INTERCONNECTION BETWEEN FINANCIAL MONITORING AND BEHAVIORAL FINANCE IN THE CONTEXT OF ENSURING ECONOMIC SECURITY

Abstract

The article presents a thorough study of the relationship between financial monitoring and behavioral finance in the context of ensuring the economic security of the state, financial institutions and business entities. The relevance of the topic is due to the significant increase in the scale of financial offenses, the complexity of money laundering schemes, the dynamic development of digital technologies and the need to increase the efficiency of mechanisms for countering modern financial threats. The conclusion is made that traditional means of financial monitoring, focused mainly on formalized procedures and regulatory approaches, are unable to ensure the proper level of efficiency without taking into account the behavioral characteristics of economic agents. The paper reveals in detail the essence of the concept of "behavioral finance" as a scientific direction that studies the influence of psychological, social and cognitive factors on financial decision-making. Key behavioral biases (in particular, the overconfidence effect, the herd effect, the availability heuristic) that can contribute to the emergence of risky or non-standard financial behavior are identified. It is substantiated that the inclusion of these aspects in the financial monitoring system allows to achieve higher accuracy in detecting suspicious transactions, improve risk assessment algorithms and provide a deeper and more comprehensive analysis of financial flows. The possibilities of integrating behavioral approaches into the practice of financial monitoring through the use of modern analytical tools, artificial intelligence algorithms and predictive models focused on analyzing customer behavior are analyzed. It is determined that the synthesis of technological solutions with behavioral insights creates the basis for the formation of a proactive system for detecting financial threats. Such a system is capable not only of recording already committed offenses, but also of serving as a means of effectively preventing them. Special emphasis is placed on the importance of financial monitoring for strengthening economic security, which includes maintaining the stability of the functioning of the financial system, strengthening trust in financial institutions and reducing the volume of the shadow economy. It is proven that the coordinated interaction between financial monitoring and behavioral finance contributes to the development of adaptive and flexible mechanisms of state and internal control in the financial sector. Thus, the integration of behavioral finance into the financial monitoring system is defined as a promising direction for improving financial risk management and ensuring economic security in an unstable economic environment. Further research directions are outlined, aimed at creating methodological approaches to the practical implementation of behavioral models in the processes of financial supervision and