Well first, corruption and scams could be considered somewhat similar, but they exist on two completely different planes. This issue has nothing at all to do with regulations or their efficacy against scams in my opinion -- corruption aims to outright circumvent regulations through abuse of power after all.
Second, do media sources ever claim that regulation eliminates anything? We have laws against corruption and against fraud, but does anyone really ever believe, for one second, that they eliminate them? I would have to go with no, but, they help. This particular case would be a non-issue if there were no regulations against money laundering (or corruption) in place, for one.
Third, I feel like the first article you shared is too one-sided:
If there's an open investigation, I don't think that counts as turning a blind eye.