STR: Suspicious Transaction Report

Why civil society, financial institutions and governments must connect their evidence and capabilities to dismantle kleptocratic networks. Kleptocracy is not simply corruption on a grand scale. It is a system in which stolen wealth is used to capture institutions, preserve political power and extend influence across borders. Exposing these networks is essential, but exposure alone rarely brings them down. In this episode of the Suspicious Transaction Report, Kinga Redłowska is joined by Zoë Reiter, Director of Combating Kleptocracy at the National Endowment for Democracy (NED), and Tom Keatinge, Director of the Centre for Finance & Security at RUSI. Together, they explore what it takes to detect, deter and dismantle kleptocratic systems, and why the work of investigative journalists and grassroots civil society must be connected to financial institutions, law enforcement, policymakers and international standard-setters. The conversation also examines cryptocurrency's dual role: providing kleptocrats with alternative ways to move wealth while creating opportunities for tracing illicit flows and supporting civil society operating under authoritarian regimes. From professional enablers and sanctions to blockchain analytics and the challenges of funding local investigators, the episode makes the case for a coordinated response that turns evidence into meaningful disruption.

How a rouble-backed stablecoin, Tether's USDT and an alternative payments network are testing the reach of Western sanctions. Russia's search for alternatives to the Western financial system is increasingly moving into crypto. One experiment in particular has attracted attention: A7A5, a rouble-backed stablecoin linked to the wider A7 payments network and designed to facilitate cross-border payments outside conventional banking channels. In this episode of the Suspicious Transaction Report, host Tom Keatinge speaks with Dr Tom Robinson, Chief Scientist and Founder of blockchain analytics company Elliptic, about what A7A5 reveals about the evolution of sanctions evasion. They explore the relationship between A7A5, Ilan Shor, Russian state-owned bank PSB and Kyrgyzstan; why the token itself is only part of a much wider financial infrastructure; and how A7A5 can act as a bridge from roubles into the globally liquid dollar-backed stablecoin USDT. The conversation also considers whether sanctions are working. Blockchain data shows how enforcement can restrict liquidity and disrupt crypto infrastructure — but also how rapidly networks adapt.  Ultimately, the episode asks where policymakers should focus next: on individual tokens, or on the exchanges, liquidity providers and exit points that make alternative payment systems usable. Further reading -            The Putin Tax and the Cost of Russian Hostility to Britain – Tom and Graeme Downie MP reflect on the cost of Russian hostility for Britain, arguing that the Government must justify its choices. -            Could Stablecoins be the Future of Payments and Financial Integrity? – Tom and Arzu consider the role of stablecoins and the ways policymakers can more effectively govern this growing payment rail. -            Enhancing the EU Response to Crypto-Enabled Sanctions Circumvention – Tom and Kinga argue that the EU must target the infrastructure that allows for widespread use of crypto to disrupt Russia's sanctions-evasion networks. -            CFS has also recently launched a new taskforce to consider the implications for national security of the use of cryptoassets. Find out more here.

Clare Rewcastle Brown on how Malaysia's 1MDB scandal became a story of debt, infrastructure, China and geopolitical leverage.  The 1MDB scandal exposed how billions of dollars were stolen from Malaysia, moved through offshore structures and the international financial system, and used to fund political power, a movie, luxury assets and influence.  But for investigative journalist Clare Rewcastle Brown, whose reporting helped expose the scandal, the story did not end there. In her forthcoming book, The China Contract, she examines what happened when Malaysia's then prime minister, Najib Razak, faced a growing hole in 1MDB's accounts and mounting pressure from US investigators.  In this episode of the Suspicious Transaction Report, host Tom Keatinge speaks with Clare about how 1MDB moved from a story of kleptocracy and professional enablers to one involving alleged inflated infrastructure deals, Belt and Road projects, Kuwait-based laundering routes and China's strategic interest in Malaysia.  They discuss the role of Jho Low as fixer and proxy, the professional ecosystem that enabled stolen money to be moved and disguised, and why Malaysia's geography, including the Strait of Malacca, made the country strategically important.  The episode asks what 1MDB reveals about the relationship between corruption and national vulnerability: when leaders are compromised, public money is stolen and financial systems enable the cover-up, foreign influence can find an opening.  Further reading and listening:  Pre-order Clare's book:  The China Contract The Inside Story of the World's Biggest Financial Scandal ... and How It Was Covered Up  Synthesis Paper: Velvet glove, iron fist: Understanding China's use of state threats  Listen to more on this topic: Season 6, Episode 9: Sanctioning China: Examining the Dilemma 

This episode explores how conflict financing and hybrid threats expose gaps in the global anti-financial crime framework. Wars and hostile state activities are not sustained by weapons alone. They depend on money, commercial networks, natural resources, corruption and access to the international financial system.  In this episode of the Suspicious Transaction Report, Kinga is joined by Justyna Gudzowska, Executive Director of The Sentry and a RUSI Associate Fellow, and Olivia Allison, also a RUSI Associate Fellow and a specialist in illicit finance, corruption and Russian-linked networks.  Both guests have contributed to the CFS special issue of the RUSI Journal, 'Illicit Finance in a Fragmenting World'. Their conversation examines why conflict and hybrid-threat financing both often fall between established categories of money laundering, terrorist financing and proliferation financing.  They discuss how armed groups generate, move and spend money; how gold, natural resources and regional financial centres can sustain war economies; and how small payments, criminal networks and social media monetisation can support sabotage, recruitment and other forms of hostile state activity.  The episode also considers what the Financial Action Task Force, governments, financial intelligence units and banks should do differently; from developing conflict-financing typologies and recognising regional laundering hubs, to adopting more agile, network-based approaches to sanctions, screening and risk detection.  Further reading The FATF Needs to Tackle How War is Financed | Royal United Services Institute Combatting the Illicit Financing of Hybrid Threats | Royal United Services Institute Responding to Russian Sabotage Financing | Royal United Services Institute

This episode examines how the US Treasury thinks about financial crime, sanctions, fraud and protecting the integrity of the financial system. Financial crime, sanctions and illicit finance have become central to national security and economic security. But how can governments and the private sector ensure that the response is effective, risk-based and focused on outcomes? In this opening episode of the new season of the Suspicious Transaction Report, Tom Keatinge is joined by Jonathan Burke, Assistant Secretary for Terrorist Financing and Financial Crimes at the US Treasury Department. Drawing on his experience in both government and financial services, Jonathan discusses why the financial crime agenda must move from compliance to risk management, and why effectiveness should not be confused with simply adding more rules or easing pressure on the system. The conversation explores fraud as a growing financial and national security threat, the role of technology and data in identifying illicit finance networks, and the challenge of modernising frameworks such as the Bank Secrecy Act for a changed financial system. They also examine the Treasury's wider toolkit – including sanctions, Section 311 actions, enforcement and information-sharing – and why success should be measured not by the number of actions taken, but by whether financial threats are disrupted and the integrity of the system is protected.