Russian Government to Sue Bank of New York of Money Laundering

Russia has filed a $22.5 billion lawsuit against the Bank of New York through its Federal Customs Service last Thursday. The lawsuit alleges that the Bank of New York participated in a money laundering scheme that eventually caused the Russian Federation 22.5 billion dollars of loss.

There has been no official statement on the lawsuit as the case has not been officially opened yet. The Bank of New York has been involved in FBI and U.S. tax investigations over Russian money laundering since 1998. The money went through the account of two Russians who lived in the U.S. and amounted to $7 billion that made it out of Russia tax free.

In that case, BNY paid 28 million Euros ($38 million) to settle in November of 2005. That amount included $12 million that went to victims and a $26 million dollar fine. Swiss authorities investigated Bank of New York in 2000 on charges that a $4.8 billion International Monetary Fund loan to Russia was embezzled.

Neither the Russian Federal Customs Service nor the Bank of New York would comment on the case. The Bank of New York, with assets of $103.4 billion, is the oldest bank in the United States.

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