Ending Impunity: Building Cultures of Integrity

[Statements made in a former capacity.]

"When communities take action to end impunity, they can encircle a path of honest, just, and accountable governance, promote democratic transparency for financing development and prosperity, and nurture "cultures of integrity" for more sustainable futures." David M. Luna, Speaker, 16th International Anti-Corruption Conference (16 IACC), Putrajaya, Malaysia, 2-4 September 2015.

"Governments plagued by cronyism, leaders who rewrite constitutions to extend term limits, fragile democracies in thrall to special interests: this all creates a climate where corruption flourishes and impunity protects the powerful. We see it too often around the globe in countries both rich and poor; in countries blessed with natural resources and others plagued by recession. It takes courage and collective action to ensure those with power who commit crimes are brought to justice. It requires an end to impunity. If the powerful are allowed to escape justice we risk the dissolution of society and the collapse of rule of law. We risk losing the fight against corruption. We need a culture of integrity in all sectors of society to achieve sustained, positive change. We need people with integrity taking action together." Themes from 16th IACC.

At meetings these past three weeks in Southeast Asia in APEC and at 16 IACC, working with partners across economies, markets, sectors, and communities, we discussed numerous ways to strengthen international cooperation to end impunity and build "cultures of integrity" globally. 

At the 16 IACC, I participated in an IACC Session entitled, "Rolling Back the Red Carpet: No Safe Haven to the Corrupt" and in which I outlined the U.S. "No Safe Haven" policies and our Anti-Kleptocracy Strategies:

Combating Kleptocracy Globally

A global movement has started over the last 20 years to fight corruption. We have seen people come together -- government officials, citizen activists, watchdog organizations, investigative journalists, and partners in the private sector -- because they recognize that anti-corruption efforts are good for strengthening the rule of law, engendering faith in financial markets, advancing effective and fair public administration, promoting business and economic development, protecting human rights, supporting political stability, safeguarding global security, and restoring the public trust.

According to data and estimates by the World Bank, the United Nations, and the World Economic Forum, the cost of corruption is at least a staggering five percent (5%)of the world's economy, or approximately US$2.6 trillion, with over $1 trillion paid in bribes each year. IMF research has shown that investment in corrupt countries is lower that in countries that are relatively corruption-free. The WEF also estimates that corruption increases the cost of doing business by up to 10 percent (10%). The significant impact of corruption on income inequality and the negative effect of corruption on income growth for the poorest 20 percent (20%) of a country have been proven empirically (Gupta et al, 2002). Some research have also estimated that 20 to 40 percent (20-40%) of official development assistance is stolen through high-level corruption from public budgets in developing countries and hidden overseas.

Corruption is simply robbing the future of economies and communities that aspire to a better future.

Instead of building sustainable futures with new roads, homes, schools, hospitals or providing for better healthcare, improving air quality or access to water, corrupt actors and criminal facilitators are financing their own greed.

Denying Safe Haven to Corrupt Officials

The United States has been in the forefront of increasing international attention to large-scale corruption by high-level public officials (i.e., "kleptocracy") and highlighting the need for international cooperation in this area.

The U.S. has led by example, developing tools that help target kleptocrats including via Presidential Proclamation 7750 and National Security strategies to internationalize efforts against kleptocracy. These efforts have further elevated the global discussion on the fight against corruption by bringing focused attention to high-level, large-scale corruption by public officials and introduced new methodologies to target the proceeds of grand corruption through international cooperation to deny safe haven and recover stolen assets.

The United States is supporting multilateral and regional fora on strengthening international cooperation to combat kleptocracies, deny safe haven to corrupt officials, and to trace, freeze, and return stolen assets including through the G7, G20, APEC, United Nations, and other diplomatic initiatives. The United States is working with G20 partners to end impunity and deny safe haven to individuals suspected of corrupt behavior and/or associates who are considered to similarly have derived benefit; and to deny them access in G20 markets to spend their ill-gotten gains and enjoy the fruits of such corruption. 

In APEC, Economic Leaders in November 2014 reaffirmed their commitment to denying safe haven to those engaged in corruption, including through extradition, mutual legal assistance, and the recovery and return of proceeds of corruption. (APEC Beijing Declaration on Fighting Corruption). The U.S. has also promoted the adoption, ratification, and implementation of the United Nations Convention Against Corruption (UNCAC), which provides a comprehensive framework for fighting corruption and on asset recovery and the return of stolen assets. Consistent with FATF and other standards, the U.S. is working across international fora to increase the transparency of ownership of companies and other legal vehicles (beneficial ownership).

Under PP7750, and in light of the importance of legitimate and transparency public institutions to world stability, peace, and development, and the serious negative effects that corruption of public institutions has on the United States efforts to promote security and to strengthen democratic institutions and free market systems, and in light of the importance to the United States and the international community of fighting corruption, the U.S. can deny entry into the United States certain persons who have committed, participated in, or are beneficiaries of corruption in the performance of public functions where that corruption has serious adverse effects on international activity of U.S. businesses, U.S. foreign assistance goals, the security of the United States against transnational crime and terrorism, or the stability of democratic institutions and nations.

