Abstract:
Abstract: In the wake of the post-Soviet privatization in the Russian Federation,
corruption and organized crime have flourished, contributing to capital flight, economic
instability, and the collapse of Russia's financial system. Over the same period, Russian
legislators have worked to reform the legal system in order to facilitate their country's
transition to democracy and the rule of law. In 1997, legislative efforts led to the
enactment of a new criminal code that emphasizes the rights of the individual as opposed
to the power of the government. More recently, several draft bills targeting money
laundering activities and banking reform have been introduced in the Russian Parliament
in an effort to confront Russia's economic crisis. Government corruption and the close
connection between organized crime and the banking industry, however, have led to
fierce opposition to the enactment of such reform measures. Consequently, these
measures have been stalled. To confront the problems of crime and economic crisis,
Russia should enact a comprehensive anti-money laundering system that incorporates
provisions similar to those contained in the recent draft bills. In light of the success of
the U.S. anti-money laundering regime, the enactment of a similar system in Russia
would be a significant step towards confronting organized crime, government corruption,
and an ailing economy.
