Former US President Donald Trump has disbanded the Department of Justice's (DOJ) Kleptocracy Asset Recovery Initiative, a team specializing in tracing and recovering multibillion-dollar loot from corrupt foreign leaders. The initiative, launched in 2010, was instrumental in cases like the 1MDB scandal and the recovery of funds traced to Nigerian ex-head of state, Gen Sani Abacha.

The decision, quietly made under Attorney General Pam Bondi's directive, has sparked concerns over weakened global anti-corruption efforts and the enforcement of financial crime laws. A memo obtained by Reuters states that resources will be redirected toward fighting drug cartels and international gangs. According to Bondi, "This policy requires a fundamental change in mindset and approach."

The Kleptocracy Asset Recovery Initiative was instrumental in investigating multi-billion-dollar fraud in Africa, targeting Russian oligarchs linked to President Vladimir Putin, and prosecuting figures like Oleg Deripaska and Konstantin Malofeyev for sanctions violations. The team also seized assets, including yachts. In 2022, the US forfeited $23 million in Abacha-linked assets, bringing total recoveries to $334.7 million, which were repatriated to Nigeria through an agreement signed in Abuja.

The initiative also played a key role in prosecuting corruption in Nigeria's oil sector, particularly the case involving ex-Petroleum Minister Diezani Alison-Madueke. From 2011 to 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore allegedly paid bribes to Alison-Madueke in exchange for lucrative oil contracts. Over $100 million in illicit proceeds were laundered through the US to acquire luxury assets, including real estate in California and New York and the Galactica Star superyacht. In 2024, the US agreed to transfer $52.88 million in forfeited assets to Nigeria.

According to Andrew Adams, the former task force leader, cases investigated by the team will likely continue. However, the changes will be effective for a minimum of 90 days, with the possibility of extension or permanent implementation. Prosecutors assigned to the task force will revert to their original positions. Adams expressed concerns that the disbandment could lead to a decline in the pace of charges targeting facilitators specific to Russia.

The DOJ's strength lay in prosecuting financial crimes involving the US financial system. Its disbandment raises concerns about emboldening corrupt leaders and facilitating illicit fund movements, which had faced heightened US scrutiny in recent years. The move has sparked widespread criticism, with many experts warning of the potential consequences of weakening global anti-corruption efforts.

The implications of this decision are far-reaching, and its impact will be felt across the globe. As the world grapples with the complexities of corruption and financial crime, the disbandment of the Kleptocracy Asset Recovery Initiative sends a worrying signal about the US's commitment to combating these issues.