Financial Activities Research Articles

AMENDMENTS TO THE LAW ON FINANCIAL COMPANIES IN THE SPIRIT OF PROTECTING CITIZENS’ INTERESTS

Nonbank financial companies, also known as financial companies, are financial institutions that offer various financial services, such as: approving loans to individuals and legal entities, issuing and administering credit cards, factoring and issuing guarantees, as well as advising on various financial and leasing activities. Unlike banks, for the establishment of a financial company, a simpler procedure is foreseen, even a license from the National Bank is not required, but only permission from the Ministry of Finance. The establishment, operation and supervision of financial companies in the country is governed by the Law on Financial Companies. As institutions that are in their infancy in the country and given the still insignificant impact on the financial sector, it is expected that the legislator will often make changes and additions to the legal regulations for financial companies. The purpose of these changes in the legislation of financial companies is to provide an operating environment for them between the protection of the users of services from financial companies and the increase of reliability towards these companies. In this paper, the author, in addition to analyzing the legislative platform and the recent changes in this platform, but through the statistical method provides an overview of the activity of financial companies in the Republic of North Macedonia.

MONEY LAUNDERING DETECTION METHODS IN THE MODERN FIGHT AGAINST CRIME ORGANIZED AND FINANCIAL CORRUPTION

The detection of money laundering is an essential aspect in the modern fight against organized crime and financial corruption. Money laundering is a procedure used by criminals to disguise the legal source of ill-gotten gains and integrate them into the legal economy. In this essay, we will explore the meaning and methodology of money laundering detection. The initial purpose of the money laundering detection methodology is to identify and track suspicious financial transactions and activities of individuals and legal entities. Various techniques and tools are used for this, including financial monitoring of transactions, analysis of financial documents and investigation of ownership and assets. One of the most important aspects of the methodology for detecting money laundering is the analysis of financial transactions. Criminal investigators investigate all transactions of suspicious persons and organizations, to identify transactions that occur in the context of money laundering. Investigating ownership and assets is another critical part of the money laundering detection methodology. This includes checks on the properties and assets of suspicious individuals and organizations. Investigators look into property, patents, company ownership and other assets to prove the links between them and the origin of the money. In conclusion, the methodology for detecting money laundering is complex and very important in the fight against organized crime and financial corruption. Using the analysis of financial transactions, financial reports and documents, as well as the investigation of ownership and assets, criminals try to identify and prosecute money launderers and organizations. Using modern technology and international cooperation, the effectiveness of the methodology can be improved and more serious obstacles can be created for criminals trying to use it to hide illegal capital.

Финансовые аспекты поддержки развития субъектов малого бизнеса в целях инновационного развития экономики

The development of the business sector is a significant factor in a stable and developing economy. This statement is based on the opportunity for small and medium-sized businesses to create new jobs, optimal management of financial resources in the current macroeconomic circumstances. In turn, a stable source of budget revenues is formed for the state through taxes and fees. The conducted studies of statistical data on the financial and economic activities of small businesses for the period from 2017 to 2013 revealed an increase in the total turnover (revenue) by 28.57 %. The study of the financial and economic activities of this sector of the economy in the regional aspect by the constituent entities of the Russian Federation revealed a significant increase in entrepreneurial activity, primarily in the Volga Federal District. The turnover (revenue) indicator increased by 2.29 billion rubles, reaching a significant volume of 6.0 billion rubles as of January 1, 2024. The main sources of financing for small businesses are their own funds, as well as borrowed (credit) resources. An important aspect of the state policy to support the financing of small businesses is the development of alternative instruments: crowdfunding platforms, venture investment, regional events to evaluate start-ups, etc. This approach is largely aimed at expanding financing, through which it is possible to more actively develop the activities of small businesses for the purpose of innovative development of the economy

Совершенствование процесса управления государственными закупками в подразделениях системы МВД России

Estimated indicators for three years, the same period is considered when forming a plan of financial and economic activities in autonomous and budgetary institutions. The principle of efficient use of budgetary funds for procurement of goods, works and services is fundamental in the budgetary process when forming expenditures in a public institution. The authors, reflecting the efficiency of using budgetary funds in procurement activities, guided by this principle, investigate the initial maximum contract price, proposed a metho-dology for forming the lowest contract price by introducing a correction factor.

