Financial Crime World

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Russia’s Financial Crimes Problem: Examples of Illegal Activities

Moscow, Russia - The Russian Federation has been plagued by financial crimes for years, with many illegal activities going unchecked. From insider trading to money laundering, these crimes can have devastating effects on the economy and individuals.

Gaps in Criminal Law

According to recent studies, there are significant gaps in Russian criminal law regarding socially dangerous acts committed in the investment sphere. This lack of regulation has led to a proliferation of fraudulent activities, including unauthorized trading and manipulation of financial markets.

Examples of Financial Crimes

  • Illegal Insider Trading: Using confidential information to make trades before it becomes public knowledge can give individuals an unfair advantage over others, causing significant losses for investors.
  • Money Laundering: Disguising the source of illegally obtained funds by passing them through legitimate businesses or financial institutions can be used to finance criminal activities and perpetuate corruption.
  • Cybercrime: As more transactions are conducted online, criminals have found new ways to exploit vulnerabilities in computer systems and steal sensitive information.

Comparison with British Financial Crimes

To combat financial crimes more effectively, it may be useful to compare Russian and British approaches to regulating the financial sector. The United Kingdom has a well-established system of laws and regulations in place to prevent and punish financial crimes.

  • UK’s Fraud Act 2006: Makes it an offense to commit fraud by false representation or by other means.
  • UK’s Financial Services Authority (FSA): Has implemented measures to prevent unauthorized trading and punish those who engage in it.

Conclusion

Financial crimes are a significant problem in Russia, with many illegal activities going unchecked. It is essential for authorities to take a proactive approach to preventing these crimes and punishing those who commit them. By comparing Russian and British approaches to regulating the financial sector, we can learn from best practices and develop more effective strategies to combat financial crimes.

Sources

  • Bortnikov, S.P., Denisova, A.V. (2021). Crimes in Financial Markets in Russia and Great Britain. In: Ashmarina, S.I., Mantulenko, V.V. (eds) Digital Economy and the New Labor Market: Jobs, Competences and Innovative HR Technologies. IPM 2020. Lecture Notes in Networks and Systems, vol 161. Springer, Cham.
  • The money laundering and terrorist financing (amendment) regulations 2019 № 1511 (2019). http://www.legislation.gov.uk/uksi/2019/1511/introduction/made
  • 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, 81-126.
  • Palan, S., Stockl, T. (2017). When chasing the offender hurts the victim: the case of insider legislation. Journal of Financial Markets, 35, 104-129.