The Russian Government is not only corrupt it is a thief which steals money from its own citizens by imposing taxes, hard currency regulations and custom duties. Therefore the money which is made in Russia should be moved to safe places abroad. This is the, rather simplified, reasoning of the economic criminal, yet it carries some very serious consequences. The phenomenon of illegal capital flight was probably one of the major factors of the current economic crisis in Russia. Russian experts point out that the main flow of illegal capital from Russia is channelled through the socalled offshore companies and accounts. This paper will look at the legality of business practices relating to the increase in offshore assets by Russian investors in regard to the major problem of government revenue collection in Russia.
Journal of Financial Crime – Emerald Publishing
Published: Mar 1, 1999