CURRENCY TRANSACTIONS AS A TOOL IN THE MECHANISM OF LEGALIZATION (LAUNDERING) OF PROCEEDS OBTAINED THROUGH CRIME

Abstract

The article is devoted to finding out the possible directions of legalization (laundering) of income obtained by criminal means during currency operations. It is indicated that the process of legalization has become a universally recognized international problem, which affects both the perpetration of fraud with financial resources and the implementation of smuggling operations, as well as the shadowing of currency operations. The author named the main state bodies in the fight against the legalization of proceeds obtained through crime, and the key place in this list belongs to the National Bank of Ukraine. The role of the National Bank in the mechanism of combating the legalization (laundering) of criminally obtained income is determined. Types of financial monitoring, such as primary and state, are revealed. It is noted that the activities of both the National Bank and other state bodies are carried out in accordance with the FATF International Standards for Combating Money Laundering, the Financing of Terrorism, and the Proliferation of Weapons of Mass Destruction. The author emphasizes that the FATF Recommendations establish an international standard that countries must implement through measures adapted to their specific circumstances. The author is convinced that the foreign exchange market is almost the best area for legalization (laundering) of proceeds obtained through crime. In turn, currency transactions are one of the tools for such legalization. The article also presents a list of currency transactions that can be used for legalization (laundering) of proceeds obtained through crime. In addition, the factors affecting the motivation and directions of using currency transactions as a tool in the mechanism of legalization (laundering) of criminally obtained income are outlined. At the same time, the author noted that the increase in the level of legalization (laundering) of criminally obtained income using currency transactions is a result of insufficient provision of legal conditions in the state. In the author's opinion, so that currency transactions are not involved in the mechanism of legalization (laundering) of criminal income, it is necessary to improve the socio-economic situation in the state, as well as the state of the financial market. The author also believes that regular interaction should be established with the State Financial Monitoring Service of Ukraine, the National Bank of Ukraine, the Ministry of Finance of Ukraine, the Ministry of Economy of Ukraine, the State Tax Service of Ukraine, as well as with other interested agencies and organizations that, within the limits of their powers, ensure the prevention of legalization (laundering) income received by the criminal through the foreign exchange market and the implementation of foreign exchange transactions.