14. The Role of Banks and Money Laundering
The explosion of private banks in 1990s Russia provided new avenues for moving money—legally and illegally. Oligarchs and criminal groups exploited these institutions to stash billions in offshore accounts, facilitating capital flight on an unprecedented scale. Money laundering schemes became routine, with funds cycling through global financial centers, often evading detection. The result was not only a drain on Russia’s economy but also far-reaching effects on international banking and regulatory systems (via Reuters).
