| David M. Luna On Strategies To Fight        KleptocracyFriday, 28 September 2007,        11:52 amPress Release: US State Department
 | 
David M.  Luna
Director for Anti-Crime Programs Division, INL
Washington,  DC
September 26, 2007  Strategies To Fight Kleptocracy
 The United States seeks to engage and cooperate with committed partners in  the global fight against corruption. The strategies outlined in the following  article provide an overview of U.S. Government and international efforts to  combat corruption, in particular high-level corruption (kleptocracy),  international cooperation on the recovery the proceeds of crime, preventive  areas to check the misuse of power and public funds, and innovative  public-private partnerships to mobilize attention and target corruption at all  levels of society. 
 The Adverse Impact of Corruption to the Global Community  
 The United States Government places a high priority on combating global  corruption and views it as a threat to development and prosperity of all  nations. Corruption jeopardizes the integrity of world markets, the stability of  political systems, and the security of the international community. It impedes  efforts to promote freedom and democracy, stymies economic growth and foreign  investment, and saps energies from innovation, competitiveness, and  entrepreneurial and technological advancement strategies. 
 It also facilitates transnational crime and terrorism, and casts shadows of  lawlessness that erode public trust and the rule of law. 
 Corruption robs nations of their future and people of their dreams by  misappropriating public investment away from development areas that need it  most, such as public sector modernization, infrastructure and social development  including quality access to water, sanitation, education, healthcare, and  housing. 
 Earlier this month, the World Bank and United Nations in a press release  estimated that the cross-border flow of global illicit proceeds related to  corruption, criminal activities, and tax evasion is between $1 trillion and $1.6  trillion per year. This is an enormous loss of economic potential and social  development investment. 
 High-level corruption by senior officials, or kleptocracy, is a grave and  corrosive abuse of power and represents the most invidious type of public  corruption. 
 As President George W. Bush underscored in his address to the United Nations  General Assembly in September 2007, the U.S. and other nations are transforming  the way we fight poverty, curb corruption, and provide aid. The United States is  committed to developing strong partnerships, based on shared values that  underpin good governance principles, which will encourage honest, responsible  government and reward those that govern justly, invest in their people, and  foster economic openness and freedom. 
 Corruption is not just an American problem nor a European or an Asian one. It  is not a problem that is unique to any one region or country. It is a global  challenge. 
 Political Will: U.S. Efforts to Prevent and Combat Domestic  Corruption 
 No one is above the law: The U.S. takes the issue of fighting corruption  seriously as demonstrated by the strong actions of our law enforcement community  over the past several years to prosecute public corruption scandals in the  United States. 
 Over the five-year period from 2001 to 2005, the most recent period for which  we have data, the Justice Department charged over 5,749 individuals with public  corruption offenses nationwide and obtained an 85% conviction rate. 
 In addition to prosecution, the United States also devotes substantial  resources to the prevention and detection of corruption. By focusing attention  and resources on programs promoting transparency and accountability, we can make  it more difficult for corrupt practices to occur and easier to detect. 
 Particularly important aspects of prevention include publicly available  personal financial reporting by senior federal officials including all elected  officials, all judges and all senior political and career appointees. The  requirements include substantial financial and fiduciary information for the  official and financial information for the official's spouse and dependent  children. 
 Even prior to government service, an individual who is being considered for  appointment by the President to a position in the executive branch is asked to  file a financial report as a part of an initial screening process. The report is  reviewed for purposes of conflicts of interest by the U.S. Office of Government  Ethics and the agency in which the individual would serve. 
 If the review detects potential conflicts, the individual is asked to enter  into a written agreement outlining the steps he or she must take to avoid these  conflicts. Those steps may include selling certain assets, resigning from  outside positions, agreeing to recuse or, possibly entering into a blind trust.  
 Complementing these prevention programs are significant enforceable  procedural systems promoting consistency and transparency: These include general  requirements for standardized and public administrative processes and licenses;  public legislative processes that follow standardized rules; public judicial  proceedings that follow standardized procedures; public budgeting processes and  internal financial controls; a large merit-based civil service; and rights for  public access to information regarding most government activities. In addition,  the activities of the federal government are conducted under the watchful eye of  an active and free press. 
 Similar to the critical role of civil society watchdogs, a free media can be  an important tool against corruption by shining the light on criminality and  abuses of power. 
