Corruption and remedies against it

remedy – средство, мера

pattern – модель, схема

sporadic – единичный, случайный

background – предпосылка, данные, объяснения, фон, истоки

penal – уголовный

envisage – предусматривать

bribe – взятка

During a research recently carried out by TRANSCRIME on corruption in the 15 Eropean Union countries, six main patterns of corruptions and different patterns of criminal responses to corruption were outlined:

- systematic corruption (Italy, France, Spain, and Belgium);

- emerging systematic corruption (Germany and Greece);

- sporadic corruption (Ireland, Austria and Portugal);

- casual corruption (the Netherlands, Finland, Denmark and Sweden);

- English corruption (United Kingdom);

- Managing others’ corruption (Luxembourg).

With reference to legal responses the main criteria used for this analysis were:

a) the definition of the crime of corruption;

b) the distinction between passive and active corruption;

c) the definition of passive and active subjects involved in the crime of corruption; and

d) sanctions.

The results show that there is less homogenity with respect to the definition of the crime of corruption. The differences in definition are related to the fact that corruption takes on different forms in the various European countries, depending on each cultural and social context. It is important to study the cultural background of the various countries in order to discover the constant elements of corruption and thus to adopt the most effective preventive measures. For instance, when referring to “corruption prone environment” in Italy, we are talking about a phenomenon that is deeply rooted in the cultural tradition of the Italian society, in the sence that corrupt activities are practised and accepted by normal citizens. The penal codes of the United Kingdom and Germany envisage various levels of corruption crimes (misdemeanours and felonies), according to the position held by the actor. Another distinction is related to the nature of the corruption act, in that it may be linked with, or contrary to the functional role of the actor. In the case of the passive receipt of a bribe by a public official in order to speed up a service for which he/she is competent, the penalty of a fine is envisaged. On the other hand, a public official who authorizes the issuance of a licence although it is not under his/her competence, is committing an offence. In Austria (Article 304, paragraph 1), Denmark (Article 144), Finland (Article 40), Germany (paragraph 332), the Netherlands (Article 363) passive corruption involving abuse of the public function is punished with a higher penalty than in the case of corruption that does not involve the abuse of a public function.

Текст 5. ВЫВОЗ ДЕНЕЖНЫХ СРЕДСТВ

OUTFLOW OF CAPITAL

outflow - отток

transition – переход

in international fora – в международных профессиональных кругах

misappropriation – незаконное присвоение, растрата

embezzlement – хищение, присвоение

to evade – уклоняться, обходить

restriction – ограничение

furtherance – продвижение, поддержка, помощь

to incur - подвергаться

During the period of Russia’s transition from a centrally planned economy to market economy, the opportunities to launder money appear to be limitless. Despite what is written in the media and debated in international fora, Russian law enforcement statistics do not support the thesis that criminally derived proceeds from abroad are entering Russia and subsequently laundered. This also holds true for foreign proceeds from drug or arms trafficking, and the sale of nuclear materials. Russian officials admit that mechanism to detect and measure money laundering are lacking or could be improved, but the general consensus is that foreign funds are not laundered in Russia. The country does, however, remain vulnerable to money laundering, given the current legal and economic conditions.

What is happening is a massive outflow of capital from Russia. These proceeds range from criminally derived funds from commonplace offenses to the misappropriation of state assets through embezzlement, theft, and corruption. This money is legalized in Russia and eventually sent abroad, primarily to Western countries for laundering and safekeeping.

Funds leaving Russia to be legalized abroad consist of a combination of assets from the proceeds of predicate offences stipulated by criminal codes and proceeds that are illegally transferred out of Russia, commonly referred to as “gray money”. Examples of this include corporate, private and official funds sent to foreign accounts to evade hard currency restrictions, taxation, inflation, or detection.

These types of illegal proceeds include more than those generated by the organized crime. Instances of embezzlement by individuals in position allowing access to either private or public funds also occur; these proceeds are likewize sent abroad. The proceeds ultimately return to Russia in the form of cash, goods, services, and equipment. Those remaining in Russia are used for operational expenses in furtherance of criminal enterprize.

Russian officials estimate that during the years 1992 and 1993, assets valued at four trillion roubles were stolen from the state. At the nominal exchange rate of $1.00 = R200.00 during that period, the equivalent losses were $20 billion. According to Russian government estimates, approximately $100 billion of funds attributed to Russian sources lie outside the country in foreign banks. Approximately $30-40 billion of this sum is capital from tax and customs evasion.

Примечание. Обозначения валют $, ₤,R - устаревшие, в соответствии с требованиями Международной организации стандартизации современные обозначения этих валют: USD, GBP, RUR (доллар США, фунт стерлингов Великобритании и рубль России соотетственно).

Текст 6. СПОСОБЫ ЛЕГАЛИЗАЦИИ ДЕНЕЖНЫХ СРЕДСТВ.

