💸 Kleptocracy #6 | News, research & analysis on global corruption
Hello and welcome to Kleptocracy. Keep scrolling for all the latest news, research and analysis on how corruption is reshaping global politics and security.
Plenty going on this week, with Turkey grey-listed by the FATF, Maduro fixer Alex Saab extradited to the United States after a protracted legal tussle in Cape Verde, a welcome step forward for Ukraine’s anti-corruption agency, and Oleg Deripaska’s Washington, DC mansion raided by the FBI.
On which note, no Making a Killing podcast this week owing to other work commitments. But if you simply can’t wait, check out the Center for International Private Enterprise’s list of the top 10 anticorruption podcasts for more top kleptocracy content!
Best,
Nate
🗞️ News
Alex Saab extradited from Cape Verde to the United States | Nicolas Maduro’s chief financial fixer is accused of siphoning $350 million out of Venezuela on behalf of a regime that is alleged to have stolen more than $300 billion. He’ll be arraigned in a Miami court on November 1. | Reuters
Credit Suisse fined over Mozambique tuna scandal | The investment bank will pay $200 million, as well as writing off a further $200 million in debt “tainted by corruption.” | BBC
US law firm Mayer Brown ceases work for University of Hong Kong over Tiananmen sculpture removal | Critics accused the law firm of assisting Beijing’s authoritarian crackdown. | Washington Post
FBI raids Oleg Deripaska’s mansion in Washington, DC | No reason has been provided by the agency. | NBC
Turkey faces threat of FATF grey-list | The global financial watchdog is reportedly concerned about continued money laundering failures. (Update: Turkey, Mali and Jordan have been moved to the grey-list, according to an FATF press conference a few minutes before this was sent). | Financial Times
Russian corruption making it harder to crack down on ransomware | Whether hackers are working for the Kremlin or for personal enrichment is often “an open question,” according to US officials. | Defense One
Feds probe US investment firm over millions linked to suspected Venezuelan kleptocrats | Miami Herald
Alejandro Andrade set to be released from US in spring | The former national treasurer got a big sentence break for assisting prosecutors hunting other Venezuelan kleptocrats. | Miami Herald
CEO of US Navy contractor charged with bribery | Frank Rafaraci won contracts worth $1.3 billion, but accusations of bribery and inflated invoices carry echoes of the Fat Leonard scandal | US Department of Justice
US DOJ targets cryptocurrency money laundering | A new taskforce will identify and prosecute the most egregious cases. | National Law Review
US Anticorruption Taskforce launches Central America hotline | Anyone with tips on government graft can contact the FBI directly. | US Department of Justice
Alexei Navalny awarded EU’s top human rights prize | Associated Press
Beijing cancels US basketball team after player slams “brutal dictator” Xi | Boston Celtics games were pulled from China’s airwaves following Enes Kanter’s pro-Tibet social media post—yet another example of Beijing using economic coercion to enforce political messaging. | CNBC
Newcastle United’s new chairman linked to Saudi “anti-corruption” drive | Yasir al-Rumayyan moved assets around for Mohammed bin Salman during the billion dollar shakedown. | The Guardian
Canadian lawyers want to be excluded from anti-money laundering reforms | Despite lawyers’ central role in British Columbia’s sprawling “snow washing” saga, professional associations say the plans threaten attorney-client privilege. | Vancouver Sun
British MPs want to know why it took five years to prosecute NatWest | They’re concerned the Financial Conduct Authority may be failing to spot or stop money laundering at major banks. | City AM
Swedish regulator slams Danske Bank over reform progress | Despite its role in one of the world's biggest money laundering scandals, the bank still has “shortcomings.” | Financial Times
Growing power of gangs threatens to tip Haiti into a failed state | Crime groups reportedly now control up to two thirds of the country following the assassination of its prime minister. | Wall Street Journal
💸 New from KI
A Ukrainian Oligarch Bought a Midwestern Factory and Let it Rot. What Was Really Going On? | Casey Michel, Politico
“Thanks to the wide number of industries that can freely work with illicit funds, we have no idea how many other oligarchs, warlords and kleptocrats may have sunk their teeth into steel towns, into farming communities, into manufacturing plants and oil hubs and port cities across America...”
American Law Firms Are Enabling Foreign Kleptocrats | Casey Michel, New Republic
Conspiracy theorists suggested the Pandora Papers were a CIA plant because they didn’t feature any Americans. Actually, plenty of Americans were implicated—in a supporting role for the kleptocrats themselves.
🎧 Power Vertical: The Battle Against Strategic Corruption and Kleptocracy | Paul Massaro and Casey Michel
Casey and Paul join Brian Whitmore and Josh Rudolph to discuss all the latest developments in US efforts against transnational corruption.
🎧 Bribe, Swindle or Steal: American Kleptocracy | Casey Michel
Casey talks to host Alexandra Wrage about America’s role in both facilitating and fighting global corruption, as chronicled in his forthcoming book.
📖 Insights | Research and Analysis
How American Kleptocracy Works | Anders Aslund, Just Security
“The United States of America is the biggest offshore haven in the world, with millions of anonymous companies. The critical question is: How do we best write about kleptocracy to make it understandable so that it can be effectively combatted?”
Ukraine strengthens independence of anti-corruption agency | Anastasia Radina, Atlantic Council
“Slowly but surely, Ukraine is demonstrating its resilience as a regional trendsetter in the creation of a robust anti-corruption infrastructure.”
States Must Stop Letting the Ultrawealthy Dodge Taxes — and the Law | Washington Post
And yet, tax-dodging is apparently the least of our worries: “The Post’s investigation identified 206 US-based trusts linked to 41 countries, nearly 30 of which held assets connected to people or companies accused of fraud, bribery or human rights abuses… The United States should be one of many countries standing firm against kleptocracy, not one of those inviting kleptocracy to live there free of charge.”