Financial Monitoring System Research Articles

Development of risk-oriented approach to assessing the client during financial monitoring on the real estate market

The system of financial monitoring establishes specifically designated entities on the real estate market. The assessment of a client’s risk of money laundering when entering into agreements in this market is a complex task and requires the development of new tools for implementing the risk-oriented approach, which is a priority in accordance with international standards in the financial monitoring system. The purpose of the study is to develop a risk-oriented approach to assessing the client and to develop practical recommendations for determining its level of risk in financial monitoring in the real estate market. To achieve a specific goal, a system of general scientific and special research methods, expert rankings and optimization modeling are used. On the basis of Methodical materials on financial monitoring issues for business entities, which provide services in the course of real estate purchase and sale operations, the points of client’s correspondence to high risk, which corresponds to the concept of developing a risk-oriented approach based on the main criteria of client risk assessment: geographic location of the state, client type and business relations. Taking into account the complexity of such assessment and the necessity of operative decision-making, a risk assessment rating (cost) scale has been developed for an integrated automated determination of a client’s risk level and an assessment of high-risk clients in the Decision Making Helper decision-making support system software on specific examples of legislation violations concerning the financial monitoring on the real estate market. The feasibility of implementing a new risk-oriented approach to assessing high-risk clients has been proved by automating the process of determining its level to reduce the time to decide on prevention and counteraction to the legalization of incomes and money laundering.

DEVELOPMENT OF UNIFIED PROCEDURES FOR FINANCIAL INSTITUTIONS IN ORDER TO PREVENT MONEY LAUNDERING AND TERRORISM FINANCING

The relevance of the topic is confirmed by the changes taking place in the financial monitoring system: the expansion of the financial monitoring range of procedures complication´s supervisory bodies aimed at countering money laundering and financing of terrorism, the creation of specialized international and European requirements, which causes changes in the legal regulation of public relations in this area, both at the level of the Estonian Republic, and at international level. Taking into account these changes, financial institutions are a subject to significant legal risks. The purpose of this topic is to improve the financial institution risk management system, in the field of anti-money laundering and countering financing of terrorism. The theoretical and methodological basis of the study are the provisions and conclusions regarding anti-money laundering and countering financing of terrorism risk management issues contained in the research works of different Estonian and Russian authors; as well as the author analysed anti money laundering and counter terrorism financing legal acts and revealed the main recommendations to financial institutions for preventing money laundering and terrorism financing. The author analyses reasons, which affect licenses withdrawal due to breach of money laundering. The nature of the tasks and the system approach to their solution determined the use of the following research methods in the research: analysis and synthesis, grouping and classification, scientific generalization, expert assessments and graphical analysis.

INTERNATIONAL INDICES IN REDUCING THE SHADOW ECONOMY LEVEL

The article investigates theoretical and practical aspects of the evaluation of the financial monitoring organization system. The article also identifies a number of drawbacks in the organization of national financial monitoring, based on the analysis of existing methodological tools used for assessing the efficiency of the anti-money laundering system of the country. The main ones of these drawbacks are: the absence of a list of indicators established at the legislative level, the limited statistical base and analytical data available for analysis. The article substantiates expediency of the use of additional indicators of the effectiveness of the financial monitoring system’s functioning by a set of international indices such as: Global Terrorism Index, Corruption Perceptions Index, AML (Anti-Money Laundering Index) and level of the shadow economy. It has been established that the use of these indicators will help to set up guidelines for developing the main principles of the anti-money laundering strategy, as well as determining the efficiency of the activities of authorized state bodies and specially created state institutions in the system of economic unshadowing. The analysis of international criteria allows authors to determine the positions of each country selected for research in the international and global environment and to rank them (within each indicator), depending on the measures taken to reduce the shadow economy. Apart from that, the results of grouping the values of international indices allowed authors to systematize the selected states by the level of efficiency of organization of financial monitoring in the countries, characterized by high, average, low and imperfect financial monitoring system. The usage of international indexes as indicators of the level of organization of financial monitoring should be considered as a component of the rapid diagnosis of money laundering, financing of terrorism and the level of corruption. The implementation of these indicators will strengthen the governing principles for determining the efficiency of the work of authorized state specialized institutions.

