Northwestern Hosts John Heathershaw and Tena Prelec for Discussion on “Indulging Kleptocracy”

The Equality Development and Globalization Studies (EDGS) program at Northwestern University’s Buffett Institute for Global Affairs recently hosted a compelling discussion featuring John Heathershaw of the University of Exeter and co-author Tena Prelec of the University of Rijeka on their latest book, Indulging Kleptocracy: British Service Providers, Postcommunist Elites, and the Enabling of Corruption. The talk, based on their groundbreaking research, delved into the role of British service providers in enabling global corruption, particularly through the lens of transnational kleptocracy.

Heathershaw and Prelec’s research sheds light on how professional enablers—such as lawyers, bankers, and real estate agents—facilitate illicit financial flows from postcommunist elites into Western financial systems. Their analysis, drawing from extensive case studies, emphasizes that kleptocracy is not merely a foreign problem but an issue deeply intertwined with Western institutions.

A major focus of the talk was the concept of “Londongrad,” a term referring to the UK’s reputation as a hub for illicit wealth from post-Soviet states and beyond. The authors outlined how loopholes in Anti-Money Laundering (AML) regulations and a lack of political will have allowed kleptocratic networks to thrive. Their findings indicate that rather than actively combating corruption, many Western institutions have instead indulged and facilitated these practices.

“Kleptocracy isn’t just about corrupt leaders in distant lands; it is a system of transnational relationships in which professional enablers play a critical role,” Heathershaw explained. Prelec added that these networks extend far beyond the UK, implicating global financial centers and democratic institutions that have failed to implement robust oversight mechanisms.

The book explores several key mechanisms that sustain kleptocracy. These include the Alliance Effect, which emphasizes the role of international relations in legitimizing kleptocratic wealth; the Incumbency Advantage, which benefits current political elites by securing their assets abroad; and the Enabler Effect, which highlights how transnational professional networks contribute to sustaining these illicit financial systems.

Case studies discussed during the talk ranged from the hidden wealth of Gulnara Karimova, the daughter of Uzbekistan’s former president, to the legal battles surrounding the vast property holdings of Kazakhstani elites in London. The speakers also touched upon broader global ramifications, linking kleptocracy to political instability and democratic backsliding. They drew striking comparisons between money-driven influence in global capitals and events such as the January 6 insurrection in Washington, D.C., and protests in Kazakhstan, arguing that unchecked kleptocracy can contribute to political crises.

The event at Northwestern sparked a dynamic Q&A session, where students and faculty engaged with the authors on potential policy solutions. Heathershaw and Prelec emphasized the need for stronger AML enforcement, independent regulatory oversight, and greater transparency in professional services. They also called for academic institutions to critically assess their involvement in these financial networks, pointing to research that shows only a handful of top-tier universities have independent committees for reviewing large donations. Their discussion at Northwestern reinforced the urgent need for international cooperation in addressing the systemic enablers of kleptocracy and holding accountable those who profit from illicit wealth.