Report on illicit transfer of funds out of Russia

By Christine Duhaime | February 17th, 2013

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.

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