Defining the complex needs of families with rare diseases-the example of telomere biology disorders.

Families with rare diseases, such as telomere biology disorders (TBDs), may have extensive unmet needs given the heterogeneity, chronicity, and potential severity of illness. TBDs are rare inherited syndromes associated with high risk of bone marrow failure, cancer, pulmonary fibrosis, and other severe, chronic complications. To identify gaps in clinical care, we aimed to ascertain the perceived unmet needs of adults and family caregivers, current or bereaved, of individuals with TBDs. Participants were aged ≥18 years with a self-reported TBD diagnosis and/or ever caregivers to one or more family members with a TBD. Participants completed an online survey (N = 35) and/or an audio-recorded telephone interview (N = 32). We calculated descriptive statistics in SPSS and thematically analyzed interview transcripts. Quantitative and qualitative data were analyzed concurrently. Most participants were aged ≥35 years, female, highly educated, and medically insured. Survey respondents reported numerous unmet needs in psychosocial, medical, financial, and daily activity domains. In interviews, participant descriptions validated and contextualized the salience of these unmet needs. Both qualitative and quantitative data identified critical shortfalls in addressing chronic family distress and specialty care coordination. Adults and caregivers of individuals with TBDs have a high risk of adverse psychosocial sequelae given extensive unmet needs. These findings provide a foundation for understanding the range and extent of gaps in care for families with rare diseases, especially TBDs but that are likely applicable to others. Tailored multi-disciplinary interventions involving patients, families, clinicians, researchers, and patient advocacy communities are required to appropriately address care needs for all rare diseases.

SUSTAINABLE FINANCE AND USE OF ARTIFICIAL INTELLIGENCE IN INVESTMENT DECISION MAKING

Artificial Intelligence (AI) is widely used across various industries to enhance efficiency, optimize decision-making, and create innovative solutions and it is now transforming the field of investment decision-making. As companies and investors place a greater emphasis on ethical and sustainable practices, sustainable finance-which incorporates environmental, social, and governance (ESG) factors into financial activities - is gaining global traction. Artificial Intelligence (AI) is becoming a vital instrument in the sustainable finance, because of its ability to analyse enormous volumes of data and spot patterns that are beyond human comprehension. This research paper examines the use of artificial intelligence (AI) tools like predictive analytics, machine learning, and natural language processing,in the financial decision-making. AI can quickly evaluate ESG aspects, predict long-term sustainability risks, and pinpoint high-impact investment opportunities that are in line with sustainability objectives by automating data gathering and analysis. Furthermore, AI-driven insights promote more ethical and knowledgeable financial decision-making by helping investors better manage risks related to social inequity, resource depletion, and climate change. Even though artificial intelligence (AI) has many benefits for sustainable finance, there are drawbacks as well, including data biases, opaque algorithms, and ethical issues. The article concludes that, artificial intelligence helps in creating more precise, effective, and socially conscious financial strategies.Artificial Intelligence (AI) is becoming increasingly important in sustainable finance decision-making due to its ability to handle complex, large-scale data, identify patterns, and optimize decision-making processes in ways that can advance sustainability goals. However, to fully realise AIs potential in forming a sustainable future for global finance, careful governance and ethical concerns are indispensable.

