Two Benex accounts in the Bank of New York have reportedly been frozen and Benex chief Peter Berlin's wife, Lucy Edwards, has been fired by the Bank of New York. The full extent of Benex's activities is unclear. Yulia Latynina, a Russian financial analyst who studies capital flight, said mob bosses and corrupt officials could be part of the alleged Bank of New York scheme. But she estimated that up to 70 percent of Benex's business came from Russian importers who used the company to avoid import and export duties. She said tax police are often in on the schemes.
Exporters use such companies, too, to hide profits in foreign bank accounts.
Some is from ordinary people who, after seeing their savings repeatedly swallowed by inflation or political turmoil, now put them in overseas bank accounts. Others are wealthy entrepreneurs trying to avoid taxes. Fyodorov said nothing would change until tax laws are made more realistic. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten, or redistributed without the prior written authority of The Associated Press.