New Challenges for Anti-Corruption Measures and for the Protection of EU Financial Interests Alexei Croitoru, Laxenburg, 14 May 2014 OECD Working Group on Bribery: the Way Forward Laxenburg, 15 May 2014 Drago KOS OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997) 15th anniversary of its entering into force in February 2014; - - - 41 member States; Articles on: definition of the offence (including definitions of a »foreign public official«, »foreign country«, »act or refrain from acting in relation to the performance of official duties)” , liability of legal persons, sanctions (effective, proportionate, dissuasive + seizure and confiscation), jurisdiction (allowing double jeopardy), enforcement (shall not be influenced by considerations of national economic interest, the potential effect upon relations with another State or the identity of the natural or legal persons involved), statute of limitations, money laundering, accounting, mutual legal assistance, extradition, responsible authorities, monitoring and follow-up. Recommendation of the Council for Further Combating Bribery of Foreign Public Officials in International Business Transactions (2009) - Chapters on : general, criminalisation of bribery of fpo, tax deductibility, reporting foreign bribery, Accounting Requirements, External Audit, and Internal Controls, Ethics and Compliance, Public Advantages, including Public Procurement, Officially Supported Export Credits, International Cooperation, Follow-up and institutional arrangements, Co-operation with non Members, Relations with international governmental and non-governmental organisations + - Annex I: Good Practice Guidance on Implementing Specific Articles of the Convention on Combating Bribery of Foreign Public Officials in International Business Transaction - Annex II: Good practice guidance on internal controls, ethics, and compliance OECD Working Group on Bribery in International Business Transactions It was established in 1994, 41 members (generating 80% of the world export and 90% of outward FDI) + several observers (China, India, Indonesia, Malaysia, Thailand,...). It is responsible for monitoring of implementation and enforcement of the Convention, 2009 Recommendation + related instruments. Its peer-review monitoring system is conducted in three phases (the 4th will start in 2015) and is considered by Transparency International to be the „gold standard‟ of monitoring. Evaluation Phases Phase 1: Initial assessment of countries‟ national legislation to determine their conformity with the OECD Convention Phase 2: Assessment of the practical application and implementation of the Convention and related documents Post-Phase 2 assessment mechanism (December 2009, gives the general procedural framework for all future phases) Phase 3: Up-to-date assessment of the countries‟ structures to implement the Convention and 2009 Recommendation (WG cross-cutting issues, progress on identified weaknesses, enforcement efforts, changes in the nat‟l legislation) Future Activities of the WGB - to keep standards of the Convention alive, -to continue issuing targeted and focused recommendation - to continue cooperating with other governmental, non-governmental and business partners, continue building a trustworthy platform for global governance, ensure fair conditions in global trade for all (member and non-member) states of the world Future Challenges of the WGB - selection of topics for evaluation for the future phases, especially Phase IV - big players at the door (China, India, Indonesia, UAE,..), -equal treatment, -monitoring “fatigue”, -reluctance of some of the existing members to undergo serious monitoring, -different levels of activities of national delegations, - workload during the WG sessions,.. Enforcement, Enforcement, Enforcement Statistics as of December 2012: 221 individuals and 90 entities from 13 State Parties were sanctioned under criminal proceedings between 1999 and the end of 2012 At least 83 individuals were sentenced to prison At least 85 individuals and 120 entities in 5 State Parties were sanctioned in different proceedings for other offences related to foreign bribery (ML, accounting) Around 320 investigations in 24 State Parties were taking place at the end of 2012, the same as prosecutions against 184 individuals and 18 entities in 15 State Parties The largest single fine for foreign bribery was imposed against Our “Big Issues” - Responsibility of legal persons for foreign bribery - Transnational sharing of information - “Effective, dissuasive and proportionate” sanctions - Seizure and confiscation of bribes and proceeds of foreign bribery Our Final Goal To ensure a level playing field ! . THANK YOU ! QUESTIONS, COMMENTS, REMARKS ?