News 24 Jun. 2021
Curtis successfully defends foreign states' procedural privileges in the UK Supreme Court
News 23 Jun. 2021
Ibrahim Elsadig joins Curtis as Partner in Dubai
Client Alert 24 Feb. 2022
EU, UK, Japan and Australia Impose Sanctions on Russia
News 09 Aug. 2021
Curtis, Mallet-Prevost, Colt & Mosle enters into association with Chevalier Law in Singapore.
News 06 May. 2022
Curtis Advises Terna Group on the Sale of its Latin America Power Transmission Assets to CDPQ
Publications 05 May. 2022
Marie-Claire Argac, Simon Batifort, and Cyprien Mathié share highlights from “Affaires d’Etats: Practical Considerations When Defending States in International Arbitration” on Kluwer Arbitration Blog
Event 26 Apr. 2022
Claudia Frutos-Peterson Speaks at CAI Costa Rica’s 13th Congress of International Arbitration
News 21 Apr. 2022
SCOTUS Upholds U.S. Colonialism under the U.S. Constitution
Client Alert 23 Mar. 2022
The Dubai International Arbitration Centre (DIAC) has launched the DIAC Arbitration Rules 2022
Event 22 Nov. 2021
Partner Antonia Birt spoke at ADGMAC and AIAC Webinar Series: Webinar 5 - Disputes in Fintech and Complex Technology in MESEA
News 19 May. 2022
Eliot Lauer’s and Juan Perla’s Tenth Circuit Arguments Featured on Audio Arguendo Podcast
News 16 May. 2022
Curtis Files SCOTUS Amicus Brief for Ohio Justice & Policy Center in Prisoners’ Rights Case
Client Alert 21 Apr. 2022
New Laws Targeting Assets of Russian Oligarchs: The U.S. Announces Task Force KleptoCapture and the Kleptocracy Asset Recovery Rewards Program
Client Alert 19 Apr. 2022
U.S. President Biden Expands Export Controls Imposed on Russia and Belarus
Client Alert 24 Jun. 2021
Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
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On March 2, 2022, “Attorney General Merrick B. Garland announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.” The task force’s mission will include:
Task Force KleptoCapture will operate out of the Office of the Deputy Attorney General, but will also include agents and analysts from numerous law enforcement agencies.
On March 16, 2022, the Treasury Department announced the launch of the Kleptocracy Asset Recovery Rewards Program(“KARRA”). The program, created pursuant to the Kleptocracy Asset Recovery Rewards Act, authorizes the Secretary of the Treasury, “with the concurrence of the Secretary of State and the Attorney General,” to pay whistleblowers up to $5 million for information leading to the restraining, seizure, forfeiture, or repatriation of stolen funds “linked to foreign government corruption and the proceeds of that corruption” held at a financial institution in the United States (including the US branch of a foreign financial institution) or that come within the possession or control of any U.S. person. The law defines “foreign government corruption” to mean corruption under the United Nations Convention Against Corruption. Under KARRA the payments, in the aggregate, must amount to less than the total amount of stolen assets recovered through the program during the fiscal year, and not exceed $25 million in any calendar year.
These caps on recovery mean that a whistleblower’s reward can be limited to only a small share of the assets recovered. In that way, KARRA differs from other whistleblower programs, like the whistleblower programs offered by the IRS, the Anti-Money Laundering Act of 2020, the SEC, and the CFTC, where rewards are calculated as a proportional share of the recovered assets. Where large sums are recovered, those programs often offer higher rewards to whistleblowers than would KARRA. For example, the SEC has recently announced rewards of approximately $14 million and $13 million to individuals, and $40 million to two whistleblowers, with one individual receiving approximately $32 million. Similarly, on October 21, 2021, the CFTC announced a reward of approximately $200 million to an individual whistleblower under its program.
Moreover, unlike other programs, under KARRA, rewards may be reduced or refused where “the Secretary has a reasonable basis to believe” that the whistleblower “planned, initiated, directly participated in, or facilitated” the illegal conduct. However, just as in other programs, KARRA makes whistleblowers completely ineligible for rewards if they are convicted of criminal conduct arising from their planning, initiating, directly participating in, or facilitating the illegal conduct.
Finally, KARRA provides only generalized protections for whistleblowers authorizing the Secretary of the Treasury to “take such measures in connection with the payment of the reward as the Secretary considers necessary to effect . . . protection” of the whistleblower and his or her family. Other programs offer specific, particularized protections to whistleblowers.
In sum, KARRA presents a new tool for the recovery of stolen assets and an opportunity for putative whistleblowers who should be aware of KARRA’s parameters and those of other programs under existing law.
Jonathan J. Walsh
+1 212 696 6000
+41 22 718 3500
News 10 May. 2022
Juan Perla’s Argument in D.C. Circuit Featured on Audio Arguendo Podcast