MANAGEMENT OF RISKS OF FINANCIAL INSTITUTIONS IN THE FIELD OF FINANCIAL MONITORING

Abstract

Introduction. The search for models for assessment, control and effective risk management for anti-money laundering and terrorist financing should be implemented through the introduction of a risk-oriented approach in accordance with the requirements of international FATF and EU Directives. There is a problem of balancing the cost-effectiveness of financial monitoring organization with respect to monitoring of entities of initial financial monitoring (financial institutions) with high and low risk of money laundering and terrorist financing. The lack of effective mechanisms aimed at increasing the effectiveness of control over financial transactions that are subject to both mandatory and internal financial monitoring are significant threats to the global security and integrity of the international financial system against which new FATF international standards was directed. Implementation of risk-control models, in particular, compliance control in the field of financial monitoring risk management, is required.

The goal – develop theoretical principles and practical recommendations for improving risk management in the field of financial monitoring of financial institutions.

The task - establish the value of compliance control in the financial monitoring risk management system; consider the banking practice of introducing risk management compliance; present the modern training technology of professional training of personnel in the field of financial monitoring.

Methods - analysis, generalization, special software in the field of financial monitoring.

Result. Further development approaches to managing the risks of financial institutions in the financial monitoring system were introduced through the introduction of compliance risk control.

Conclusion. The system of compliance risk control needs development and should be adapted to the requirements of the modern international system, which will promote positive business reputation, minimize costs and preserve assets of the bank through the system of financial monitoring. The risk-compliance must be introduced into the overall system of risk management of a financial institution through the application of innovative risk control methods with the processing of large amounts of information, which requires new training technologies for the training of competent professionals.