 U.S. Efforts to Internationalize Efforts Against Kleptocracy  
 In addition to preventing, investigating, and prosecuting corruption at home,  we are working to stem corruption around the world. Promoting good governance  and fighting corruption are important foreign policy priorities for Secretary of  State Condoleezza Rice. 
 As noted earlier, the United States, through the Group of Eight (G8) and  other multilateral fora, is committed to working with dedicated partners to  strengthen the political will and resolve to establish transparent and  accountable governance, empower citizens to demand efficient use of state  resources and the fair use of regulatory and judicial powers, prosecute  high-level public corruption, deny safe haven to corrupt officials, those who  corrupt them, and their illicitly-acquired assets, and ensure responsible  repatriation and use of the ill-gotten funds. 
 In August 2006, President Bush unveiled the U.S. National Strategy to  Internationalize Efforts Against Kleptocracy. 
 This strategy further elevated the global discussion on the fight against  corruption by putting kleptocrats on notice, focusing attention to high-level,  large-scale corruption by public officials, increasing the public-private  partnership dialogue on accountability on both the demand and supply side of the  issue, and ushering new areas for targeting the proceeds of grand corruption  through international cooperation to deny safe haven and asset recovery. 
 In order to implement its strategic objectives to combat kleptocracy, the  United States is: 
 * launching a coalition of committed partners to trace and recover the  proceeds of grand corruption; 
 * vigorously prosecuting foreign corruption offenses and forfeit illicitly  acquired assets; 
 * denying physical safe haven to corrupt individuals; 
 * strengthening multilateral action against the bribery of kleptocrats; 
 * facilitating the effective disposition and administration of recovered  assets for the benefit of the citizens of countries victimized by grand  corruption; and 
 * targeting enhanced capacity to fight high-level corruption
 Another key tool in our strategies to deny safe havens to kleptocrats is  Presidential Proclamation 7750, issued on January 12, 2004, that allows the  United States to deny or revoke visas to individuals involved in public  corruption that has serious adverse effects on specific U.S. interests,  including: (1) the international economic activity of U.S. businesses, (2) U.S.  foreign assistance goals, (3) the security of the United States against  transnational crime and terrorism, or (4) the stability of democratic nations  and institutions. 
 The United States is engaged internationally to protect the financial system  from abuse by those who would launder the proceeds of foreign official  corruption and to identify, trace, freeze, recover, and repatriate such  illicitly acquired assets. 
 We continue to take and promote measures to press our international partners  to deny entry to corrupt foreign officials; increase transparency in budgeting,  concession-letting, and procurement; improve governance and accountability;  investigate and prosecute their nationals and companies that bribe or promise to  bribe foreign public and political party officials; and strengthen anti-bribery  and accountability disciplines on export credits and official development  assistance.
 For example, we are also aggressively investigating those U.S. companies and  individuals engaged in bribing and otherwise corrupting foreign government  officials. The Foreign Corrupt Practices Act (FCPA) makes it a serious federal  crime to bribe foreign government officials for the purpose of obtaining or  retaining business. Enforcing the FCPA is a major priority for the United  States. 
 The OECD Anti-Bribery Convention and the OECD Working Group on Bribery  provide important avenues for the United States to cooperate with counterparts  outside the US to combat bribery in international business transactions. 
 Combating money laundering and the web of corruption related to it is also a  top priority as is the corruption-crime nexus. 
 Today we also find ourselves in a rapidly changing world - we face numerous  threats that undermine our common stability and security. In effectively  combating corruption, we must also confront related illicit activities such as  financial crimes. Kleptocrats, criminals and other illicit actors launder the  fruits of their crimes through a variety of ways. 
 Similarly, weak financial measures and lack of transparency demonstrated by  certain kleptocratic regimes may provide an opportunity for terrorists to use  vulnerable points in the global financial system to move funds to finance their  terrorist activities. 
 The United States is committed to work with other international partners to  identify, interdict, block, and cut off the financial pipelines to all corrupt  individuals, criminal organizations, and illicit networks through the Financial  Action Task Force (FATF) and other diplomatic and enforcement avenues.
 Similarly, we support the global initiative launched on September 17, 2007,  by the World Bank and the United Nations Office of Drugs and Crime (UNODC) to  help developing countries recover assets stolen by corrupt leaders, ensure that  looted assets are returned to the rightful owners, help communities to invest  them in effective development programs, and to combat safe havens  internationally.
 International Cooperation: Strengthening the Implementation of the UN  Convention Against Corruption 
 The UN Convention Against Corruption (UNCAC) also offers a good tool and  opportunity to strengthen international cooperation. The Convention is the most  ambitious international anti-corruption effort to date. 
