How America Helped Russian Oligarchs Steal Billions | The Class Room

Russian Oligarchs. They’re on everyone’s minds in the wake of Putin’s invasion of Ukraine.Show more

You’ve probably heard about the insane amounts of hidden wealth they have. And you might have heard that the American government is taking action.

But if America is really going to rein in the power of Russian oligarchy we need to reckon with the fact that we created the system that allows them to hide their stolen wealth.

That’s right. America let Russian billionaires exploit our financial system through lax rules and hidden loopholes. And they’re not the only ones doing it –– American and European billionaires stash their riches the same way.

We have an opportunity right now to shut down this shadowy world of offshore finance. It’s not just a way to pressure Putin’s Russia – it’s also a way to make sure oligarchs from around the world have less control of our economy and politics.

So how do we do it?

First off, we can create a global wealth registry to track oligarchs’ assets across the world. This would include an automatic exchange of financial information on extremely wealthy individuals between democracies around the world. Instead of competing against each other to attract the wealth of oligarchs with increasingly flimsy rules, countries like the US, UK and the European Union should work together to make sure the wealthy pay their fair share.

Second, we can close financial loopholes which are frequently used by oligarchs to hide their wealth. Instead of allowing the ultrarich to use shell companies and opaque ownership structures, we could require “beneficial ownership requirements” for all forms of assets. Essentially, that would require all companies, trusts and foundations to publicly disclose who benefits from them.

Finally, we can increase funding and support for enforcing the rules we already have on the books. The US can put anti-corruption and money laundering measures at the top of the international agenda. And we can provide many more resources to the domestic and international regulatory agencies whose job it is to track oligarch’s wealth and enforce when they break the law.

Today, Russia’s billionaires control roughly 30 percent of the nation’s wealth. For comparison, German and American billionaires control about 15% of the wealth in their respective countries. compared with roughly 15 percent in Germany and the United States.

Defeating the Kremlin’s oligarchy would be a huge turning point for both national security and financial transparency.

So, if our leaders truly are serious about tackling Putin’s Oligarchy then we have to start looking at our own role in creating these loopholes and close them down once and for all.

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