ORGANIZATION OF THE FINANCIAL MONITORING AT THE ENTERPRISES OF THE TRANSPORT COMPLEX

The indicators of financial stability of the transport company, the role of financial recovery in the system of crisis management of the organization have been considered. The essence, goals and objectives of financial recovery have been analyzed. Methodological approaches to assessing the solvency of transport enterprises as part of the analysis of their financial and production activities have been proposed. The features of the management of the transport organization in conditions of uncertainty and risk have been revealed. The main causes of insolvency of transport companies have been considered. The factors influencing the formation of the financial policy of the enterprises of the transport complex have been traced. The importance of assessing the long-term prospects for the development of the enterprise, analyzing its capabilities, and the influence of external factors has been emphasized. The stages of improving the system of financial monitoring by a transport organization have been highlighted.

Soft neural network-based block chain risk estimation

Financial risk refers to the uncertainty caused by the change of the economic and financial conditions. As a kind of economic phenomenon, the financial risk is objective and can not be eliminated. At present, there are still some imperfect aspects in the research of financial risk assessment. In order to achieve the purpose of comprehensive evaluation of financial risks, the paper analyses the methodology of soft computing and neural networks. The basic function of financial risk monitoring and evaluation system is to forecast the trend of financial activities and risk status, and this is also the fundamental function and objectives of the assessment system. We use BP neural network theory to establish the logistics finance risk evaluation model, using BP neural network structure and training principles to train sample data. The soft computing method is based on the factors of uncertainty and irrationality, which breaks through the limitation of traditional hard computing. There is a consistency between the fuzzy thinking principle of soft computing method and the attribute and structure of the objective world and therefore, soft computing can be used in field of financial risk assessment.

Noncommunicable diseases, access to essential medicines and universal health coverage

ABSTRACTUniversal Health Coverage is key to reach the overall health-related Sustainable Development Goal, and within this, access to safe, effective, quality, and affordable essential medicines is critical. Currently, medicines for noncommunicable diseases in many countries are not available when needed and if they are present, are unaffordable. Countries face the challenges of rising prevalence of noncommunicable diseases due to increasing risk factors and ageing populations, along with under-diagnosis and under-treatment. Providing noncommunicable disease medicines is only one piece of a complex picture of providing care within Universal Health Coverage that requires strengthening health-care systems, as well as financial resources, priority setting, and monitoring and evaluation systems. Financing for Universal Health Coverage needs to enable adequate resources to be allocated for medicines with a focus on equity as well as priority setting for noncommunicable diseases medicines for reimbursement in benefits packages, efficient procurement and distribution of these medicines, supported by price regulation. These processes need to be evidence-based, transparent and grounded on national values and priorities. Monitoring and evaluation of availability and affordability are key components of sustainable reimbursement systems. With the current Universal Health Coverage agenda, the World Health Organization and countries can no longer ignore the issue of access to medicines for noncommunicable disease and need to develop the appropriate responses in order to guarantee equitable access.

Prototyping of information system for monitoring banking transactions related to money laundering

The article deals with the prototyping of an information system for intrabank monitoring of transactions related to money laundering. It has been proven that the automation of financial monitoring system would increase the bank’s efficiency due to examining all bank transactions without exception, leveling the human factor, maximizing the speed of identifying suspicious transactions, which will provide the bank management with the possibility to reduce reputational risk and minimize losses related to paying penalties imposed by regulatory agencies. It has been established that the prototype of the information system for monitoring transactions related to money laundering through banks should consist of a model of the business process monitoring in an automated system environment, a DFD model of automated monitoring of banking transactions, a structural database model, user interface forms and the logic of validation business rules. The resulting methodological and practical developments are a universal component of the financial monitoring system of any bank since they have the opportunity to transform and adapt to new standards for reporting entities or differentiation of the business processes of a bank.

ВИЗНАЧЕННЯ ЛАТЕНТНИХ ФАКТОРІВ ВПЛИВУ НА ПОДАТКОВИЙ ТА ІНВЕСТИЦІЙНИЙ КАНАЛИ НЕЛЕГАЛЬНОГО ВИВЕДЕННЯ КАПІТАЛУ В УКРАЇНІ

The article analyzes the volume of illegal financial flows in Ukraine and in the world. The authors of the article identi-fied the influence of significant latent factors on tax and investment channels of illegal financial flows. The relevance of the selected study is that the country suffers large-scale losses from such operations as tax evasion, tax avoidance, concealment of the true sources of financial resources, withdrawal of funds in offshore etc. The methodological base is correlation-regression analysis. 19 indicators were selected to determine the latent factors for influencing tax and investment channels of illegal financial flows. The analysis revealed the need for comprehensive measures that will cover not only the improvement of the financial monitoring system and the fiscal service, but also the reform of the entire economic system.

