The Justice Department announced Wednesday that it is moving on one of the actions against Russian oligarchs mentioned by President Joe Biden in the State of the Union address. “The U.S. Department of Justice is assembling a dedicated task force to go after the crimes of Russian oligarchs,” Biden said Tuesday night. “We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets. We are coming for your ill-begotten gains.”
The Justice Department is launching Task Force KleptoCapture, which, along with allies, will help enforce the sanctions the United States has imposed. The task force “will ensure the full effect of these actions, which have been designed to isolate Russia from global markets and impose serious costs for this unjustified act of war, by targeting the crimes of Russian officials, government-aligned elites, and those who aid or conceal their unlawful conduct,” the DOJ explained.
”The Justice Department will use all of its authorities to seize the assets of individuals and entities who violate these sanctions,” Attorney General Merrick Garland said in a statement. “We will leave no stone unturned in our efforts to investigate, arrest, and prosecute those whose criminal acts enable the Russian government to continue this unjust war. Let me be clear: if you violate our laws, we will hold you accountable.”
That includes “Investigating and prosecuting violations of new and future sanctions,” as well as previously existing sanctions; “Combating unlawful efforts to undermine restrictions taken against Russian financial institutions, including the prosecution of those who try to evade know-your-customer and anti-money laundering measures”; and using civil and criminal asset forfeiture to seize the assets—including the luxury apartments and the yachts (or at least the yachts that don’t make it to the Maldives in time)—of Russian oligarchs under sanction.
Importantly, the task force’s mission also includes enforcement against efforts to use cryptocurrency to evade sanctions or launder money.
The United States has already frozen Russian central bank assets held in the U.S. and imposed sanctions on the Russian Direct Investment Fund, which is run by a Putin ally and the Treasury Department described as Putin’s “slush fund.”
Task Force KleptoCapture will be staffed by experts from across the Justice Department and federal law enforcement, specializing in anti-corruption, anti-money laundering, asset forfeiture, tax enforcement, and more. Sanctions only work if they’re enforced. This investment in enforcement is a sign that the Biden administration means business.