http://www.aljazeera.com/news/europe/2013/02/2013220143755785271.html
The outgoing Russian head of central bank Sergei Ignatyev announced that about 50 Billion dollars has left russia illegally in 2012. These Funds account for 2.5% of the Russian national income. 14% of the funds that has left the country is believed to be part of illicit trade operations and the rest left through cash schemes. The reasons behind the exit of these funds could be illegal drugs trade, Bribing, and tax evasion. The study done by the central bank shows sign of the money going through complex money trails. Cyprus is the biggest source of investment into russia and much of the money being invested from there is believed to be Russian in origin. This is classic case of illegal activities to flee tax and overcome obstacles that are set by the government to limit the flow of cash across borders.
I would be interested in knowing how much money leaves the states illegally. Of course I imagine it is much lower than the 2.5% of national income that left Russia. This must be a very sophisticated operation going on in Russia - one that is likely to be very tough to crack. Clearly Russia needs to tighten up their monetary control. Additionally, for someone who has dealt with little controversy throughout their time as Central Bank Chief, this is a very tough way to end your time in office. I feel for Ignatyev.....the man just wants to retire peacefully in June!
ReplyDeleteThere has to be corruption involved. The way everything plays out now in international banking, with all of it electronic mostly, corruption plays a huge part in money laundering. It is possible that Russia actually has the infrastructure to regulate this but the regulators could possibly be in on it too.
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