PROJECT RESOURCES

Asset declaration regimes in selected Asian countries

Publisher: U4 Anti-Corruption Resource Centre
Published on: 2013
Description: In this resource we can find details about seven Asian countries (Afghanistan, Pakistan, Tajikistan, Kyrgyz Republic, India, Bangladesh and Nepal). It consists of seven sections: Coverage of asset declaration rules (it gives an overview on how the asset declaration isimplemented in each of the... In this resource we can find details about seven Asian countries (Afghanistan, Pakistan, Tajikistan, Kyrgyz Republic, India, Bangladesh and Nepal). It consists of seven sections:
  • Coverage of asset declaration rules (it gives an overview on how the asset declaration isimplemented in each of these countries)
  • What should be declared
  • Frequency of declaration
  • Monitoring and enforcment (includes the responsible agency and verification of asset declarations)
  • Sanctions for non-compliance
  • Public disclosure policy
  • Overview of implementation and challenges This resource is not that useful for our work, since the challenges faced by these countries are mostly overcome by CEE or SEE countries.
READ MORE
DOWNLOAD

Model Law on the Declaration of Interests, Income, Assets and Liabilities of Persons Performing Public Functions

Publisher: The Organization of American States
Published on: 2013
Description: This template provides a more detailed (than the other template in our resources folder) overview of how a Law on Declaration of Interests, Income, Assets and Liabilities of Persons Performing Public Functions should look like. It includes 9 chapters, and within each chapter a detailed look at th... This template provides a more detailed (than the other template in our resources folder) overview of how a Law on Declaration of Interests, Income, Assets and Liabilities of Persons Performing Public Functions should look like. It includes 9 chapters, and within each chapter a detailed look at the provisions that should be included in the law. READ MORE
DOWNLOAD

Income and Asset Disclosure – Case Study Illustrations

Publisher: The International Bank for Reconstruction and Development / The World Bank
Published on: 2013
Description: This study analyzes the situation in 11 countries (Argentina, Croatia, Guatemala, Hong Kong, Indonesia, Jordan, Kyrgyz Republic, Mongolia, Rwanda, Slovenia and United States). It aims to give both the CSOs and the public officials an idea on how are things are being done in other countries. The c... This study analyzes the situation in 11 countries (Argentina, Croatia, Guatemala, Hong Kong, Indonesia, Jordan, Kyrgyz Republic, Mongolia, Rwanda, Slovenia and United States). It aims to give both the CSOs and the public officials an idea on how are things are being done in other countries. The case studies are structured as follows: a brief overview of the system; a background section describing the relevant legislation (this includes a profile of the in-law provisions that define which officials are subject to the disclosure requirement, the content of declarations, filing frequency, submission compliance and content verification, sanctions, public access, and investigations); the mandate and structure of the implementing agency; and the resources and procedures of the system (this includes facilities and information technology resources, human resources, budget, regulatory function, and practices related to managing submission compliance, content verification, investigations, interagency collaboration, public access, reporting, and outreach). What is important to emhasize when it comes to this publication is the fact that it does not try to answer the question of what works best, since it is many times emphasized that the success of the system mostly relies on its elements in the government, and different approaches and expectations are suited for each country. However, there are a few takeavays which are important, as stated in the publication and those are:
  • Understanding the context. The effectiveness of a financial disclosure system is, to a large extent, dependent on elements of the local context (including elements of the institutional, cultural, and political environment in which it operates). An assessment of these factors prior to designing or upgrading an IAD system is important to ensure a good fit between the agency’s role, functions, and procedures and the local environment. The key principle here is that context matters.
  • Building capacity incrementally. Although there is no single or standardized approach that will work in every context, systems that begin with too many requirements—such as too large a pool of filers—and with inadequate institutional capacities to manage and enforce compliance are more likely to fail than those that start with modest, manageable objectives. Building capacity incrementally can be achieved by, for example, gradually expanding the submission requirement
READ MORE
DOWNLOAD

Technology for Transparent and Accountable Public Finance (TTAPF)