Research on the Impact of Disclosure of Key Audit Matters on Corporate Financing Constraints

This paper studies the impact of key audit disclosures on corporate financing constraints through empirical analysis. Although the disclosure of key audit matters can help to reduce the information differences between management and investors and improve the audit quality, such disclosure may also be regarded as a risk signal, and the warning function to investors may cause the difficulty of corporate financing to increase. This study concludes that the increase in the number of key audit disclosures will make corporate financing more difficult. When an enterprise announces more key audit matters, the market may regard them as a stronger risk signal, causing investors to be more cautious in making investment decisions, thus increasing the financing difficulty of the enterprise. However, in companies with large board sizes, the disclosure of key audit matters can alleviate the financing constraints. Larger boards are more likely to make the right decisions and therefore may disclose fewer risky aspects of key audit matters. This study provides a new understanding of key audit issues in financing activities and a useful reference for the possible impact of macro-policy adjustments on corporate profitability. In addition, the research also provides useful information support for enterprises to understand and adapt to the new auditing standards.

Некоторые особенности документирования финансовой деятельности учреждений власти и самоуправления Нальчикского округа в начале ХХ века

The article focuses on studying some features of documenting the financial activities of govern-ment and self-government institutions of the Nalchik district in the early twentieth century. The paper considers the records of government and local government institutions that were entrusted with financial functions (district and district boards, Treasuries, including Nalchik, Stavropol Treasury Chamber, Congress of Trusted Rural Societies of Greater and Lesser Kabarda and Five Mountain Societies, Kabardian public Sum and its treasurer, rural boards, rural public funds). The informative impact of such clerical documents as prescriptions, resolutions, reports, relations, re-ceipts from residents of villages, bills from various institutions to the treasurer of the Kabardian public sum and the head of the Nalchik district, statements, receipts, certificates, etc. is deter-mined for the study of various areas of the economic history of the Kabardian and Balkarian popu-lation of the district. The exchange of information between the subjects of financial relations oc-curred through telegrams and notices, and their description is given. It is concluded that the rec-ords of the institutions of government and self-government of the Nalchik district in financial ac-tivity contain information about how, in what form and on what issues they interacted with each other and with other non-financial institutions, what the hierarchy of financial institutions of the Nalchik District looked like during the period under study; and also reflected information on the composition of employees of financial institutions, authorities and self-government and their em-ployees, including representatives of the Kabardian and Balkarian population.

Features of Accounting under Uncertainty and Risk Conditions

Introduction. The purpose of the activity of each commercial organization is to make a profit, and therefore it is especially important, given the limited labor, material and financial resources, to achieve the planned performance indicators presented in both financial and non-financial assessments. Risks arising in conditions of external and internal uncertainty have an impact on the implementation of the financial and economic activity plan. To ensure the continuity of an economic entity's activities, it is necessary to form a flexible accounting system that accumulates information not only about the facts of economic life that have occurred, but also their characteristics from the perspective of risk-oriented management, in order to reduce the impact of uncertainty conditions on the financial results and property status of the organization. Purpose. Identification of accounting system problems in conditions of risk and uncertainty. Methods. The work uses general scientific research methods - comparison and analysis at each of the presented stages of the study based on an information base, including open data sources, scientific publications of Russian and foreign authors. Results. The key results of the study are 1) the differentiation of the definitions of "risk" and "uncertainty"; 2) the comparison of the chronology of the development of risk management and accounting; 3) the establishment of conceptual problems in accounting under conditions of risk and uncertainty. Conclusions. This study confirms and identifies conceptual problems in accounting in conditions of uncertainty and risk, pointing to the need to develop organizational and methodological foundations based on theoretical principles, which in turn will increase the competitiveness of economic entities of different forms of ownership and types of activity.

