Financial Crime World

Financial Crimes in Russia: A Comparative Analysis

Preventing financial crimes is a crucial task for any country, and it requires a deep understanding of criminal laws and their implementation. A recent study by Samara State University of Economics highlights the importance of comparing criminal laws between countries to prevent financial crimes.

Gaps in Russian Criminal Law

The study analyzed Russian and British legislation and revealed significant gaps in Russian criminal law regarding socially dangerous acts committed in the investment sphere. Financial markets are a prime target for criminals, with economic crimes such as insider trading, market manipulation, and fraud being common occurrences.

  • Article 159 of the Criminal Code punishes these crimes in Russia, but the study suggests that the current legislation lacks sufficient provisions to effectively combat these offenses.
  • The study proposes criminalizing certain socially dangerous acts committed in the financial sphere using modern information technologies, citing the successful experience of the United Kingdom in countering cybercrimes.

Importance of Information Disclosure

The study also highlights the importance of information disclosure in preventing financial crimes. Inadequate disclosure can lead to market manipulation and insider trading, and stricter regulations are needed to ensure transparency in financial transactions.

  • The authors argue that a comparative analysis of criminal laws between countries is essential for national lawmaking work and law enforcement.
  • By studying successful practices abroad, Russia can strengthen its legal framework and prevent financial crimes more effectively.

References

The following references were used in the study:

  • Ahern, K.R. (2017). Information networks: evidence from illegal insider trading tips. Journal of Financial Economics, 125(1), 26-47.
  • Bank of England and Financial Services Act (2016). Retrieved from http://www.legislation.gov.uk/ukpga/2016/14/contents/enacted
  • Chambers, T. (2020). Unstable coins: cryptoassets, financial regulation and preventing financial crime in the emerging market for digital assets. Retrieved from https://www.fca.org.au/publications/unstable-coins/
  • Li, X., & Walker, T.J. (2016). The determinants of IPO-related shareholder litigation: the role of CEO equity incentives and corporate governance. Journal of Financial Markets, 31(1), 81-126.
  • Palan, S., & Stockl, T. (2017). When chasing the offender hurts the victim: the case of insider legislation. Journal of Financial Markets, 35(2), 104-129.
  • The money laundering and terrorist financing (amendment) regulations 2019 № 1511 (2019). Retrieved from http://www.legislation.gov.uk/uksi/2019/1511/introduction/made

About the Author

Sergey Petrovich Bortnikov is a researcher at Samara State University of Economics and a lecturer at the University of Prosecutor’s Office of the Russian Federation.

Alexander Viktorovich Denisova is a researcher at the University of Prosecutor’s Office of the Russian Federation.