Title page
Contents
Preface 6
Executive Summary: Rethinking Kleptocracy 8
Chapter 1. The Kleptocratic Waves 11
Thinking Structurally 13
Chapter 2. Case Studies of Weaponized Corruption 15
The Kleptocrat as Natural Resources Tycoon 16
Tycoon Kleptocrats' Illicit Financial Practices 17
Implications of the Natural Resource Tycoons' Corruption 17
How the Tycoons' Practices Reflect on the Global Financial System 18
Why Transatlantic Coordination Was Necessary to Address Natural Resource Tycoons' Corruption Sooner 18
Private Corporations Subordinated to Authoritarian Objectives 18
One Private Corporation's Alleged Financial Malpractices 19
Implications of the Chinese Private Corporation's Alleged Corruption 19
How These Alleged Malpractices Reflect on the Global Financial System 19
Why Transatlantic Coordination Was and Is Necessary 21
The Enabling Policy Maker as Kleptocrat 21
The Enabler's Illicit Financial Practices 21
Implications of the Enabler's Corruption 22
How the Enabler's Corruption Reflects on the Global Financial System 22
Why Transatlantic Coordination Was Necessary to Address This Corruption Sooner 22
Conclusion 23
Chapter 3. Kleptocracy LLC 24
Loopholes Exploited by Kleptocrats in the United States 27
Overview 27
The US Private Investment Industry 27
The US Real Estate Industry 29
The US Cryptocurrency Exchange Industry 30
The US Arts Trade Industry 30
Proposed Reforms of US Private Investment Regulations 30
Proposed Reforms of US Real Estate Regulations 32
Proposed Reforms of US Cryptocurrency Exchange Regulations 32
Proposed Reforms of US Arts Trade Regulations 33
General Overview of Reforms in the United States 33
Recent Developments 34
Summary of Key Findings 36
Loopholes Exploited by Kleptocrats in the United Kingdom 37
Overview 37
The UK's Private Investment Industry 39
The UK's Real Estate Industry 39
The UK's Cryptocurrency Exchange Industry 39
The UK's Arts Trade Industry 40
Proposed Reforms of the UK's Private Investment Regulations 41
Proposed Reforms of the UK's Real Estate Regulations 42
Proposed Reforms of the UK's Arts Trade Regulations 42
General Overview of Reforms in the UK, British Overseas Territories, and Crown Dependencies 42
Recent Developments 43
Summary of Key Findings 45
Loopholes Exploited by Kleptocrats in the European Union 46
Overview 46
The EU's Private Investment Industry 46
The EU's Real Estate Industry 49
The EU's Cryptocurrency Exchange Industry 50
The EU's Arts Trade Industry 50
Proposed Reforms of the EU's Private Investment Regulations 50
Proposed Reforms of the EU's Real Estate Regulations 52
General Overview of Reforms in the European Union 52
Recent Developments 54
Summary of Key Findings 55
Global Governance against Weaponized Corruption 56
Conclusion 58
Chapter 4. The Global Anti-Corruption Council 59
US-EU Trade and Technology Council as a Template 59
The Transatlantic Anti-Corruption Council 61
Conclusion 66
Policy Proposals Annex 68
About the Authors 70
Acknowledgments 70
Table 1. Prominent First-Wave Kleptocrats 12
Figure 1. Share of Private Asset Management Industry by Jurisdiction in 2020 24
Figure 2. Value of Global Residential Real Estate Industry 25
Figure 3. Share of Cryptocurrency Exchange Industry by Jurisdiction in 2021 25
Figure 4. Share of Global Art Market by Jurisdiction in 2021 26
Figure 5. Timeline of Changes in US Regulations Since 2001 35
Figure 6. Timeline of Changes in UK Regulations since 2001 44
Figure 7. Timeline of Changes in EU Regulations since 2001 53
Figure 8. TACC Working Groups 63