Article 174.1 of the Criminal Code of the Russian Federa-
tion, "Laundering Money or Other Property Acquired by a
Person by Committing a Crime"
Large scale financial and other transactions with money or
other property acquired by committing a crime (other than
Article 174.1 of the Criminal Code of the Russian Federa-
tion, "Laundering Money or Other Property Acquired by a
Person by Committing a Crime"
Performing financial and other transactions with money or
other property acquired by committing a crime in order to
the crimes specified by articles 193, 194, 198, 199, 199.1
and 199.2 of this Code) in order to give a lawful appear-
ance to the possession, use and disposal thereof.
give a lawful appearance to the possession, use and
disposal thereof.
Legal practitioners seem to interpret the wording of the new law in a way that “the money laundering
related articles now not only cover money obtained, but also cover money saved through crime"?
The articles of the Criminal Code no longer being exempt from being predicate offences to ML are Art.
193 (Non-return of funds in foreign currency from abroad), Art. 194 (evasion of customs payments
collected from organisations or natural persons), Art. 198 (evasion by a natural person of paying a tax
and / or a fee), Art. 199 (evading payment of taxes and / or fees collectible from organisations), Art.
199.1 (a tax agent's failure to discharge his / her duties), and Art. 199.2 (concealment of monetary
funds or property of an organisation or individual businessman against which the recovery of taxes
and / or fees 1s levied). Hence point 2 of the interpretive note to FATF recommendation 3 seems to be
implemented.
Legal practitioners are expecting that “law enforcement authorities will attempt to initiate criminal
cases under article 199 of the Russian Criminal Code, "Evasion of Taxes and/or Levies Due from an
Organisation" at the same time as those under article 174.1 for performing transactions with cash
funds saved through non-payment. It is impossible to differentiate between legal money and money
which has been saved through crime as it appears on an organisation's disbursement account. As a
result of this, any business operation — even including the purchases of paper clips for office use - may
be suspected to be money laundering. (...)".?
The conditions of the definition according to Art. 3 point (4) (f) of the 4^ AMLD are irrelevant for
Russia, since it is not a member to the EEA.
As a result for Russia, point 2 of the interpretive note to FATF recommendation 3 seems to be met. No
analysis could be undertaken relating to the implementation of point 5 of the interpretive note to FATF
recommendation 3 due to the language barrier.
% See the legal update No. 425, dated August 29, 2013, published by Goltsblat BLP, available from
http://gblplaw.com/news/legal/75122/, accessed on April 10, 2016.
? See Goltsblat BLP, in Footnote 68.
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