Laundromats: Responding to New Challenges in the International Fight Against Organised Crime, Corruption and Money-Laundering
Provisional version Committee on Legal Affairs and Human Rights Laundromats: responding to new challenges in the international fight against organised crime, corruption and money-laundering Report* Rapporteur: Mr Mart van de VEN, Netherlands, Alliance of Liberals and Democrats for Europe A. Draft resolution 1. The Assembly is deeply concerned by the extent of money-laundering involving Council of Europe member States. The ‘Global Laundromat’, by which at least $21 billion and perhaps as much as $80 billion was illegally transferred from Russia to recipients around the world, and the ‘Azerbaijani Laundromat’, by which $2.9 billion was moved out of Azerbaijan, are the most alarming recent examples. Money laundering, especially on this scale, is a serious threat to democratic stability, human rights and the rule of law in the countries from, through and to which illicit funds are transferred, amongst other things by facilitating, encouraging and concealing corruption and other serious criminal activity. 2. The Global Laundromat was made possible by serious structural issues, at various levels. It originated in the desire of Russian businessmen, organised criminals and, apparently, interests connected to state organs (notably the Federal Security Service, FSB) to illicitly transfer huge amounts of money out of the country, at minimal transaction cost. It typically depended upon corruption in the Moldovan judicial and banking systems; the opaque beneficial ownership of shell companies, often based in the UK or its Overseas Territories; and failures and inadequacies in the anti-money laundering (AML) systems of many banks, especially ABLV bank in Latvia, along with ineffective national AML supervisory regimes. Despite some encouraging developments in the Republic of Moldova and the promise of an investigation in the UK, the Global Laundromat has still not been subject to proper criminal investigation.
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