DEVELOPMENT OF INTERNATIONAL COOPERATION IN THE FIELD OF COMBATING THE LEGALIZATION OF CRIMINAL PROCEEDS AND THE FINANCING OF TERRORISM AGAINST THE BACKDROP OF EXTERNAL NEGATIVE

The article considers financial monitoring systems that counteract money laundering and terrorism financing, divided into three levels. The first level is formed by associations of international status, at the second level are national systems, the third is formed by separate financial and commercial organizations interacting with the first two levels. The place of Russia in these international systems is allocated, methods of risk assessment and measures taken depending on their application are indicated. The contribution of Russian organizations to counteracting the legalization of illegal incomes has been analyzed. It is noted that at present time for laundering is characterized by constant complication of illegal schemes, speeding up illegal operations, using transit accounts, which leads to great financial and reputation losses. Clean-up schemes are present in many economic crimes, and in conditions of growing globalization, it is possible to combat these crimes only through concerted actions within the framework of international organizations. However, international cooperation in this field is complicated by the foreign policy crisis unfolding in the last four years. The curtailment of international cooperation is a sure way to defeat in the fight against the legalization of illegal incomes and the financing of terrorism.

Prevention and control of nongovernmental financial risk and dynamic monitoring system

With the support of Wenzhou Finance Office, this paper investigates the development course, development status and main characteristics of Wenzhou nongovernmental finance as well as the existed problems under the current supervision mode. On the basis of this, it puts forward the plan of constructing Wenzhou nongovernmental finance dynamic monitoring system, aims to provide a certain reference for the standard development of nongovernmental finance.

Financial Control and Financial Monitoring within the System of Government Financial Administration: Correlations and Interrelationships

This paper describes some of the terminology related to financial control, financial oversight, and financial monitoring, examines the correlation among them, and looks into the essence of and the interrelationship among these fundamental elements of financial administration. The relevance of the issue of enhancing the system of government financial control using financial monitoring and boosting its efficiency, its undoubted theoretical and practical significance, and the insufficient amount of research into it may be prompting researchers in the area of government financial administration to undertake a set of objectives resolving which should help improve the nation’s system of financial administration significantly. In contrast with financial control and financial oversight, scholarly/ theoretical research devoted to organizing and implementing financial monitoring in keeping with present-day requirements and taking account of the development of market relations is merely in its incipience at this time. The purpose of the research reported in this paper is to analyze the correlation among financial control, financial oversight, and financial monitoring as inseparably interrelated elements, as well as explore the characteristics of the distribution of functions on their implementation across the nation’s entities concerned with government financial administration. The authors provide an insight into Russia’s current statutory/ legal and organizational support for financial monitoring, its system of authorities concerned with regulating the nation’s financial sphere, and the characteristics of the organization of the system of government financial monitoring in foreign countries. Based on the findings from this study, the authors propose putting in place a single information base for the purposes of implementing government financial control and explore the prospects for interaction between institutions and the authorities concerned with administering government financial control. The authors conclude that at this time there, without question, are certain areas within the existing system of government financial control that need substantial work.

FINANCIAL MONITORING AND PROGRAMME PERFORMANCE BY PUBLIC BENEFIT ORGANIZATIONS IN KISUMU COUNTY, KENYA

Many Public Benefit Organizations (PBOs) have emerged within Kenya with the aim of offering solutions to the many problems being faced by the citizens. Donors provide funds to these organizations with a belief that the funds will be utilized towards the achievement of organizational objectives as laid out in the detailed implementation plans and annual work plans. In order to maximize the efficient use of resources and to create the highest level of transparency and accountability in these organizations, financial monitoring systems have been put in place. This research study aimed at finding the effects of financial monitoring interventions on programme performance for the Public Benefit Organizations in Kisumu County. Primary data was collected using a semi-structured questionnaire with close- ended questions. A sample of 50 PBOs was selected out of which data was successfully obtained from 42 PBOs representing 84% response rate which was sufficient for the study. Data was analyzed using ANOVA (analysis of Variance) and descriptive statistics used included frequencies, percentages, mean and standard deviations Data testing was conducted to obtain a good-fit estimation, tests were carried out to ensure statistical assumptions, such as linearity of variables. The study concluded that when all the three financial monitoring techniques are conducted simultaneously and other factors are held constant, PBOs’ programmes attained performance threshold with a performance percentage of 76.2 %. The results showed that financial monitoring positively contributes to programme performance for Public Benefit Organizations in Kisumu County. Article visualizations:

