Governments around the world have set up organizations to monitor illicit money flows. In Russia, that monitoring is done through the Federal Financial Monitoring Service, or Rosfinmonitoring. The agency has confirmed it stopped $14 billion in money laundering transactions in the past nine months.
Rosfinmonitoring is Very Successful
A lot of countries suffer from what is known as the “shadow economy” model. This is an economy like any other, but one where illicit money streams, terrorist financing, and money laundering are the go-to solutions for exchanging value. Putting an end to such illicit transactions is far from straightforward, as there are numerous avenues to be covered.
Russia’s Rosfinmonitoring appears to be on the right track. Earlier this week, the Russian agency confirmed it had halted $14 billion in illicit money flows. This amount was identified and stopped its tracks over the past nine months alone.
As a result of this crackdown, there have been some prominent changes across Russia. Illicit cash withdrawals decreased by 52%. Furthermore, illicit cash withdrawals abroad have been reduced by $8.2 billion. It is a drop on a boiling plate, for now, but Rosfinmonitoring is convinced they can make a genuine impact.
Russia is one of multiple countries suspected of playing a big role in a $221 billion money laundering scheme. All of these funds eventually made its way to a Danske Bank branch in Estonia. Since late 2017, money laundering efforts in Russia saw a major uptick. It is not impossible that there is some involvement in this massive shadow economy.
The majority of Danske Bank’s transactions in Estonia were processed by Deutsche Bank. The financial institution has been in the hot seat ever since this information came to light. However, there are still plenty of puzzle pieces waiting to fall into place. Rosfinmonitoring can play a key role in putting one and one together over the coming months.