The Role of State Financial Monitoring in Ensuring Ukraine's Financial Security during the War

Karina Utenkova
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Karina Utenkova: Kharkiv National University named after V.N. Karazin, Kharkiv, Ukraine

Oblik i finansi, 2025, issue 1, 95-102

Abstract: In conditions of full-scale war, the financial monitoring system is a critical component of ensuring national security by counteracting the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction. The article's purpose is to substantiate the role of the state's financial monitoring of Ukraine in ensuring financial security in martial law conditions. The activities of the key subject of state financial monitoring - the State Financial Monitoring Service of Ukraine (SFMU) are analyzed in the following areas: international cooperation, financial investigations, national coordination, legislative initiative, national risk assessment, and typological research. The results of the study show that today, the priority areas of financial investigations of the SFMU are: financing of war and terrorism (separatism); laundering of proceeds from corruption; embezzlement of budget funds and funds of state enterprises; misuse of funds allocated for humanitarian and social projects, reconstruction of critical infrastructure, housing; laundering of proceeds from crimes related to fraudulent appropriation of funds of citizens and legal entities. In martial law conditions, the SFMU, as a financial intelligence unit, implements effective practical and organizational measures in the field of countering the legalization (laundering) of proceeds from crime, financing terrorism and financing the proliferation of weapons of mass destruction. In particular, this includes cooperation with the FATF to suspend Russia's membership in this organization and include it in the FATF "black list"; collaboration with the Egmont Group of Financial Intelligence Units to suspend Russia's membership in this organization; coordination of work with MONEYVAL on the assessment of measures to combat money laundering and terrorist financing; joint financial investigations with foreign financial intelligence units and financial regulators and relevant cryptocurrency organizations regarding preventive measures for doing business with Russia. The activities of the State Financial Monitoring Service of Ukraine contribute to strengthening the country's financial security; however, in the context of the emergence of new threats, it is necessary to develop and improve the national financial monitoring system in cooperation with international partners.

Keywords: financial monitoring; financial security of the state; State Financial Monitoring Service of Ukraine; anti-money laundering; financial investigations; financial intelligence (search for similar items in EconPapers)
JEL-codes: G20 G28 H56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2025:i:1:p:95-102

DOI: 10.33146/2307-9878-2025-1(107)-95-102

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