Can ‘meso-tier’ healthcare organizations enhance health system performance? - lessons from US Accountable Care Organizations (ACOs) and a discussion of the implications for Australia

Background: USA: ACOs are becoming a prominent feature of the US healthcare system. ACOs are groups of physicians, hospitals, and other providers that agree to be held financially responsible for the total cost and quality of care for a defined patient population. There are currently over 800 ACOs covering around 28 million people. With new Medicare reforms coming into effect soon, the ACO sector may cover over 100 million people in the next five years. Despite this rapid growth, outcomes have been mixed to date and there is little knowledge of how capable these organizations are in promoting delivery system changes. Australia: Like in the US, the Australian healthcare system has historically been dominated by volume-driven, fee-for-service models and overall costs are rising. New models of primary and integrated care are evolving with bundled primary care payments for patients with chronic and complex care needs currently being implemented nationally. Meso-level primary health networks and local hospital networks are leading the implementation of these models and there may be important lessons from the US ACO experience that could inform policy in this area. Methods: Using data from a national survey and Medicare, we reviewed structures, capabilities and performance outcomes for 399 ACOs in the US from 2012 to 2015. Results: ACOs with commercial insurer contracts were significantly larger, more integrated with hospitals, and had lower benchmark expenditures and higher quality scores, compared to ACOs participating only in public (Medicare and Medicaid) payer programs. For most ACOs, there was a low uptake of quality and efficiency activities, although generally commercial ACOs reported higher rates of electronic medical record usage, disease monitoring tools, patient satisfaction data, and quality improvement methods. Few ACOs reported having high-level performance and financial monitoring capabilities. Although ACOs were making modest savings overall, there was wide variation. A small number of ACOs accounted for the majority of total savings accrued and around one third had exceeded their expenditure benchmarks thus incurring a loss. There was no correlation between total savings and quality scores. Implications for the US: ACOs are at diverse stages of development and this is possibly an important driver of the wide performance variations currently being observed. ACOs may be using public programs as a testing ground to build their capacity to succeed in risk-based contracting. Policy initiatives to support ACOs in establishing essential infrastructure could make a major contribution to supporting delivery system changes. Implications for Australia: The US findings underscore the importance of building core capabilities within meso-tier organizations to bring about system change. Factors such as building integrated health information systems, embedding quality improvement processes within health services, and robust financial and performance monitoring systems are likely to be key drivers of success. State and federal governments ought to identify those organizations that lack sufficient capacity in these areas and intervene early with appropriate supports.

E-government multimedia big data platform for disaster management

By efficiently managing and utilizing the city’s multimedia big data, 3D analysis and visualization of the city’s multimedia information can be performed on the platform for disaster management, facilitating the provision of different disaster management services to policymakers and other relevant stakeholders in governments and industries (e.g. service providers such as traffic authorities, fire and other emergency authorities, as well as urban pipeline monitoring systems, financial monitoring systems, and ground subsidence monitoring systems).

Financial monitoring of the port industry companies on the basis of risk-oriented approach

The paper determines that the need in financial monitoring of Ukrainian companies of the port sector is caused by financial consequences related to the need to protect the environment, the existence of a dominant part of payments in foreign currency (foreign exchange risk associated with currency fluctuations), the possibility of cash outflows into the shadow sector of the economy and the possibility to use transport for smuggling. In addition, in the recent years there is a tendency of diminished financial stability of the seaports of Ukraine, which is a signal to determine the factors that have an impact on this situation, the consequences of risky operations and the optimal structure of sources for the formation of assets. An important aspect of financial monitoring is the necessity to identify the data about the objecton the basis of insignificant and relevant information, which makes it possible to avoid non-essential features and parameters and to speed up the decision making process at the lowest cost of expenditures and time. The study offers a methodical approach to financial monitoring of the port industry companies on the basis of the risk-based approach that takes into account the conditions for the functioning of port companies and their business characteristics, making it possible to implement the appropriate measures to prevent and avoid risky financial transactions and, consequently, to increase/preserve the competitiveness of the port sector companies. Regarding the need in further studies of the practical realization of financial monitoring of the port sector companies, there is a choice and substantiation of aggregate indicators of the financial monitoring system, their listing with a view to specific features, types and scale of activities.

