BAE Systems: The challenges of uncovering kleptocracy
Not that long ago, if you were to have said the word ‘Kleptocracy’ at a seminar or presentation, many people in the audience would have shrugged and not understood the topic. However, today almost every financial institution is aware of and struggling to identify transactions that can be linked to Kleptocracy.
Kleptocracies are generally associated with dictatorships, oligarchies, military juntas, or other forms of governments in which external oversight is impossible or does not exist. This lack of oversight can cause rulers to treat their country's treasury as a source of personal wealth, spending funds on luxury goods and extravagances as they see fit.
In order to obscure the corrupt origins of their wealth and safeguard it, these dictators, oligarchs, etc engage in widespread money laundering techniques to secure this wealth in assets and investments, for personal use.
Financial Institutions are an essential part of moving these funds in order to make the wealth appear legitimate. In this session learn what Financial Institutions are doing to uncover and report on transactions related to Kleptocracy.