World Bank – GOPAC – APNAC – Forum, 20 September 2006, Arusha (Tanzania) International Framework to Fight Corruption: International Treaties and Standards; and Governance Framework against Corruption Presentation by Mr. Patrick Moulette, Head of the OECD Anti-Corruption Division

TOPICS TO BE COVERED Why Combat Bribery and Corruption Why Combat Bribery and Corruption A Growing International Response A Growing International Response OECD Anti-Bribery Instruments and Monitoring of their Implementation OECD Anti-Bribery Instruments and Monitoring of their Implementation OECD Integrity Framework OECD Integrity Framework Other International Instruments (United Nations, Council of Europe, etc.) Other International Instruments (United Nations, Council of Europe, etc.)

Why Combat Bribery and Corruption? Misallocates scarce public resources Misallocates scarce public resources Undermines development Undermines development Distorts competition Distorts competition Prevents democratic development Prevents democratic development

A Growing International Response 1996:Inter-American Convention Against 1996:Inter-American Convention Against Corruption (O.A.S.) 1997:OECD Anti-Bribery Convention 1997:OECD Anti-Bribery Convention 1997:European Union Convention on 1997:European Union Convention on Combating Corruption 1999:Council of Europe Criminal Law 1999:Council of Europe Criminal Law Convention on Corruption 2003:African Union Convention 2003:African Union Convention 2003:United Nations Convention Against 2003:United Nations Convention AgainstCorruption

OECD Anti-Bribery Instruments The 1997 Convention The 1997 Convention The 1996 Recommendation urging countries to disallow tax deductibility for bribes The 1996 Recommendation urging countries to disallow tax deductibility for bribes The OECD Council 1997 Revised Recommendation with detailed accounting and auditing proposals aimed at increasing transparency at the company level The OECD Council 1997 Revised Recommendation with detailed accounting and auditing proposals aimed at increasing transparency at the company level

THE OECD 1997 Convention Entered into force on 15 February 1999 Entered into force on 15 February Countries have ratified 36 Countries have ratified Specifically targets the supply side of foreign bribery Specifically targets the supply side of foreign bribery Systematic monitoring by OECD Working Group on Bribery Systematic monitoring by OECD Working Group on Bribery

OECD Convention Criminalises bribery of foreign public officials Criminalises bribery of foreign public officials Sets a definition of a foreign public official Sets a definition of a foreign public official Requires sanctions for natural and legal persons Requires sanctions for natural and legal persons Territorial/nationality jurisdiction Territorial/nationality jurisdiction Money laundering offence in relation to the bribe Money laundering offence in relation to the bribe Accounting and auditing standards Accounting and auditing standards Facilitates extradition and mutual legal assistance Facilitates extradition and mutual legal assistance

Systematic Monitoring All Parties must undergo monitoring All Parties must undergo monitoring Parties must implement recommendations Parties must implement recommendations Evaluations are made public Evaluations are made public

Monitoring Phases Phase 1 – assesses whether countries have correctly transposed the Convention in national law Phase 1 – assesses whether countries have correctly transposed the Convention in national law Phase 2 – evaluates whether countries are effectively applying their national laws in practice Phase 2 – evaluates whether countries are effectively applying their national laws in practice

Follow-Up Mechanism Oral report: One year after the adoption of the Phase 2 Report Oral report: One year after the adoption of the Phase 2 Report Written report: Two years after the adoption of the Phase 2 Report Written report: Two years after the adoption of the Phase 2 Report Policy for inadequate implementation of the Convention e.g., Phase 2 bis Review Policy for inadequate implementation of the Convention e.g., Phase 2 bis Review

OECD Integrity Framework Goal: Preventing corruption in the public service Goal: Preventing corruption in the public service Addressing risk areas for corruption, such as public-private interface, public procurement, lobbying or post-public employment Addressing risk areas for corruption, such as public-private interface, public procurement, lobbying or post-public employment OECD Recommendation and Guidelines on Managing Conflict of Interest in the Public Service OECD Recommendation and Guidelines on Managing Conflict of Interest in the Public Service

Other International Instruments Several international bodies have become involved, including the United Nations, the IMF, the World Bank, etc. Several international bodies have become involved, including the United Nations, the IMF, the World Bank, etc. Regional bodies such as the Council of Europe, the European Union, the MDBs, and the Organisation of American States (OAS) are also playing an important role Regional bodies such as the Council of Europe, the European Union, the MDBs, and the Organisation of American States (OAS) are also playing an important role The Council of Europe (GRECO) and the OAS have follow-up mechanisms in place The Council of Europe (GRECO) and the OAS have follow-up mechanisms in place

UN Convention Against Corruption Adopted in December 2003 in Mexico, entered into force on 14 December 2005, signed by 140 countries and ratified by 64 countries (as of 18 September 2006) Adopted in December 2003 in Mexico, entered into force on 14 December 2005, signed by 140 countries and ratified by 64 countries (as of 18 September 2006) The opportunity for a global response to the problem The opportunity for a global response to the problem 72 articles deal with preventive measures, criminalisation and law enforcement, international cooperation, asset recovery, technical assistance and information exchange 72 articles deal with preventive measures, criminalisation and law enforcement, international cooperation, asset recovery, technical assistance and information exchange

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