Kleptocracy is a form of government where corrupt leaders use their political power to expropriate the wealth of the people and land they govern, typically by embezzling or misappropriating government funds at the expense of the population. In a kleptocracy, corrupt politicians enrich themselves secretly outside the rule of law, through kickbacks, bribes, and special favors from lobbyists and corporations, or they simply direct state funds to themselves and their associates. Kleptocrats often export much of their profits to foreign nations in anticipation of losing power. Kleptocracies are generally associated with dictatorships, oligarchies, military juntas, or other forms of autocratic and nepotist governments in which external oversight is impossible or does not exist. They can also be found in liberal democracies with crony capitalism. Kleptocrats engage in money laundering to obscure the corrupt origins of their wealth and safeguard it from domestic threats such as economic instability. Kleptocracy is most common in developing countries and collapsing nations whose economies are reliant on the trade of natural resources.

Kleptocracy is different from plutocracy (rule by the richest) and oligarchy (rule by a small elite) . The structure of kleptocracies is often compared to that of organized crime groups, where money is passed up the chain from junior ministers to ministers, then to the head of state and his family. Kleptocracy is a system based on virtually unlimited grand corruption coupled with near-total impunity for those authorized to loot by the head of state. The international aspect of kleptocracy is geared toward two principal objectives: the laundering of money and the laundering of reputations. Kleptocrats cultivate extensive networks of transnational actors and institutions to assist in camouflaging their financial flows and polishing their reputations. Although some of these relationships and activities remain hidden, a hallmark of contemporary kleptocracy lies in its public face and visibility.