State-Linked Infrastructure Corruption
Politically connected individuals and their associates extract bribes and kickbacks from construction and infrastructure contracts awarded by state or quasi-state entities. Proceeds flow through intermediary consultants, inflated invoices and nominee corporate structures before being layered into the financial system, often passing through private banking accounts and cross-border transfers before integration into apparently legitimate assets.
What it is
Politically connected individuals and their associates extract bribes and kickbacks from construction and infrastructure contracts awarded by state or quasi-state entities. Proceeds flow through intermediary consultants, inflated invoices and nominee corporate structures before being layered into the financial system, often passing through private banking accounts and cross-border transfers before integration into apparently legitimate assets.
Control objective
Detect bribery proceeds from construction and infrastructure contracts being channelled through nominees, inflated invoices and consultant intermediaries by state-connected individuals and their associates.
Data required
- PEP status and role of the customer and all beneficial owners and connected parties
- Identity of counterparties making payments and their relationship to state procurement
- Nature and documentation of any consultancy or construction services referenced in invoices
- Market benchmarks for the stated goods or services to assess pricing reasonableness
- Timing of payments relative to known public contract award announcements
- Source of wealth and source of funds documentation for significant inflows
- Destination of outgoing transfers and the receiving party's relationship to the customer
- Adverse media and corruption-risk screening results for all parties
Related typologies (Bribery & Corruption)
PEP & Grand Corruption Proceeds
Laundering the proceeds of grand corruption through or on behalf of politically exposed persons. Funds typically move through shell company layers, nominee arrangements, family members and close associates, and are placed into high-value assets such as real estate, luxury goods, and investment portfolios to obscure illicit origin.
Bribery & Facilitation Payments
Corporate bribery and facilitation payments disguised as legitimate business spend. Common forms include inflated or fictitious consultancy and intermediary fees, round-sum payments to agents in high-risk jurisdictions, and success fees that lack commercial substance and are used to channel improper payments to officials or counterparties.