The U.S. Department of State labels the Russian Federation as a major money laundering jurisdiction. Sources of laundered funds include corruption within state officials, embezzlement of public funds, tax evasion, fraud,, and drug trafficking. Russia is a transit and destination country for international narcotics traffickers, particularly from Afghanistan. Common methods used to launder money include: foreign and national shell entities; securities instruments; virtual currencies; precious metals; domestic and foreign real estate transactions and construction; pension funds; and luxury consumer goods. Russia's cash declaration system is only applicable at the external borders of the Eurasian Economic Union, meaning that currency can move undeclared within the country's borders. Another significant problem in the country is cybercrime since both Russian backed-hackers and organized criminal groups work together to abuse virtual currency for money laundering purposes. The country lacks corporate criminal liability legislation which further enables money laundering. In 2020, the Central Bank of Russia revoked 15 bank licenses for regulatory weaknesses.-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

Russia's technical compliance was re-rated in a follow-up report published on Feb. 28, 2024.

Rank : 52/141

Score : 5.51/10

Rank : 137/180

Score : 28/100

Rank : 44/133

Score : 57/100

Russian Federation