How effectively is the world combatting bribery of foreign public officials? This is a question that Transparency International’s Exporting Corruption 2022 report (“the report”) seeks to answer. The report assesses enforcement of the OECD Anti-Bribery Convention by 47 of the leading export countries in the period 2018-2021. This article explores the key findings and recommendations of the report.
What is the OECD anti-bribery convention?
The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (“OECD Anti-Bribery Convention”) came into effect in early 1999. Parties to the Convention have committed to combatting bribes by their nationals (individuals and companies) to foreign public officials. The main objectives are to limit unfair competition in international business transactions, and support development. Each Party to the Convention has made foreign bribery a criminal offence in their country.
How are countries performing?
The report assesses that most countries still fall far short of their obligations to combat foreign bribery. While the COVID-19 pandemic presented challenges in the investigation and prosecution of bribery offences, a downward trend in enforcement has been observed even prior to the pandemic.
Inadequacies in global legal frameworks span a wide range of issues from inadequate whistleblower protection to a lack of resources for enforcement authorities and the judiciary.
The report presents a number of key findings, as well as recommendations for countries to better combat foreign bribery.
Key findings
Key findings of the report include:
- Enforcement continues to decline significantly. Only two of the 47 countries (United States and Switzerland) are now in the category of “active enforcement”. Australia is in the category of “moderate enforcement” together with Germany, France, United Kingdom, Norway, Israel and Latvia. 18 countries including Canada, New Zealand and Netherlands are in the category of “limited enforcement”, while 20 countries including China, Singapore and Mexico are in the category of “little or no enforcement”.
- There are cases of bribery and related money laundering by individuals, companies, company employees, agents and facilitators from almost every country assessed in the report.
- Nearly every country has serious inadequacies in legal frameworks that hamper enforcement. These include problems related to whistleblower protection, the level of sanctions, a lack of training and resources, the underfunding of key enforcement agencies, and poor inter-agency coordination.
- Most countries fail to publish adequate enforcement information.
- In the countries that do enforce against foreign bribery, compensation is seldom made to the states, populations, groups, companies or individuals harmed by the bribery.
- International cooperation is increasing but still faces significant obstacles. Problems include insufficient or incompatible legal frameworks, limited resources and know-how, a lack of coordination, and long delays.
Recommendations
Recommendations for the countries surveyed in the report to improve enforcement against foreign bribery include:
- Address weaknesses in laws and enforcement systems, giving higher priority to enforcement against foreign bribery as well as related money laundering offences.
- Publicly criticise ongoing non-compliance.
- Ensure transparent and thorough enforcement information. This is essential for accountability, awareness-raising, public debate and policy-making.
- Ensure that victims of foreign bribery are compensated.
- Provide greater transparency and accountability in the use of non-trial resolutions.
- Support stronger national systems for cross-border cooperation and explore the expansion of international structures.
Key takeaways
Transparency International’s Exporting Corruption 2022 report assesses that most countries are not doing enough to combat foreign bribery. Trends of inadequate and declining enforcement have been observed across most of the 47 countries included in the report. Countries need to address weaknesses in their legal frameworks to ensure that foreign bribery and related money laundering offences are adequately enforced.
