💸Kleptocracy #10 | Extraditions galore, COP26 corruption, and RIP Kyiv Post
The latest global news, research and analysis
Hello and welcome to Kleptocracy, the newsletter from Hudson Institute on how corruption is reshaping global politics and security. Keep scrolling for all the latest news, research and analysis!
But first, I wanted to highlight the shock closure of the excellent Kyiv Post this week. Its owner abruptly fired the entire newsroom while reportedly moving to assert editorial control. Ukraine is the frontline against Russian kleptocracy, and its shrinking independent media sector is one of the last defenses against Kremlin-backed oligarchic corruption. Former Kyiv Post journalists plan to launch a new media project but are in need of investors, advertisers, and lawyers. Even if you’re none of those things, you can help by registering your interest as a potential future subscriber and bolster their position as they search for new financial support.
Best,
Nate
💸NEW FROM KI
🎧Making a Killing #28: How Corruption Drives Climate Change | Casey, Nate and Paul discuss the kleptocrats of COP26, the role of bribery in driving environmental abuses, and how green sanctions and law enforcement can punish the worst polluters. | Hudson Institute
Coming Soon… | Casey Michel’s book AMERICAN KLEPTOCRACY: How the US Created the World’s Greatest Money Laundering Scheme in History is published on November 23rd. He’ll be discussing the book with the FACT Coalition on November 17th and the UK’s Royal United Services Institute on November 18th, followed by the launch event at the Atlantic Council on November 23rd.
Hope Despite the Pandora Papers | Casey Michel on why there’s reason for optimism in the fight against global kleptocracy | Publishers Weekly
🗞️NEWS
Spain to extradite Hugo Chávez’s ex-security chief to the US | Adrián Velásquez is accused of money laundering and bribery related to Venezuela’s billion-dollar exchange rate scam | Reuters
Mozambique’s former finance minister will face corruption charges in the US | Manuel Chang will be extradited from South Africa, accused of orchestrating a multinational scheme with bankers at Credit Suisse and Russia’s VTB Capital between 2013 and 2015 | New York Times
Head of Mexican money laundering unit replaced amid wedding scandal | Large amounts of cash were found in the possession of guests on the way to Santiago Nieto’s wedding in Guatemala. The Financial Intelligence Unit chief was removed on Monday | Reuters
British MP accused of conflict of interest in British Virgin Islands scandal | Geoffrey Cox, the former UK attorney general, was reportedly paid around £1 million to advise BVI clients in an ongoing public inquiry into widespread corruption. He reportedly both voted while in the Caribbean and, conversely, worked on the case from his parliamentary office | The Week
Widespread money laundering in property locking out Australians from owning homes | Experts told a Senate inquiry that the country has become a “destination of choice” for illicit funds | The Guardian
RENACER Act targets Nicaragua vote fraud and corruption | The law imposes targeted sanctions and other punitive measures on the regime of Daniel Ortega | Reuters
US issues Cambodia corruption advisory and sanctions | Two officials have been blacklisted for alleged schemes to profit from Chinese construction work at the country’s biggest naval base | Reuters
China obstructs COP26 deal over financial transparency | Disclosing emissions accurately would apparently involve revealing economic growth data that Beijing would rather keep secret | The Times
Vietnam’s communist officials enjoy $2,000 gold-plated steaks | The delegates, who were in the UK for COP26, made a pilgrimage to Karl Marx’s grave before chowing down at Salt Bae’s restaurant | VICE
China arrests ex-secret police boss on corruption charges | Si Lijun, who also oversaw Hong Kong and Macau’s security matters, has been under investigation since last year (he’s also allegedly the protector of Jho Low, the 1MDB mastermind currently believed to be hiding in China…) | South China Morning Post
Albania's ex-top prosecutor sentenced over corruption | Adriatik Llalla, who could not account for property deals or foreign family expenses, is the first senior official convicted under new judicial institutions designed to target widespread corruption | Washington Post
UAE to audit all gold refineries in crackdown on illicit trade | The country is one of the world’s biggest bullion hubs, but links to corruption and human rights abuses abound | Reuters
Corruption fuels Mozambique’s illicit gemstone trade | The opaque nature of the country’s illicit artisanal and small-scale mining industry has siphoned millions from the economy | OCCRP
Nigerian banks rebuked for role in a $4 million theft from pensioners | The case, which centers on a former government official, highlights Nigeria’s woeful anti-money laundering safeguards | Quartz
📖RESEARCH & ANALYSIS
The Five Great Enabler Nations | Josh Rudolph, German Marshall Fund
“Consolidating the international consensus that the professional enablers of corruption should be required to watch out for dirty money would require landmark reform initiatives… The United States and Australia are the only two democracies that still need to impose anti-money laundering (AML) laws on non-bank enablers. The United Kingdom and Germany need to enforce the rules they have on the books. Switzerland needs both a broader law and stronger enforcement.”
Taking the Climate Crisis Seriously Requires Ambitious Anti-Corruption Solutions | The climate change movement should recognize the threat grand corruption poses to achieving its goals. | Ian Lynch & Maja Groff, The Diplomat
Confronting the Challenge of Weaponized Corruption in the Black Sea Region and Beyond | Dan Owen, Foreign Policy Research Institute
Two Books Assess the Fight Against Global Corruption | Casey Michel’s American Kleptocracy and Frank Vogl’s The Enablers highlight the role of Western facilitators | The Economist
The Geoffrey Cox Headlines Look Bad – the Reality is Worse | Oliver Bullough, Open Democracy
“The far bigger scandal is where the money came from before it was used to pay Cox’s fees, because the BVI is not like other places… officials from [many countries] have used BVI companies as their primary tool to disguise the theft of vast wealth…”
Scratching the Surface: Tracing Colored Gemstone Flows from Mozambique and Malawi to Asia | The informality and opaque nature of the colored gemstone industry leaves it vulnerable to smuggling and other criminal activities | Global Initiative Against Transnational Organized Crime