The World Bank and the IMF are among the most important international organizations globally promoting economic stability, growth, free trade, and poverty reduction by financing a widevariety of projects. The policies governing their activities have universal impact. The purpose of this study is to unfold flaws and failures of the multilateral institutions' activities toward financing Russia during a transitional period, leading to dangerous worldwide corruption, money laundering, fraud, and misuse of international funds by the Russian Government. The result of such misuse was increased poverty in Russia, lost belief in the fairness of Governmentalinstitutions, the rule of law and justice, economic crisis, and unbearable national indebtedness. This study will conclude that special measures in the field of legal reform and legal enforcement internationally and within Russia must be continually supported, funded, and broadened by theWorld Bank and the IMF.