COMBATING MONEY LAUNDERING AND TERRORIST FINANCING IN UKRAINE: PROBLEMS AND RISKS UNDER MARTIAL LAW

Abstract

The article examines current issues in the functioning of the system for combating the legalisation of proceeds from crime and the financing of terrorism in Ukraine under martial law conditions. It is substantiated that the full-scale armed aggression and the transformation of the economic environment lead to an increased risk of using financial flows for illicit purposes, particularly through the intensification of international financial aid, humanitarian and charitable inflows, as well as the proliferation of digital financial instruments and crypto-assets. The impact of military actions on the state of the national financial system is analysed, particularly through the destruction of economic infrastructure, the expansion of the shadow economy, and the complication of monitoring financial resource movements. The role of financial investigations as a critical tool for ensuring the state's economic security is highlighted, focusing on identifying sources of illicit income, tracing assets, tracking financial flows, and building an evidentiary base in criminal proceedings. Special attention is paid to the institutional and regulatory characteristics of organising financial investigations in Ukraine, the involvement of public authorities and the private sector in this process, as well as challenges related to access to information and analytical data. The main risks for the financial monitoring system under martial law are identified, including difficulties in tracking financial flows due to the use of hybrid mechanisms, the expansion of digital technologies to circumvent controls, the increase in cyber threats, the use of charitable and volunteer structures in money-laundering schemes, and the rise in cross-border financial violations. The study emphasises the need to improve financial monitoring tools, strengthen inter-agency coordination, and expand the use of digital analytics to enhance the effectiveness of combating illicit financial operations and reinforce the state’s financial security.