Russian Bank Fraud Is Now Equal To 10% Of The Country’s GDP

The Central Bank and the Interior Ministry have calculated the total illegal turnover in the financial sector during 2011 to be 5 trillion rubles ($158 billion), about 10 per cent of Russia’s annual gross domestic product.

According to research carried out by the Interior Ministry, there were 56,700 crimes committed between January and November 2011 that had an impact on the financial or credit industries.

The figures were confirmed last week by police colonel Oleg Borisov, head of the Interior Ministry department responsible for financial sector economic crime, Interfax reported.

A total of 653 cases of money laundering were registered in the first 11 months of 2011 with the amount of illegally-earned money caught in the process of being legalized amounting to 1.2 billion rubles between January and September.

Of this figure, 33.4 per cent was the result of fraud, 32.4 per cent from drug trafficking and sales, 9.6 per cent from illegal credit and 6.2 per cent from smuggling.

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This post originally appeared at The Moscow Times.