U.S. President Donald Trump has disbanded the Kleptocracy Asset Recovery Initiative, a specialized unit within the Department of Justice (DOJ) tasked with tracing and recovering billions of dollars in stolen assets linked to corrupt foreign leaders.
The initiative, launched in 2010, played a crucial role in high-profile cases, including the 1MDB scandal and the recovery of funds looted by former Nigerian head of state, Gen. Sani Abacha. Through this program, the DOJ successfully forfeited $23 million in Abacha-linked assets in 2022, bringing the total amount recovered to $334.7 million, which was repatriated to Nigeria.
According to The Heritage Times, the decision to shut down the unit was made under the directive of Attorney General Pam Bondi. A DOJ memo obtained by Reuters indicated that resources would now be redirected toward fighting drug cartels and international gangs.
“This policy requires a fundamental change in mindset and approach,” Bondi wrote in the directive.
The move has sparked widespread concerns about the future of global anti-corruption efforts, with critics arguing that it could weaken the enforcement of financial crime laws and embolden corrupt officials who siphon public funds into the U.S. financial system.
The Kleptocracy Asset Recovery Initiative was instrumental in uncovering large-scale financial crimes, particularly in Africa and Russia. The unit pursued cases against Russian oligarchs tied to President Vladimir Putin, such as Oleg Deripaska and Konstantin Malofeyev, for sanctions violations, seizing luxury assets like yachts and real estate.
In Africa, the task force traced billions laundered through the U.S. by Abacha, his son Mohammed Sani Abacha, and their associate Abubakar Atiku Bagudu. It also investigated corruption within Nigeria’s oil sector, including a case involving former Petroleum Minister Diezani Alison-Madueke.
Between 2011 and 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore allegedly funneled over $100 million in bribes to Alison-Madueke in exchange for lucrative oil contracts. These illicit funds were laundered through the U.S. to acquire luxury assets, including high-end real estate in New York and California, as well as the Galactica Star superyacht. In 2024, the U.S. agreed to transfer $52.88 million in forfeited assets from this case to Nigeria.
Despite the disbandment of the DOJ unit, former task force leader Andrew Adams suggested that some of its ongoing cases would still proceed. However, he acknowledged that the pace of prosecutions targeting financial facilitators, especially those linked to Russian oligarchs, would likely decline.
“Are we going to suddenly see a surge of sanctioned oligarch wealth flood into the United States? I don’t think so,” Adams told Reuters. “What you will see is a sharp decline in the pace of charges that target facilitators that are specific to Russia.”
The directive states that the changes will remain in effect for at least 90 days, with the possibility of extension or permanent implementation. Prosecutors previously assigned to the task force will return to their original positions within the DOJ.
The decision to shut down the unit raises significant concerns about the future of U.S. efforts to combat financial crimes, with experts warning that it could create opportunities for corrupt leaders to move illicit funds more freely.
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