PROCEDURAL PARTICIPATION OF BANKS IN COVERT INVESTIGATIVE (SEARCH) ACTION «BANK ACCOUNTS MONITORING»

Abstract

Abstract. The concept of financial monitoring as a set of measures carried out by the entities of primary and state financial monitoring in the field of prevention and counteraction to separatist funding (article 110-2 of the Criminal Code of Ukraine), legalization (laundering) of criminally obtained property (article 209 of the Criminal Code of Ukraine), and terrorism funding (article 258-5 of the Criminal Code of Ukraine) is developed and proved. The relationship between the categories of «terrorism» and «finance» is determined in the following areas: money paid to terrorists for refusing to commit violence acts; covert funding of terrorist organizations by certain states, non-governmental organizations, and criminal groups; «money laundering» and its introduction into legal circulation; creation of own groups in commercial, credit and financial institutions by terrorist organizations; ‘launderingof money’ obtained as a result of criminal activity. The risks in the system of prevention of terrorism and counteraction to legalization of criminally obtained proceedsare outlined. They were defined as the following: non-transparent funding of political parties; the share of cash resources addressed to the mentioned criminal activity; «outflow» of capital; absence of a clearly defined sectoral risk assessment of the entities of primary financial monitoring in the field of prevention and counteraction to legalization (laundering) of criminally obtained proceeds. It is offered to include the risk of terrorism and separatism funding through deposit-taking corporations tobanking risks. An attempt has been made to accumulate the majority of the latest achievements (as legislative, theoretical and research aswell as applied ones) on the issues of legal regulation of the studied procedural, financial and legal relations, on the basis of which scientific views are proved and proposals for improving regulations in this area are worked out. Keywords: monitoring, banks, covert investigative actions, bank accounts monitoring, terrorism funding, banking risks, financial and legal relations. JEL Classification E42, E52, G28, K13, K14 Formulas: 0; fig.: 1; tabl.: 0; bibl.: 16.

Keywords

• monitoring
• banks
• covert investigative actions
• monitoring of bank accounts
• terrorist financing
• banking risks