The U.S. Department of Justice (DoJ) has launched an investigation into former Mongolian Prime Minister Batbold Sukhbaatar for alleged corruption, targeting his ownership of two luxury apartments in New York City.
These apartments, valued at $14 million, are suspected to have been purchased with funds obtained through corrupt practices, including embezzlement and money laundering. The DoJ’s move comes as part of a broader crackdown on corruption and illicit financial activities involving high-ranking officials.
Batbold, who served as prime minister from 2009 to 2012 during Elbegdorj Tsakhia’s presidency, has been implicated in previous corruption scandals, including the Panama Papers and Pandora Papers leaks. These leaks revealed alleged illegal kickbacks received by Batbold from mining deals, leading to lawsuits in multiple countries.
The current investigation focuses on Batbold’s alleged involvement in awarding lucrative mining contracts to shell companies controlled by his associates. These contracts, worth millions of dollars, were then used to siphon funds into foreign bank accounts and purchase the New York City apartments for Batbold’s family, including his son.
The case highlights the challenges Mongolia faces in tackling corruption, particularly in its mining sector, which plays a crucial role in the country’s economy. Despite the controversy surrounding him, Batbold was re-elected as a member of Mongolia’s Parliament in 2020, underscoring the need for stronger accountability and transparency measures in the country’s political system.
The DoJ’s actions also signal a broader international effort to combat corruption and illicit financial flows, emphasizing the importance of cooperation between countries to hold accountable those who engage in corrupt practices.
Kleptocracy Initiative of FBI
The Kleptocracy Asset Recovery Initiative is a program spearheaded by a team of specialized prosecutors within the Criminal Division’s Money Laundering and Asset Recovery Section. This initiative works closely with federal law enforcement agencies and U.S. Attorney’s Offices to recover assets obtained through foreign official corruption. The primary goal of this initiative is to forfeit these ill-gotten gains and, when possible, utilize the recovered assets to benefit those who have been harmed by these acts of corruption and abuse of office.
In 2015, recognizing the growing importance of addressing international corruption, the FBI established International Corruption Squads across the United States. These squads are dedicated to investigating and combating cases with national and international implications related to foreign corruption. By focusing on these cases, the FBI aims to hold accountable individuals and entities engaged in corrupt activities that cross international borders, ultimately working to uphold the rule of law and protect against corruption’s harmful impacts.
