The New York offices of U.K.-based money manager Barclays is caught in an international money laundering investigation that implicates a top Russian official with close ties to President Vladimir Putin, The Wall Street Journal reported yesterday.
German prosecutors suspect that Russia's telecommunications minister, Leonid Reiman, a longtime Putin ally, "illegally enriched himself through a series of transactions," and then arranged a network of shell companies and trusts to hide more than $1 billion in assets.
Barclays assisted in moving much of Reiman's money into a fake mutual fund in Bermuda. It also and converted currencies in many of Reiman's deals. As a result of the allegations, the U.S. Department of Justice has begun its own investigation into the role Barclays' New York office played in the scheme.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.