UK government urged to clamp down on corruption by banks and companies

The Bond group, the UK membership body for international development organisations, has called on the British government to clamp down on UK companies and financial institutions which fuel corruption in the developing world.

Releasing a new report on 9th December – world anti-corruption day – the group said that, although the UK had a strong legal framework, failings in “enforcing bribery laws and tackling dirty money has devastating effects on developing countries, undermining good governance and exacerbating poverty”.

There has been progress, according to the Bond group, towards complying with the UN Convention Against Corruption, but there are still several areas of concern. Firstly, the guidance issued by the Ministry of Justice on the UK Bribery Act is unclear, which creates the potential for confusion and loopholes.

Secondly, the Serious Fraud Office, the UK's leading anti-corruption agency, lacks enough resources to fully deter companies from bribing foreign officials. Thirdly, many banks (75 per cent according to the Financial Services Authority) do not know the ultimate source of their funds for high-risk customers, meaning that they may be profiting from corrupt funds.

Fourthly, the UK government has failed to pressure its overseas territories and dependencies into releasing company registries, allowing them to continue operating as havens for corrupt or shady enterprises.

The report does not propose that the government should reinvent the wheel, simply that more resources should be devoted to enforcing the Bribery Act, and more effort spent on enforcing the existing anti-corruption laws.

The Bond group also calls on the government to set up “a transparent cross-government anti-corruption strategy”, which would be chaired by the UK Anti-Corruption Champion, Ken Clarke MP.

Sources: Bond Group, The Guardian