Text 5: Criminal Proceeds and Cooperation with other Countries

 

Russia has laws that allow for the confiscation of proceeds of drug trafficking, drug money laundering, and other offenses. Provisions also exist which enable asset identification and for tracing, freezing, and seizing of these criminal proceeds. As long as a case of this nature is opened and goes to trial, legal provisions are available for seizure of criminally derived assets connected to the predicate offense. Russian laws also permit banking authorities and offshore banking authorities to share account transaction information and other information with law enforcement authorities. The Russian government may share account transaction and other customer information with foreign law enforcement authorities.

Russia has signed and ratified the 1988 Vienna Convention. Russia became a member of the Council of Europe in 1996. Russia's proposed anti-money laundering law is patterned after provisions in the Strasbourg Convention. As the continuing state of the former Soviet Union, Russia recognizes all treaties and international conventions signed by the Soviet Union. This includes Mutual Legal Assistance Treaties (MLATs) signed with current and former socialist countries and members of the Commonwealth of Independent States which have not abrogated these agreements.

Intergovernmental agreements which may be applicable to money laundering offenses have been signed with Greece, Cyprus, Italy, Finland, Sweden, and the United States. Russia has intergovernmental agreement proposals with Germany, Norway, Denmark, Spain, Portugal, and Hungary. Some of these intergovernmental agreements may be applicable for civil offenses only, and, when applicable for criminal purposes, the information exchanged is for operational purposes only.

There is no maximum limit on the import or export of monetary instruments. Reporting of these instruments takes place at the border if they are physically carried into the country. Under current Russian laws, monetary instruments used as a means of committing criminal activities or received as the proceeds of criminal acts can be seized and their existence reported to foreign authorities. No provisions exist for asset sharing or extradition in money laundering cases with other countries, since money laundering itself is not a crime.

Under provisions in the proposed anti-money laundering legislation, banks and businesses will be required to report any non-cash transaction – under which monetary instruments fall – to the tax authorities. As with any other cash or non-cash transaction, transaction reports involving monetary instruments will be forwarded to the proper law enforcement and regulatory agencies, entered into a searchable database, and made available to foreign law enforcement authorities through applicable agreements and restrictions.

The proposed legislation contains an article recognizing judgement handed down in foreign countries for the purpose of establishing liability for money laundering. The foreign confiscation order may be recognized and executed in the Russian Federation, and all or part of such money may be transferred to the country in which its confiscation was ordered, in accordance with the principle of reciprocity and under bilateral agreements.

 

Vocabulary notes

 

to pattern		копировать
to pattern after/on/upon smth		копировать что-либо
pattern		модель, образец
commonwealth	['kom@nwelT]	содружество
the Commonwealth of Independents States		СНГ (Содружество Независимых Государств)
to abrogate	['{br@ugeIt]	отменять, аннулировать (закон)
to seize		1) захватывать; 2) хватать; 3) понимать
to forward	['fo:w@d]	1) направлять, посылать;
		2) ускорять, помогать, содействовать
to contain		содержать, вмещать
to hand down		подавать сверху
reciprocity	[,resI'prosItI]	взаимность, взаимодействие
to reciprocate		отплачивать, обмениваться
		(услугами)
reciprocal		взаимный, обоюдный, ответный
bilateral		двусторонний

 

Suggested activities

 

a Write down if Russian laws permit or not the following, using the text:

 

the confiscation of proceeds of Russian laws permit the confiscation.........

drug trafficking: of proceeds of drug trafficking...................

the confiscation of proceeds of.....................................................................

drug money laundering.....................................................................

tracing, freezing and seizing of the.................................................................

criminal proceeds.................................................................

seizure of criminally derived as-.................................................................

sets connected to the predicate..................................................................

offense..................................................................

banking authorities of Russia to.................................................................

share information with foreign..................................................................

law enforcement authorities..................................................................

offshore banking authorities to...................................................................

share information with Russian...................................................................

law enforcement authorities..................................................................

the Russian government to share..................................................................

the information involved with for-................................................................

eign law enforcement authorities.................................................................

 

b Complete the following sentences using the text:

 

1 Russia has signed and ratified...........................................................................................................................

2 In 1996 Russia became a member....................................................................................................................

3 The proposed anti-money laundering law..................... the Strasbourg Convention.

4 Russia recognizes Mutual Legal Assistance Treaties signed with

5 Agreements which may be applied to money laundering offenses have been signed with............................................................................................................................................................................

6 Proposals for signing similar agreements with...........................have been made.

 

с Find the answers in the text:

 

1 Can all the agreements signed.........................................................

or to be signed be applied both.........................................................

to civil and criminal offenses?........................................................

2 If an agreement is applicable.........................................................

to civil offenses can it still be.........................................................

applied to criminal offenses?.........................................................

3 With what restrictions can it be done?.........................................................

 

d Make a written report on importing and exporting monetary instruments following this plan:

 

• no limits on the volume

• formalities at the border

• possible reporting to foreign authorities under some special circumstances

• no provisions for asset sharing or extradition

• reporting to the tax authorities

• information sent to foreign law enforcement authorities

 

e Say why you think the proposed legislation:

 

• recognizes judgment handed down in foreign countries

• recognizes foreign confiscation orders

• allows for transfer of the money confiscated to the country involved

 

Words and Grammar

 

f Make a few sentences of your own with the following words:

 

to issue an order........................................................

to recognize an order........................................................

to execute an order........................................................

the principle of reciprocity........................................................

under intergovernmental (bilateral, multilateral) agreements.........................................................

 

j Complete the following:

 

Under provisions of..................... In conformity with........................

In accordance with...................... In compliance with........................

 

g Write down the English equivalents used in the text:

 

нарушать соглашение........................................................................................................................................

преступление, связанное с отмыванием денег................................................................................................

гражданские (уголовные) преступления..........................................................................................................

средства, полученные в результате криминальной деятельности.................................................................

конфисковать средства выдача преступника иностранному государству.................................................

 

h Choose the correct prepositions and make a few sentences of your own with the following:

 

to be applicable to/for such offenses

to exchange information on/for operational purposes only

no limit on/in their import and export

to take place at/on the border

to establish liability in/for money laundering

to make available for / to foreign authorities

 

i Encircle the predicates and translate the following sentences into Russian:

 

1 The Russian government may share account transaction information with foreign states.

2 Intergovernmental agreements may be applicable to the predicate offenses.

3 Monetary instruments used as a means of committing criminal activities can be seized.

 

j Write out a few attributive clauses from the text and underline their subjects and predicates.

 

§ In conclusion

 

k Why do you think the report says «since money laundering itself is not a crime».

Skim and scan

Read the text quickly and say if the headline Joint Investigations may also suit it or not and why.