Abstract
Unexplained Wealth Orders, introduced in the United Kingdom in 2017, were designed to tackle the problem of transnational kleptocracy. However, our research on real estate purchases in the UK by elites from post-Soviet kleptocracies demonstrates that incumbent elites are invulnerable to attempts to question the legality of their wealth while exiles from these states often lose their property. From our original dataset of properties, we take a single exemplary case: one of incumbents Dariga Nazarbayeva and Nurali Aliyev, the daughter and grandson of Kazakhstan’s first president, Nursultan Nazarbayev who were subject to one of the few UWOs issued and thereby had their properties frozen. In a close analysis of the legal documents from this case, this paper analyses how the properties were purchased and how the sources of wealth were subsequently explained as legitimate. We elaborate an exemplary case of transnational kleptocracy revealing how British legal services actively, passively, and structurally enable specific acts of money laundering. We further expose how they effectively explain kleptocratic wealth and why they are likely to continue to do so despite recent changes to laws and regulations.
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Notes
Correspondence between the National Crime Agency and Prof. John Heathershaw, 28 January 2022.
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Acknowledgements
This article is an output from a project funded by UK Aid from the UK Government for the benefit of developing countries. The views expressed are not necessarily those of the UK government’s official policies. Further research funding to support the completion of the paper came from the Economic and Social Research Council and the British Academy. Many thanks to Tena Prelec, David Lewis, Ricardo Soares de Oliveira, Alex Cooley, Casey Michel, Peter Sproat, Leila Nazgül Seiitbek, Anton Moisienko, Anita Clifford, Jonathan Fisher QC, Ben Keith, Stephen Fitzjohn, Kris Lasslett, and the anonymous peer reviewers.
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Heathershaw, J., Mayne, T. Explaining suspicious wealth: legal enablers, transnational kleptocracy, and the failure of the UK’s Unexplained Wealth Orders. J Int Relat Dev 26, 301–323 (2023). https://doi.org/10.1057/s41268-023-00296-0
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DOI: https://doi.org/10.1057/s41268-023-00296-0