Sunday Read: Minister Tom Tugendhat on Anti-Corruption
This story on anti-corruption and anti-money laundering efforts in the United Kingdom is part of our “Intern Experience” feature within the Sunday Read series, it was researched and drafted by NWC Intern, Taylor Prieto, a Senior majoring in Global Health and minoring in Environmental Studies and Law and Society at University of California, San Diego.
As the current Winter Intern 2023 for the National Whistleblower Center, I am new to learning about the fight for anti-corruption, anti-money laundering policies, government-imposed sanctions, and the importance of financial transparency in global policy. Under NWC’s Executive Director, Siri Nelson, I’ve gained new insight into these concepts, as well as their connection to whistleblowing and whistleblower protections–and why these policies are important to the fight against anti-corruption globally.
On Jan. 10, 2023, I attended an event on behalf of the National Whistleblower Center (NWC), as a way for me to learn more about the work being done by the US and the UK regarding their collective anti-money laundering efforts, and how that relates to whistleblowers. This event was hosted by the Hudson Institute, a leader in the debate on Global Policy. It dealt with issues regarding state threats, illicit finance, and economic security, and had special speaker Tom Tugendhat, a Minister of State for Security of the United Kingdom, during his 3-day visit to Washington DC.
The Hudson Institute is an organization well known for their research on domestic and international issues. Their policy and the research they conduct in regard to international oligarchs heavily relates to the work at NWC, since much of what they talk about involves issues of money laundering and global corruption. Since NWC is at the forefront of those fighting for better anti-money laundering policy–and ways in which whistleblowers can have an impact in preventing money laundering–much of what the Hudson Institute does is directly related to NWC’s mission.
Corruption Overseas
While the major focus of the event was Russian corruption, other oligarchies, including China, were mentioned to emphasize the necessity of bringing awareness to all issues of anti-corruption. Minister Tugendhat gave an in-depth explanation of wrongdoings pertaining to money laundering and violations of privacy being conducted. Being an intern at the National Whistleblower Center, this piqued my interest given that most of the work currently being conducted at NWC is on issues regarding AML whistleblowers and the passing of the Anti-money laundering Act. Minister Tugendhat further described Russia and China to be spying on the UK’s education system and democracy, laundering money overseas, and Russia as using laundered money to fund their attacks on Ukraine. His explanation of the corruption being conducted by these nations was important in connection to the work being done at NWC.
NWC is eager to teach about the role whistleblowers play in preventing this overseas money laundering from occurring, being that we heavily advocate for accountability of those in positions of authority and the use of government sanctions. This has been demonstrated through the policies and acts we advocate for, helping whistleblowers directly, and spreading awareness about the importance of whistleblowing through events like National Whistleblower Day.
Russian corruption efforts have been a direct attack on the U.K. and U.S.’s democracy, which in Tungendhat’s view pose a threat to freedom of expression–an inalienable right in the U.S. This is important to NWC’s work because it aligns with our goal of protecting whistleblowers and creating a pathway for them to expose corruption, backed by our drive to prevent wrongdoing around the world, including the threat to our freedom of expression and democracy.
Without freedom and democracy, the lines between which rights are inalienable and which rights might be taken away are blurred. One important message from Tungendhat that stuck with me was his enforcement of the idea that we must create rules and stick to them, otherwise “rule of law” becomes “rule of force”. He stressed that when laws protecting the public are not enforced, ordinary citizens lose the ability to feel safe, which in turn leads to an inevitable rise in violence.
Whistleblowers can be and have been shown to be keystone players in making sure rules of law are enforced by having the courage to speak up when they are broken, and holding the wrongdoers accountable in the eyes of the law. This connects back to the ways whistleblowers can be and have been used time and time again to uphold our freedom of democracy and rule of law.
The U.S. and The U.K. Taking Action
One way the United States and the United Kingdom have helped put a stop to anti-money laundering corruption is by implementing the use of sanctions on the Russian government. In fact, just in the week leading up to this event, the U.S. and the U.K. placed sanctions on creators of ransomware conducting attacks against our medical systems. Overall, we have collectively sanctioned over 30 billion in Russian assets. We have further sanctioned over 1,200 individuals since Putin’s invasion of Ukraine, and over 120 oligarchs.
During the Q & A portion of his talk, Tugendhat was asked about the impact of sanctions and why it appears they take so long to become effective. He replied that while the current sanctions by the U.S. against Russia might not appear to be putting a stop to corruption from an outside perspective, they are actually doing a great job at limiting Putin’s ability to act abroad. In fact, Tugendhat expressed that these sanctions are not taking long to show effect and have already begun to help stop the finances that have been stolen from the Russian people to finance the war against Ukraine.
One of my takeaways from the event was a better personal understanding of the use and intent of sanctions in this context. That is, they were never enacted with the intent of collapsing the Russian state, but rather to prevent them from threatening their neighbors and saving them from the economic hardship many currently endure. This can be shown using the war in Ukraine as an example. The use of sanctions on Russian oligarchs has led to the freezing of some of their assets and has prevented them from being able to launder money on a global scale. With less access to capital, it makes it harder to fund their attacks on Ukraine and provides a more stable way of life for their neighboring countries as well. Russia is now less able to threaten their neighbors due to the inconvenience placed upon them by these sanctions, which has in turn aided many nations in rebuilding, and not having economic hardship or dependency on Russia.
Moving Forward
As discussed in the Minister’s speech, the United Kingdom and their Allies have seen increases in threats to their national security, making the need for these policies more important now than ever. Moving forward, I’ve learned that there are future dangers to be on the lookout for. Some particularly emphasized by The U.K. minister were the challenges of complacency, anti-democratic regimes, and defending freedom of expression. This matters in the context of the work being done at the National Whistleblower Center because our work centers on uplifting whistleblowers to be the voice that challenges complacency, corruption, and all forces that challenge what follows the “rule of law.”
What I learned while attending this event by listening to what the U.K. minister had to say about their anti-money laundering efforts, connected to what I’ve learned so far as an intern at NWC, because it all relates back to our ability to hold people accountable for their actions to fight for what’s right. That is why transparency, imposing sanctions, and whistleblower protections are all essential to this fight for anti-corruption. I’ve learned that without accountability and people like whistleblowers helping to hold wrongdoers accountable, whether it be Russian oligarchs or big corporations, the fight for anti-corruption cannot be won–and it is exactly this accountability and transparency that we advocate for at the National Whistleblower Center.
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NWC is committed to celebrating and empowering whistleblowers who are the key to combating domestic and transnational corruption and holding wrongdoers accountable — regardless of where they may be. As a 501(c)(3) non-profit, our awareness-building work and global advocacy is made possible by the support of our generous donors. Please consider donating $50 today to help us continue to educate the public about whistleblower experiences and the role whistleblowers play in increasing transparency and putting an end to fraud, money laundering, and misconduct.
This story was researched and drafted by NWC Intern, Taylor Prieto, a Senior majoring in Global Health and minoring in Environmental Studies and Law and Society at University of California, San Diego.
