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Liburkina L. M.

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The Risk-Based Approach to the Banks’ Financial Flows Management: Global Practice and Experience of Ukraine
Tomarovych T. V.

Tomarovych, Tetiana V. (2023) “The Risk-Based Approach to the Banks’ Financial Flows Management: Global Practice and Experience of Ukraine.” Business Inform 6:171–178.
https://doi.org/10.32983/2222-4459-2023-6-171-178

Section: Finance, Money Circulation and Credit

Article is written in Ukrainian
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UDC 336.71.078.3

Abstract:
The article highlights the world practice and experience of Ukraine in managing financial flows of the bank taking into account the risk-based approach. It is proved that the experience of Ukraine, which is applied in practice in the management of financial flows of the bank, taking into account the risk-based approach, meets the requirements of the international standards of the group for the development of financial measures to counter money laundering and terrorist financing (FATF), Basel principles of effective banking supervision, directives and regulations of the European Parliament and the Council of the European Union in the field of prevention and counteraction to legalization of criminal proceeds/terrorist financing. A comparative analysis of FATF recommendations on risk management and risk management models in Ukraine (single-tier and two-tier) is carried out and the efficiency of their use is proved. An analysis of current measures of the National Bank of Ukraine in the field of prevention and counteraction to legalization of criminal proceeds/terrorist financing is carried out, taking into account the characteristics of the measures taken in the first quarter of 2023. It is proved that the risk-based approach, which is specified in the current legislation of Ukraine, covers all necessary directions – from entities that have an increased level of risk to entities with a reduced level of risk – in order to minimize these risks in the process of economic activity, but this is not always reflected in the practice of domestic economic entities. Based on the results of the assessment, it was concluded that further developments should focus on even more intensive interaction of Ukrainian legislation and best international practices in the field of prevention and counteraction to legalization (laundering) of proceeds from crime, terrorist financing, also financing of proliferation of weapons of mass destruction.

Keywords: financial flows of the bank, risk management, risk-based approach, FATF.

Fig.: 2. Tabl.: 3. Bibl.: 15.

Tomarovych Tetiana V. – Postgraduate Student, Department of Financial Technologies and Consulting, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]

List of references in article

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[Legal Act of Ukraine] (2014). https://zakon.rada.gov.ua/laws/show/1702-18#Text
[Legal Act of Ukraine] (2019). https://zakon.rada.gov.ua/laws/show/361-20#Text
“Risk-Based Approach for the Banking Sector“. FATF. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Risk-based-approach-banking-sector.html#:~:text=A%20risk%2Dbased%20approach%20means,with%20the%20level%20of%20risk
Ofitsiinyi vebsait Tsentralnoho banku Irlandii. https://www.centralbank.ie/regulation/anti-money-laundering-and-countering-the-financing-of-terrorism/risk-based-approach-to-aml-supervision
Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Ofitsiinyi vebsait Komitetu ekspertiv z otsinky zakhodiv protydii vidmyvanniu koshtiv ta finansuvanniu teroryzmu Rady Yevropy). https://www.coe.int/en/web/moneyval/implementation/risk-based-approach
“Anti-Money Laundering and Counter-Terrorism Financing Act 2006. No. 169“. Australian Government. Federal Register of Legislation. https://www.legislation.gov.au/Details/C2022C00179
[Legal Act of Ukraine] (2020). https://zakon.rada.gov.ua/laws/show/v0065500-20#Text
“Derzhavna sluzhba finansovoho monitorynhu Ukrainy. Mizhnarodni standarty“ [State Financial Monitoring Service of Ukraine. International Standards]. https://fiu.gov.ua/pages/dijalnist/mizhnarodne-spivrobitnictvo/mizhnarodni-standarti
“Statystyka Natsionalnoho Banku Ukrainy“ [Statistics of the National Bank of Ukraine]. https://bank.gov.ua/ua/statistic
Dmytrov, S. O. et al. Finansovyi monitorynh v banku [Financial Monitoring in the Bank]. Sumy: Universytetska knyha, 2008.
Berezhnyi, O. “Ryzyky vykorystannia posluh bankiv dlia lehalizatsii dokhodiv, otrymanykh zlochynnym shliakhom, abo finansuvannia teroryzmu v systemi bankivskykh ryzykiv“ [Risks of Using the Services of Banks for the Legalization of Income Obtained Through Criminal Means or the Financing of Terrorism in the System of Banking Risks]. Visnyk Natsionalnoho banku Ukrainy, no. 4 (2009): 3-7.
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Dmytrov, S., Merenkova, O., and Levchenko, L. “Modeliuvannia otsinky ryzykiv vykorystannia posluh bankiv z metoiu lehalizatsii kryminalnykh dokhodiv abo finansuvannia teroryzmu“ [Modeling the Assessment of the Risks of Using the Services of Banks for the Purpose of Legalizing Criminal Income or Financing Terrorism]. Visnyk Natsionalnoho banku Ukrainy, no. 1 (2009): 54-59.

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