financial monitoring, state regulation of financial transactions, subject of financial monitoring, suspicious financial transaction, managerial risk
Abstract
The article examines the financial monitoring role in economic security system of the state, since Ukraine has a large-scale destruction of financial and economic processes due to the military invasion of Russia. The need for development of effective risk management systems introduction of measures for identification and verification of financial monitoring objects, forming an accounting and analytical assessment of the risks for conducting "suspicious" financial transactions as an integral component of the financial monitoring management for entities is substantiated.The results of the implementation of the financial monitoring regulatory framework in Ukraine are summarized. Typical risky financial and economic operations are given (using the example of audit firms – primary financial monitoring subjects). The need for primary financial monitoring subjects to have among internal regulatory acts of their activity the Regulation on both internal control and management of financial and economic risks, which should disclose effective management tools for settlement and payment discipline risks in a separate section, is well-founded. The importance of operational accounting and analytical support for transactions that can be classified as «suspicious financial transactions» has been revealed. Considering the international practice prevalence of «laundering» of illegally obtained funds, domestic business entities should supplement the financial accounting information with management accounting of such operations. Prospects for further improvement and development of the regulatory field regarding financial monitoring should be focused, first of all, on: terms unification in the Law of Ukraine «On prevention and counteraction of proceeds legalization (laundering) obtained through both crime and financing of terrorism»; on increasing interaction efficiency between both statefinancial monitoring bodies and law enforcement agencies, as well as Ukrainian legislation adaptation to international standards. In matters of practical implementation of financial monitoring, it is important to ensure operational accounting and analytical support for operations that can be attributed, first of all, to the «suspicious» financial operations group. Taking into account both the prevalence of the «money laundering» international practice and existing shadow economy sector in Ukraine, the control strengthening over compliance with principles of targeted financing by domestic economic entities with a potential tendency to carry out specified financial transactions, financial accounting data should be supplemented with management accounting of such settlement and payment operations.The specified steps will contribute to maintaining the balance and effectiveness of the financial system for entities in matters of economic processes resource provision in order to fulfill post-war reconstruction and development tasks, will strengthen effectiveness of the fight against the use of the financial sector for «dirty» funds legalization, which in general will contribute to Ukraine image on the international market.
