GAO Report on Russian-U.S. Money Laundering Fuels Calls for Strengthening U.S. Anti-Money Laundering Laws

In a report released October 31, 2000, the U.S. General Accounting Office has indicated the ease with which Russian entities form Delaware corporations to open bank accounts in the U.S. that are used to launder money. The report focuses on the ease with which various registered agents in Delaware, namely Euro-American Corporate Services, Inc., together with a related company, International Business Creations (IBC), formed corporations for Russian brokers and established bank accounts for such corporations. They then easily opened bank accounts and entered banking relationships with Citibank of New York and Commercial Bank of San Francisco…[more]