by Arshiya Jahanpour
December 8, 2021
LONDON — The U.K. should clamp down on money laundering by kleptocrats from post-Soviet republics, who have become increasingly influential donors to the Conservative party, a leading foreign affairs think tank warned.
In a report published Wednesday, Chatham House said Westminster — and Boris Johnson’s Conservative parliamentary party in particular — “may be open to influence from wealthy donors who originate from post-Soviet kleptocracies and who may retain fealty to these regimes.”
According to the report, the Conservative Party received £3.5 million from naturalized British citizens of Russian and Eurasian backgrounds between 2010 and 2019 — and the volume of donations appears to have increased ever since.
The authors argue regulatory failures and a lack of enforcement make it easy for kleptocrats from countries including Azerbaijan, Kazakhstan, Ukraine and Uzbekistan to launder money and their reputations in the U.K. The think tank calls on the government to come up with a new anti-kleptocracy strategy.
“The situation is materially and reputationally damaging for the U.K.’s rule of law and to the U.K.’s professed role as an opponent of international corruption,” the report states. “It demands a new approach by the U.K. government focused on creating a hostile environment for the world’s kleptocrats.”
Foreign Secretary Liz Truss did not comment when asked during an event Wednesday whether the government is doing enough to restrict the access of Russian and Eurasian finance to the City of London to launder cash.
The report warns that after securing residency and moving their capital to the U.K., kleptocrats often try to gain traction in British society by hiring public relations agents; forging ties with political and business leaders; creating charitable foundations; seeking the support of think tanks and elite universities; or buying prestigious commodities such as football clubs.
British universities and think tanks should be part of any future strategy, the report argues, because unlike U.S. institutions they are not required to make their donors, amounts of money handed over or any conditions attached public. Only seven out of 24 leading research universities in the U.K. have established public ethical guidelines and a dedicated and independent gifts committee, according to a survey carried out by Chatham House.
Source: Politico
December 8, 2021
LONDON — The U.K. should clamp down on money laundering by kleptocrats from post-Soviet republics, who have become increasingly influential donors to the Conservative party, a leading foreign affairs think tank warned.
In a report published Wednesday, Chatham House said Westminster — and Boris Johnson’s Conservative parliamentary party in particular — “may be open to influence from wealthy donors who originate from post-Soviet kleptocracies and who may retain fealty to these regimes.”
According to the report, the Conservative Party received £3.5 million from naturalized British citizens of Russian and Eurasian backgrounds between 2010 and 2019 — and the volume of donations appears to have increased ever since.
The authors argue regulatory failures and a lack of enforcement make it easy for kleptocrats from countries including Azerbaijan, Kazakhstan, Ukraine and Uzbekistan to launder money and their reputations in the U.K. The think tank calls on the government to come up with a new anti-kleptocracy strategy.
“The situation is materially and reputationally damaging for the U.K.’s rule of law and to the U.K.’s professed role as an opponent of international corruption,” the report states. “It demands a new approach by the U.K. government focused on creating a hostile environment for the world’s kleptocrats.”
Foreign Secretary Liz Truss did not comment when asked during an event Wednesday whether the government is doing enough to restrict the access of Russian and Eurasian finance to the City of London to launder cash.
The report warns that after securing residency and moving their capital to the U.K., kleptocrats often try to gain traction in British society by hiring public relations agents; forging ties with political and business leaders; creating charitable foundations; seeking the support of think tanks and elite universities; or buying prestigious commodities such as football clubs.
British universities and think tanks should be part of any future strategy, the report argues, because unlike U.S. institutions they are not required to make their donors, amounts of money handed over or any conditions attached public. Only seven out of 24 leading research universities in the U.K. have established public ethical guidelines and a dedicated and independent gifts committee, according to a survey carried out by Chatham House.
Source: Politico
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