METHODS AND MEANS

purport – смысл, содержание; означать, подразумевать

timber – лес, лесоматериалы

speculative – умозрительный, недоказанный, теоретический

demand for – спрос на что-либо

preclude – предотвращать, мешать

magnitude – размеры, важность, значимость

monitor – контролировать, проверять

Common methods used to launder assets are false invoicing schemes, keeping of double books, and contract fraud. A common scenario is a wire transfer of funds in Western currency to a front company abroad for a commercial transaction. A fraudulent purchase contract provided by the front company is presented as proof of the commercial need for wiring the funds. After the funds are wired, the legitimized funds are free to be transferred or converted to cash. This method is also used to embezzle state funds.

Another method used to launder funds involves instances in which suppliers never receive payment for products that are purportedly ordered by the state. Schemes to defraud the state of strategic materials – such as oil, gas, metal, gold, diamonds, and timber – regularly occur in which the resources are shipped abroad with deliberately undervalued invoices and sold at world markets - the profits of which are embezzled by the perpetrators.

In Russia, organized crime is defined as activity of criminal formations of different levels of organization. These criminal formations are groups, gangs, and organizations. At present, there are approximately 6,000 organized crime groups operating in Russia, whose significant numbers constitute criminal organization. Seven criminal organizations operate in Moscow and ten in Sankt-Peterburg. In 1995, 25 criminal organizations were known to have international ties; 19 among them – in the former Soviet republics. There is no concrete proof of foreign organized crime groups operating in Russia. Organized crime is countered by the main Organized Crime Control Department of the Ministry of Internal Affairs of Russia and its local offices in the various regions of the country.

The connection between the shipment of massive amounts of bulk US currency to Russia and organized crime is speculative. One purely economic explanation for this currency flow is to satisfy the demand for US dollars by average Russian citizens. As a hedge against inflation, Russians convert their earnings in roubles to dollars, which are reconverted to roubles for routine purchases as needed. Given the size of the Russian economy, the US dollar would be the logical choice because of its relative stability, and the amount of US currency in circulation worldwide. This does not preclude the use of some of this currency by organized crime, but media reports overstate the magnitude.

The theft of nuclear material is recognized as an extremely dangerous undertaking in Russia. It requires specialized professionals to handle radioactive materials, and it is well known that numerous intelligence organizations – both foreign and domestic – monitor the theft of and trade in nuclear materials.

Arms trafficking in Russia is problematic for several reasons. Border controls have not kept pace with the arms trade, there are profits to be made, and weapons are used in the commission of other crimes. Arms trafficking is considered a serious and major concern by Russian law enforcement officials.

Текст 7. ЗАКОН И БАНКОВСКОЕ ДЕЛО

BANKS AND LAW

to grant – предоставлять, выдавать

to revoke – отменять, аннулировать, отзывать

revocation – отмена, анулирование, отзыв

to ban smth – запрещать что-либо, налагать запрет на что-либо

ECU (European Currency Unit) – ЭКЮ (единая европейская единица/валюта). В январе 1999 г. заменена на евро (1 ЭКЮ= 1 евро)

discretion - усмотрение, свобода действий

The Bank of Russia has responsibility for bank oversight and regulation of the 1,253 banks that currently operate in the Russian Federation. Non-bank financial institutions (NBFIs) are regulated by a number of agencies along with the Bank of Russia. This oversight and regulations is expressed in large part through the granting and revocation of bank licences. In addition, the Bank of Russia has and exercises the right to apply the following sanctions to credit institutions: (1) to impose a fine, (2) to appoint temporary administration, (3) to ban certain types of licenced operations, and (4) to require the substitution of officials and the reorganization of the credit institution. The Bank of Russia also grants licences to non-bank financial institutions for the movement of capital. There are 1,046 commercial banks authorized by the Bank of Russia to perform foreign currency transactions. The current minimum capitalization requirement for operating credit institution must reach the level of 5 million ECU before January 1, 1999, and for those established since April 1, 1996, a minimum standard of 2 million has been set, which must reach the level of 5 million ECU before July, 1998.

No specific bank secrecy laws exist relating to the confidentiality of the relationship between a bank and its customers and their transactions or the reporting of unlawful activities to law enforcement authorities; however, there is a general article on bank confidentiality as part of the law on banking activities. The only exception to the disclosure of this type of information is through the serving of a court order as part of criminal investigation. In the event of freezing or confiscation of an account, bank account information is given to the case arbiter and tax authorities. There are no limitations as to the types of account information the bank may give to criminal investigators. This is left up to the discretion of the individual bank. The Bank of Russia does not have supervisory authority over the offshore banks operating outside Russia that do business with Russians. Examples of this would be banks registered in Northern Cyprus and the Baltic nations that advertise in Russian newspapers. The Bank of Russia monitors these banks and provides information to law enforcement agencies in the event of questionable activities.

Текст 8. МЕЖДУНАРОДНОЕ СОТРУДНИЧЕСТВО В СЛЕДСТВИИ ПО УГОЛОВНЫМ ДЕЛАМ