Serhiy Lieonov

Department of Economic Cybernetics, Sumy State University,

Ukraine; University of Social Sciences, Lodz, Poland

s.lieonov@uabs.sumdu.edu.ua

ORCID 0000-0001-5639-3008

Structural modelling for assessing the effectiveness of system for countering legalization of illicit money

Roman Hlawiczka

Silesian University in Opava,

School of Business Administration in Karviná, Czech Republic

roman.hlawiczka@opf.slu.cz 

ORCID 0000-0002-6429-2095

Anton Boiko

Department of Economic Cybernetics, Sumy State University,

Ukraine

a.boiko@biem.sumdu.edu.ua

ORCID 0000-0002-1784-9364

Serhii Mynenko

Department of Economic Cybernetics, Sumy State University,

Ukraine

s.mynenko@biem.sumdu.edu.ua

ORCID 0000-0003-3998-9031 

Monika Garai-Fodor *

Óbuda University,

Keleti Károly Faculty of Economics, Hungary

fodor.monika@kgk.uni-obuda.hu

ORCID 0000-0001-7993-2780

* corresponding author

Abstract. The article suggests a scientific and methodological approach to the evaluation of the infrastructural component’s effectiveness in the anti-money laundering system due to digitalization. Structural modelling is the basis for the mentioned approach implementation, which consists of several steps. First, the input data is selected in terms of the effective regulation of the financial services market, law enforcement and judicial activities, and digitalization. Next, the moving average method is used to identify the growth rate of missing values in the available data series. Then, the selection of relevant factors for financial services market regulation, law enforcement activity, judicial activity and digitalization is based on the principal component analysis. After reducing the input array of data to a comparable form, a structural equations system can be constructed to reflect the impact of the digitalization level on the latent integral characteristics of the directions of anti-money laundering work done by regulatory authorities. Finally, the model is checked for adequacy. The result of this research can serve as an information base for further strengthening the digital vector in the development of regulation institutions and law enforcement agencies overseeing the financial services market, as well as for the radical transformation of courts in Ukraine since digitalization currently negatively affects them.

Received: December, 2021

1st Revision: May, 2022

Accepted: September, 2022

DOI: 10.14254/2071-8330.2022/15-3/15

JEL Classification: C1, C3, O17, H11

Keywords: digitalization, anti-money laundering, structural equation model, illicit money, judicial system of Ukraine