ANALYSIS OF CHANNELS OF UNPRODUCTIVE WITHDRAWAL OF CAPITAL ABROAD

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ANALYSIS OF CHANNELS OF UNPRODUCTIVE WITHDRAWAL OF CAPITAL ABROAD

Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 5, Issue 67

Abstract

To date, the problem of legalization of the proceeds of crime is a challenge for the financial and economic stability of many countries. The aim of the research is to develop a scientific and methodical approach, which consists in the timely identification of channels and schemes connected with the legalization of the proceeds of crime, their formalization, assessing and monitoring in order to prevent these transactions occurrence. The paper investigates trends and volumes of shadow withdrawal of funds abroad. On the basis of the analysis of the existing theoretical and practical experience of shadowing of the economy, the channels and schemes of illegal withdrawal of funds have been analyzed. Their specific features are determined. The most widespread methods of illegal capital withdrawal by economic entities in Ukraine are determined. The comparative analysis of volumes of illegal financial flows in Ukraine and the world for the period of 2005-2014 has been proved. These days it is proved that at the present stage of economic development characterized by border alignment and intensification of interaction between countries, the key vector of effective state financial management is timely and full evaluation of all channels of shadow revenues. The expediency of taking into account the multichannelity of the existing system of unproductive withdrawal of capital abroad in developing the policy of deshadowing of the economy has been substantiated. It is proved that the stable activity of the financial system of the country is possible through providing the effective mechanisms and measures on deterring and combating money laundering at the level of different agents of the national economy and financial institutions. The analysis shows that there is a wide range of channels and schemes for the illegal withdrawal of funds abroad, with the participation of a wide range of participants, the main of which are banking institutions, insurance and investment companies, business entities both in the country and abroad. This, in turn, leads to an increase in the volumes of distorted input and output data for the compilation of financial, accounting, and tax reporting, forms the preconditions for reducing the effectiveness of the state financial policy in the field of shadowing of the economy, on the one hand, reducing the volume of tax revenues and, as a result, losing the amount of GDP in full volume, lowering the level of investment activity in the country – on the other. Timely identification of all participants in the illegal withdrawal of funds abroad will contribute to a more comprehensive solution to the problem related to improving the quality and efficiency of public financial management, the growth of the pace of economic and social development of the country, will form the basis for its normal functioning in the strategic perspective.

Authors and Affiliations

I. V. Tiutiunyk

Keywords

EP ID EP562328
DOI 10.32782/2520-2200/2018-5-32
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