Compliance with the AML/CFT Standards in the Context of Implementing the Infrastructure Potential of the Financial Market of Ukraine

Abstract

The article is aimed at exploring ways to increase and implement the infrastructure potential of Ukrainian financial market. All financial services providers involved in financial operations, including those working with the low-income clients, must comply with anti-money-laundering and terrorist financing countering legislation. Ukraine is characterized by a relatively low level of income of the majority of citizens, which actually forces financial institutions to adapt to working with the low-income clients. This feature also generates additional risks to increase the infrastructure potential of the market, as it is considered to be risky from the point of view of the FATF. However, at the same time, adapting financial institutions to the needs of low-income clients creates the prerequisites for the implementation of infrastructure potential, as there is a specific stratum of customers with particular demand for financial services. Compliance with the AML/CFT standards requirements for Ukraine means abandoning the idea of turning its own economy into a financial offshore and requires continuing to look for other ways to increase the infrastructure potential of the financial market. Despite the fact that Ukraine is a low-income country, opportunities to increase the infrastructure potential of the financial market should also be considered in the sphere of development of the financial services segment for the low-income citizens. Such a segment also has its own inherent risks, so compliance with the FATF requirements is also mandatory for it.

Keywords

• financial market
• infrastructure potential
• aml/cft standards requirements
• segment of financial services for the low-income citizens