Russian oligarchs face $95 billion black hole thanks to sanctions
AML expert Martin Cheek, highlights new data revealing oligarchs' losses of $300 million per day since the country’s invasion of Ukraine.
A $95 billion (USD) ‘black hole’ in oligarch wealth shows strict sanctions on Russia are working, anti-money laundering expert Martin Cheek says.
New data from Bloomberg has revealed Russia’s wealthiest oligarchs have lost more than $300 million (USD) per day since the country’s invasion of Ukraine. The UK Government took swift action to implement heavy sanctions on the Kremlin, helping to freeze more than £18 billion of assets held by oligarchs and Russian nationals.
IMMOBILISED
New data from across the Atlantic suggests the United States and its allies have immobilised around $300 billion (USD) worth of Russian Central Bank assets.
One of the biggest losers was Roman Abramovich, the former owner of Premier League football team Chelsea. In 2022 alone, his personal wealth fell by 57% to $7.8 billion (USD).
Martin Cheek (main picture), Managing Director of compliance provider SmartSearch, says: “This latest data clearly demonstrates the black hole Russian billionaires are now facing and the successful efforts made by governments across the world to put meaningful sanctions in place.
This good work must continue to limit available funds and bring this war to a much-needed conclusion.”
“As Russia’s brutal invasion enters a pivotal winter, this good work must continue to limit available funds and bring this war to a much-needed conclusion.
GATEKEEPERS
Cheek, also a qualified lawyer, adds that regulated firms act as the “gatekeepers” of the UK financial system.
“Tools such as electronic verification (EV) and robust sanction screening remain vital to properly disrupt the rat runs used by designated persons (DPs) to evade financial restrictions,” he says.
“Detailed Know Your Customer (KYC) checks and real-time monitoring have taken further importance in the current climate and should be integral parts of any digital compliance process.
“If the threats of hefty fines, time-consuming investigations and even criminal prosecution wasn’t enough to encourage compliance, the thought of given a green light to Russians should certainly be.”