Money Laundering from the Motherland:
Refocusing International Organization Efforts to
Control Money Laundering
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33 Introduction
The Bank of New York scandal and the current wave of indictments serve as proof that
Russian money laundering is a difficult crime to prosecute. The Russian inability or unwillingness
to stop the exit of funds, combined with an international regime ill-equipped to deal with
money laundering outside of the traditional drug-related context, has led to the continued abuse
of the international banking system. As a result, Russia has lost billions of dollars in tax
revenue, and assistance from international organizations has been rerouted from its intended
beneficiaries.
This article discusses the Russian origins of funds used in money laundering transactions,
provides an overview of some of the major international agreements governing money
laundering, and offers a proposal to refocus the issue and combine current international
organizations to increase transparency and reduce international money laundering. The article
first outlines the major methods that Russian companies and individuals use to structure deals
Money Laundering from the Motherland:
Refocusing International Organization Efforts to
Control Money Laundering
Kristine Kassekert
Kristine Kassekert is a master’s degree candidate at the Elliott School of International Affairs.
Money laundering in Russia is a serious problem, both for the country’s domestic government and
for the international system. International funds designated to help the general population are
siphoned into offshore accounts, and the Russian government is unwilling or unable to stop the
exodus of funds. Moreover, the international regime is ill-equipped to deal with the situation. This
results in Russia losing billions of dollars in tax revenue, and the abuse of the international
banking system. This article offers a proposal to refocus theissue and combine current international
organizations to increase transparency and reduce international money laundering, since
current multilateral efforts to combat the problem have been ineffective. |
