Money Laundering Research Related to Russia

The Threat of Russian Organized Crime

In the decade since the collapse of the Soviet Union, the world has become the target of a new global crime threat from criminal organizations and criminal activities that have poured forth over the borders of Russia and other former Soviet republics such as Ukraine. The nature and variety of the crimes being committed seems unlimited - drugs, arms trafficking, stolen automobiles, trafficking in women and children, and money laundering are among the most prevalent. The spillover is particularly troubling to Europe (and especially Eastern Europe) because of its geographical proximity to Russia, and to Israel, because of its large numbers of Russian immigrants. But no area of the world seems immune to this menace, especially not the United States. America is the land of opportunity for unloading criminal goods and laundering dirty money. For that reason - and because, unfortunately, much of the examination of Russian organized crime (the so-called "Russian Mafia") to date has been rather hyperbolic and sketchy - we believe it is important to step back and take an objective look at this growing phenomenon. Just what is this Russian Mafia? What does it look like? Where does it come from? What does it do? And how does it do it? We hope that through addressing these questions we can provide a context for assessing how much of a threat Russian crime might be to the United States - directly or indirectly - and how concerned we should be.

James O. Finckenauer and Yuri A.Voronin
U.S. Department of Justice
June 2001

Russian Capitalism and Money-Laundering

The period of transition from socialism to capitalism in the Russian Federation has appeared to present limitless opportunities for international moneylaundering. Financial markets are being liberalized and the economy is becoming privatized and deregulated in the absence of corresponding legal frameworks and institutional capacities to oversee developments. As a result, the country offers an easy entry point for illicit cash into the financial system from where it can easily move within the international financial system.

United Nations
2001