Support The Moscow Times!

Russian Banks Probed Over $18 Billion Capital Flight

Police are investigating a range of Russian banks suspected of illegally moving nearly 700 billion rubles (about $18 billion) out of the country into offshore accounts through a massive "money-laundering" scheme that involved citizens and courts of Moldova, Vedomosti reported Monday.

Suspects in the joint investigation by Russia's Interior Ministry and Moldova's Federal Financial Monitoring Service and National Anti-Corruption Center include about 100 Russian firms and 21 banks, some of which have already been stripped of their licenses, Vedomosti said, citing correspondence between the investigative agencies.

The arrangement, which the Russian Interior Ministry dubbed the "Moldova transit scheme," involved foreign creditors supposedly issuing loans ranging in the hundreds of millions of dollars, with Russian firms and Moldovan citizens acting as co-signers, the report said.

Many of the supposed Moldovan co-signers were low-income citizens, whose signatures of loan agreements were falsified and who were unaware of their participation in the scheme, according to a letter sent to the Russian Interior Ministry, Vedomosti reported. But Moldovan names on the agreements allowed lawsuits to be filed in Moldovan courts for the return of the supposed loans, according to the report.

In a series of winning cases, 13 Moldovan courts ordered Russian loan guarantors listed on the agreements to pay up, leading Russian firms and banks to transfer money into the accounts of 19 companies registered in Britain, New Zealand or Belize, the report said.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more