Accounts Chamber of the Russian Federation

Current Situation of Corruption and Money Laundering

In the Russian Federation

1the 10th Research ASOSAI Project

Vietnam 2013

Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 2013

This survey is based on the analysis and summarization of:

the expert materials statistical data

public appraisals and research

in the area of corruption and money laundering prepared both by governmental and non-

governmental organizations

Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 2013

inconsistent privatization conducted with material violations

inefficiency of administration

shortcomings of the legislation

premature transition to market relations amid globalization processes

drastic change of the form of state structure

the public morality condition

legal ignorance of the majority of the country population

a wide gap between highly prosperous and poverty-stricken population strata

Causes of corruption

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Accounts Chamber of the Russian Federation

Peculiarities of the national corruption powerful and far-flung shadow economy with a huge amount

of illegal revenues; uncontrolled circulation of extra money supply; non-performance or improper performance of the laws and measures adopted to counter corruption; complexity, inconsistency and possible varying interpretations of the applicable legal

regulations;the 10th Research ASOSAI Project

Vietnam 2013

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Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 2013

a great number of statutory instruments which arbitrarily interpret the norms of the applicable law;

corrupt election processes;involvement of relatives into the corruption

process;the global nature of the Russian corruption;

the unprecedented development of domestic corruption based on the historically conditioned principle of the Russian State governance.

According to the UN assessments, up to 500 billion dollars of the so called “dirty money” coming in from Russia, including through

corruption channels, are legalized yearly in the world. That makes approximately 8% of the total volume of the global trade activity.

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Accounts Chamber of the Russian Federation

•70%

•58%

•27%

•25%

•14%

Interregional differences of corruption

the 10th Research ASOSAI ProjectVietnam 2013

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Accounts Chamber of the Russian Federation

Corruption in different fields

Religious organizations

Service utility system Education system

Political PartiesMass media Municipal authorityElection process Social support system , pension systemPublic procurement systemJudiciary systemParliamentNational Security structureLaw enforcement Bodies, police

1008060400 20

Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 2013

Laundering of the offence-related monetary funds

within the last three years (2010 – 2012), around 7.5 billion US dollars were transferred

from Russia through the securities market only to the off-shore companies’ accounts

with foreign banks. 1.5 billion US dollars were converted into cash within 2010-2011

through personal accounts with Russian banks.

in Russia, the budgetary money, allocated to public companies and corporations

and stolen in the process of “budget disbursement” is laundered as a rule.

the yearly volume of doubtful transactions in the shadow economy can

make from 30 billion US dollars to 60 billiard US dollars.

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Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 2013

Thank you

For your attention!

Accounts Chamber of the Russian Federation

the 10th Research ASOSAI ProjectVietnam 201310