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Introduction
The development of money laundering and terrorist financing is one of the main challenges facing each state in financial globalization. This is because the owners of untaxed income are trying to give them a lawful origin. The so-termed “criminal proceeds” pose a threat to the economy of any state and the national system as a whole. In turn, the low level of the financial system controlling instrument is conducive to the accelerated criminally obtained income transfer, leading to the shadow economy’s development.
Given this, money laundering poses a systemic risk to the financial and economic spheres and the national security of all countries. Financial monitoring should be pointed out while analyzing the issue of overcoming and preventing money laundering. It serves as one of the most sovereign remedies in counteracting money laundering to minimize and effectively combat organized criminality and money laundering. The high level of development of the shadow economy, corruption, ineffectiveness of regulatory and legal support and duplication of functions of individual authorities have become prerequisites for the financial monitoring system formation. For the preceding, during the formation of national financial monitoring systems, a completely new approach has become fundamental for countries. This approach was intended to link the private sector to criminal law enforcement agencies. Therefore, countries proposed to create an authority of the new type: financial intelligence unit (FIU) (in most countries, it has one name or another, but is an analog). The primary function of such authority was to obtain and analyze the information as to suspicious activities, to transmit reports on such activities, which were identified and submitted by the private sector. It can be stated that such units act as intermediaries between private organizations and law enforcement agencies.
Methodology
The theoretical and legal principles of financial monitoring in the system of counteraction to money laundering using the system-structural method were analyzed. The application of this method allowed to systematize the introductory provisions on financial monitoring and the principles of its implementation. The system-structural method was used, combining with the method of terminological analysis and operationalization of concepts. This method was used to identify vital problematic aspects of understanding the financial monitoring essence, the peculiarities of the scientific community views on the definition of “financial intelligence” and “financial...