Institutional role of the state financial monitoring service of Ukraine in the financial intelligence system in the context of applying civil confiscation mechanisms

Abstract

The article examines the institutional role of the State Financial Monitoring Service of Ukraine as a key subject of the national financial intelligence system in the context of applying civil confiscation mechanisms. It is emphasized that under conditions of armed aggression, expansion of sanctions regimes, and the growth of transnational financial crime, civil confiscation becomes an effective financial-legal instrument for depriving illicit assets without the necessity of a criminal conviction.

Considering contemporary legal, technological, institutional, and international challenges, the main directions for reforming the activities of the State Financial Monitoring Service of Ukraine are identified. Particular attention is paid to strengthening its analytical and preventive functions, improving interagency coordination with law enforcement bodies, anti-corruption institutions, and judicial authorities, as well as enhancing international information exchange within global financial intelligence networks.

The article presents a comparative analysis of foreign experience in the application of civil confiscation mechanisms in the United Kingdom, the United States, France, and Italy. This analysis makes it possible to identify effective models of institutional interaction and legal regulation that may be adapted to the Ukrainian legal system, taking into account national specificities and European integration priorities.

Special focus is placed on the correlation between civil confiscation mechanisms and the principles of the rule of law, protection of property rights, and compliance with the standards of the European Convention on Human Rights. This issue is of particular importance in the context of Ukraine’s obligations arising from the European integration process. The necessity of improving the legislative framework governing civil confiscation is substantiated, with due regard to the case law of the European Court of Human Rights and the recommendations of the Financial Action Task Force (FATF).

The study employs a set of general scientific and specialized legal research methods, including systemic-structural, formal-legal, comparative-legal, and functional approaches. Elements of case-law analysis and an institutional approach were also applied to assess the effectiveness of civil confiscation mechanisms.

The article also justifies the need to enhance the analytical capacity of financial monitoring through the implementation of risk-based approaches and the use of big data analytics and artificial intelligence technologies. It is concluded that strengthening the institutional role of the State Financial Monitoring Service of Ukraine and improving coordination mechanisms will increase the effectiveness of combating illicit assets and ensure the sustainable development of the national financial security system.