Abstract
Criminal offenses in the banking sector pose significant threats to the safe functioning of economies, potentially jeopardizing national security. Criminal-legal prohibitions aim to prevent such offenses through the deterrent effect of prescribed penalties. However, the absence of tailored criminal-legal protections leaves banking relations vulnerable. The dynamic evolution of banking activities, influenced by external factors and global interconnectedness, necessitates comprehensive legal frameworks for their protection. This article explores the international management and legal mechanisms for safeguarding the banking sector and their implications for Ukraine.
Ukraine's current criminal-legal framework does not fully address the complexities of banking activities in a market economy. Key gaps include inadequate protection for creditors (banks) and borrowers (clients), insufficient regulation of corporate liability for crimes in the banking sector, and the lack of incentive-based provisions to deter criminal behavior. Moreover, the absence of specialized norms for defining subjects of crimes in this sector undermines effective enforcement.
Internationally, countries such as Switzerland, Poland, and the UK employ robust criminal-legal mechanisms to secure banking operations. For instance, the Swiss Penal Code outlines offenses like creditor favoritism and fraudulent insolvency. Similarly, in the UK, fraud prevention initiatives highlight vulnerabilities in payment cards and online banking systems, which constitute the majority of fraud cases.
Global management practices emphasize proactive measures, including fraud analytics, enhanced data security, and public-private collaboration to mitigate risks. Reports from leading organizations like IBM and Deloitte underline the escalating scale of banking fraud, urging institutions to adopt advanced security measures and build trust with clients.
This article argues for the adoption of international best practices in Ukraine, including the implementation of safeguarding norms from international legal instruments. Strengthening the legal and management frameworks can enhance the resilience of Ukraine's banking sector against criminal threats, ensuring its stability and integrity.
Ukraine's current criminal-legal framework does not fully address the complexities of banking activities in a market economy. Key gaps include inadequate protection for creditors (banks) and borrowers (clients), insufficient regulation of corporate liability for crimes in the banking sector, and the lack of incentive-based provisions to deter criminal behavior. Moreover, the absence of specialized norms for defining subjects of crimes in this sector undermines effective enforcement.
Internationally, countries such as Switzerland, Poland, and the UK employ robust criminal-legal mechanisms to secure banking operations. For instance, the Swiss Penal Code outlines offenses like creditor favoritism and fraudulent insolvency. Similarly, in the UK, fraud prevention initiatives highlight vulnerabilities in payment cards and online banking systems, which constitute the majority of fraud cases.
Global management practices emphasize proactive measures, including fraud analytics, enhanced data security, and public-private collaboration to mitigate risks. Reports from leading organizations like IBM and Deloitte underline the escalating scale of banking fraud, urging institutions to adopt advanced security measures and build trust with clients.
This article argues for the adoption of international best practices in Ukraine, including the implementation of safeguarding norms from international legal instruments. Strengthening the legal and management frameworks can enhance the resilience of Ukraine's banking sector against criminal threats, ensuring its stability and integrity.
| Translated title of the contribution | Certain Aspects of Criminal-Legal Protection of the Banking Sector at the International Level |
|---|---|
| Original language | Ukranian |
| Title of host publication | Конгрес міжнародного та європейського права : зб. наукових праць (м. Одеса, 25–26 травня 2018 року). Одеса: Національний університет «Одеська юридична академія»; Фенікс, 2018. |
| Pages | 46-49 |
| Number of pages | 8 |
| Publication status | Published - 25 May 2018 |