February 10, 2025
United States of America President Donald Trump, has disbanded a specialized unit within the U S Department of Justice, the Kleptocracy Asset Recovery Initiative.
The department was responsible for tracing and recovering monies in stolen assets linked to corrupt foreign leaders.
Launched in 2010, the initiative, played a key role in high-profile cases, including the 1Malaysia Development Berha (1MDB) scandal and the recovery of funds looted by former Nigerian head of state, Gen. Sani Abacha.
The successful forfeiture of $23 million in Abacha-linked assets in 2022, which brought the total amount recovered to $334.7 million, which was repatriated to Nigeria, was midwifed Under the program in US Department Of Justice.
Reports from The Heritage Times, said the decision to shut down the unit was made under the directive of Attorney General Pam Bondi, with a Department Of Justice memo obtained by Reuters stating that resources would now be redirected toward fighting drug cartels and international gangs.
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According to Bondi, “This policy requires a fundamental change in mindset and approach.”
The move has raised widespread concerns over 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, including Oleg Deripaska and Konstantin Malofeyev, for sanctions violations, seizing luxury assets such as yachts and real estate.
The task force had traced billions laundered through the U.S. by Abacha, his son Mohammed Sani Abacha, and their associate Abubakar Atiku Bagudu. It also played a critical role in investigating corruption within Nigeria’s oil sector, including a case involving former Petroleum Minister Diezani Alison-Madueke.
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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 the case to Nigeria.
However, despite the disbandment of the DOJ unit, former task force leader Andrew Adams suggested that some of its ongoing cases would still proceed, but acknowledged that there might be a likely decline in the pace of prosecutions targeted at financial facilitators especially those linked to Russian oligarchs.
Speaking to Reuters, Adams said, “Are we going to suddenly see a surge of sanctioned oligarch wealth flood into the United States? I don’t think so,” “What you will see is a sharp decline in the pace of charges that target facilitators that are specific to Russia.”
While 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 would return to their original positions within the Justice Department