Protecting Anti-Corruption Advocates and Investigative Journalists

Today, too many Investigative Journalists are facing threats globally, many who are harassed and intimidated, violently abused, imprisoned or murdered for their courage to expose abuses of power, corruption, and betrayals of the public trust. We must ensure that civil society and journalists are protected from prosecution or other retaliations or vexatious actions which result from their work speaking out against or publishing stories about all forms of corruption but especially high-level corruption involving senior government officials. The United States continually promotes press freedom as well as freedom of expression, which is enshrined in the Universal Declaration of Human Rights.

Ending Impunity: Statement by the Friends of the IACC– “We Hear the Call” (Released at the 16 IACC, Putrajaya, Malaysia, September 4, 2015):

The Friends of the IACC, composed of like-minded governments committed to combating corruption, welcome the work of the IACC and recognize the important role played by civil society. With participants from every region of the world convening to share experiences and debate ideas, the IACC is an important element of the growing movement to address corruption globally. As key stakeholders in this movement, the Friends of the IACC reaffirm their continued commitment to pursuing the following actions in an effort to end the scourge of corruption.

1. Commitment to Battling Impunity: Ending impunity is an integral part of combating corruption worldwide. Corrupt leaders not only illegally and unjustly enrich themselves, but also erode the public’s trust in the institutions and laws meant to protect citizen interests. Ending impunity requires governments, civil society and the private sector to work together. For their part, governments need to commit to both actions and principles that promote integrity and ensure that those guilty of engaging in corrupt practices are brought to justice.
2. Denial of Entry to the corrupt and their proceeds: Ensuring corrupt officials are unable to spend their ill-gotten gains abroad is integral to ending impunity. The Friends of the IACC reaffirm their commitment to developing or maintaining legal frameworks and authority to deny entry to those who engage in corrupt behavior, subject to commitments under international law as well as national laws and procedures.
3. Transparency: Consistent with FATF and other standards, we will redouble our efforts to increase the transparency of ownership of companies and other legal vehicles (beneficial ownership).
4. Immunity: Corrupt officials often rely on immunities provided under their country’s legal framework in order to escape prosecution for corruption. Addressing the issue of immunities is an important step to ending impunity. The Friends of the IACC therefore pledge to eliminate or minimize the scope of immunities granted to government officials within their home country, in order to ensure that immunities do not create undue obstacles to legitimate prosecution for corruption practices.
5. Asset Recovery: The Friends of the IACC reaffirm their commitment to recovery and return of confiscated proceeds of corruption in a transparent and accountable manner ensuring that assets are disposed of to the direct benefit of the citizens of the state harmed by corruption, consistent with the requirements of the United Nations Convention against Corruption (UNCAC) Chapter V. It also includes working with civil society on initiatives aimed at investigating, confiscating, and when possible, returning ill-gotten gains. These commitments are consistent with the Addis Ababa Action Agenda of the 3rd International Conference on Financing for Development, which has identified asset recovery as a crucial element towards the financing of the 2030 sustainable development agenda, and encourages the international community to develop good practices on asset return.
6. Bribery: The Friends of the IACC reaffirm their commitments made under the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and/or UNCAC, to adopt laws to criminalize foreign bribery and effectively enforce them.
7. Civil Society: We will continue to underscore the importance of the role of civil society and journalists in combating corruption, in our own countries and abroad. We will seek to ensure they are protected from prosecution or other retaliation which results from their work speaking out against or publishing stories about corruption. Additionally, we will seek to enhance civil society’s role in the implementation of UNCAC and in its mechanisms.

The Friends of the IACC is composed of the governments of:

Germany, Norway, The Republic of Korea, Switzerland, The United Kingdom, The United States of America

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Finally, as I noted in my keynote remarks at the APEC Pathfinder II Dialogue on Fighting Corruption and Illicit Trade, Cebu, Philippines, August 26, 2015: "By strengthening international cooperation across borders, sectors, and industries through a spirit of active engagement and partnership of sustainable security, [the United States] and APEC partners are committed to nurture “cultures of integrity” across our economies, markets, and supply chains.... I am hopeful that when economies and communities unite and act together, we can inspire change to shape a better world for our children today and their sustainable futures tomorrow, nurture inclusive economies, a greener, healthier planet, safeguard our human capital, and help bring our humanity and planet back into balance."

David M. Luna is a globally-recognized strategic leader. A disruptive innovator for social good, he is a visionary, thought leader, and a leading voice internationally on the full spectrum application of convergence strategies and net-centric approaches across today's global threat landscapes and markets. Mr. Luna, CEO & President, Luna Global Networks & Convergence Strategies LLC, is the Chair (Departing) of the OECD Task Force on Countering Illicit Trade. He is the former Senior Director for National Security and Diplomacy, Anti-Crime Programs, Bureau of International Narcotics and Law Enforcement (INL) Affairs, U.S. Department of State. He actively partners with inter-governmental, international organizations, and civil society groups on combating transnational threats and security risks. Follow Luna Global Networks & Convergence Strategies LLC at: https://lunaglobalnetworks.com/ .

Luna Global Networks & Convergence Strategies LLC shares a commitment to social responsibility and ethical governance approaches across diverse communities that have a positive, lasting impact in the world by doing business with the highest level of integrity, promoting sustainable development strategies that benefit our global community, protect our people and planet, and for all future generations. 

[Photos: U.S. Supreme Court Federal Building, Washington, DC; 16th IACC; APEC 2015]