Money Laundering Risk Identification Algorithms Iryna Moіseіenko a , Ivanna Dronyuk b and Iryna Revak a a Lviv State University of Internal Affairs, Gorodotska 26, Lviv, 79001, Ukraine b Lviv Polytechnic National University, Bandery 12, Lviv, 79013, Ukraine Abstract It is shown that the risks of money laundering are a type of danger associated with political, social and economic activity. The methodological basis for identification of money laundering risks is given. The monitoring data of money laundering risks are analyzed. The algorithms for identification of money laundering risks in general case and partial case are developed on the basis of data on owners and structure of property of financial transactions subjects. Keywords 1 Risks of illegal income legalization, financial monitoring, proper verification of customers, non-transparent ownership structure, beneficial owners 1. Introduction The national system for preventing and combating money laundering needs to improve the methodological framework for identifying and analyzing risks at the level of business entities. In Ukraine, since 2016, national risk assessments have been carried out, which determine the typologies of risks of money laundering and terrorist financing and typical schemes of their occurrence [1]. The spread of these threats to economic security may result in the development of money laundering and the support of financial flows of international terrorism and crime [2]. An important aspect of the study of the legalization processes of illegally obtained income is the identification of money laundering risks [3,4]. The article [5] shows that contextual institutional restraints and cultural factors have significant impact on the possibility in the fight against terrorism an organised crime. The struggle for democracy there is all over the world [6,7]. The special state body, the State Financial Monitoring Service of Ukraine (SFMS), is taking enhanced measures to monitor the processes of money laundering, terrorist financing and the proliferation of weapons of mass destruction. Financial monitoring is a set of measures taken by the subjects of financial monitoring in the field of prevention and counteraction to legalization (laundering) of proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction. Financial monitoring is a set of measures taken by the subjects of financial monitoring in the field of prevention and counteraction to legalization (laundering) of proceeds from crime, terrorist financing and financing of proliferation of weapons of mass destruction. The object of financial monitoring is actions with assets related to the relevant participants in financial transactions that conduct them; it is provided that there are risks of using such assets to legalize proceeds from crime, as well as any information about such actions or events, assets and their participants. Legalization (laundering) of proceeds from crime includes any actions related to a financial transaction or transaction with proceeds from crime, as well as actions aimed at concealing or masking the illegal origin of such proceeds, or possession them, the rights to such income, the sources of their origin, location, movement, change of their form (transformation), as well as the acquisition, possession or use of income obtained by criminal means [8]. IT&AS’2021: Symposium on Information Technologies & Applied Sciences, March 5, 2021, Bratislava, Slovakia EMAIL: ko@lvduvs.edu.ua (Iryna Moiseienko); ivanna.m.droniuk@lpnu.ua (Ivanna Dronyuk); irarevak@gmail.com (Iryna Revak) ORCID: 0000-0002-3140-461X (Iryna Moiseienko); 0000-0003-1667-2584 (Ivanna Dronyuk); 0000-0003-1755-2947 (Iryna Revak); © 2021 Copyright for this paper by Iryna Moiseienko and Ivanna Dronyuk. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0). CEUR Workshop Proceedings (CEUR-WS.org)