Russia sees "unpleasant signal" on cash laundering
By Julie Tolkacheva
06/22/2001
Reuters English News Service
(C) Reuters Limited 2001.
MOSCOW, June 22 (Reuters) - Russia said on Friday it had received an "unpleasant signal" from an international agency which leads a war against money laundering after being threatened by sanctions and kept on a blacklist.
But it said it was trying to get laws passed to boost its fight against the legalisation of cash obtained by criminal means and would meanwhile continue efforts with existing laws.
Russia earlier got another slap on the wrist from The Financial Action Task Agency (FATF), a G-7 backed body.
It warned Moscow and others, including Egypt, Israel and the Philippines, that failure to clean up their act by September 30 could lead to a clampdown on financial surveillance and ties.
"The conclusion that Russia has not taken the necessary measures is of course an unpleasant signal," Deputy Prime Minister Alexei Kudrin told reporters.
"(But) FATF did not take any decisions above the ones taken before - we remain on the blacklist. At the same time, FATF noticed the steps Russia has already made to solve the problem. All the main sanctions are delayed until the autumn.
Russia and money laundering have often been mentioned in tandem in recent years, especially after allegations billions of dollars of criminal funds were sent via the Bank of New York .
RUSSIA SAYS TAKES STEPS
A United Nations official recently told a crime-fighting conference in Russia that estimates had been made of as much as $100 billion being laundered in the country.
President Vladimir Putin has also complained of $20 billion leaving the country each year in capital flight, in which illegal funds are often said by analysts to be included.
Russia's lower house, the State Duma, has already passed the first reading of a draft law aimed to fight money laundering and Kudrin said a second reading could be held on June 27.
He said Russia also planned to set up a special body to fight money laundering when the bill came in force.
"We fought, are fighting and will fight money laundering within the existing legal framework," a spokesman for the Tax Police, one of Russia's agencies which tries to track money laundering , told Reuters.
He said the current Criminal Code had articles on money laundering , but they were too vague to be effective.
"As soon as the bill (in the Duma) becomes law all law-enforcement structures will have clear rules of fighting dirty money. We are looking forward to getting it."
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