Publisher: Open Knowledge Foundation
Published on: 2012
Description: The report was first published in 2012. by Open Knowledge Foundation. It focuses on projects that are using technology to imrpve fiscal transparency of their countries. There are three types of projects who do the following: Looking at where the money comes from Monitoring where the money go... The report was first published in 2012. by Open Knowledge Foundation. It focuses on projects that are using technology to imrpve fiscal transparency of their countries. There are three types of projects who do the following:
  • Looking at where the money comes from
  • Monitoring where the money goes
  • Projects which focus on ‘invisible money’ (state or semi-state owned enterprizes etc.) The report also examines 4 data portals from different countries (UK, Canada, Republic of Corea and Brazil). It also features CSO feedback on data portals, which is probably the most useful for us in terms of for what kind of data formats should we advocate for when it comes to asset declarations. The problem with this report, when it comes to asset declarations is that id deals with budget transparency, so there is not a lot for us to take out from it, other than the technological aspects of publishing the data.
READ MORE
DOWNLOAD

G20 High-Level Principles on asset disclosures by public officials

Publisher: Ashoka Change Makers
Published on: 2012
Description: This document just states the principles that the G20 countries agreed upon when it comes to asset disclosure, and they are as follows: Fair Disclosure requirements should be set forth clearly for the public official and for the general public and should be an integral component of ... This document just states the principles that the G20 countries agreed upon when it comes to asset disclosure, and they are as follows:
  1. Fair
    • Disclosure requirements should be set forth clearly for the public official and for the general public and should be an integral component of laws, regulations and/or administrative guidelines, as appropriate, governing the conduct of public officials in order to establish shared expectations for accountability and transparency.
    • Disclosure systems should be as comprehensive as necessary to combat corruption but should require only the submission of information reasonably and directly related to the implementation of laws, regulations, and administrative guidelines, as appropriate, governing the conduct of public officials.
  2. Transparent
    • Disclosed information should be made as widely available as possible, both within the government and to the general public, in order to facilitate accountability while still taking into consideration reasonable concerns for personal and family safety and privacy and for the laws, administrative requirements and traditions of the Economy.
    • Information about the overall administration of the disclosure system, including information about disclosure compliance rates and enforcement activities, should be made available to the public, in accordance with applicable law, regulation and/or administrative guidelines.
  3. Targeted at senior leaders and those in at-risk positions
    • Disclosure should first be required of those in senior leadership positions and then, as capacity permits, of those in positions most influencing public trust or in positions having a greater risk of conflict of interest or potential corruption.
  4. Supported with adequate resources
    • Disclosure system administrators should have sufficient authority, expertise, independence, and resources to carry out the purpose of the system as designed.
  5. Useful
    • Disclosed information should be readily available for use in preventing, detecting, investigating, imposing administrative remedies for and/or prosecuting corruption offenses regarding conflicts of interest, illicit enrichment, and/or other forms of corruption.
    • Disclosure should be required on a consistent and periodic basis so that the information reflects reasonably current circumstances.
  6. Enforcable
    • Penalties and/or administrative sanctions for late submission of, failure to submit, and submitting false information on a required disclosure report should be effective, proportionate, and dissuasive.
READ MORE
DOWNLOAD

