Evaluation technique of the risk of the use of promissory notes for legalization of criminal assets

Tatiana Dmytrenko

Ukrainian Journal Ekonomist, 2017, issue 12, 20-30

Abstract: The article presents the results of research of risk assessment methods for the use of promissory notes for money laundering or financing of terrorism and its components. The method to assess the risk of presence or absence of prerequisites, reservations and inscriptions using the coefficient of significance of the components of a promissory note risk, namely, the coefficients of the significance of the risk of using promissory notes through the expert evaluation method has been offered. This method allows to assess the use of promissory notes in terms of their conformity with the requirements of exchange law and considers the peculiarities of using promissory notes reservations the assessment of which requires an expert approach. The article also presents the assessment of promissory notes using Bayesian approach to the analysis of risks of using promissory notes in financial operations concerning money laundering or financing of terrorism based on the indicators of financial and accounting statements of bill of exchange transactions participants. This approach allows to assess the liquidity and participants listed on a promissory note who bear joint and several liability as regards an order to pay in relation to a promissory note, and the liquidity of the promissory notes themselves. So, in a combination of two methods for estimating promissory notes both in form and requisites of promissory notes in accordance with exchange law and in calculating the liquidity of a promissory note as a financial instrument concerning the economic sense of its use, the article describes the methodology for assessing the risk of using promissory notes in financial transactions related to money laundering or financing of terrorism and the proliferation of weapons of mass destruction.

Date: 2017
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