Development of the financial monitoring system to increase the level of financial security of Ukraine in the conditions of threats

Abstract

The growth of threats to the financial system and the change in their directions necessitates the urgent need to improve the State Financial Monitoring Service (SFMS) of Ukraine. The purpose of the study was to determine the directions of development of the SFMS to increase the level of financial security of the country. Using the method of critical analysis, inconsistencies of legal norms regarding the SFMS were identified. This substantiated the need to expand the functions of the SFMS both to prevent criminal acts and illegal activities. It was established that increasing the level of financial inclusion of Ukrainians determines the growth of the social significance of the SFMS. The directions of institutional regulation of the SFMS, priorities for the development of this service, indicative control markers, and improvement of supervisory actions were proposed. Using the method of analysis and synthesis, an asymmetric response to suspicious financial transactions by different categories of primary financial monitoring subjects was established. It was indicated that this violated the fundamental principle of the integrity of the SFMS and devalued its activities. It is substantiated to provide SFMS with the function of coordinating sectoral regulatory documents on financial monitoring, expanding administrative supervision over primary financial monitoring subjects, and strengthening imperative signs of punishment for failure to comply with the requirements of financial transaction control. The identified priorities for SFMS development, clarification of the norms of framework legislation in this area, and indicative markers of control of illegal transactions for financial security specialists are of practical value for institutional structures.