Research of opportunities for adaptation and use of international typologies in financial monitoring system of Ukraine

This article examines some elements of the mechanism for combating anti-money laundering and terrorism financing by the means of typological studies developed by international organizations. International standards for combating anti-money laundering and terrorism financing lay the foundations of legal support and national regimes in this area and provide an effective mechanism for verification of their implementation. Problems of combating legalization (laundering) of proceeds from crime today is particularly important both for Ukraine and for the world, and social danger of this phenomenon in the last decade gained new dimensions, showing its strong connection with the terrorism financing. The legalization of criminal proceeds acquired such proportions that can be a source of financial and economic perturbations for any state and even individual regions. Therefore, any tools that combating these crimes are used in the system of state control. The problems of the structure and functions are defined for international organizations that conduct research for prevention and combating legalization (laundering) of proceeds from crime, terrorism and proliferation of weapons of mass destruction financing. The typologies of the use of cash funds and financial instruments of unlawful activities are considered and signs of such suspicious transactions are revealed for Ukrainian financial sector. It is concluded about the need to analyze the current legislation and to estimate the adequacy of measures for preventing and combating legalization (laundering) of proceeds from crime and, if necessary, to consider their amendments, including with the new FATF recommendations. SWOT-analysis of the typological studies is conducted. It makes it possible to evaluate the possibilities and advantages of their use in the system of financial monitoring.

Trends in National Spending on HIV/AIDS Prevention and Control in Thailand from 2008 to 2013

Background: HIV/AIDS infection has been the major contributor for mortality and burden of disease among Thais for decades. Studies on burden of diseases in Thailand show the increasing DALY loss from HIV/AIDS from 1999 to 2004, but a decreasing trend in 2009 due to the nationwide implementation of the policy on universal access to anti-retroviral therapy in 2006. Objective: To describe trend in magnitude, proportion of domestic and international financing sources, and financial resources allocated for HIV/AIDS prevention and control in Thailand from 2008 to 2013, and to identify factors contributing to effective financial management and monitoring system. Methods: With the application of Guide to Produce National AIDS Spending Assessment (NASA) 2009, a two dimensional matrix of financing sources and beneficiary population by healthcare function was produced. Comprehensive literature review and compilation of secondary data on actual expenditure on HIV/AIDS where available, from relevant financing agencies and institutes were carried out. The most up-to-date country’s GDP for 2010-2013 were retrieved from the website of the National Economic and Social Development Board (NESDB) of Thailand. Total Health Expenditure for 2008-2011 was retrieved from the National Health Account (NHA) database, and the total health expenditure for 2012-2013 were estimated based on the historical growth of Thailand’s total health expenditure. Results: Total expenditures on HIV/AIDS increased significantly from 230.9 million USD in 2008 to 282.9 and 287.3 million USD in 2012 & 2013, respectively. During this 6-year period, spending on HIV/AIDS was highest in 2011 as 330.7 million USD. The share of expenditures on HIV/AIDS as percentage of total health expenditure (THE) increased from 1.9% in 2008 to 2.4% and 2.2% of THE in 2012 and 2013 respectively. The amount of total AIDS spending per capita ranged from 3.3 to 5.1 USD per capita during the studied period. Domestic funding accounted for the majority of the HIV/AIDS financing in Thailand, but most of the spending was emphasized on care and treatment. During 2009-2013, only 13% to 17% of total AIDS expenditure in Thailand was spent on prevention activities. In 2012 and 2013, it was found that only 11% of total spending on prevention was spent on prevention activities for key population including sex workers, MSM, and people with intravenous drug use (PWID). It is noteworthy that most preventive programs, particularly prevention for key populations including sex workers, MSM, and PWID, were mainly contributed by the Global Fund (GF) and other international resources. Domestic resources were mainly allocated for universal access to ART, and care and treatment activities. Conclusions: Thailand has shown its attempt to be self-reliant in combating HIV/AIDS. Nevertheless, care and treatment expenditures overshadow prevention, and most of the preventive programs, particularly prevention for key populations were mainly financed by international financing sources, especially Global Fund. For better efficiency and future cost savings, more investment in prevention programs is essential, especially due to the declining support from international funds. Thailand should mobilize more domestic resources for financing prevention activities, particularly on key populations.

