ECONOMIC ASPECTS OF FINANCIAL INTELLIGENCE IN THE SYSTEM OF ANTI-CORRUPTION MEASURES

Zinaida Zhyvko; Vira Shepeliuk; Tetiana Holovach

doi:10.36690/2674-5208-2024-3-91-99

Authors

Zinaida Zhyvko Flight Academy of National Aviation University https://orcid.org/0000-0002-4045-669X
Vira Shepeliuk Kryvyi Rih National University https://orcid.org/0000-0001-6270-5936
Tetiana Holovach Lviv State University of Internal Affairs https://orcid.org/0000-0002-6665-4416

DOI:

https://doi.org/10.36690/2674-5208-2024-3-91-99

Keywords:

corruption, proceeds from crime, legalization (laundering) of corrupt revenues, financial intelligence unit, anti-corruption measures

Abstract

Corruption is a significant barrier to state development, particularly in Ukraine, where it impacts economic reforms, undermines governance, and fuels the shadow economy. The relationship between corruption and the laundering of illicit proceeds is a critical issue, with financial intelligence units (FIUs) playing a crucial role in combating these activities. Ukraine’s State Financial Monitoring Service (SFMS) acts as the country’s FIU, contributing to anti-corruption efforts by identifying and freezing proceeds from corrupt practices. This study explores the economic aspects of financial intelligence in the broader anti-corruption framework. The primary aim of this research is to examine the theoretical and practical roles of financial intelligence, particularly the SFMS, in Ukraine’s anti-corruption strategy. The study focuses on the mechanisms through which financial intelligence units support the detection, investigation, and prevention of money laundering connected to corruption. The research utilizes both general and specialized methods, including system analysis, economic and statistical methods, and scientific generalization. Data was gathered from the SFMS, law enforcement agencies, and analytical reports. The research was conducted by analyzing the role of financial monitoring, identifying corruption-related laundering schemes, and assessing the effectiveness of SFMS interventions. Tabular and graphical methods were employed to present findings. The study found that while there has been progress in Ukraine’s anti-corruption efforts, corruption remains a deeply rooted issue, and the country’s score on the Corruption Perception Index (CPI) is still low. The SFMS has played a key role in investigating money laundering related to corruption, working closely with bodies like the National Anti-Corruption Bureau of Ukraine (NABU). Between 2016 and 2020, the number of reports submitted by the SFMS to law enforcement agencies increased significantly, highlighting its role in preventing and detecting corruption-related financial crimes. Continued collaboration between financial intelligence units and anti-corruption bodies is essential for further success in combating corruption. Strengthening the SFMS’s capabilities and improving coordination with law enforcement agencies could significantly enhance Ukraine’s ability to track and recover illicit funds. Future research should focus on optimizing financial intelligence processes and broadening the scope of preventive measures to curb both corruption and money laundering.

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Author Biographies

Zinaida Zhyvko, Flight Academy of National Aviation University

Doctor of economic sciences, Professor, Professor of the department of aviation management, Flight Academy of National Aviation University, Kropyvnytskyi

Vira Shepeliuk, Kryvyi Rih National University

Ph.D. (Economics), Associate Professor, Department of Accounting, Taxation, Public Government and Administration, Kryvyi Rih National University, Kryvyi Rih

Tetiana Holovach, Lviv State University of Internal Affairs

Ph. D. (Philology), Associate Professor, Lviv State University of Internal Affairs, Lviv

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