IMPROVING THE FINANCIAL MECHANISM COUNTERACTION TO THE LEGALIZATION OF SHADOW INCOMES IN BANKING SECTOR OF UZBEKISTAN

Abstract

The purpose of the dissertation research is to determine the ways and methods of improving the financial mechanism for countering the legalization of shadow funds based on an analysis of the financial, economic, organizational and legal components of the functioning of the banking sector. The goal formulated above led to the solution of the following tasks:

- study of the essence and content of the process of counteracting shadow incomes, financial, economic and regulatory framework of anti- legalization measures in the economy; analysis of the anti-money laundering system in credit institutions and determination of its compliance with the level of influence of shadow financial flows on the legal sphere in terms of: summarizing current international experience and highlighting directions for its implementation in the national financial and economic space; identification of the most significant ways of money laundering through the banking sector; determining the features of laundering criminal financial resources in the Republic of Uzbekistan based on the allocation of criteria for monitoring financial transactions through mandatory and optional banking control; developing proposals for improving the national mechanism for counteracting shadow financial flows. Counteracting shadow financial flows to Uzbekistan today is a relatively new direction in the credit and financial sector. Poor knowledge and insufficient development of this problem were especially pronounced during the financial crisis that began in 2007 and was of a global nature, which significantly affected the financial situation of Uzbekistan as a whole and, especially, its banking sector. This influence revealed serious shortcomings both in the theoretical and practical areas, which allowed the penetrating shadow flows to undermine or significantly weaken the financial stability of credit institutions. Insufficient knowledge of this issue requires further improvement by the latter of the mechanism for countering the penetration of criminal financial flows, which will make it possible to more effectively identify transactions of a suspicious nature, which in turn may be associated with shadow capital.