Financial Crime World

US Financial Institutions Under Fire for Corruption as International Anti-Corruption Day Highlights Global Threat

As we mark International Anti-Corruption Day, the US Treasury Department has launched a renewed effort to tackle the scourge of corruption that threatens the rule of law, economic development, and national security. The department is taking bold action to hold corrupt actors accountable and address weaknesses in the US financial system that enable illicit activities.

Corruption: A Significant Threat to Public Trust

Corruption is a significant threat to public trust and the integrity of the US financial system. Officials are abusing their positions, laundering funds through US bank accounts, and hiding identities and wealth behind shell companies registered in the United States. The Treasury Department is working to identify and recover the proceeds of corruption, including through innovative approaches such as the Kleptocracy Asset Recovery Rewards Program.

Strengthening Regulatory Armor

To counter corruption, the Treasury Department is:

  • Closing gaps in its regulatory armor
  • Advancing domestic and international solutions to fighting financial crime
  • Shedding light on the financial shadows where corrupt actors hide

The department has implemented measures such as the Corporate Transparency Act, which requires certain companies operating in the US to disclose their beneficial owners, making it harder for corrupt officials to misuse opaque corporate structures.

Enhancing Transparency and Collaboration

The Treasury Department is also:

  • Developing regulations to enhance transparency in the real estate sector
  • Examining the roles of key gatekeepers, such as accountants, investment advisers, lawyers, and others, who play a crucial role in corruption and financial crime
  • Working closely with international partners, including:
    • Financial Action Task Force (FATF)
    • G7
    • G20, to strengthen global standards and efforts to fight corruption

Safeguarding the US Economy

The Treasury Department’s anti-corruption efforts are critical to:

  • Safeguarding the US economy
  • Reducing the ability of corrupt actors to move and stash their stolen wealth
  • Dampening corruption’s corrosive effects on democracy and economic growth

The department’s commitment to countering corruption sends a strong message that impunity will not be tolerated for those who engage in illicit activities.

Conclusion

As one of its greatest assets, the US financial system also leaves the country particularly vulnerable to all forms of illicit finance, including corruption. Through forward-looking regulation and strong enforcement actions, the Treasury Department, along with its interagency and international partners, is working diligently toward making impunity an impossibility for corrupt actors around the world.