The Conceptual Framework for the Formation of a Risk-Based System for Combating Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction

Abstract

The aim of the article is to elaborate the theoretical basis for the development of conceptual framework for implementing a risk-based system for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. The list of regulatory documents which are of strategic nature for the functioning of the AML / CFT system in Ukraine is studied. The sequence of development of the Concept for the formation of a risk-based AML / CFT system is proposed. The recommendations of international organizations on the adoption of a risk-based AML / CFT system when using payment cards, mobile payments, and Internet-based payment services, in particular, through commercial websites and Internet payment systems; carrying out transactions with virtual assets, in the work of banks; countering the financing of terrorism, providing monetary services, in real estate transactions. It is proposed to use the system, institutional and functional approaches as a methodological basis for the Concept of the formation of a risk-based AML / CFT system. Hypotheses concerning the formation of the risk-based AML / CFT system are put forward, their verification is carried out, and methods for their proof are substantiated. The basic principles of the formation of a risk-based AML / CFT system are described, and based of them the Conceptual framework for the current development of a risk-based AML / CFT system are formed. The priority directions of the functioning and development of the risk-based AML / CFT system in Ukraine are identified.