FiveBy experts are often asked to provide insights on risk-related news, industry trends, and other sanctions and money-laundering issues.
Thomson Reuters recently published FiveBy’s advisory on strategic corruption written by FiveBy Risk Intelligence analyst Marren Haneberg in a two-part series that explores how US firms and financial institutions can adjust, as US regulators look to enhance the country’s battle against strategic corruption.
The first part explores the meaning of strategic corruption and why the US government considers the issue a threat to our national security.
Oligarchs, especially those from Russia and Ukraine, are making real estate and other large asset purchases to evade sanctions, launder money through US and other western financial systems, and influence politicians. Corrupt regimes also exploit state-owned companies to influence foreign politics.
In the second part, Marren examines how US companies can stay ahead of the curve and be proactive in their efforts to address this national security threat.
Companies engaged in [vulnerable] sectors should reassess their risk programs, possibly perform transaction monitoring, track changes in employment for clients — especially those in risky jurisdictions or who raise other red flags. Companies also should keep abreast of possible upcoming regulatory changes mandated by the Corporate Transparency Act, given the Biden administration’s commitment to treating corruption as a national security concern.
US firms and financial institutions concerned about transacting with possible kleptocrats and corrupt government officials, especially as the West ramps up sanctions against Russian oligarchs, should engage the support of expert analysts at FiveBy to develop most effective strategies to protect their business from regulatory and reputational risk.