy and the use of cash in business turnover.

Money laundering conviction rate and capital formation in Nigeria

Drawing from the Financial Action Task Force (FATF, G7) recommendations and the Nigeria Anti-Money Laundering Act that provides the penance and dissuasion for crimes in Nigeria, this study sought to interrogate the efficacy of money laundering conviction rate as an instrument of anti-money laundering policy on capital formation in Nigeria. The study is hinged on contemporary deterrence theory. The study adopted the ex-post facto research design and used quarterly data from 1Q 2010 to 4Q 2019, which was sourced from the Nigerian Financial Intelligence Unit (NFIU), Economic and Financial Crime Commission (EFCC) and CBN statistical reports. Hence, Error Correction Model (ECM) was utilized to analyze the data. The findings indicate that the current money laundering conviction rate (MLCR) has a negative and non-significant effect on capital formation in Nigeria. Therefore, the study concludes that the current conviction rate is too weak to deter the act. Hence, it is recommended that the judicial system be rejigged with enabling legislation and autonomy to strengthen it to hasten the trial of such cases and ease conviction of culpable individuals, without necessarily putting innocent victims at jeopardy. Such autonomy should also be granted to the EFCC, ICPC, NFIU etc. and inter-agency synergy should be encouraged.

An Analysis of the “Follow The Money”: Investigative Audit Technique in Campaign Funds for the Election of Regional Heads in Indonesia

The practice of campaign funds monitoring that is limited to compliance with laws and regulations by submitting reports and audits is still considered insufficient in an effort to realize a clean election and support the implementation of good governance. This research aimed to find out information related to compliance with campaign funds for 2020 Regional Head Elections through the follow the money investigative audit technique in accordance with regulatory provisions as an evaluation of the implementation of the 2020 Regional Head Elections in terms of campaign funds. This research was conducted in the Indonesian Financial Transaction Reports and Analysis Centre (PPATK) as Financial Intelligence Unit using a qualitative method with case studies and descriptive analysis. Based on the results of the analysis and other information owned by PPATK, there were indications of violations of campaign funds regulation as stated in the National Election Commission Regulations Number 12 of 2020 and indication of money politics practice. Keywords: campaign funds, PPATK, investigative audit, follow the money

IV. AML Directive: Problems related to exchange of information between Financial Intelligence Units

The presented paper is devoted to application problems in the field of ensuring international cooperation between Financial Intelligence Units. In accordance with the set goal, the author further analyses the existing application problems related to the exchange of information between the Financial Intelligence Units of the European Union. A special part of the paper focuses on the issue of the absence of uniform regulation at the level of the European Union in the area of information exchange between the European Union Financial Intelligence Units and the Financial Intelligence Units of third countries. In addition, the author further analyses the use of communication channels between the Financial Intelligence Units related to the assurance of sufficient protection of personal data.

How does the General Data Protection Regulation (GDPR) affect financial intelligence exchange with third countries?

PurposeThis paper aims to examine the probable effect of the General Data Protection Regulation of the European Union on the transfer of financial intelligence to a third country without an adequacy decision.Design/methodology/approachThis is an analytical study of the financial intelligence exchange mechanisms between the Bangladesh Financial Intelligence Unit (BFIU) and its foreign counterparts. The research analyses the key challenges this national agency faces in using the Egmont Group membership to import financial intelligence from jurisdictions with a superior data protection regime.FindingsMembership in the Egmont Group of Financial Intelligence Units does not guarantee unrestricted international intelligence exchange. Existing data protection regulations in Bangladesh are inadequate. This may forbid the transfer of the financial intelligence linked to European Union (EU) data subjects to Bangladesh.Research limitations/implicationsThis paper does not cover a thorough discussion on any specific alternative tools for data transfer from the EU to a third country except for “appropriate safeguards” options.Practical implicationsThe results of this study will help understand the existing legal and institutional limitations that may prevent intelligence exchange between the BFIU and its EU counterparts.Originality/valueThe study helps ascertain the legislative reform necessary in Bangladesh, a third country, to facilitate the transfer of financial intelligence from the EU.

Financial surveillance and the role of the Financial Intelligence Unit (FIU) in the Netherlands

PurposeIn 2019, FIU-the Netherlands celebrated its 25th anniversary. This study takes the occasion to reflect on the role of the FIU in financial surveillance and to describe its core practices of collecting, analysing and disseminating financial intelligence.Design/methodology/approachBecause FIU practices are often secret and its transaction data classified as state secrets, the FIU’s daily operational activities remain obscure. Drawing on interviews, public reports and an online training course, this study encircles secrecy and offers a fine-grained analysis of the FIU's core activities.FindingsThe article finds that the FIU plays a pivotal role in financial surveillance because it can operate at various intersections. An FIU operates at the intersection of finance and security, in between the public and private sector and at the national and international domain. This pivotal role makes the FIU indispensable in the surveillance of payment systems and spending behavior.Social implicationsThe article poses that the desirability and effectiveness of financial surveillance has to date not received sufficient consideration, while it affects (the privacy of) anyone with a bank account. The article asks: is it ethically justifiable that transaction information is declared suspect, investigated, and shared nationally and internationally, without the individual or entity concerned officially being notified and legally named a suspect?Originality/valueThis case-study is not only relevant for the study of finance/security, AML/CFT and financial surveillance, but also to policy makers and the broader public who merit an understanding of how their financial behaviour is being surveilled.

