💸Kleptocracy #12 | A New Era for US Leadership Against Global Corruption?
The latest global news, research and analysis
Welcome to Kleptocracy. Keep scrolling down for recent news, research and analysis on how corruption is reshaping global politics.
Following a two-week absence, Kleptocracy returns to a fundamentally altered landscape (in Washington, DC, at least) with the launch of the US Strategy on Countering Corruption and the elevation of corruption as a pillar of the Summit for Democracy.
There are simply too many news snippets, op-eds and news reports on global corruption for me to include everything this week, but I’ve done my best. It’s a far cry from the first pre-Panama Papers KI newsletter back in early 2016, when it frequently took me all morning just to find three or four stories worth including.
Ukraine is a country that continues to struggle with corruption, but its determination, innovation and progress in that fight has been underreported in the West. Amid all the hot-takes from non-Ukrainians about that country’s future, please take a moment to read Daria Kaleniuk and Olena Halushka of Kyiv’s heroic Anti-Corruption Action Center on why defending Ukraine is central to the global fight for democracy—and how it provides a blueprint for other governments transitioning from kleptocracy. The Russian military build-up on Ukraine’s borders is also the subject of this week’s must-listen Making a Killing podcast with KI’s Paul Massaro and Russian opposition leader Vladimir Milov.
🎉🎂Finally: A very happy birthday to our parent organization Hudson Institute, which celebrated its 60th anniversary last week—marking more than half a century of innovative policy research on keeping America and its allies secure, free, and prosperous. That includes support for this newsletter and all KI’s activities, for which we are very grateful!
Best,
Nate
💸NEW FROM KI
🎧Making a Killing #31: Putin’s Killer Kleptocracy is on Ukraine’s Doorstep | Hudson Institute
Paul talks to Russian opposition politician and economist Vladimir Milov about Putin’s troop build-up on the border of Ukraine and how that links back to the corruption that underpins the Kremlin system.
🎧Making a Killing #30: A New Era for US Efforts Against Kleptocracy with Josh Rudolph | Hudson Institute
The new US Strategy on Countering Corruption was released hours before the Summit for Democracy and promises to rewrite the rulebook on global anticorruption efforts. Josh Rudolph of the German Marshall Fund joins Casey, Nate and Paul to discuss what’s in it.
Republicans Can Embrace Much of Biden’s Anticorruption Plan | Nate Sibley, Wall Street Journal
“Surrendering the corruption fight to progressives would be a gift to the kleptocrats in Beijing, Moscow, Tehran and Caracas… Foreign corruption and kleptocracy [are] too important to slide into partisanship.”
A New Era in America’s Fight Against Corruption? | Casey Michel, Hudson Institute
“The United States has a clear leadership role when it comes to global anti-corruption efforts – and a clear legacy it can point to… But framing [the problem] as something to be tackled in countries elsewhere risks missing the forest for the trees.”
💬Targeting Kleptocracy: A Conversation with Senator Sheldon Whitehouse | Nate Sibley, Hudson Institute
The Feds Must Act to Recover the Billions in COVID Aid Foreign Fraudsters Stole | Nate Sibley, New York Post
“Experts believe that fraudsters stole at least half of [pandemic unemployment benefits] — and nearly three-quarters of that ended up in the hands of dangerous foreign crime syndicates operating alongside China and other corrupt regimes.”
The UK’s Kleptocracy Problem | Casey Michel et al, Chatham House
“In keeping with global standards, the UK has officially adopted a risk-based approach to anti-money laundering... [However] little has been done in practice to prevent kleptocratic wealth and political agendas from entering Britain.”
📺Kleptocracy Markets Contribute to Shadow Financial Networks | Casey Michel, “Rising” on Hill.TV
🗞️NEWS
Highlights from the Summit for Democracy
The White House unveiled a sweeping new US Strategy on Countering Corruption including dozens of new initiatives to elevate US interagency efforts against kleptocracy.
A total of 151 new Global Magnitsky sanctions were imposed on human rights abusers and corrupt officials.
The Treasury Department launched a new effort to strengthen anti-money laundering reporting requirements in the real estate sector.
Treasury Secretary Janet Yellen hosted a Summit panel on fighting corruption with advocates from around the world.
The State Department announced its 2021 Anticorruption Champions. (Watch our recent Venezuela discussion on Maduro’s kleptocracy with Juan Guaido and award recipient Carlos Paproni).
The Presidential Initiative for Democratic Renewal included $424.4 million for various projects including anticorruption measures.
Biden Takes Aim at Kleptocrats | Foreign Policy
Experts “were effusive about the breadth and ambition of the actions announced last week... But some question how the administration can square its democracy promotion and anti-corruption efforts with attempts to rally countries to check China’s increasing military and economic clout.”
After Nicaragua Flips, US Sanctions Seen Pushing Central America Towards China | Reuters
Malta Targeted in International Money Laundering Crackdown | Bloomberg
Money Launderer for Iran, Dubbed ‘the Turkish Gatsby,’ Enjoys Lavish Life in Miami | Miami Herald
Sons of Former Panama President Plead Guilty in Odebrecht Investigation | Insight Crime
Ecuador President Survives Removal Effort by National Assembly Following Pandora Papers Revelations | International Consortium of Investigative Journalists
China Needs Risk Assessment, Anti-Corruption Measures to Address ‘Challenging’ Belt and Road Environments | South China Morning Post
UK’s Anti-Money Laundering Measures Need Complete Reset, Says Report | The Guardian
NatWest Fined $351 Million for Overlooking Money-Laundering Risks Posed By Client | Wall Street Journal
China’s Growing Market for NFTs, Metaverse Could Foster New Money Laundering Schemes | South China Morning Post
📖RESEARCH & ANALYSIS
Ukraine’s Anti-Corruption Theory of Change | Anti-Corruption Action Center
How can leaders in transitioning democracies break the influence of entrenched corrupt networks and seize opportunities for change? Ukraine’s recent experience, though troubled, could be a blueprint for other democracies.
The Kleptocrats Next Door | Anne Applebaum, The Atlantic
“Most voters and citizens in the world’s democracies are vaguely aware of [the offshore economy], but they imagine it exists in faraway autocracies or on exotic tropical islands. They are wrong.”