FOR IMMEDIATE RELEASE
Freedom for Eurasia (FfE) expresses deep concern regarding the U.S. government’s reported pause on enforcing the Foreign Corrupt Practices Act (FCPA) and disband the Kleptocracy Asset Recovery Initiative and KleptoCapture Task Force which proved their value in huge corruption cases. This decision is expected to significantly weaken efforts to combat corruption globally and is particularly alarming in regions like Central Asia, where weak governance and a lack of accountability already create a breeding ground for illicit financial flows.
Fight against corruption was at the center of U.S. policies for many years. Important anti-corruption cases investigated by the U.S. or where the U.S. played a major role include the case of Gulnara Karimova, daughter of Uzbekistan’s dictator Islam Karimov, for nearly a billion dollars she received in bribes from Western companies. The corruption scheme was discovered in 2012 and triggered investigations in multiple jurisdictions. The DOJ probe uncovered the fact that three international telecommunications firms had “paid bribes to Uzbek officials to obtain mobile telecommunications business in Uzbekistan and that funds involved in the scheme were laundered through shell companies and financial accounts around the world, to conceal the true nature of these illegal payments. In Kazakhstan there is a notable case known as the Kazakhgate. In April 2003, U.S. prosecutors charged a U.S. citizen James Giffen with bribing Kazakh president Nazarbayev and Nurlan Balgimbayev, the former prime minister of Kazakhstan, to secure oil contracts for the Tengiz field for Western companies in the 1990s. Giffen was charged by the U.S. Attorney for the Southern District of New York with violating the Foreign Corrupt Practices Act of 1977 and money laundering. The prosecutor’s office also charged Brian Williams III, a former Mobil oil company executive, with tax evasion related to kickbacks paid while doing business in Kazakhstan. The government of Kazakhstan recognized the existence of several Swiss bank accounts and agreed to donate all of the funds to a children’s charity. In 2008, as a result of a tripartite agreement between the governments of Kazakhstan, the United States and Switzerland, a charitable foundation was established to which the seized money amounting to $84 million was transferred.
The Trump administration identified combating organized crime, drug trafficking, and human trafficking as key priorities. However, these criminal enterprises are inextricably linked with corruption, particularly at the transnational level. Attempts to dismantle organized criminal networks while ignoring the role of corrupt foreign officials and institutions who facilitate and protect these operations are likely to be ineffective. Corrupt actors within governments, law enforcement, and financial institutions often provide critical infrastructure that allows transnational criminal organizations to operate, move illicit goods across borders, and launder their proceeds. Therefore, any comprehensive strategy to combat organized crime must simultaneously address the corruption that enables and sustains these criminal networks.
Weakening the FCPA’s enforcement, disbanding the Kleptocracy Asset Recovery Initiative and KleptoCapture Task Force and diverted resources away from investigating white-collar crime will likely embolden corrupt criminal actors and diminish the deterrent effect of anti-corruption and anti-transnational organized crime measures. This is especially troubling in Central Asia, where deep-seated corruption hinders economic development, undermines the rule of law, and fuels human rights abuses. The resulting lack of accountability will disproportionately harm ordinary citizens, restricting access to essential services, perpetuating social injustices, and eroding public trust.
Freedom for Eurasia urges the U.S. government to reverse this decision and recommit to fighting global corruption. Strong enforcement of the FCPA is crucial for promoting good governance and economic development not only in the U.S. and Central Asia but worldwide. This rollback from anti-corruption principals sends a dangerous message that could encourage corrupt practices and further destabilize already fragile democratic institutions worldwide. Robust anti-corruption measures are essential for sustainable development and the protection of human rights.
