Global Financial Integrity has released an interesting study detailing the illicit flow of funds from Russia to other countries. The highlights of the study entitled “Russia: Illicit Financial Flows and the Role of the Underground Economy”, available here, are that:
- From 1994 – 2011, Russia lost US$211 billion in illicit cash outflow;
- Most of the illicit outflows appears to be from mis-invoicing of trade (trade-based money laundering);
- Bribery and kick-backs appear to be underlying problem;
- Russia’s underground economy is thriving and supports the illicit flow of funds; and
- Better legal controls are needed to combat bribery, terrorist financing and money laundering.