Russia Convicts Over 300 Individuals of Terrorist Financing, Most Sentenced to Prison Terms
In a significant crackdown on terrorist financing (TF), Russia has convicted over 300 individuals, with the majority receiving sentences ranging from three to eight years in prison. This staggering number far surpasses those of other countries, sparking concerns about the effectiveness of anti-money laundering (AML) systems.
A Global Comparison
According to recent reports, the United States secured only 120 convictions for TF offenses in five years, while the UK had 103 convictions between 2014 and 2017. Australia and Canada reported just three and two convictions, respectively.
Incidents of Terrorism
The high number of convictions in Russia is particularly noteworthy when compared to the data on real terrorist incidents collected by Global Change Data Lab. In 2017, there were only:
- Four incidents in Australia
- Twelve incidents in Canada
- Twenty-two incidents in Russia
- Sixty-five incidents in the US
- One hundred twenty-two incidents in the UK
Assessing Country Risk
When assessing a country’s ML/TF risks, it is crucial to consider not just its systems but also factors such as:
- Corruption
- Bribery
- Judicial independence
- Public accountability
- Political transparency
- Media freedom
The Basel AML Index attempts to provide a more holistic picture by incorporating data on these areas.
Concerns about Case-Based Data
However, some experts have raised concerns about the reliability of case-based data from media reports, citing time lags between incidents and evaluations. This can make it challenging to use such data in objective assessments of country risk.
Considering Multiple Sources of Information
When making business or policy decisions based on ML/TF risks, it is essential to consider multiple sources of information, including:
- Internal reports
- Evaluations by international organizations like the International Monetary Fund (IMF)
The IMF’s Country Report for Russia notes that supervision and AML/CFT regulations have been improved, but highlights several deficiencies.
Long-Term View
The long-term view is crucial in assessing a country’s risk level over time. By examining Russia’s performance in the Basel AML Index since 2012, we can gain insight into its efforts to combat ML/TF over two decades.
From being listed as a non-cooperative jurisdiction from 2000 to 2003 to removing it from the follow-up process in 2013 due to significant progress, Russia has made notable strides.
Key Achievements
- Enhancing corporate transparency
- Prohibiting anonymous accounts
- Addressing terrorist financing deficiencies
- Strengthening asset freezing measures
Conclusion
As the global fight against ML/TF continues, experts will need to consider multiple perspectives and sources of information to make informed decisions.
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