Financial Crime World

Combating Corruption and Kleptocracy: U.S. Department of the Treasury’s Efforts

The U.S. Department of the Treasury plays a crucial role in combating corruption and kleptocracy by identifying, disrupting, and reporting financial activity related to these issues, particularly involving Russian elites, oligarchs, and their proxies.

Guidance and Publications

To strengthen private sector efforts in this area, the department has published extensive guidance, advisories, alerts, and analysis. Some notable publications include:

Advisory on Kleptocracy and Foreign Public Corruption (April 2022)

  • Provides guidance on identifying and reporting financial activity related to kleptocracy and foreign public corruption
  • Outlines steps for private sector entities to take in order to strengthen their efforts in this area

Alert on Real Estate, Luxury Goods, and Other High-Value Assets Involving Russian Elites, Oligarchs, and Their Family Members (March 2022)

  • Alerts financial institutions and other stakeholders to potential risks associated with transactions involving Russian elites, oligarchs, and their family members
  • Provides guidance on how to identify and report suspicious activity
  • Analyzes trends in financial activity related to Russian oligarchs based on Bank Secrecy Act data
  • Identifies potential areas of risk and provides guidance for private sector entities

Alert on Potential U.S. Commercial Real Estate Investments by Sanctioned Russian Elites, Oligarchs, and Their Proxies (January 2023)

  • Alerts financial institutions and other stakeholders to potential risks associated with transactions involving sanctioned Russian elites, oligarchs, and their proxies
  • Provides guidance on how to identify and report suspicious activity

Financial Sanctions Authorities

The Treasury Department has also used its financial sanctions authorities to hold accountable those involved in corruption and related issues. Since the release of the U.S. Strategy on Countering Corruption, the department has designated more than 300 individuals and entities for these issues across more than 30 countries.

Disrupting Russian Corruption

In response to Russia’s illegal invasion of Ukraine, the Treasury Department has taken considerable steps to disrupt Russian corruption, kleptocracy, and illicit finance. This work includes efforts with:

  • The multilateral Russian Elites, Proxies, and Oligarchs (REPO) Task Force: A partnership between governments, private sector stakeholders, and other international partners to identify and freeze assets linked to Russian corruption
  • Private sector stakeholders: Financial institutions, law firms, and other entities that play a critical role in identifying and reporting suspicious activity related to Russian corruption
  • Other international partners: Governments and organizations that work together to strengthen global standards for combating corruption and illicit finance

Contributions to the Financial Action Task Force (FATF)

The Treasury Department has also contributed to the FATF’s efforts to enhance international standards relating to countering corruption, money laundering, and illicit finance. Over the past two years, the department has supported the FATF’s efforts to revise international standards on:

  • Transparency and beneficial ownership of legal persons and legal arrangements: To prevent and mitigate the misuse of corporate structures, trusts, and other mechanisms for criminal purposes

Conclusion

The U.S. Department of the Treasury is committed to combating corruption and kleptocracy through a range of initiatives and partnerships with foreign governments, the private sector, and international organizations. By working together, we can strengthen global standards for combating corruption and illicit finance, and hold accountable those who engage in these activities.