Clustering of agro-industrial complex of the Republic of Kazakhstan: prerequisites, distinguishing features, correlation matrix

The role of cluster formations in increasing the competitiveness of products and accelerating the innovative development of the agrarian economy of Kazakhstan is revealed. Theoretical and practical principles, prerequisites and methodological approaches to the creation of agro-industrial clusters are defined, their distinctive features are revealed. Purpose - economic interests of clustering in agro-industrial complex in the context of regions of the republic are considered. The selection of objects in 17 regions with the highest economic indicators of financial and economic activity was carried out. Methods – k-means - for preliminary reduction of data dimensionality by means of factor analysis; rapid cluster analysis - in order to combine economic entities into cluster components on the basis of similar characteristics. Results - primary data were collected, correlation matrix was constructed and the presence of generalized factors was assessed to reduce the dimensionality of the studied attributes. Multivariate statistical study of agricultural products production by regions for 2023 was carried out. The variant with 5 clusters, the order and map of location of 17 administrative-territorial units of regional significance were adopted, the dendrogram of intergroup linking of regions was developed. Conclusions - cluster analysis allows to distribute the totality of objects (regions) of the Republic of Kazakhstan into five cluster formations, connecting in them the enterprises having similar structure and production specialization. The identified groups can be used for rating assessment of agro-industrial cluster that promotes effective integration of resources and knowledge. It has been established that the application of the cluster approach contributes to increasing productivity and sustainability of the agricultural sector, ensuring long-term development and competitive advantages.

METHODOLOGICAL APPROACHES TO TAX AUDIT: THE IMPERATIVE OF ANALYSIS UNDER THE CONDITION OF UNCERTAINTY OF THE TERM

Introduction. A tax audit is a comprehensive examination of the financial activities of business entities with the aim of assessing compliance with tax legislation and identifying possible violations. In modern conditions, when economic instability and constant changes in tax legislation are becoming the norm, ensuring the effectiveness and accuracy of tax audits requires the use of complex methodological approaches. One of the key problems of the tax audit is the uncertainty of terms, which makes it difficult to plan and conduct audit procedures. Uncertainty can be caused by various factors, including changes in legislation, economic crises, force majeure and other unforeseen events. This uncertainty creates additional challenges for auditors who must adapt their methodological approaches to new conditions. The purpose of the article is considering methodological approaches to the interpretation of tax audits, identify their advantages and disadvantages. To justify the analysis as an imperative element of the tax audit method in the system of control over compliance with tax legislation. Methods. The following methods were used in the study of methodological approaches to tax audits in conditions of uncertainty of terms: analysis of literary sources. A systematic review of scientific publications, articles, monographs and legal acts related to tax audit was conducted. This made it possible to identify existing approaches and theoretical foundations; Comparative analysis: a comparison of different methodological approaches used in tax audits in different countries and conditions was made. This helped identify the most effective practices and adapt them to conditions of uncertainty. Results. A detailed substantiation of methodological approaches to the interpretation of tax audit from the standpoint of linguistic semantics strengthens the opinions of those scientists and practitioners who believe that in parallel with independent audit and audit services in the field of taxation, the concept of tax audit can be used for inspections carried out by tax authorities. In this case, both tax authorities and independent auditors have the right to use the concept of tax audit and have the right to conduct it. However, in our opinion, it is more appropriate to use two separate terms, in particular, such as "state tax audit" and "independent tax audit".

THE ROLE OF THE ANALYSIS OF THE FINANCIAL POTENTIAL OF THE ENTERPRISE IN THE FORMATION OF THE FINANCIAL STRATEGY OF ITS ACTIVITIES

The article substantiates the significance of the analysis of the financial potential of the enterprise in the formation of the financial strategy of its activity through the study of the theoretical and methodological foundations of the implementation of this type of analysis, the basic foundations of the process of forming the strategy of the enterprise and the search for connections between these economic phenomena. By the term "financial potential of the enterprise" we can understand the totality of the enterprise's opportunities for optimizing its financial flows (volumes, dynamics and structure), the timely identification and reasonable use of which allows creating conditions for maximizing the achievement of the enterprise's current and strategic goals. It was determined that the analysis of financial potential is a comprehensive analytical study of the company's capabilities to optimize the volume and structure of its financial flows. The financial strategy of an enterprise is defined as the determination of the long-term goals of the enterprise's financial activity, the choice of the most effective methods and ways of achieving them. It is established that the analysis of the financial potential of the enterprise penetrates into all stages of the process of forming the financial strategy of the enterprise, from the comprehensive assessment of the strategic financial position of the enterprise to the development of the target strategic guidelines of its activity in the financial aspect and the evaluation of the developed financial strategy. It was determined that the importance of financial analysis in the process of forming a financial strategy is also confirmed by the fact that in the scientific literature such a subtype of analysis as strategic financial analysis is often singled out, which focuses on a comprehensive analysis of the financial aspects of the enterprise from the point of view of ensuring the most complete realization of its financial potential for long-term stable development

