Financial intelligence (monitoring) of the transactions with virtual assets: new legislation and best practices of foreign countries
| DOI | https://doi.org/10.1108/JMLC-12-2021-0136 |
| Published date | 20 January 2022 |
| Date | 20 January 2022 |
| Pages | 349-360 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Maryna Utkina,Roman Samsin,Maksym Pochtovyi |
Financial intelligence (monitoring)
of the transactions with virtual
assets: new legislation and best
practices of foreign countries
Maryna Utkina
Criminal and Legal Disciplines and Procedure, Sumy State University,
Sumy, Ukraine
Roman Samsin
Institute of Law, University of the State Fiscal Service, Irpin, UK, and
Maksym Pochtovyi
Kryvyi Rig Faculty, Dnipropetrovsk State University of Internal Affairs,
Dnipropetrovsk, Ukraine
Abstract
Purpose –This paper aims to illustrate how virtual assets are used in such criminal offenses as money
launderingand seeks to study the role of financial intelligence (monitoring)of transactions with virtual assets
effectivelyin combating money laundering.
Design/methodology/approach –This research methodologyincludes system and structural methods
that help analyze the theoretical, organizational and legal bases of the financial intelligence (monitoring) of
transactions with virtual assets. The authors use the doctrinal legal research approach to analyze and
describe the legislationconnected to the financial intelligence (monitoring) operations with virtualassets. To
identify criticalissues of understanding the “virtual assets”and “cryptocurrency”essence, the peculiarities of
the scientificcommunity views on the given definitions, the authors use the method of terminological analysis
and concepts operationalization. The authors use the extrapolation method to determine the possibility of
implementingthe analyzed best practices of foreign countries in the domestic practice of financial intelligence
(monitoring)of transactions with virtual assets as aneffective way in combating money laundering.
Findings –This study demonstrates the role of financial intelligence (monitoring) of transactions with
virtualassets as an effectiveway to combatmoney laundering.
Originality/value –The article is devoted to comprehensively studying “virtual assets”and
“cryptocurrency”concepts. The authors carried out a comparative analysis of these two concepts with the
definition of their featuresand the main characteristics and features that separate them from each other. The
authors also stressed the need for countriesto strengthen the requirements for situations and activities with
virtualassets, where there is a high level of risk in a risk-based approach.
Keywords Virtual assets, Cryptocurrency, Transactions with virtual assets,
Financial intelligence (monitoring), Criminal offenses
Paper type Literature review
1. Introduction
The fact that cryptocurrencies facilitate financial crime is widely known (Teichmann and
Falker, 2021). Today, giventhe growing role of virtual assets in society, the issue of financial
monitoring of transactionswith such assets is relevant. Because of the above, in Ukraine on
Transactions
with virtual
assets
349
Journalof Money Laundering
Control
Vol.26 No. 2, 2023
pp. 349-360
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-12-2021-0136
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