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Treasury targets Russia’s oligarch as part of a plan to fight illegal finances

The US Treasury has highlighted the need for Russia’s invasion of Ukraine to close regulatory loopholes and strengthen the fight against corruption, outlining plans to take action to address illegal financial risks.

The National Strategy for Fighting Illegal Finance, announced Friday, is the latest iteration of the Treasury’s biannual report. But this year’s strategy could be one of the most important things it has created, given Russia’s offensive against its neighbors, Treasury officials said.

“Illegal finances are a major national security threat, and nothing is as obvious as Russia’s war with Ukraine, supported by decades of corruption by Russia’s Elizabeth Rosenberg,” said U.S. Treasury Secretary. Assistant Elizabeth Rosenberg said.

On Wednesday, the Ministry of Finance will limit the ability of corrupt Russian oligarchs and other illicit actors to secretly access the financial system through shell companies and full-cash real estate purchases in a priority to address the threat. He said he was implementing regulations.

The report, released Friday, addresses many illegal financial risks to the US financial system identified by the Treasury in March. The Treasury at the time cited fraud, drug trafficking, and cybercrime as the crimes that created the greatest illegal activity.Also, abuse of cryptocurrencies Rise of domestic radicalism..

Even before the invasion of Ukraine, the Biden administration linked its work on illegal finance to a larger national security goal.It’s saying that The fight against corruption should be a core priority of national securityAnd more recently, he pointed to Russia’s invasion of Ukraine as an example of how corruption destabilizes the nation and threatens the interests of the United States.

The administration has imposed widespread economic measures on Russia and tightened sanctions on individuals and businesses claiming to be involved in corruption. May 8th, new measures announced Prohibits Americans from providing accounting and management consulting services To a Russian company. That step was in line with the strategy announced Wednesday, the Treasury said.

For over a year, the Treasury Corporate Transparency LawThe top priority in combating the various illegal financial threats identified by the agency is the efforts stated by the agency. The Money Laundering Prevention Act, passed in early 2021, requires the Treasury to create a corporate ownership register that MPs want to limit the use of anonymous shell companies.

The agency is also working to strengthen the prevention of money laundering in the real estate sector. Additional scrutiny of full cash transactions..

Treasury officials said Wednesday that the measure was an important step against the Russian president.

Vladimir Putin

Corrupt Russian oligarchs associated with the Kremlin. Corruption linked to the Russian government has played a role in funding the invasion of Ukraine, they said.

“Some of the world’s most sophisticated money launderers and financial criminals work on behalf of Russia,” a senior Treasury official said in a briefing with reporters. “They are taking advantage of these gaps to move or hide money, including in the United States.”

The Treasury said Wednesday will also focus on renewing regulations that require financial institutions such as banks and money service companies to apply money laundering prevention controls to transactions they process on behalf of their customers.

It also works to combat illegal financing, support innovation, and improve the effectiveness of law enforcement efforts to continue to scrutinize the risks posed by cryptocurrencies and other new financial products and services. Said the Ministry of Finance.

Risk & Compliance Journal Details

Write to Dylan Tokar at dylan.tokar@wsj.com

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It was published as “Treasury Tackles Illicit Finance” on the printed version on May 14, 2022.

Treasury targets Russia’s oligarch as part of a plan to fight illegal finances

Source link Treasury targets Russia’s oligarch as part of a plan to fight illegal finances

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