Mapping the landscape of green banking strategies: a bibliometric approach

IntroductionGreen banking (GB) strategies are a set of financial practices and activities implemented by banks to encourage sustainability, environmental responsibility, and low-carbon impact. This bibliometric study examines the present state of research in this field by utilizing the Scopus database for data retrieval and VosViewer for network analysis.MethodA total of 149 researches were retrieved from the Scopus and analyzed using the VosViewer software following the PRISMA guidelines. The study examines year-by-year publication patterns, top-cited articles, contributing countries, journals, co-citation analysis of authors, and co-occurrence analysis of keywords.ResultStrategies such as online banking, solar ATMs, construction of green buildings, and making provisions for green loans are identified as the key GB strategies that can be adopted by the banks. Furthermore, the fundamental challenges banking organizations encounter while implementing GB strategies are underlined.DiscussionThe study suggests that “green brand image,” “green audit,” “environmental economics,” and “carbon footprint” can be considered as an area of interest in future. The study provides researchers, policymakers, regulators, and financial institutions with valuable insights by presenting the current state of green banking research and identifying emerging areas for further exploration. These findings will help others to discover the areas of interest in GB and advancing sustainable finance practices that can foster environmental responsibility in the financial sector.

European politicians and financial literacy activism: Does financial (in)stability matter?

Financial education can influence the level of financial literacy. In each country, political incentives can shape financial education policies. Political activism in financial education can be motivated by concerns over financial instability. This theoretical relationship is empirically validated applying text analysis. By using financial education narratives as a proxy for political activism among European Parliament politicians from 1997 to 2024, we test whether financial instability cases matter in explaining political activism in financial education.

Greenwashing in the FinTech sector: the role of the EU Corporate Sustainability Reporting Directive (CSRD)

FinTech companies, along with other financial institutions, face increasing pressure to take the lead in promoting a more environmentally sustainable future. The EU lately incorporated Corporate Sustainability Reporting Directive (CSRD) which offers both possibilities and challenges. This study examines the most recent modifications to Environmental, Social, and Governance (ESG) standards, identifying potential shifts that could affect FinTech firms. The problem of "greenwashing," a tactic used by businesses to misrepresent themselves as environmentally conscious, is especially concerning. Through literature analysis, this study attempts to explain terms related to greenwashing. While greenwashing instances were revealed so far within the confines of traditional banking, this study ventures beyond, including FinTech firms. FinTech companies are the focus of analysis because they are expected to play a significant role in the increased regulatory scrutiny starting in 2024. The paper addresses the opportunities and challenges that financial technology companies may face as they navigate this complex field. Relevant stakeholders looking for deep insights into the relationship between financial technology and environmental responsibility will find great value in the research's conclusions. This paper adds to an ongoing conversation on sustainability and regulation, enhancing the discussion of ethical financial activities.

Does cooperative membership facilitate access to credit for women farmers in rural Kenya?

Potential borrowers' demand for credit is restrained by agricultural risk, while microfinance institutions favor male over female farmers because the latter have no collateral. We investigate whether women's membership in cooperatives facilitates access to credit. Primary data from Kenya were used. Descriptive statistics, propensity score matching, and probit regression methods were applied. The results show that 78 % of the respondents did not apply for credit mostly because of high interest rates and being risk-averse; while 60 % of those denied credit were due to lack of collateral. The estimates indicate that joining cooperatives increases the probability of female farmers' access to credit; transparency in cooperatives' financial activities increases the probability of accessing credit by 72 %. Given the core role of cooperatives, there is a need for a favorable environment in which cooperatives can form, develop, and thrive. Cooperatives need support from the government and development agencies to buffer their financial and management capacities and skills training. Subsequently bolstering women farmers' participation in cooperatives.

