Belarus_Weapons__Money_Laundering.docVIP

Belarusian Weapons Exports: A Possible Source of Laundered Funds? By Ethan S. Burger, Esq. Scholar-in-Residence School of International Service Adjunct Associate Professor Washington College of Law American University Washington, D.C. Introduction As noted by Transparency International, accurately accounting for the composition and volume of the world trade in weapons is a difficult task. Catherine Courtney, Corruption in the Official Arms Trade, Transparency International (UK) Policy Research Paper 001 (April 2002), at 8, available at /working_papers/arms_trade/courtney_tiuk/courtney-official_arms_trade.html (accessed November 15, 2003). This is due to a variety of reasons, including the secrecy surrounding the size of defense budgets, the large amount of money involved, the prevalence of middlemen in transactions, the difficulty in comparing the sale price of weapon systems (which must cover servicing and spare parts), and other factors. Catherine Courtney, Corruption in the Official Arms Trade, Transparency International (UK) Policy Research Paper 001 (April 2002), at 8, available at /working_papers/arms_trade/courtney_tiuk/courtney-official_arms_trade.html (accessed November 15, 2003). While certain reporting is mandated under U.N. rules, such rules do not cover all military-related weapon sales and are not universally followed. Transparency International estimates that although weapons sales constitutes less than 1% of total world trade, U.S. Department of Commerce sources estimate that corruption plays a role in 50% of arms purchases. Commissions on arms sales (including kickbacks) are conservatively estimated at 10%. Id. Id. The Significance of Belarus’ Role in the World Export Market Increasing international attention has focused on Belarus’ role as a major arms exporter. According to Belarusian Minister of Defense Leonid Maltsev, Belarus exports approximately $200 million dollars of weapons annually. “Belarus Cashes $200 million from Weapon Sales Ev