Fighting corruption by improving transparency and access to information

Publisher: ELLA Network (Evidence and Lessons from Latin America)
Published on: 2012
Description: Using Information and Communication Technologies (ICTs), in the last decades countries such as Argentina, Brazil, Chile, Guatemala, Mexico, Panama and Paraguay have designed and created electronic platforms that make information about procurement and government o!cials’ personal assets public. Th... Using Information and Communication Technologies (ICTs), in the last decades countries such as Argentina, Brazil, Chile, Guatemala, Mexico, Panama and Paraguay have designed and created electronic platforms that make information about procurement and government o!cials’ personal assets public. These electronic platforms have guaranteed an effective and transparent flow of public information, thereby empowering citizens to identify and demand action against corruption and allowing oversight agencies to detect and sanction public officials engaging in corruption. Latin American countries such as Argentina with Ddjjonline or Mexico with Declaranet have designed and implemented electronic platforms to disclose public officials’ personal assets. These platforms allow public servants to submit electronically the yearly declarations of personal assets and income that by law they are mandated to. By gathering all public officials’ declarations electronically in a single database, these platforms facilitate the review and analysis of information to identify, investigate, and impose sanctions on public o!cers engaging in corrupt practices like bribery or illicit enrichment, or demonstrating conflict of interest. Intersting facts:
  • The level of public officials’ compliance with this legal obligation has increased from 67% to 96% in Argentina since the electronic platform was first introduced.
  • Public o!cials who do not submit their declaration or who engage in corruption are being investigated. In the first half of 2011, Argentina’s Investigations Department carried forward 10 investigations of illicit enrichment and 58 of non-compliance with the disclosure of personal assets obligation. Key lessons:
  • Enhancing transparency and access to information in sensitive areas such as procurement or about public officials' personal assets can reduce corruption and increase integrity in the public sector
  • Civil society monitoring of procurement and public officials' personal assets information can contribute to identifying and highlighting corruption, thus increasing accountability
  • Political will to strenghten public agencies' technical, institutional and financial capacities increases the chances of these transparency practices being successfull and sustainable
  • Percieved high costs of tackling corruption can be handled. Taking advantage of technological advancments and having an innovative approach to corruption can make it possible to find effective and efficient mechanisms to reduce it.
  • Fostering the rule of law, increasing citizen participation and better government accountability enhanced the chance of these practices being successfull at reducing corruption.
READ MORE
DOWNLOAD

Asset Declaration for Public Officials – A tool to prevent corruption

Publisher: OECD
Published on: 2011
Description: This study is divided in three parts. The first part deals with policy principles and reccomendations for public asset declarations. The second part analyzes existing asset declaration practices, and the third part are case studies from Lithuania, Romania, Spain (Catalonia) and Ukraine. In the fi... This study is divided in three parts. The first part deals with policy principles and reccomendations for public asset declarations. The second part analyzes existing asset declaration practices, and the third part are case studies from Lithuania, Romania, Spain (Catalonia) and Ukraine. In the first part, the study tries to answer to questions such as why do we need asset declaration, which legal framework should be chosen, who should be obliged to declare assets. Particularly interesting part of this analysis is whether there should be one regulation for all officials, or different regulation for all categories. The second part goes into more detail, and there are a few interesting chapters, Chapter 3, which explains the legal basis and institutional arrangements is provides a lot of information and comparisons between different approaches to legal frameworks in different countries. Subjects of declaration systems, scope and content of declarations, processing of declarations, public disclosure and effectiveness of declaration systems are also discussed through examples form different countries. The main takeaway from these two parts is that there an all encompasing approach for all countries does not exist, since asset declaration is in many cases a political issue. For example, when it comes to income, there are number of ways it can be declare. You can take a strict approach (like in most former socialist countries) where all income must be declared, or you can take a softer approach, like in the German Bundestag, where you have to only declare income above a certain threshold. Overall, this study provides a lot of information about how policy principles for Public Official Asset Declaration can be be set up. The problem with it is that it was published in 2011 and it may not be that accurate when it comes to specific solutions in certain countries, since changes could have been made to the countries systems (for example, changes were made in Bosnia since then, so the data for Bosnia is no longer correct). READ MORE
DOWNLOAD