Treasury monitoring as a method of state financial control

The article identifies the elements of the control system, on the basis of which the organizational and functional structure of control monitoring as a method of internal state financial control is disclosed. The definition of the budgetary procedure is given and, based on the powers of the internal state financial control body, the budgetary procedures within which control monitoring is carried out are specified. The subject of control monitoring has been defined, which is to ensure that the object of control complies with the rules of accounting, preparation and provision of accounting (financial) statements, fulfillment of the terms of contracts (agreements) for the provision of budgetary funds, provision of reports on the implementation of state programs and government assignments, etc. The implementation of the powers to conduct control monitoring is carried out through operational and proactive interaction between the objects of control and the Federal Treasury through automated (information) systems, which allows you to receive real-time data on the use of financial resources and form a motivational opinion on the need to adjust the financial and economic activities of the object of control.

ABHW announces new leadership, Greenberg retirement

The Association for Behavioral Health and Wellness (ABHW), the national voice for payers that manage behavioral health insurance benefits for over 200 million people, announced Sept. 10 that ABWH president and CEO Pamela Greenberg will retire after 26 years at the helm of the association. Debbie Witchey has been appointed the next president and CEO, effective Oct. 1, 2024. Greenberg plans to retire in November 2024. Under Greenberg's leadership, ABHW successfully advocated for numerous policy changes that have positively impacted the delivery of mental health and substance use disorder care, from the development and approval of national behavioral health billing codes to the passage of the Mental Health Parity and Addiction Equity Act and changes to substance use disorder privacy laws that allow care to be better integrated and coordinated. Witchey most recently served as executive vice president and chief operating officer at the Healthcare Leadership Council (HLC) where she cultivated productive board relations, member recruitment and retention, strategic planning and financial oversight activities in addition to advocating for all sectors of the health care industry in lobbying Congress on key issues affecting HLC members, including access and coverage, population health and Medicare.

The importance of strategic planning documents of the Russian Federation for the financial and legal regulation of public and private finance (using the example of the financial market)

Within the framework of the presented article, the system of strategic planning documents at the federal level in the desired area (financial market) is analyzed, on the basis of which the influence of these acts on the emergence and functioning of financial and legal institutions, including those of a complex nature, is clarified. The position is substantiated, according to which, through strategic planning documents, the purposefulness of financial activities is ensured, its compliance with the general long-term tasks of the state at the present stage. It is concluded that these documents, unlike a number of general and special principles of financial law that have not found normative consolidation, being formally defined, act as a vector for the creation and improvement of financial and legal norms. The assumption is confirmed that through the analyzed documents, the subsequent implementation of the principles of financial law is ensured both from the point of view of goal-setting and from the point of view of financial security of the relevant actions. The special role of the annual messages of the President of the Russian Federation to the Federal Assembly of the Russian Federation as a starting point for further development of legislation and management decisions in the field of financial activity is substantiated.

Non-legal forms of financial activity in the context of the development of the concept of a “service state”

Taking into account the development of the concept of the “service state”, it is proposed to analyze the possibility of defining illegal forms of financial activity of the state. Foreign and domestic science consider the organizational activities of the state by building client relations between the state and society using various information technologies that allow providing state and municipal services. In this regard, it is appropriate to talk about the services provided related to the financial sector. The author concludes that: a) although the legal forms of financial activity of the state are predominant, nevertheless, non-legal forms are developing in the context of digitalization of public administration; b) non-legal forms of financial activity of the state should include: the portal of public services of the Russian Federation; a unified information system in the field of procurement; personal account of the taxpayer; unified portal of the budget system of the Russian Federation “Electronic budget”.