Abstract. The concept financial monitoring has been developed and substantiated as a set of measures carried out by subjects of primary and state financial monitoring in the field of prevention and counteraction to the proceeds legalization from crime, financing terrorism, separatism, and proliferation weapons in mass destruction.
The relevance categories “terrorism” and “finance” in the following areas has been determined: funds paid to terrorists for renouncing their intentions to commit violent acts; clandestine financing terrorist organizations by individual states, non-state funds, criminal groups, and legal entities; “money laundering” and their introduction into legal circulation; creation by terrorist organizations of their structures in the commercial and credit and financial spheres; cash resources obtained as a result of active criminal transactions.
The risks in the preventing manifestations system of terrorist threats and counteraction to the legalization proceeds from crime have been outlined. Such platforms are identified as: “non-transparent” financing political parties; organized crime; a significant share the specific weight of cash circulation; “outflow” capital; lack of sectoral risk primary financial assessment monitoring entities in the field of prevention and counteraction to the legalization (laundering) proceeds from crime.
Priority areas of financial investigations are identified as financing terrorism and separatism, laundering proceeds from corruption, and use cash in schemes for the legalization proceeds from crime. It is proposed that the risk of financing terrorism and separatism through deposit transactions be attributed to banking risks.
It is proposed to supplement the Regulations on the Internal Control System Organization in Ukrainian Banks and Banking Groups, in terms of determining risk categories, with a definition “compliance risk financial monitoring” – the risk of being held legally liable, incurring financial losses and reputational losses that a depository corporation may experience due to non-compliance with the norms of current legislation and corporate ethics rules in terms fulfilling its duties as a primary financial monitoring subject.
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