Politically Exposed Persons – Preventive Measures for the Banking Sector

Publisher: The International Bank for Reconstruction and Development / The World Bank
Published on: 2010
Description: This paper is designed as a policy note for banks and regulatory authorities, as well as for use by the standard setters, policy makers, FIUs, and other public authorities with a role in the implementation of PEP standards. Policy makers and standard setters may use the Recommendations and Good P... This paper is designed as a policy note for banks and regulatory authorities, as well as for use by the standard setters, policy makers, FIUs, and other public authorities with a role in the implementation of PEP standards. Policy makers and standard setters may use the Recommendations and Good Practices to inform their efforts in ensuring that effective laws and standards are adopted. The paper is focused on the banking sector, not on other financial and nonfinancial sectors vulnerable to the laundering of corrupt funds. The paper is organized into four major parts:
  • Part 1 sets out some of the main observations and trends in PEPs compliance and an analysis of the principal reasons for poor compliance and overall ineffectiveness of systems to detect and monitor PEPs.
  • Part 2 focuses on the implementation of PEP measures by regulatory authorities and banks.
  • Part 3 reviews the roles of the public authorities that are primarily involved in preventing abuse by corrupt PEPs. These authorities include the regulatory authority, which is responsible for providing guidance to banks and enforcing compliance, as well as the FIU, which has a role in the context of suspicious transaction reports (STRs) on PEPs. Finally, Part 4 considers some of the cross-cutting issues—national cooperation, training, and resources—that must be addressed by all stakeholders. General problem is:
  • Low level of compliance with international standards due to lack of enforcable legal or regulatory framework Paper identifies three key actions necessary:
  • Strong and sustained political will and mobilization
  • Clarification and harmonization of the international requirements for PEPs
  • Stock-taking of the emerging typologies, with a focus on lifting what impedes the identification of beneficial owners who are PEPs, such as using close associates, legal entities and other methods to hide beneficial ownership It also gives five principal recommendations:
  • Apply enhanced due dilligence to all PEPs, foreign and domestic
  • Require a declaration of beneficial ownership
  • Request asset and income disclosure forms
  • Do a periodic review of PEP customers
  • Avoid setting limits on the time PEP remains a PEP Key recommendations from the paper:
  • Laws and regulations should make no distinction between domestic and foreign PEPs. The standards adopted by FATF and regional and national standard setters should require similar enhanced due diligence for both foreign and domestic PEPs.
  • At account opening and as needed thereafter, banks should require customers to complete a written declaration of the identity and details of the natural person(s) who are the ultimate beneficial owner(s) of the business relationship or transaction as a first step in meeting their beneficial ownership customer due diligence requirements.
  • A public official should be asked to provide a copy of any asset and income declaration forms filed with their authorities, as well as subsequent updates. If a customer refuses, the bank should assess the reasons and determine, using a riskbased approach, whether to proceed with the business relationship.
  • PEP customers should be reviewed by senior management or a committee including at least one senior manager using a risk-based approach, at least yearly, and the results of the review should be documented.
  • Where a person has ceased to be entrusted with a prominent public function,countries should not introduce time limits on the length of time the person, family member, or close associate needs to be treated as a PEP
  • Countries should carefully consider whether a risk-based approach will produce the best results. In doing so, they should consider the extent to which qualitative information that could inform risk assessments is readily available, the ability of the regulator to supervise and guide the sector, and the extent to which banks are equipped with sufficient resources and expertise to identify and mitigate any money laundering and PEP risks they face.
  • Where a risk-based approach is applied, regulatory authorities need to make efforts to ensure that the entire sector understands the approach and is applying it correctly, including in the context of PEP systems and controls.
  • FATF and UNCAC should align the definition of PEPs. This definition should be adopted by national standard setters and other key stakeholders FATF should clarify the definition of PEPs to ensure that it includes family members and close associates along with holders of “prominent public functions.”
  • Jurisdictions should clarify the definition of PEPs to ensure that it includes family members and close associates along with holders of “prominent public functions.”
  • Law or regulation should include a requirement to determine whether a beneficial owner is a PEP in accordance with the Methodology for FATF Recommendation 6
  • As part of their ongoing business processes, banks should ensure that they hold up-to- date information on their customers; and having appropriate risk management systems to check for PEP status must form part of this process
  • PEPs present a multi-dimensional or asymmetric risk to banks; therefore, banks should use a variety of risk factors and identification tools to ensure they have an effective approach to detect PEPs.
  • Regulatory authorities or FIUs or both should develop “red flags” to guide banks in identifying close associates
  • Where applicable, the regulatory authority should include, as part of the onsite inspection, a review of the database used to identify PEPs. The review should include an examination of the commercial database parameters, sample transaction testing, and a review of the bank’s overall database management pract
  • To assist banks in meeting the source of wealth and source of funds requirement in the FATF 40+9 Recommendations in a consistent and meaningful manner, regulatory authorities should take steps to provide guidance to ensure both provisions are being addressed and suggest ways in which a bank may go about applying them.
  • In higher risk cases, the group AML/CFT compliance officer (where existing), in addition to senior management, should be involved in the decision to accept or continue a relationship with a customer who has been identified as a PEP
  • An updated list of PEP accounts should be maintained by the AML/CFT compliance officer and be available to senior management
  • PEP customers should be reviewed annually by the audit committee, board, or equivalent corporate governance body as part of their risk-management responsibilities.
  • As part of its routine onsite assessments, the regulatory authority should include a focused PEP component and incorporate specific PEP questions, at least in those sectors or banks that are particularly exposed to PEPs. Such onsite assessments should be scheduled using a risk-based approach to effectively review changes in the current control environmen
  • Regulatory authorities should conduct a PEP check on beneficial owners when assessing the “fit and proper” component at licensing
  • Regulatory authorities should issue specific instructions that clearly outline the legal and regulatory obligations of banks in relation to PEPs, as well as typologies on “red flags” that could indicate corruption
  • FIUs should provide guidance to banks on completing PEP STRs along with a glossary of key- words to be used in STR narrative
  • FIUs should maintain accurate, comprehensive, and public statistics on PEP STRs.
  • FIUs should use asset and income declarations as a tool in their analysis of STRs.
  • The Egmont Group should emphasize the importance of accurate and comprehensive statistics on PEP STRs as a means to assess risks and carry out strategic analysis within a given financial system
  • Countries should build partnerships between public entities and representatives from the private sector to focus on the implementation of PEP policies and challenges and possibly discuss suspicious indicators, typologies, and trends The report also has other useful appendixes, such as Summary of Good Practices, Field Mission Survey (Questions for Banks, Regulators and Financial Intelligence Units), Recommendations from FATF (Financial Action Task Force on Money Laundering). While the report may not be useful to us in the early stages of our work, it has a lot of useful advice on what the banking sector can do to imrpve transparency.
READ MORE
DOWNLOAD

