Now that the UK is finally tackling ‘Londongrad’, it’s time for the US to up its game

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The writer oversees the Human Rights Foundation’s anti-kleptocracy program.

A year ago, with the rise of a new administration in Washington, it was clear that the United States had taken the lead in the transatlantic fight against kleptocracy. But in recent months, London has begun to map out a plan to reclaim that top position and has begun challenging its Western allies to expand its own fight against illicit wealth and international money laundering.

These moves were already long overdue. Spurred by the Russian invasion of the Ukraine, the government finally introduced regulations so that even if “Londongrad” is not completely shut down, as the Tories claim, the days of illicit Russian wealth flooding the UK are finally coming to an end.

The most notable of these new developments is aimed at British property owners hidden behind foreign shell companies. Thanks to last year’s Economic Crime Act, offshore companies hiding real estate now need to disclose their true actual owners. Most notably, the regulations appear to be working. As the researchers foundthese types of property purchases have plummeted in recent months, part of a decline that precedes Russia’s most recent sanctions.

There are encouraging signs of new measures. Britain’s largely unenforced shell company register has so far allowed “Adolf Tooth Fairy Hitler” and “Donald Duck” to be listed among company names and directors. But once the next bill on economic crimes and business transparency happens, registration will come with verification requirements, which means the days of these cartoon monikers masking deceptive companies should be long gone.

It is not just government policies that give cause for optimism. Spying on an opportunity, the Labor leadership has turned the fight against kleptocracy into a primary election board. Shadow Foreign Secretary David Lammy recently described the fight against kleptocracy as “not just a job for the police. This is foreign policy.”

Eradicating dirty money and opposing the dictatorship should be the same. Lammy has begun outlining the need for a “forward-thinking moment,” coordinating with allies in Washington and elsewhere to align anti-kleptocracy efforts more broadly.

For those on Capitol Hill, this rhetoric plus the other developments have been a welcome boost of confidence that London is, at long last, acknowledging the threats of kleptocracy and its own responsibilities in rooting out corruption. As an American, I welcome this much-needed jolt of energy to American officials, especially those in the White House, who are faltering in the fight.

Although the current administration is a clear step forward from a Trumpian alternative, it is falling short of its initial promise. More than two years into President Joe Biden’s term, the United States has barely improved transparency for real estate o Private investment: two well-known sanctuaries for illicit and kleptocratic wealth. Similarly, we have seen little movement toward regulating how American lawyers help kleptocrats move and launder their wealth. Most embarrassingly, when Biden’s Treasury Department recently outlined plans to register America’s shell companies, the proposals included an option to leave company owners “unknown,” which undermines the entire purpose of the document. record.

Fortunately, these requirements are now being redrafted. But initial optimism about Washington’s leadership is fading, buried in partisanship and distractions elsewhere. London’s recent push into this space is not only welcome, but may be a means to galvanize her allies across the Atlantic.

Last year, the United States challenged Britain to step up its fight. Now the tables have turned. It is time for the US partners to follow the example of the UK.