The 9th International Anti-Corruption Conference
Summary Report, Day 2, Workshop 7
Introduction- This was the first time that an IACC conference has addressed the linkage between corruption and money laundering and it is quite clear that this is a very important linkage. Indeed several keynote speakers surfaced the importance of closing off the channels for the movement of corrupt monies resulting from bribes and embezzlement of the public monies.
Money is the most common method of corrupting public officials, but large illegal payments presents problems for both the giver and taker of bribes. Experience has demonstrated in the areas of drug trafficking and other crimes for profit that the criminal's success is largely dependent on his ability to conceal the source of the illicit proceeds and get them into legitimate financial institutions. Most countries have moved to criminalize the process of "cleaning" dirty money by making money laundering itself a crime and establishing numerous preventive measures that help deter access by criminals to financial services.
Corrupt officials often have to move their illegally obtained funds to other jurisdictions in order to avoid detection. Offshore financial centers, which provide a range of valuable tax and asset protection services for legitimate businesses and individuals, are vulnerable to the laundering of funds from corrupt public officials. International banks and particularly their private banking departments are also potentially vulnerable.
Workshop #7 discussed a range of issues surrounding this topic and general consensus appeared to suggest seven areas deserving special attention: