Russian illicit financial flows and influence on Western European politics
May 2022
Briefing Note 09
Dr Thomas Mayne, University of Exeter
SOC ACE Project: Illicit finance and Russian foreign policy: new dynamics and linkages
PUBLICATION SUMMARY
This briefing note analyses Russian illicit financial flows (IFF) and its possible influence on political parties and the wider body politic of western Europe. It argues for the need to place more focus on certain individuals, companies, and relationships, given the legal vagaries of financial flows linked to the Russian state. As Russia’s investigative units, prosecutorial bodies, and law courts lack independence, the vast majority of Russian IFF may not be illegal under Russian law (or at least a Russian court will not rule it to be), but could still constitute IFF and could be used for malign purposes in the countries where it is found.
It suggests that the UK’s current anti-money laundering architecture (and that of the wider international community) is inadequate in dealing with this kind of ‘legitimised’ but corrupt capital that supports the Russian state, as the regulations rely predominantly on self-regulation and on codes of due diligence, which are not set up to address kleptocratic flows.