 It includes fundamental principles that are crucial in the fight against  corruption. Those principles include requiring or recommending criminalization  of certain corrupt behavior, and requiring international cooperation on  anti-corruption efforts. It also calls for governance improvements that will  help prevent corrupt acts from occurring. 
 Additionally, the Convention establishes the first ever comprehensive  framework for recovery of illicit assets sent or taken abroad by corrupt  officials. Many countries saw the problem of corrupt officials acquiring assets  illicitly and hiding those assets in foreign safe havens as the core problem  that the Convention should address. 
 Implementation is now underway following a successful first meeting of the  Conference of States Parties in the Dead Sea, Jordan in December 2006. 
 Heading to the second Conference of States Parties to be held in Bali,  Indonesia in January 2008, the U.S. looks forward to working with the States  Parties in the context of the three working groups created by the Conference:  technical assistance, asset recovery and review mechanism working groups. 
 We believe that each one of these groups is capable of developing a  practical, concrete plan for moving the Convention forward that balances the  need to respect the sovereignty of States Parties with the need to make the  Convention a meaningful and relevant instrument. 
 U.S. Foreign Assistance and Anticorruption Capacity Building  
 The U.S. helps other governments to prevent corruption and increase  transparency, improve good governance, combat money laundering, and prosecute  transnational crime by providing technical assistance and training, and  strengthening criminal justice systems and capacities of law enforcement  agencies. Such assistance helps to enhance the ability of foreign governments to  enhance public administration and to address their own crime challenges before  these threats extend across international borders. 
 The United States Agency for International Development (USAID) includes  anticorruption efforts a central part of its foreign assistance strategy and  takes a broad approach to assisting partner countries to strengthen their  systems to resist corruption. USAID's anticorruption programs are designed to  help reduce opportunities and incentives for corruption; support stronger and  more independent judiciaries, legislatures, and oversight bodies; and promote  independent media, civil society, and public education. 
 The State Department's Bureau for International Narcotics and Law Enforcement  (INL) Affairs helps support capacity-building and training for police,  investigators, prosecutors, judges, ethics offices, auditors, inspectors  general, and other oversight, regulatory and law enforcement systems at the  national and local levels of government. INL's International Law Enforcement  Academies (ILEAs) around the world also help to provide targeted training on  various anticrime areas. 
 INL also helps to support the U.S. Department of Justice's Office of Overseas  Prosecutorial Development, Assistance and Training which provides assistance to  strengthen criminal justice institutions in other nations and enhancing the  administration of justice abroad and the International Criminal Investigative  Training Assistance Program (ICITAP) which provides assistance to police forces  in developing countries through the world to strengthen police investigative  capacities. 
 The Millennium Challenge Corporation (MCC) is providing a powerful incentive  for governments to adopt tough anticorruption policies and strengthen their  anticorruption institutions. In implementing the Millennium Challenge Account  (MCA), the MCC works to lift people around the world out of poverty through  economic growth and incentives for governance reform. 
 MCC offers grant assistance to developing countries that are willing to  implement tough anticorruption reforms. As a result, countries are taking it  upon themselves to pass stronger anticorruption laws, strengthen oversight  institutions, open up the public policy-making process to greater public  scrutiny, and step up corruption-related investigations and prosecutions. 
 Conclusion 
 In closing, the United States will continue to increase international  cooperation to identify and prevent access by kleptocrats to financial systems;  to deny safe haven to corrupt officials; to identify, recover and return  proceeds of corruption; and to provide anticorruption assistance for capacity  and training to strengthen critical law enforcement and rule of law systems.  
 We also look forward to continuing our partnership with those who are  committed to prosecuting the battle against corruption including the  implementation of the UN Convention Against Corruption. 
 We believe that a strong anticorruption regime is also vital to U.S.  strategic partnerships that focus on cooperation on numerous fields including  commerce, trade and investment, high-technology, and democracy promotion. 
 Finally, fighting corruption is an ongoing and deliberate process. Working  together through synergies and partnerships, including with international  donors, we can create a better future by continuing a united effort against  corruption and building communities throughout the world where all individuals  can be governed with the highest levels of integrity. 
 Through a renewed commitment to anticorruption and integrity, people can  transform their communities, build enduring foundations for future generations  to expose and punish corruption, and leave a legacy for their children anchored  on the values of honest governance, openness, just conduct, free media, and the  rule of law. 
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