ABC (Anti Bribery &Corruption) is always an integral part of combating money laundering and terrorist financing. Berlin based non-governmental organization “transparency international” has published a report titled “exporting corruption” by assessing the enforcement against foreign bribery of 47 countries in 2019. Out of these 47 countries, 43 countries are the signatories of OECD (Organization for Economic co-operation and Development) anti-bribery convention.
The OECD convention was adopted in 1997 and its preamble states that “Bribery is a widespread phenomenon in international business transactions…which raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions”. The OECD convention prohibits bribes to acquire contracts and licenses, or to evade taxes and domestic laws.
The remaining 4 countries viz, China (world’s largest exporter), Singapore, Hong kong SAR and india are signatories of UNCAC (UN convention against corruption).The aforesaid countries have contributed almost 17% of global trade. The report categorizes countries into 4 enforcements. They are active, moderate, limited and little or no enforcement. U.K, U.S.A, Switzerland and Israel contributing 16.5% of global exports were the countries that actively enforced regulations against foreign bribery. The European nations Germany, Italy, Spain and France conducted moderate enforcements. Netherlands, Canada and Austria are some of the countries that conducted limited enforcement. China, India, korea and Japan fall under little or no enforcement category.
Seven countries that collectively contributed to 27% of global trade conducted active enforcements in 2018. Besides, France, Denmark, Colombia and Estonia are some of the countries which have improved its legislations compared with previous year reports while Germany (the third largest exporter), Italy and Norway are the few countries whose legislations/enforcements against foreign bribery got descended. Transparency international also reports that bribing the public officials across the globe is severe during the COVID-19 pandemic especially in health care sector.
Author: Rajashree, MBA, CAMI (PonSun AML Academy)