Baltic shells: on the mechanics of trade-based money-laundering in the former Soviet space. Issue 1 (5th January 2015)

• Record Type: Journal Article
• Authors: Stack, Graham
• Is Part Of: Journal of money laundering control. Volume 18:Issue 1(2015)
• Page Start: 81
• Page End: 98
• Publication Date: 2015-01-05
• Subjects: Money laundering -- Periodicals; Money laundering investigation -- Periodicals; 364.168
• DOI: 10.1108/JMLC-10-2013-0040
• Languages: English
• ISSNs: 1368-5201

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – The purpose of this paper is to describe a platform of interconnected international shell companies operated through Baltic banks, used for trade-based money laundering (TBML) across Russia, Ukraine and other post-Soviet states. </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – This is a case study that draws extensively on the results of journalist investigations and court cases to describe one example of a money-laundering platform. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – Platforms of international shell companies operated through Baltic banks play a key role in TBML for the post-Soviet countries. They are created for systematic laundering of revenues from tax evasion, tax fraud, corruption and criminality across the post-Soviet space, and also globally. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – This study implies that TBML for the post-Soviet space is a specialized industry, hosted by collaborating banks centered in the Baltic states, in conjunction with mass use of international shell companies. </p> </sec> <sec> <title content-type="abstract-heading">Practical implications</title> <p> – This study implies that analysis of suspicious transactions cannot remain on the level of single companies but has to take into account the interconnected payment patterns produced by such a platform. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – Provides the first study of a trade-based money-laundering platform operating in the post-Soviet space.</p> </sec> </abstract>