United Nations Convention against Corruption United Nations Office on Drugs and Crime Division for Treaty Affairs

March 2005 Negotiations Process Adoption of United Nations Convention against Transnational Organized Crime -Creation of the Ad Hoc Committee for the Negotiations of a new Convention against corruption (A /RES/55/61) 7 sessions of the Ad Hoc Committee held in Vienna with over 120 States participants Adoption of the United Nations Convention against Corruption (A/RES/58/4) High-level Political Signing Conference in Merida, Mexico Terms of Reference – Intergovernmental Open-ended Expert Group Meeting

Division for Treaty Affairs March 2005 Corruption – A Global Threat Cost of corruption exceeds by far the damage caused by any other single crime World Bank – More than 1 trillion US$ is paid in bribes a year Asian Development Bank – Cost of corruption = up to 17% of GDP The harm exceeds the proceeds – US$ 1 bribes = US$ 1.7 damage

Division for Treaty Affairs March 2005 Cases of Grand Corruption More Than the Foreign Debt Mobuto, Zaire US $ 5 billon More than double the DGP 3-4 times the Foreign Debt Nigerian kleptocrats US $ 100 billion 87% of the Annual Government Budget Duvaliers, Haiti US $ 500 million

Division for Treaty Affairs March 2005 Growing Responses 8 th Crime Congress GA Res.51/191 UN Declaration TOCC Negotiation GA Res.58/4 Adoption of CAC Merida Conference GA Res.55/61 Establishment of Ad Hoc Committee GA Res.55/181 Asset Recovery Ad Hoc Committee (1 st –7 th Sessions) 1996 OAS Convention 1997 EU Convention 1997 OECD Convention 1999 CoE Conventions 2003 AU Convention

Division for Treaty Affairs March 2005 Aims and Structure of Convention Preventive Measures International Cooperation Asset Recovery Technical Assistance Information Exchange Implementation Criminalization Law Enforcement 3. Integrity, Accountability and Proper Management of Public Affairs and Property 1. Prevent and Combat Corruption More Efficiently and Effectively 2. International Cooperation & Technical Assistance including Asset Recovery

Division for Treaty Affairs March 2005 Use of Terms (Art.2) No Definition of Corruption Broad and Comprehensive Definition of Public Officials 1.Any Person Holding a Legislative, Executive, Administrative or Judicial Office 2.Any Person Performing a Public Function or Providing a Public Service 3.Any Other Person So Defined in the Domestic Law of State Party

Division for Treaty Affairs March 2005 PREVENTIVE MEASURES Art.5-14

Division for Treaty Affairs March 2005 Art.6 Ensure the Existence of Anti-Corruption Bodies Anti-Corruption Policies and Bodies Requirements Implement Effective and Coordinated Anti-Corruption Policies Art.5

Division for Treaty Affairs March 2005 Preventive Measures(Art. 5-14) Transparency Integrity Accountability Codes of Conduct (Art.8) Public and Private Sectors Civil Society (Art.9) Integrity of Judiciary and Prosecution Service (Art.11) Prevention of Money-Laundering (Art. 14)

Division for Treaty Affairs March 2005 Comprehensive Preventive Measures in Private Sector Preventive Measures in Private Sector Enhanced Accounting and Auditing Standards Prohibition of Off-the- Book Account and other Acts No Tax Deductibility of Expenses Constituting Bribes Effective, Proportionate and Dissuasive Civil, Administrative or Criminal Penalties

Division for Treaty Affairs March 2005 Other Preventive Measures Participation of Society Ensure Active Participation of Civil Society (Art.13 (1)) Provide Public Access to Anti- Corruption Bodies (Art.13 (2)) Encourage Citizens to Report on Offences (Art.39) Prevention of Money-Laundering Establish Comprehensive Regulatory and Supervisory Regime Ensure Internal and International Cooperation (Art.14)

Division for Treaty Affairs March 2005 CRIMINALIZATION Art.15-25

Division for Treaty Affairs March 2005 Mandatory and Other Criminal Offences 5 Mandatory Offences Bribery of National Public Officials (Art.15) Active Bribery of Foreign Public Officials (Art.16) Embezzlement, Misappropriation and Other Diversion of Property (Art.17) Money Laundering (Art.23) Obstruction of Justice (Art.25) 6 Other Criminal Offences Passive Bribery of Foreign Public Official (Art.16) Trading in Influence (Art.18) Abuse of Function (Art.19) Illicit Enrichment (Art.20) Bribery in Public Sector (Art.21) Embezzlement in Public Sector (Art.22)

