World Bank: How corruption and tax evasion distort development

In a study conducted between November 2010 and February 2011 on ill-gotten money and the economy, the Financial Integrity team looked at the experiences of Malawi and Namibia. We approached the project with an open mind and without any assumptions, finding that for Malawi, corruption and tax evasion as a percentage of GDP represent a significant drag on economic development.

OECD: Tax revenues stabilise in OECD countries in 2010

OECD countries acknowledge that taxes must play a role in the process of fiscal consolidation as they battle unprecedented budget deficits. New OECD data in the annual Revenue Statistics publication show that the majority of OECD governments have stabilised their tax to GDP, with the average ratio moving up slightly from 33.8% in 2009 to 33.9% (1) in 2010. That’s still down from 34.6% in 2008 and well below the most recent high point of 2007 when tax to GDP ratios averaged 35.2%.

OECD: Proceeds from bribery can – and must- be accurately calculated in order to impose appropriate penalties, finds a joint OECD/StAR Study

Law enforcement must be able to impose appropriate penalties when companies bribe officials to win contracts or gain undue advantages. But calculating and confiscating the proceeds of this crime is difficult. To help governments meet this challenge, the OECD and the World Bank/UNODC Stolen Asset Recovery Initiative (StAR) released today a new study on the Identification and Quantification of the Proceeds of Bribery.

“Countries’ ability to seize and confiscate the gains from bribery is integral to the international fight against bribery and corruption, ” said Mark Pieth, Chair of the OECD Working Group on Bribery, made up of representatives from the Parties to the Anti-Bribery Convention. “It’s a requirement of all countries that join the OECD Anti-Bribery Convention and the UN Convention against Corruption.”

OECD: Tax Transparency 2011 Report on Progress

In 2006 the Global Forum published a review of the legal and administrative frameworks in the areas of transparency and exchange of information for tax purposes covering 82 jurisdictions, entitled Tax Co-operation: Towards a Level Playing Field – 2006 Assessment by the Global Forum on Taxation. This publication was followed by four annual assessments, with the 2010 publication covering 93 jurisdictions.

Following the restructuring of the Global Forum, a program of indepth peer reviews was launched in 2010. This 2011 Report on Progress publication describes the progress made since the Global Forum launched its peer review mechanism in 2010.

UNCAC: Transparency and Public Participation in UNCAC Implementation and Monitoring are Key to Success

Corruption thrives on secrecy, when undisturbed by public access to information about government and business activities. Countering it requires public participation and transparency in anti-corruption efforts and in governance.

This is recognised in the UN Convention against Corruption in Article 13 on civil society participation and access to information and in other UNCAC provisions. Additionally, Article 19 and other provisions of the UN Covenant on Civil and Political Rights, provide for a right to freedom of expression and to access to information held by public bodies and calls on states of their own accord to put information of public interest into the public domain and to establish procedures to enable easy, prompt, effective and practical access to information.

UNCAC: Coalition Statement on Promoting Asset Recovery and Countering Laundering of Corruptly Taken Assets

The time has come to act. Beyond shedding light on the devastating impact of grand corruption, the Arab spring has revealed major anti-money laundering deficiencies, and the huge difficulties of getting the money back even after the dictator has been pushed from power.\

Corrupt money transferred out of developing and transitional economies is conservatively estimated at US$20 to US$40 billion per year. Hundreds of billions in much needed funds for development have already been taken over the last few decades. While recovery of stolen funds could greatly contribute to development in those countries, prevention of such outflows through greater financial transparency and anti-money laundering efforts would reduce the harm done by corruption in the first place. By ratifying the United Nations Convention against Corruption (UNCAC), States Parties have made commitments on both of these issues.

UNODC: Illicit money: how much is out there?

Criminals, especially drug traffickers, may have laundered around $1.6 trillion, or 2.7 per cent of global GDP, in 2009, according to a new report by UNODC. This figure is consistent with the 2 to 5 per cent range previously established by the International Monetary Fund to estimate the scale of money-laundering.

Less than 1 per cent of global illicit financial flows is currently being seized and frozen, according to the report Estimating illicit financial flows resulting from drug trafficking and other transnational organized crime. “Tracking the flows of illicit funds generated by drug trafficking and organized crime and analysing how they are laundered through the world’s financial systems remain daunting tasks,” acknowledged Yury Fedotov, Executive Director of UNODC.

Corrupt Money Concealed in Shell Companies and Other Opaque Legal Entities, Finds New StAR Study

Most large-scale corruption cases involve using legal entities to conceal ownership and control of corrupt proceeds, and policymakers should take steps to improve transparency to reduce opportunities for wrongdoing, according to a study released today by the Stolen Asset Recovery (StAR) Initiative of the World Bank and the United Nations Office on Drugs and Crime.

The report, The Puppet Masters: How the Corrupt Use Legal Structures to Hide Stolen Assets and What to Do About It, examines how bribes, embezzled state assets and other criminal proceeds are being hidden via legal structures – shell companies, foundations, trusts and others. The study also provides policy makers with practical recommendations on how to step up ongoing international efforts to uncover flows of criminal funds and prevent criminals from misusing shell companies and other legal entities.

OECD: Corruption: Kazakhstan should strengthen legislation and integrity of state institutions

Kazakhstan should complete the reform of its criminal legislation in order to comply with international standards and strengthen integrity in the public administration, according to a new report by the Istanbul Anti-Corruption Action Plan (IAP). The report commends Kazakh leaders for declaring that the fight against corruption is a top priority and for ratifying the UN Convention [...]

OECD: Corruption: Armenia should step up implementation of anti-corruption policies and laws

Armenia should step up its fight against corruption by ensuring an effective enforcement of laws and giving institutions the resources they need to tackle it, according to a new report by the Istanbul Anti-Corruption Action Plan (IAP). Armenia’s leaders have recently taken steps to improve their country’s anti-corruption policies, legislation and institutions. However citizens and business still consider [...]

Korea making notable progress on fighting foreign bribery; further improvements needed, says OECD

Korea has improved its information and intelligence gathering capacity in foreign bribery cases, but should be more proactive in investigating allegations, according to a new OECD report.

The OECD acknowledges progress made, and says Mexico should further prioritise fighting foreign bribery

Mexico has improved, but needs to give greater priority to the criminal enforcement of bribery and ensure that its criminal law enforcement authorities have all the resources and expertise they need to seriously investigate all allegations, according to a new OECD report.