BoNY sued by Russia’s customs service
Russia's customs service is suing the Bank of New York for $22 billion over alleged misdeeds dating from the 1990s, according to Russian news agencies.
Russia’s customs service is suing the Bank of New York for $22 billion over alleged misdeeds dating from the 1990s, according to Russian news agencies.
“In 1996-99, the bank organized an illegal scheme to launder the money received for Russian exported goods, which caused damages of $22.5 billion to the state,” the news agency quoted Maxim Smal, a lawyer for the customs service, as saying.
Investigations into the Bank of New York case began in the early 2000s when authorities in some countries suspected bank employees of involvement in tax evasion and money laundering schemes, according to the report.
The suit apparently stems from an international scheme that U.S. authorities said involved $7 billion in illicit transfers from Russia in the late 1990s.
The case resulted in a Bank of New York executive and her husband pleading guilty in 2000 to money laundering.
The couple admitted to helping Russian bankers launder billions through accounts at the bank in order to avoid Russian taxes and to cover up the money’s connection to crimes-including money used as ransom for a kidnapping in Russia.
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