Executive Director, Transparency International UK Corruption Risk AMLP June 6th 2013 Robert Barrington Executive Director, Transparency International UK

Agenda Understanding bribery and corruption TI risk assessment guide Issues and challenges

Is corruption still a problem? Corruption Perceptions Index 2012

Corruption Perceptions Index

Global Corruption Barometer [Transparency International 2010] Where are bribes paid? Global Corruption Barometer [Transparency International 2010]

How well are companies doing? 6

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 7 7

TRAC report 8

TRAC report – Financial Services 9

TRAC report – Financial Services 10

TI survey Putting Corruption out of Business 3,000 business people 30 countries Data collected May-July 2011, published 2013 11

TI survey Putting Corruption out of Business Do you feel the following means are effective at stopping corruption and bribery in the private sector? (percentage of respondents who see the means as effective) National anti-bribery laws Total 38% UK 39% USA 29% Singapore 66% Investigative journalism Total 49% UK 41% USA 31% Pakistan 73% 12

TI survey Putting Corruption out of Business Do you feel the following measures your company can take are effective in addressing corruption? (percentage of respondents who see the measure as effective) Auditing Total 65% UK 70% USA 69% Japan 85% Company anti-corruption procedures Total 56% UK 54% USA 45% Nigeria/Brazil 79% 13

TI survey Putting Corruption out of Business My company has an ethical duty to fight corruption Yes Total 79% UK 81% USA 78% Brazil 98% No Total 21% UK 19% USA 22% Russia 55% 14

Risk Assessment Foundation of a good anti-corruption programme What does a good risk assessment look like? Using and moving beyond the CPI TI publication Diagnosing Bribery Risk in July 2013 45 pages including Checklist Templates Worked example Written in collaboration with PwC

Challenge: how to capture global trends Legal framework and enforcement Rise of civil society – India, China, MENA Social media – open data Corporate transparency – Dodd-Frank, EU Directive Tax – secrecy jurisdictions Government action – G8, G20, OGP, UNCAC 16 16 16 16

Issues and challenges Conducted at too high a level? Capturing the real risks? Has risk assessment become too complex? Does it link with existing procedures? Is it easily replicable?

Conclusions Risk assessment is fundamental but… …it may not be working for the business 18

Diagnosing Bribery Risk Launch at PwC Fraud Academy July 10 2013 19 19

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