Money laundering
News & Blog
25 Nov 2024
NewsMoney dirtying: shining a light on how clean money turns into bribes
Prevention, Research and Innovation
2 Sep 2022
NewsCryptocurrencies key to tackling organised crime – Europol and Basel Institute on Governance
Asset Recovery
8 Jul 2021
BlogNew analysis of the Toledo-Odebrecht case illuminates the complex transnational networks behind corruption and money laundering schemes
Asset Recovery, Prevention, Research and Innovation
12 Nov 2020
BlogPhyllis Atkinson's quick guide to offshore structures and beneficial ownership
Anti-Money Laundering, Asset Recovery
10 Jan 2020
NewsHigh-level workshop on the legal consequences of corruption and money laundering in international arbitration
Anti-Money Laundering
Publications
Organisational forms of corruption networks: the Odebrecht-Toledo case
Actors in grand corruption schemes often conspire and deliberately create sophisticated networks to extract huge amounts of public resources from government systems. They hide such conspiracies behind hybrid formal/informal arrangements.
Using a mixed methods approach, this study investigates the corruption scheme initiated by former Peruvian President Alejandro Toledo and the Brazilian construction giant Odebrecht Group. We argue that separating the networks of the client (Odebrecht) and the agent (Toledo) sides provides analytical leverage for studying complex corrupt arrangements.
We found that the organisational forms designed by corrupt actors on either side were essential to ensuring the secret and safe operation of the network. Introducing the concept of organisational form into corruption research helps better understand the nature of these networks. We also found that different parts of the networks are shaped by different types of corruption. The article concludes with implications for practice.
Research Case Study 3: Exposing the networks behind transnational corruption and money laundering schemes
Corruption is increasingly understood as a form of collective, social behaviour. It slips easily across borders and involves sophisticated financial strategies and transactions to launder the stolen money.
Yet the nexus between corruption and money laundering is poorly understood. So too are the structures, functions and mechanisms that enable these crimes.
We applied analytical tools to reveal the complex networks behind a corruption and money laundering scheme involving Odebrecht and Peru’s former president. The insights can support strategic approaches to fight transnational corruption.
Quick Guide 29: Money laundering and sanctions evasion using the art market
The art market is often described as ‘niche’. In reality, it is a significant trade industry: sales of art and antiques by dealers and auction houses reached an estimated USD 65.1 billion in 2021. And like many industries of this size, it attracts people seeking to abuse it to launder proceeds of crime or evade sanctions.
This quick guide briefly explains the unique characteristics of the art market that make it vulnerable to this type of abuse. It also outlines steps that jurisdictions can take to prevent and combat abuse of the sector for illicit purposes.
About this Quick Guide
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. It is part of the Basel Institute on Governance Quick Guide series, ISSN 2673-5229.
Quick Guide 28: Money laundering through the gambling industry
This quick guide sets out how criminals abuse the gambling industry to launder illicit funds. It includes numerous recent case studies to illustrate different ways of laundering money in casinos, online gambling websites, bars and clubs, as well as physical and online sports betting services.
The guide also looks at what gambling businesses and public authorities can do to better prevent and detect money laundering in this industry.
About this Quick Guide
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. It is part of the Basel Institute on Governance Quick Guide series, ISSN 2673-5229.
Case Study 8: Windward Trading: Charging a shelf company with money laundering and returning confiscated funds to Kenyan citizens
This case study describes how authorities in Kenya and Jersey worked together to unlock progress in a long-running case involving around USD 3.7 million in corruptly acquired funds.
The money was held in the bank account of the shelf company Windward Trading, which was used to channel corrupt payments relating to power generation in Kenya.
The money had been seized in Jersey since 2011 following a money laundering investigation and subsequent criminal proceedings. Kenyan Ethics and Anti-Corruption Commission (EACC) reasonable grounds to suspect the funds were proceeds of corruption. But the case had stalled due to issues with extraditing the two suspects to Jersey to stand trial.
Proactive informal cooperation was key to building trust between the parties. This helped to break the deadlock, find legal solutions to recover the funds and agree their safe return for the benefit of Kenyan citizens.
The parties mutually agreed that the recovered assets should be used for medical equipment and pandemic relief in Kenya. Crown agents and Amref Health Africa are responsible for disbursing and safeguarding the funds.
A framework agreement signed by the Governments of Kenya, Jersey, Switzerland and the UK was used as a basis for negotiations on the return of the funds.
Open-access licence and acknowledgements
This publication is part of the Basel Institute on Governance Case Study series. It is licensed for sharing under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).
The Case Study series offers practitioners insights into interesting and precedent-setting cases involving corruption and asset recovery. Many such cases are drawn from partner countries of the Basel Institute’s International Centre for Asset Recovery.
Suggested citation: Marsh, Simon. 2022. “Windward Trading: Charging a shelf company with money laundering and returning confiscated funds to Kenyan citizens." Case Study 8, Basel Institute on Governance. Available at: baselgovernance.org/case-studies.
