Money laundering is a serious impediment to the effectiveness of official development assistance in creating a more prosperous, just and democratic world. Someone looking to move illegally obtained money can far too easily hide his or her identity and disguise the origins of dubious funds by using a complex international web of shell companies and bank accounts to wire monies across the globe, investing them in a variety of assets, including high-end real estate. Often such figures are politically exposed persons (PEPs) – public officials, their family and associates – from a kleptocracy, a nation where state funds are embezzled by the ruling elite. The PEPs that are involved in these practices seek to bolster their reputations to provide cover for both their activities and the kleptocratic regimes they represent. They do this by contracting a powerful network of lawyers, bankers, company service providers and reputation managers who help protect their funds and improve their reputation internationally by, for example, getting unflattering coverage removed from the internet, and by making various charitable donations, activities that in effect clean dubious money and its owner’s reputation.
