12;a result of the oil monopoly and the discrepancy between domestic and world market prices.A comprehensive criminal code, incorporating measures against these kinds of economic offenses, still awaits final approval by the Duma (see Transition, November-December 1995, page 7). Meanwhile, new players are working and new financial transactions are being conducted without a clear regulatory framework. According to the chairman of Incombank, Vladimir Vinogradov, you have to have "10 or 15 people who can give a credit and about 1,000 who make sure the agreements are enforceable." As a result dishonest players have a lot of room to maneuver, and players (local and foreign) who want to play by the rules are often forced to make "lubricating" payments to get the deal done.Laundering money in Russia is almost as easy as conducting a regular financial transaction.• Privatization enables the transfer of large amounts of cash into assets, due to the lack of a legal and regulatory framework. • Access to offshore transactions is more or less unregulated. As a result, about half of all foreign investment in Russia originates from illegal domestic transactions, proceeds of which were laundered through offshore banks, according to Russian financial experts. About 40 percent of Russian investment abroad is illegally exported capital, mostly held in cash, securities, and real estate, according to an EBRD report.• The economy is cash-oriented. About 40 percent of the working capital used in the economy in 1993 was estimated to be in cash (an increase from 20 percent in 1992). Thus the government is unable to track most cash-related transactions.Positive and Negative ScenariosUntil this first massive property redistribution is complete, crime associated with privatization and the misuse of enterprise funds can hardly abate. The same is true for crime connected to the redistribution of limited resources, such as credits, government aid, ex...
