Accounts Chamber of the Russian Federation Current Situation of Corruption and Money Laundering In the Russian Federation 1 the 10th Research ASOSAI Project Vietnam 2013

Accounts Chamber of the Russian Federation the 10th Research ASOSAI Project Vietnam 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 Project Vietnam 2013 inconsistent privatization conducted with material violations inefficiency of administrationshortcomings of the legislation premature transition to market relations amid globalization processes drastic change of the form of state structurethe 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

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 performance of the laws and measures adopted to counter corruption;  complexity, inconsistency and possible varying interpretations of the applicable legal regulations; possible varying interpretations of the applicable legal regulations; 4 the 10th Research ASOSAI Project Vietnam 2013

Accounts Chamber of the Russian Federation 5 the 10th Research ASOSAI Project Vietnam 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.

Accounts Chamber of the Russian Federation 6 70%58%27% 25%14% Interregional differences of corruption the 10th Research ASOSAI Project Vietnam 2013

Accounts Chamber of the Russian Federation Corruption in different fields Religious organizations Service utility system Education system Political Parties Mass media Municipal authority Election process Social support system, pension system Public procurement system Judiciary system Parliament National Security structure Law enforcement Bodies, police

Accounts Chamber of the Russian Federation the 10th Research ASOSAI Project Vietnam 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 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. 8

Accounts Chamber of the Russian Federation 9 the 10th Research ASOSAI Project Vietnam 2013

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