Vengerskyi Oleksii, PhD candidate, Zhytomyr Polytechnic State University, Ukraine

ORCID ID: 0000-0003-0388-158X
e-mail: asp_vov@student.ztu.edu.ua

The development of institutions and practices to fight money laundering and terrorism financing: global experience and Ukrainian realities

Abstract. Introduction. The paradox of the modern world is associated with the simultaneous use of the technological achievements both for social development and shadow financial circulation, as well as its use in the areas that bring the greatest profits. This includes the financing of terrorism. The unconditional achievement of the world community since the end of the 80s of the 20th century has been the creation of a comprehensive framework of regulatory measures to combat money laundering and terrorist financing.

Purpose: Study and analysis of the formation and functioning of structures, institutions, world practices, and legal acts regulating the fight against money laundering and terrorist financing in the USA, the European Union, and Ukraine. The tasks include an analysis of the main challenges Ukraine has to face in this area and an outline of the prospects for a joint solution of the existing problems in order to protect not only the integrity of the world financial system, but the world order as a whole, based on democratic principles.

Results: The historical dynamics of the formation of normative legal acts in the USA, the European Union and Ukraine in the field of combating money laundering and terrorist financing were studied. Collective practices of democratic states in joint efforts to face the challenges and threats provoked, in particular, by the Russian-Ukrainian war were considered. The degree of adaptation of Ukrainian legislation to international norms of control over the illegal circulation of funds and the terrorism financing was established.

Conclusions: In the relatively short history of the formation and use of both national and international laws and practices in the face of terrorist threats and illegal money laundering, democratic governments and institutions have made significant progress. By strengthening law enforcement mechanisms, strengthening international cooperation and continuing to meet new international standards, Ukraine not only demonstrates the fight against financial crimes, but above all, protects its freedom and independence, thereby contributing to the global fight for peace and against international terrorism.

Keywords: Anti Money Laundering; Terrorism financing; Financial Crime; Bank Secrecy Act; FATF, EU Directive; Financial Intelligence Unit.

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