corruption prevention and the oecd anti-bribery instruments · working group on bribery ......

Corruption Prevention

and the

OECD Anti-Bribery Instruments

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William Loo

Anti-Corruption Division

Directorate for Financial and Enterprise Affairs

OECD

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Overview

OECD Anti-Bribery Instruments

Monitoring implementation

Specific examples

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OECD Anti-Bribery Instruments

OECD Anti-Bribery Convention (in force since 1999)

Revised Recommendation of the OECD Council on Combating Bribery in International Business Transactions (adopted in 1997)

Focus of OECD Anti-Bribery

Instruments

Bribery of foreign public officials

Giving of bribes (supply side)

International business transactions

Prevent companies in OECD from bribing an official of a government in Asia-Pacific

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OECD Anti-Bribery Convention

Preamble recognises:

“The role of governments in the prevention of solicitation of bribes from individuals and enterprises in international business transactions”

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1997 Revised Recommendation

I. RECOMMENDS that Member countries take effective measures to deter, prevent and combat the bribery of foreign public officials in connection with international business transactions.

1997 Revised Recommendation

V. RECOMMENDS that Member countries take the steps necessary so that laws, rules and practices with respect to accountingrequirements, external audit and internal company controls are in line with the following principles and are fully used in order to prevent and detect bribery of foreign public officials in international business.

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Monitoring Implementation of

OECD Anti-Bribery Instruments

Peer review

Working Group on Bribery

Covers both Convention and 1997 Revised Recommendation

Phase 2 (2001) specifically addresses prevention

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Corruption Prevention in

Phase 2 Monitoring

General public

Business sector (companies and business organisations)

Relevant professionals: lawyers, accountants, auditors

Government: tax, AML, export credit9

Example: Foreign Bribery

Information and Awareness Pack

Attorney-General’s Department Australia

8 Fact Sheets (offence, reporting, suspicious transactions)

Brochure, poster & PowerPoint

www.ag.gov.au/agd/WWW/ncphome.nsf/AllDocs/85137C0EBEA67923CA25731B0083B25F?OpenDocument

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Example: METI Guidelines to

Prevent Foreign Bribery

Ministry of Economy, Trade and Industry of Japan

Design of internal control programme

Programme implementation

www.meti.go.jp/english/information/downloadfiles/briberye2.pdf

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Example: Business Anti-Corruption

Portal

Denmark, Germany, Netherlands, Norway, Sweden, UK

Targets business, especially SMEs

Anti-corruption policies, due diligence tools

Over 50 country profiles (15 in Asia-Pacific)

www.business-anti-corruption.com 12

Example: OECD Bribery Awareness

Handbook for Tax Examiners

Indicators of fraud or bribery

Investigative techniques (who to interview; questionnaire)

Tax examiners and professionals

Translated into local language www.oecd.org/document/39/0,3343,en_2649_34551_37111335_1_1_1_1

,00.html

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Example: Opinion Procedure

Pre-assessment of transaction

U.S. Department of Justice (Foreign Corrupt Practices Act)

Korea Ministry of Justice (Foreign Bribery Prevention Act)

Gray areas

Process initiated by companies

Defence at trial14

Future Directions

Small and medium sized enterprises

Insufficient resources to develop compliance programmes

Difficult for government to reach

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Future Directions (2)

Corporate compliance programmes

Actual implementation, not paper programmes

Definitions and benchmark

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