Features of the Newest Methods of Money Laundering Using Financial Institutions
Activities to counter laundering the money, obtained by criminal means, require constant monitoring of the market, monitoring the activities of financial and non-financial institutions in order to prevent capital loss and financing of terrorism, as methods of money laundering are gaining new feature...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Research Centre of Industrial Problems of Development of NAS of Ukraine
2021-03-01
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| Series: | Bìznes Inform |
| Subjects: | |
| Online Access: | https://www.business-inform.net/export_pdf/business-inform-2021-3_0-pages-132_140.pdf |
| _version_ | 1818662121814097920 |
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| author | Rysin Vitalii V. Karpets Alina R. |
| author_facet | Rysin Vitalii V. Karpets Alina R. |
| author_sort | Rysin Vitalii V. |
| collection | DOAJ |
| description | Activities to counter laundering the money, obtained by criminal means, require constant monitoring of the market, monitoring the activities of financial and non-financial institutions in order to prevent capital loss and financing of terrorism, as methods of money laundering are gaining new features every year. The article is aimed at systematizing the latest money laundering schemes appearing in the financial market and developing measures to prevent the implementation of such schemes through financial institutions. An analysis of data by the State Financial Monitoring Service of Ukraine (SFMS) on the number of detected suspicious financial operations showed that the large majority of reports concerning such operations comes from banks. In view of this, the role of banks in countering the legalization of criminal income in Ukraine remains decisive today. The expansion of the range of financial instruments led to the emergence of new money laundering schemes. Such schemes can be based on P2P technologies, implemented through crowdfunding platforms, in particular through crowdinvestment. The authors also focused on the possibilities of using cryptocurrencies and online gambling tools for the purposes of legalizing criminal revenues. The peculiarities of applying the risk-oriented approach in the process of due diligent verification of clients of financial institutions and the operations they carry out, as well as the list of threats to financial institutions in case of their joining the money laundering activities, are determined. Such threats are manifested in reputational and legal aspects, and in the future inevitably lead to financial losses. The use of the latest technologies for the legalization of criminal income requires banks and non-bank institutions to improve the software used to detect and register suspicious transactions, improve cybersecurity, as well as maintain a high level of qualification of employees. The State own regulators should ensure proper control over the activities of highly risky financial infrastructure entities, as well as raise public awareness of the risks and consequences of criminal capital legalization. |
| first_indexed | 2024-12-17T04:55:55Z |
| format | Article |
| id | doaj.art-d3a8fc0256b54412bea2e6a96f9b0532 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-17T04:55:55Z |
| publishDate | 2021-03-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-d3a8fc0256b54412bea2e6a96f9b05322022-12-21T22:02:44ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2021-03-01351813214010.32983/2222-4459-2021-3-132-140Features of the Newest Methods of Money Laundering Using Financial InstitutionsRysin Vitalii V.0https://orcid.org/0000-0002-2883-4563Karpets Alina R.1https://orcid.org/0000-0002-5794-1210Lviv Polytechnic National UniversityLviv Polytechnic National UniversityActivities to counter laundering the money, obtained by criminal means, require constant monitoring of the market, monitoring the activities of financial and non-financial institutions in order to prevent capital loss and financing of terrorism, as methods of money laundering are gaining new features every year. The article is aimed at systematizing the latest money laundering schemes appearing in the financial market and developing measures to prevent the implementation of such schemes through financial institutions. An analysis of data by the State Financial Monitoring Service of Ukraine (SFMS) on the number of detected suspicious financial operations showed that the large majority of reports concerning such operations comes from banks. In view of this, the role of banks in countering the legalization of criminal income in Ukraine remains decisive today. The expansion of the range of financial instruments led to the emergence of new money laundering schemes. Such schemes can be based on P2P technologies, implemented through crowdfunding platforms, in particular through crowdinvestment. The authors also focused on the possibilities of using cryptocurrencies and online gambling tools for the purposes of legalizing criminal revenues. The peculiarities of applying the risk-oriented approach in the process of due diligent verification of clients of financial institutions and the operations they carry out, as well as the list of threats to financial institutions in case of their joining the money laundering activities, are determined. Such threats are manifested in reputational and legal aspects, and in the future inevitably lead to financial losses. The use of the latest technologies for the legalization of criminal income requires banks and non-bank institutions to improve the software used to detect and register suspicious transactions, improve cybersecurity, as well as maintain a high level of qualification of employees. The State own regulators should ensure proper control over the activities of highly risky financial infrastructure entities, as well as raise public awareness of the risks and consequences of criminal capital legalization.https://www.business-inform.net/export_pdf/business-inform-2021-3_0-pages-132_140.pdfmoney launderingfinancial institutionsincome legalization schemescryptocurrencycrowdinvestingfinancial monitoringrisk-oriented approach |
| spellingShingle | Rysin Vitalii V. Karpets Alina R. Features of the Newest Methods of Money Laundering Using Financial Institutions Bìznes Inform money laundering financial institutions income legalization schemes cryptocurrency crowdinvesting financial monitoring risk-oriented approach |
| title | Features of the Newest Methods of Money Laundering Using Financial Institutions |
| title_full | Features of the Newest Methods of Money Laundering Using Financial Institutions |
| title_fullStr | Features of the Newest Methods of Money Laundering Using Financial Institutions |
| title_full_unstemmed | Features of the Newest Methods of Money Laundering Using Financial Institutions |
| title_short | Features of the Newest Methods of Money Laundering Using Financial Institutions |
| title_sort | features of the newest methods of money laundering using financial institutions |
| topic | money laundering financial institutions income legalization schemes cryptocurrency crowdinvesting financial monitoring risk-oriented approach |
| url | https://www.business-inform.net/export_pdf/business-inform-2021-3_0-pages-132_140.pdf |
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