Krugman: Laundered Money Could Be Putin's Achilles' Heel

[dalton99a]

https://www.nytimes.com/2022/02/24/opinion/russia-ukraine-sanctions-offshore-accounts.html

Feb. 24, 2022
Laundered Money Could Be Putin’s Achilles’ Heel
By Paul Krugman

...

Everyone has heard about giant oligarch-owned yachts, sports franchises and incredibly expensive homes in multiple countries; there’s so much highly visible Russian money in Britain that some people talk about “Londongrad.” Well, these aren’t just isolated stories.

Filip Novokment, Thomas Piketty and Gabriel Zucman have pointed out that Russia has run huge trade surpluses every year since the early 1990s, which should have led to a large accumulation of overseas assets. Yet official statistics show Russia with only moderately more assets than liabilities abroad. How is that possible? The obvious explanation is that wealthy Russians have been skimming off large sums and parking them abroad.

The sums involved are mind-boggling. Novokment et al estimate that in 2015 the hidden foreign wealth of rich Russians amounted to around 85 percent of Russia’s G.D.P. To give you some perspective, this is as if a U.S. president’s cronies had managed to hide $20 trillion in overseas accounts. Another paper co-written by Zucman found that in Russia, “the vast majority of wealth at the top is held offshore.” As far as I can tell, the overseas exposure of Russia’s elite has no precedent in history — and it creates a huge vulnerability that the West can exploit.

But can democratic governments go after these assets? Yes. As I read it, the legal basis is already there, for example in the Countering America’s Enemies Through Sanctions Act, and so is the technical ability. Indeed, Britain froze the assets of three prominent Putin cronies earlier this week, and it could give many others the same treatment.

[elleng]

1. there's so much highly visible Russian money in Britain that some people talk about "Londongrad."

'in 2015 the hidden foreign wealth of rich Russians amounted to around 85 percent of Russia’s G.D.P.'

'But can democratic governments go after these assets? Yes. As I read it, the legal basis is already there, for example in the Countering America’s Enemies Through Sanctions Act, and so is the technical ability.'

[SunSeeker]

2. K & R

[Slammer]

3. Letters

Hilariously, we could go after it without using the Countering America’s Enemies Through Sanctions Act.

Congress is allowed by the Constitution to authorize privateers through issuing Letters of Marque.

So Congress could authorize hackers to legally go after Russian assets (legally under US law, not other another country's laws).

[quakerboy]

4. And imagine what a boon all those resources could be to the folks that sieze them

I mean, if we can authorize our local police departments to randomly seize and keep money from motorists without any proof, how hard could it be to take money from people we can prove are part of an illegitimate war effort?

[dalton99a]

6. And the money could be used to pay reparations to Ukraine

for the damage caused

[calimary]

5. It should all be confiscated.

[mitch96]

7. And $$$ given to Ukraine to rebuild when time comes... A hope...nt

[MissMillie]

8. I wanted to read this, so I checked to see if there was another link w/ no paywall

https://archive.fo/iyDzA

here you go!

[dalton99a]

9. +1. Thanks!

[RussBLib]

10. and which Americans, besides Trump....

could be uncovered as helping to launder Russian money?

Which Wall Street firms?