Managing Conflict of Interest in the Public Service – OECD Guidelines and country experiences

Publisher: Organisation for Economic Co-operation and Development
Published on: 2003
Description: OECD guidelines are as follows: Provide a practical framework of reference for reviewing existing policy solutions and modernising mechanisms in line with good practices in OECD countries. Promote a public service culture in which conflicts of interest are properly identified and resolved or... OECD guidelines are as follows:
  • Provide a practical framework of reference for reviewing existing policy solutions and modernising mechanisms in line with good practices in OECD countries.
  • Promote a public service culture in which conflicts of interest are properly identified and resolved or managed, in an appropriately transparent and timely way, without unduly inhibiting the effectiveness and efficiency of the public organisations concerned.
  • Support partnerships between the public sector and the business and nonprofit sectors, in accordance with clear public standards defining the parties’ responsibilities for integrity. In its first part, this report explains the OECD guidelines in detail, and this document should be a starting point for anyone who deals with asset declaration. This is also the most important part of this report. The second part is a comparative analysis of OECD countries’ approach to conflict of interest. This part can be interesting to read, but since the report was published years’ ago, the usefulness of these comparisons now is debatable. The same goes for the case studies in part three of the report.
READ MORE
DOWNLOAD

Draft Legislative Guidelines: Basic elements on the registration of income, assets and liabilites

Publisher: OAS - The Organization of American States
Published on:
Description: This document is a template for writing laws on asset declaration. The template itself is divided into 9 major areas: Scope of legislation Occasions for submissions of declarations Government agencies responsible for declarations Form and minimum content of declarations Verification, i... This document is a template for writing laws on asset declaration. The template itself is divided into 9 major areas:
  1. Scope of legislation
  2. Occasions for submissions of declarations
  3. Government agencies responsible for declarations
  4. Form and minimum content of declarations
  5. Verification, investigation and explanation of declarations
  6. Access to and use of declarations
  7. Sanctions or consequences for non compliance
  8. Databases
  9. Awareness building mechanisms The template itself doesn’t help with writing the exact provisions, but rather gives an overview of how a law should look like. Downside is that it doesn’t go into detail. It could be helpful if we ourselves want to do the drafting. The most useful part is the part No. 4. Form and minimum content of declarations since it goes into a little more detail than the rest of the document.
READ MORE
DOWNLOAD