Financial Transparency Coalition

An explosion of anti-corruption protests this month saw effigies burnt in India, hundreds protesting in Russia, and mass riots in China. As tensions rise, the focus of the anti-corruption debate has begun to shift. Instead of seeing corruption as hurtful because it destroys the environment, weakens governments, and harms the poor, some governments have begun to see corruption as hurtful because of its economic consequences. A recent Moscow Times article by Anders Aslund incorporates this shift in thinking. Claiming corruption is so pervasive that investments to increase productivity are virtually impossible, Aslund writes: “Russia cannot build public infrastructure because standard...

On Wednesday, the SEC announced a $16 million settlement in an FCPA case filed against Diageo, Inc. The company, which dominates the global liquor market, was accused of spending at least $2.7 million on bribes through its Asian subsidiaries, and omitting or mislabeling those funds in SEC filings. These bribes were given to government and military officials in South Korea, India, and Thailand in order to gain a variety of advantages, from tax breaks to more beneficial policies in transfer pricing negotiations. Bribes included trips to Europe, while one Thai bureaucrat received $12,000 a month for helping...

WASHINGTON, DC – After nearly a year of delays, the UK Bribery Act went into effect on July 1st. The act mandates stiff penalties, including up to 10 years in jail, for bribes paid by any business with a UK presence. In an ironic twist, while the UK Act is being touted as an extension to its cross-Atlantic counterpart, the U.S. Foreign Corrupt Practices Act (FCPA), anti-bribery proponents charge that the FCPA is under attack.

You go to a DMV to get a driver’s license. You submit an application and take an eye exam, you pay the relevant fees, take a written exam, and then an official grades your score. If you pass, you get to take a driving test and another official evaluates your performance. Upon successful completion of these steps, someone takes your picture and 5-8 business days later your license arrives in the mail. Well, that’s the way it is for some people. But if you were unlucky enough to be taking your driving test in a country where corruption runs rampant,...