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New York, Los Angeles, and Miami have joined London as the world’s most desired destinations for laundered money. This boom has enriched the American elites who have enabled it—and it has degraded the nation’s political and social mores in the process. While everyone else was heralding an emergent globalist world that would take on the best values of America, Palmer had glimpsed the dire risk of the opposite: that the values of the kleptocrats would become America’s own. This grim vision is now nearing fruition

in the days after the Twin Towers collapsed, George W. Bush’s administration furiously scoured Washington for ideas to jam into the 342-page piece of legislation that would become the patriot Act. A sense of national panic created a brief moment for bureaucrats to realize previously shelved plans. Title III of the patriot Act, the International Money Laundering Abatement and Anti-terrorist Financing Act, was signed into law little more than a month after September 11

If a bank came across suspicious money transferred from abroad, it was now required to report the transfer to the government. A bank could face criminal charges for failing to establish sufficient safeguards against the flow of corrupt cash. Little wonder that banks fought fiercely against the imposition of so many new rules, which required them to bulk up their compliance divisions—and, more to the point, subjected them to expensive penalties for laxity

nestled in the patriot Act lay the handiwork of another industry’s lobbyists. Every House district in the country has real estate, and lobbyists for that business had pleaded for relief from the patriot Act’s monitoring of dubious foreign transactions. They all but conjured up images of suburban moms staking for sale signs on lawns, ill-equipped to vet every buyer. And they persuaded Congress to grant the industry a temporary exemption from having to enforce the new law.The exemption was a gaping loophole—and an extraordinary growth opportunity for high-end real estate. For all the new fastidiousness of the financial system, foreigners could still buy penthouse apartments or mansions anonymously and with ease, by hiding behind shell companies set up in states such as Delaware and Nevada. Those states, along with a few others, had turned the registration of shell companies into a hugely lucrative racket—and it was stunningly simple to arrange such a Potemkin front on behalf of a dictator, a drug dealer, or an oligarch. According to Global Witness, a London-based anti-corruption NGO founded in 1993, procuring a library card requires more identification in many states than does creating an anonymous shell company.

Foreign Account Tax Compliance Act (fatca), legislation with moral clout that belies its stodgy name. Never again would a foreign bank be able to hold American cash without notifying the IRS—or without risking a walloping fine.

As the Treasury Department put it in 2017, nearly one in three high-end real-estate purchases that it monitors involves an individual whom the government has been tracking as “suspicious.” Yet somehow the presence of so many shady buyers has never especially troubled the real-estate industry or, for that matter, politicians. In 2013, New York City’s then-mayor, Michael Bloomberg, asked, “Wouldn’t it be great if we could get all the Russian billionaires to move here?”

the aluminum magnate Oleg Deripaska, a character who has made recurring cameos in the investigation of Russian interference in the 2016 presidential election. The State Department, concerned about Deripaska’s connections to Russian organized crime (which he has denied), has restricted his travel to the United States for years. Such fears have not stood in the way of his acquiring a $42.5 million mansion on Manhattan’s Upper East Side and another estate near Washington’s Embassy Row.

In 2016, Barack Obama’s administration tested a program to bring the real-estate industry in line with the banks, compelling brokers to report foreign buyers, too. The ongoing program, piloted in Miami and Manhattan, could have become the scaffolding for a truly robust enforcement regime. But then the American presidency turned over, and a landlord came to power. Obama’s successor liked selling condos to anonymous foreign buyers—and may have grown dependent on their cash

Around the time that Trump took up occupancy in the White House, the patriot Act’s “temporary” exemption for real estate entered its 15th year

Birkenfeld described how he had ensconced himself in the gilded heart of the American plutocracy, attending yacht regattas and patronizing art galleries. He would mingle with the wealthy and strike up conversation. “What I can do for you is zero,” he would say, and then pause before the punch line: “Actually, it’s three zeroes. Zero income tax, zero capital-gains tax, and zero inheritance tax.” Birkenfeld’s unsubtle approach succeeded wildly, as did his bank. As part of an agreement with the Justice Department, UBS admitted to hiding assets totaling some $20 billion in American money.

Nationwide, nearly half of homes worth at least $5 million, the Times found, were bought using shell companies. The proportion was even greater in Los Angeles and Manhattan

While the U.S. can ask almost any other nation’s banks for financial information about American citizens, it has no obligation to provide other countries with the same. “The United States had bullied the rest of the world into scrapping financial secrecy,” Bullough writes, “but hadn’t applied the same standards to itself.” A Zurich-based lawyer vividly spelled out the consequences to Bloomberg: “How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour … That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”

The behavior of the American elite changed too. Members of the professional classes competed to sell their services to kleptocrats

“They don’t send lawyers to jail, because we run the country … We’re still members of a privileged class in this country.”

Once upon a time, it might have been possible to think of Manafort as a grubby outlier in Washington—the lobbyist with the lowest standards, willing to take on the most egregious clients. But Mueller has exposed just how tightly tethered Manafort’s work on behalf of Ukrainian kleptocrats was to Washington’s permanent elite. Manafort subcontracted some of his lobbying to the firm of Tony Podesta, arguably the most powerful Democratic influence-peddler of his generation. And Manafort employed Mercury Public Affairs, where he dealt with Vin Weber, a former Republican congressman and a former chairman of the National Endowment for Democracy

The perils of corruption were an obsession of the Founders. In the summer of 1787, James Madison mentioned corruption in his notebook 54 times. To read the transcripts of the various constitutional conventions is to see just how much that generation worried about the moral quality of public behavior—and how much it wanted to create a system that defined corruption more expansively than the French or British systems had, and that fostered a political culture with higher ethical ambitions

The defining document of our era is the Supreme Court’s Citizens United decision in 2010. The ruling didn’t just legalize anonymous expenditures on political campaigns. It redefined our very idea of what constitutes corruption, limiting it to its most blatant forms: the bribe and the explicit quid pro quo. Justice Anthony Kennedy’s majority opinion crystallized an ever more prevalent ethos of indifference—the collective shrug in response to tax avoidance by the rich and by large corporations, the yawn that now greets the millions in dark money spent by invisible billionaires to influence elections.

American collusion with kleptocracy comes at a terrible cost for the rest of the world. All of the stolen money, all of those evaded tax dollars sunk into Central Park penthouses and Nevada shell companies, might otherwise fund health care and infrastructure. (A report from the anti-poverty group One has argued that 3.6 million deaths each year can be attributed to this sort of resource siphoning.) Thievery tramples the possibilities of workable markets and credible democracy. It fuels suspicions that the whole idea of liberal capitalism is a hypocritical sham: While the world is plundered, self-righteous Americans get rich off their complicity with the crooks.

The Founders were concerned that venality would become standard procedure, and it has. Long before suspicion mounted about the loyalties of Donald Trump, large swaths of the American elite—lawyers, lobbyists, real-estate brokers, politicians in state capitals who enabled the creation of shell companies—had already proved themselves to be reliable servants of a rapacious global plutocracy

by the time Vladimir Putin attempted to influence the shape of our country, it was already bending in the direction of his