Reconciling Business Growth with Corruption & Transparency December 13th 2013
Robert Barrington Director of External Affairs, Transparency International UK
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Reconciling Business Growth with Corruption & Transparency
• Corruption and money laundering • Global corruption trends • The response of the sector • An insight into best practice
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Corruption - not just bribery • Money laundering • Other corrupt behaviours? • • • • •
Lobbying? Political financing? Facilitating abusive tax avoidance? Mis-selling? Exceeding society’s licence to operate?
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Global trends • Legal framework and enforcement • Organised crime • State capture • Social media • Corporate transparency • Money laundering • China 4
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Business perceptions of enforcement Nearly two thirds (68%) of those surveyed in E&Y’s 2011 European Fraud Survey thought that prosecutors were either unwilling to pursue bribery and corruption convictions or ineffective at doing so.
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How serious is the problem? Corruption Perceptions Index 2012
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Corruption Perceptions Index
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Corruption Perceptions Index
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How extensive is bribe-paying? Global Corruption Barometer
[Transparency International 2010]
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How well are companies doing?
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TRAC report • Survey of 105 companies globally • Publicly-available data • Scored in 3 categories • anti-corruption systems • organisational transparency • country-by-country reporting
• Maximum 23 points
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TRAC report
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TRAC report – Financial Services
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TRAC report – Financial Services
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Poor practice - excuses
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What is best practice?
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Reflections • Is corruption-free business possible? • Can adequate procedures always mitigate the risk? • What about facilitation payments? • Is the AML framework doomed to failure?
• Three key aspects • Governance • Risk assessment • Regular review
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www.transparency.org www.transparency.org.uk
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