Biden Administration Unveils Ambitious Anti-Corruption Strategy for United States Minor Outlying Islands

In a major move to curb corruption in finance, the Biden administration has released its first-ever U.S. Strategy on Countering Corruption and launched a coordinated slate of anti-corruption initiatives across federal agencies. This unprecedented whole-of-government effort aims to address corruption at home and abroad.

Focus Areas

The strategy focuses on preventing bad actors from using national and international financial systems to launder money and hide assets. It sets out five strategic pillars:

• Modernizing U.S. Government Efforts: To fight corruption effectively, the administration plans to modernize its efforts by leveraging technology, data analysis, and other innovative tools.
• Curbing Illicit Finance: The strategy aims to disrupt and dismantle complex financial networks used for money laundering, terrorist financing, and other illicit activities.
• Holding Corrupt Actors Accountable: The administration is committed to holding corrupt actors accountable through enhanced enforcement, sanctions, and international cooperation.
• Preserving the Multilateral Anti-Corruption Architecture: The strategy recognizes the importance of international cooperation in combating corruption and seeks to preserve and strengthen multilateral anti-corruption institutions and initiatives.
• Improving Diplomatic Engagement and Leveraging Foreign Assistance Resources: The administration plans to leverage diplomatic engagement and foreign assistance resources to support anti-corruption efforts globally.

Immediate Actions

To implement these measures, the administration has taken immediate action:

• The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) issued a raft of new sanctions designations, totaling almost 60 individuals and over 40 entities in eleven countries.
• The U.S. Department of State designated over a dozen more individuals.
• The Financial Crimes Enforcement Network (FinCEN) proposed rules to implement the beneficial ownership reporting provisions of the Corporate Transparency Act and enhance reporting requirements on all-cash real estate transactions.

Impact

The administration’s anti-corruption strategy marks a significant step up in contemplated enforcement and international cooperation, and an increase in the willingness to use all available U.S. government resources. This effort is expected to have far-reaching implications for companies operating in the United States Minor Outlying Islands and abroad.