An Ontology for Monitoring and Surveillance Systems in Financial Markets

Ontologies play a key role in all aspects of information management within different domains as they provide a common and usable representation of the domain knowledge. The objective of the ontology is to describe the different classes (terms and vocabularies), and to define their relationships according to specific domain rules, in order to describe the knowledge of domain in a generic way. Ontology can be useful in many ways. One contemporary use is as a framework to represent information of domain in useful way. It enables computers to process its contents as it offers a way to give information about common representation and semantics to domains. In particular, it helps in bridging the communication gaps between humans and software systems through representing a shared and common understanding of a domain.Researchers in the field of artificial intelligence (AI), business intelligence (BI), and knowledge management have recognized that capturing knowledge is the key to building large and powerful systems. It is argued that ontologies could create new computational models which enable certain kinds of automation of information representation. While the sheer size and scale of data has been growing exponentially, these data presents its own challenge. Knowing how to first understand the data, garnering information and knowledge from it, and then intelligently combine it with other data sets means that there is a need to accurately represent this data and effectively allows identifying insightful information out of context.In the context of financial markets, there is a wealth of knowledge that is generated and it is important that this knowledge is managed and communicated efficiently and effectively. This is especially true in the context of monitoring and surveillance due to the changes in the structure, connectivity and operation of financial markets and the increased complexity in dealing with possible fraud cases. An ontology addressing the needs for market monitoring and surveillance could help support better the increased requirements of market operators, brokers and regulators to ensure that markets operate in an efficient way.The report discusses the development of ontology for financial markets monitoring and surveillance. The proposed ontology brings together existing domain knowledge from previous efforts together with new knowledge derived from the analysis of unstructured sources based on existing fraud cases reported by SEC. The ontology is represented using semantic representation techniques and contains a comprehensive set of concepts that could help analysts to understand financial fraud practices, assist open investigation by managing relevant facts gathered for case investigations, informing detection and pattern monitoring techniques, developing prevention practices, and sharing manipulation patterns from prosecuted cases with investigators and relevant stakeholders.The ontology is evaluated through specific case studies to show the applicability of the ontology to help users in the market monitoring surveillance systems. In particular, the three cases are considered as intelligent systems that extract information from unstructured sources based on the financial ontology. First case aims to provide an empirical evidence of how text mining could be integrated with the proposed ontology to improve the efficiency of extracting financial fraud concepts from Security Exchange Commission (SEC) litigation releases and demonstrating the published prosecuted cases from SEC website in appropriate knowledge base. Second case aims to demonstrate how text mining techniques could automatically extract key attributes and characteristics of different unstructured sources generated as part of ’touting campaigns’. Last case aims to describe business intelligence (BI) service system for a financial market monitoring and surveillance system in order to produce alarms for possible securities fraud cases. The evaluation of the proposed ontology with the BI service system is carried out through an exemplar case that relates to a real case from the over-the-counter (OTC) market and which was prosecuted by SEC.

Panoramic Display System of Enterprise’s Financial Prosperity Monitoring

This paper introduces macro-economic monitoring methods into the financial analysis of micro-economy, and takes innovation in the compiling method of financial prosperity index and the display method of financial prosperity to build a complete panoramic display system of enterprise financial prosperity monitoring. All these researches provide a new approach for managers to grasp financial situation, control financial risk, and forecast financial trends timely.

Financing for HIV/AIDS Prevention, Care and Treatment in Thailand

To describe the trend and proportion of key financing sources for HIV/AIDS prevention, treatment, and social support programs in Thailand and to identify facilitators and barriers to effective financial management and strengthen the monitoring system. Based on a comprehensive review of financial reports from various sources such as UNGASS and NASA, we explored the key financing sources for HIV/AIDS prevention, treatment, and social support programs in Thailand. In addition, we conducted in-depth interviews with different key informants responsible for the activities in response to the national policy on HIV/AIDS at provincial and district levels including domestic and international donors to assess the financial management, coordination and monitoring system. The total expenditures on HIV/AIDS in fiscal years 2007, 2008 and 2009 were slightly increasing from 204 million USD in 2007 to 210 and 218 million USD in 2008 & 2009, respectively (Table 1). However, the share of expenditures on HIV/AIDS as percentage of GDP decreased from 2.7% in 2007 to 1.9% in 2008 and 2009. Domestic funding accounted for the majority of the HIV/AIDS program financing but most of the spending was emphasized on care and treatment with a smaller proportion in prevention activities. In fact, most of the preventive programs were contributed by the Global Fund and other international sources. Improvements in effective operational system development in program management, monitoring and evaluation were notably needed. Thailand has shown its attempt to be self-reliant in combating HIV/AIDS. Nevertheless, care and treatment expenditures overshadow prevention, and most of the preventive programs have been financed by international sources. Thus, the dominance of entitlement programs in funding for HIV/AIDS treatment challenges health policy makers to monitor the extent and quality of HIV/AIDS care. For a better efficiency and future cost savings in treatment and care, more investment in prevention programs is essential, especially due to the declining support from international funds.