The Financial Monitoring as Mandatory Condition for Financial Safety of the State

This article is devoted to financial law issues on financial security of the state in relation to anti-money laundering and terrorism financing. The financial safety becomes the essential part of financial activity of the state. One of the threats for modern state is money laundering and terrorism financing. In course of financial activity of the state financial monitoring acts as a financial law instrument for anti-money laundering and combating terrorism financing. The financial monitoring as an essential part of financial safety of the state is justified by negative consequences for the state due to money laundering and terrorism financing. The author considers political, economic, social and legal significance of money laundering and terrorism financing. In order to ensure the financial safety of the state in course of financial monitoring measures it is very important to permanently develop the financial law procedures, including client identification, monitoring of operations, assets freezing and others as money laundering and terrorism financing presume the permanent genesis by development of new schemes of money laundering and terrorism financing. The author proves that deregulation has to be one of methods of improvement of current system of financial monitoring in order to ensure financial security of the state and its financial institutions. The article contains suggestions as to the institute of mandatory control which the immediate law modification is required to and institute of identification of ultimate beneficiary owners imposing the parallel obligations on clients and agents of financial monitoring. It is stated that decreasing the number of public functions in relation to agent of financial monitoring being commercial entities will increase the efficiency of analytical work as to detection of transactions linked with money laundering and terrorism financing and finally, ensure the financial safety of the state.

financial security, money laundering, financial monitoring, financial system of the State, state financial control, securities market, mandatory control, KYC, beneficiary owners, combating terrorism financing