Reconciling Business Growth with Corruption & Transparency December 13th 2013 Robert Barrington Director of External Affairs, Transparency International UK

Reconciling Business Growth with Corruption & Transparency Corruption and money laundering Global corruption trends The response of the sector An insight into best practice

Corruption - not just bribery Money laundering Other corrupt behaviours? Lobbying? Political financing? Facilitating abusive tax avoidance? Mis-selling? Exceeding society’s licence to operate?

Global trends Legal framework and enforcement Organised crime State capture Social media Corporate transparency Money laundering China 4 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. 7 7

How serious is the problem? Corruption Perceptions Index 2012

Corruption Perceptions Index

Corruption Perceptions Index

How extensive is bribe-paying? Global Corruption Barometer [Transparency International 2010]

How well are companies doing?

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

TRAC report

TRAC report – Financial Services

TRAC report – Financial Services

Poor practice - excuses 17

What is best practice?

Reflections Is corruption-free business possible? Three key aspects 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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