Financial intelligence (monitoring) as an effective way in the field of combating money laundering
| DOI | https://doi.org/10.1108/JMLC-09-2021-0102 |
| Published date | 25 October 2021 |
| Date | 25 October 2021 |
| Pages | 94-105 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Oleg Reznik,Maryna Utkina,Olha Bondarenko |
Financial intelligence
(monitoring) as an effective way in
the field of combating money
laundering
Oleg Reznik
Department of Administrative, Economic Law and Financial and Economic
Security, Sumy State University, Sumy, Ukraine, and
Maryna Utkina and Olha Bondarenko
Department of Criminal and Legal Disciplines and Procedure,
Sumy State University, Sumy, Ukraine
Abstract
Purpose –The purpose of the article is to analyze the notion of “financiali ntelligence (monitoring)”in the system
of combating money laundering and compare foreign financial intelligence units. Money laundering poses a
systemic risk to the financial and economic spheres, as well as to the national security of all countries. Financial
monitoring should be pointed out while analyzing the issue of overcoming and pre venting money laundering. It
serves as one of the most sovereign remedies in the system of counteracting money laundering to minimize and
effectively combat organized criminality and money laundering. The high level of development of the shadow
economy, corruption, ineffectiveness of regulatory and legal support, as well as duplication of functions of
individual authorities have become prerequisites for the financialmonitoring system formation.
Design/methodology/approach –The theoretical and legal principles of financial monitoring in the
system of counteraction to money laundering using the system-structural method were analyzed. The
application of this method allowed to systematize the basic provisions on financial monitoring and the
principles of its implementation. The system-structural method was used combining with the method of
terminologicalanalysis and operationalizationof concepts. This methodwas used to identify key problematic
aspects of understandingthe financial monitoring essence,the peculiarities of the scientific community views
on the definitionof “financial intelligence,”“financial intelligence unit.”The methodof analysis and synthesis
in their systemic combination, as well as the ascent from the abstract to the concrete, was directly used to
determinethe impact of money laundering on the financialand economic security of Ukraine inthe context of
globalization.The extrapolation method was used todetermine the possibility of implementing the analyzed
existingworld experience in thedomestic practice of financialmonitoring as an effective wayto combat money
laundering.The method of creating a theory wasused to generalize the results of theresearch, to find general
patterns for the objects being studied. The comparative method was used for comprehensive comparative
research.
Findings –The development of money laundering and terrorist financing is one of the main challenges
facing each state in the context of financial globalization. This is because the ownersof untaxed income are
trying to give them a lawful origin. The so-termed “criminalproceeds”pose a threat not only to the economy
of any state but also to the national system. In turn, the low level of the financial system controlling
instrument is conducive to the accelerated criminally obtained income transfer, which leads to the
developmentof the shadow economy.
Originality/value –The authors recognized the most appropriate interpretation of the term
“money laundering.”This is the process of transforming illegally obtained income into legal, ie legal
income. The purpose of such a transformation is to conceal the original source of “criminal proceeds”
and eliminate their traces. However, it should also be emphasized that the term “money laundering”
JMLC
26,1
94
Journalof Money Laundering
Control
Vol.26 No. 1, 2023
pp. 94-105
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-09-2021-0102
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