Pecunia olet. Cash usage and the underground economy

This paper explores the role of cash usage in feeding the underground economy by using a unique dataset that combines, at province level, official estimates of Italian firms’ underreporting with data on cash transactions drawn from the aggregate anti-money laundering reports filed to the Italian Financial Intelligence Unit (UIF) by banks. In order to derive causal evidence, we apply two different econometric strategies: an instrumental variable approach and a difference-in-difference approach, which exploits the change in the maximum threshold for cash transactions introduced in 2016, thereby providing a measure of the effect of such policy on tax evasion. We find that an increase in cash usage translates, other things being equal, into a higher level of underreporting by firms, and that raising the cash threshold in 2016 – a measure motivated by the objective of boosting spending – had the side effect of leading to a larger underground economy.

Evaluating the ability of the National Agency for Financial Investigation of Cameroon and the Nigerian Economic and Financial Crimes Commission in combating Money Laundering

Illicit financial flows remain a serious problem to both developed and developing countries with tremendous negative impact on the economy. Although the police is there to investigate offences, certain offences are more sophisticated in nature thereby, necessitating the establishment of specialized agencies to investigate such offences. Nigeria and Cameroon have very common similarities when it comes to corruption and efforts to eliminate it led to the creation of the Economic and Financial Crimes Commission (EFCC) and the National Agency for Financial Investigation (ANIF). These agencies have the mandate to fight against money laundering and terrorist financing but the mandate of the EFCC is more extended with tremendous powers to investigate and directly prosecute offenders. ANIF does not have such powers and only report to the prosecution after investigation. This is attributed to the fact it is Financial Intelligence Unit (FIU) whose functions are usually limited to collection, analysis and dissemination of information related to money laundering, associated predicate offences and the financing of terrorism. Cameroon has opted for the administrative model lodged within the Ministry of Finance. The objective of this paper is that it seeks to make a comparative study of the EFCC and ANIF in the fight against financial crimes and to draw a line as to the model that is more efficient. To achieve this, a qualitative research approach was adopted. Accordingly, the doctrinal method was used which enabled us to do an on desk analysis of the available secondary and primary data on the EFCC and ANIF. This paper recommends that more sophisticated means should be given to the EFCC and that the CEMAC sub region should adopt the Nigerian model which has proven to be more successful in combating illicit financial flows.

Financial intelligence unit of Pakistan: an evaluation of its performance and role in combating money laundering and terrorist financing

PurposeThis study aims to determine the performance of the Pakistani financial intelligence unit in combating money laundering/terrorist financing in local and global contexts.Design/methodology/approachThe study used a qualitative research design. The objective is achieved by critically examining the Anti-money Laundering Act and its relevant clauses concerning the financial monitoring unit and other related legislation. Further, empirical data was collected through semi-structured interviews with chief compliance officers from regulated entities, regulators and premier law enforcer.FindingsThe performance of the financial monitoring unit has severe issues concerning the dissemination of financial intelligence due to its time taking behaviour, non-sharing of feedback with reporting agencies, dearth of international cooperation, lack of trained and relevant personnel and financial constraints.Originality/valueTo the best of the authors’ knowledge, this is a maiden study concerning financial monitoring unit in Pakistan.

EXPERIENCE OF INDIVIDUAL EUROPEAN COUNTRIES IN BUILDING A SYSTEM TO PREVENT MONEY LAUNDERING

Ukraine as a European state implements a set of strategic measures for economic development on a global platform, collecting, processing and analysing information about suspicious financial transactions that may be related to money laundering, but the prevention mechanisms are not effective enough and the ranges of such crime pose a real threat to the national security of the country, which determines the relevance of this study. The purpose of the study is to comprehensively analyse foreign strategies to prevent money laundering and, accordingly, consider the possibility of implementing certain measures in the legal plane of the Ukrainian state. In the course of the entire study, a group of general logical methods was used – comparison, analysis, synthesis, and generalisation, which allowed objectively assessing the level and effectiveness of national and legal phenomena to prevent illegal legitimisation by foreign states, which is carried out both on the territory of the country and abroad. The theoretical basis of this study is the investigations of Ukrainian and foreign researchers on aspects of preventing money laundering, and government websites created for the purpose of storing public information in the form of open data and ensuring access to it to a wide range of people. Based on the conducted research in the context of the existing foreign system of combating money laundering, its normative, organisational, and to some extent, socio-cultural aspects were considered. In particular, the activities of the central office represented by the inspector general of financial information of the Polish anti-money laundering system are described. The system of preventing the money laundering of the main financial intelligence unit within the Ministry of Economy, Finance and Industry of France is investigated. The analysis of measures to prevent money laundering carried out by the federal agency for supervision of the activities of financial institutions of the Federal Republic of Germany is carried out. The study considers the practice of preventing money laundering by a professional unit operating as part of the organised crime group in Austria. The state system of measures implemented by the commission for combating money laundering of the Kingdom of Spain is analysed. The preventive activities of the anti-money laundering service of the monetary and financial administration in Italy are described. Attention is focused on effective legal means that have a significant positive impact on the activities of economic processes in the global market economy and proposals were made to supplement the current national legislation regulating the sphere of money laundering prevention. The practical significance of the study is conditioned by the fact that the studied scientific provisions, generalisations, conclusions, and recommendations have both theoretical and applied significance, which can later be used in research activities and the educational process