Kremlin hints at tough stance on money laundering

A recent interview in the Russian media given by outgoing Russian Central Bank chief Sergey Ignatyev sent a clear message that the Kremlin may be planning to reign in corruption at home, top Russian economist Ivan Tchakarov said.

“There was at that point in time an understanding that […] the Central Bank governor could have given such an interview only with the permission from a very very high level, and if this is the case, […] then you could make the positive conclusion that there is a certain desire these days within the Russian political establishment, coming from Putin, coming from Medvedev to squeeze corruption a little bit […], to squeeze inefficiencies in the Russian economy,” Tchakarov told Sky News March 19.

In the interview Ignatyev spoke about the changes that must be made to the Russian legal system to save Russian banks from “dubious transactions.”

Russian money in Cyprus has been the subject of much discussion by financiers and international media over the last week, in the light of the proposed levy on Cypriot account deposits.

The levy is largely the result political pressure from German authorities, unwilling to use taxpayer money to rescue banks holding large amounts of Russian capital, which have been alleged to be, a conduit for Russian financial transactions. Russian corporations and individuals hold an estimated EUR 20 bln–EUR 25 bln in Cypriot banks, approximately a third of the total deposits on the island.