Division for Treaty Affairs March 2005 INTERNATIONAL COOPERATION Art

Division for Treaty Affairs March 2005 International Cooperation Mandatory Offences Optional Offences Narrow Dual Criminality Requirements In MLAs Question of Dual Criminality

Division for Treaty Affairs March 2005 ASSET RECOVERY Art.51-59

Division for Treaty Affairs March 2005 Asset Recovery – Major Breakthrough Measures to Prevent and Detect Transfer of Proceeds (Art.52) Return of Assets as Fundamental Principle (Art.51) Measures for Direct Recovery of Property (Art.53) Measures for Recovery of Property through International Cooperation (Art ) Measures for Return and Disposal of Assets (Art.57)

Division for Treaty Affairs March 2005 Return of Assets (Art.57) Other Cases Proceeds of Other Offences Covered by UNCAC Embezzled Public Funds from the State Return Depending on How Closely the Assets were Linked to the Requesting State Party Return to the State Return to the State if it Establishes Ownership or Damage Recognized by the Requested State Party as a Basis for Return May be Returned to the Requesting State Party, a Prior Legitimate Owner or Used for Compensating Victims

Division for Treaty Affairs March 2005 Other Mechanisms Prevention and Detection (Art.52) Prevent Illicit Transfers Generate Records for Eventual Trace and Confiscation Direct Recovery (Art.53) Provide Direct Recovery in Civil or Other Proceedings Comprehensive Framework for International Cooperation (Art.54-55) Incorporate More General MLAs Requirements, Mutatis Mutandis

Division for Treaty Affairs March 2005 Direct Recovery of Property (Art.53) Courts shall be allowed to Courts shall be allowed to Recognize, in confiscation decisions, another party’s claim as legitimate owner of property Courts shall be allowed to Courts shall be allowed to Order corruption offenders to pay compensation to another state party States parties shall be allowed to States parties shall be allowed to Initiate civil action in another party’s courts to establish ownership of property acquired through corruption

Division for Treaty Affairs March 2005 TECHNICAL ASSISTANCE AND INFORMATION EXCHANGE Art.60-62

Division for Treaty Affairs March 2005 Technical Assistance & Information Exchange (Art.60-62) Criminal Justice And Institution-Building Technical Assistance and Exchange of Information Training Programmes Studies, Research and Evaluation Assistance to Developing Countries and Countries in Transition Voluntary Contributions UN Funding Mechanism Percentage of Proceeds of Crime

Division for Treaty Affairs March 2005 IMPLEMENTATION Art.63-64

Division for Treaty Affairs March 2005 Mechanisms for Implementation (Art.63-64) COSP to Address Criminalization of Passive Bribery of Officials of International Organizations Well before COSP 1 8 th Ad Hoc Committee To Prepare Draft Rules of Procedure Within 1 Year from Entry into Force COSP 1 Promote, Facilitate and Review Implementation Make recommendation Facilitate Information Exchange Entry into Force

Division for Treaty Affairs March 2005 ROAD AHEAD AND UNODC ACTIVITIES

Division for Treaty Affairs March 2005 Road Ahead Promotion of Ratification Entry into Force Conference of States Parties Effective Implementation Full Compliance Universal Ratification

Division for Treaty Affairs March 2005 Status of Convention High-level Political Signing Conference At Merida, 9-11 December 2003 Open for Signature at UNHQ in NY until 9 Dec. 2005

Division for Treaty Affairs March 2005 Signatures and Ratifications Signatories in Africa 37 Algeria Benin Egypt Kenya Madagascar Mauritius Namibia Nigeria Sierra Leone South Africa Uganda Signatories in Asia 25 Signatories in Eastern Europe 15 Signatories in Western Europe & Others 22 Signatories in Latin America 20 El Salvador Mexico Peru Jordan Sri Lanka Romania Belarus No Ratifications

Division for Treaty Affairs March 2005 Palermo and Merida Conventions

Division for Treaty Affairs March 2005 Palermo and Merida Conventions Entry into Force of Palermo Entry into Force of Merida

Division for Treaty Affairs March 2005 For further information: Crime Conventions Section Division for Treaty Affairs United Nations Office on Drugs and Crime P.O.Box 500 Vienna A-1400 Austria Tel: Fax: e_convention_corruption.html

Division for Treaty Affairs March 2005 Thank you for your kind attention