Combating Corruption Related to Money-Laundering
I would like to begin by thanking Thailand for sponsoring this most important APEC workshop and for extending the invitation to attend this significant event. I would also like to show my appreciation to National Counter Corruption Commission of Thailand (NCCC) and the America Bar Association for the exceptional work in organizing this event.
Corruption is not a new matter in our societies but globalization has increased the levels of exposure and new manifestations of this issue. Globalization is indeed a phenomenon that characterizes the current international scene. And while globalization offers undeniable benefits to the Asia Pacific region, it also generates challenges as well as new threats to governance.
As a cooperative, multilateral economic and trade forum, APEC aims to promote economic development by improving trade policies and the liberalization of the international economic system in a transparent and more equitable environment. To this end, special attention should be paid to the modernization of the State, access to technology and education, and the fight against corruption.
Among these special needs, corruption has been identified as one of the main impediments to economic and social development and that is why, back in 2004, APEC Minister and Leaders agreed to fight corruption as a means to build a culture of integrity.
As you know, the Asia Pacific Economic Cooperation forum (APEC) is the only multilateral forum committed to the voluntary reduction of trade barriers and increased investment through dialogue and consensus. APEC, along with most other economic fora, has now made corruption a focus of its attention. This is because corruption is now widely recognised as a major obstacle to political and economic development, a large contributor to raising the cost of doing business, and a negative influence on business and economic relations between economies. And it affects both developing and developed economies.
APEC recognizes the importance of fighting against corruption and related crimes. As one of its main priorities, APEC leaders have encouraged member economies, to join the United Nations Convention against Corruption (UNCAC) and to work on developing efforts to implement the principles and provisions that this instrument states.
In this line, we all recognize that dealing with anti corruption demands international cooperation. And in order to address this APEC has been developing a series of actions such as the ongoing promotion of the UNCAC as a major APEC anticorruption priority which was mentioned earlier; as well as measures to deny safe haven to corrupt officials and the recovery of assets, increase international cooperation in processes of extradition , preparation of statements and initiatives on prevention, investigation, prosecution of corruption and illicit acts, bribery law, law enforcement and specifically this year by defining a set of principles of conduct for private and public officials.
I would like to emphasize key APEC developments on anti corruption.
In 2004, with the Santiago Commitment to Fight Corruption and Ensure Transparency, Leaders agreed to promote regional cooperation on extradition, mutual legal assistance and the recovery and return of proceeds of corruption. The accompanying Course of Action on Fighting Corruption and Ensuring
APEC has also repeatedly underscored its commitment to prosecute acts of corruption, especially high-level corruption by holders of public office and those who corrupt them. In this regard, APEC commended the conclusions of the Workshop on Denial of Safe Haven: Asset Recovery and Extradition held in Shanghai in April 2006 and APEC Ministers agreed to consider developing domestic measures, in accordance with member economy's legislation, to deny safe haven to corrupt individuals and also by implementing effective controls to deny access by corrupt officials to the international financial systems.
In 2006 APEC emphasized the significance of public-private coordination on anti-corruption and ensuring transparency and they agreed to deepen public-private partnerships by working with the APEC Business Advisory Council (ABAC) and business leaders to strengthen corporate governance with innovative strategies that would assure greater economic opportunities and prosperity. This issue stressed the importance of preventive measures and integrity systems in the fight against corruption and urged member economies to adopt and implement codes or norms of conduct that are aligned with the UNCAC.
As a follow up action the ACT conducted the Towards Transparency Principles for the Private Sector Workshop in Australia in January 2007. The outcome was a draft set of Best Practice Integrity Principles which built upon the recommendations made by ABAC. A key finding of the workshop was that good corporate governance is a key tool in addressing private sector corruption.
The result of all these deliberations, amongst both APEC's public and private sector members, is the Code of Conduct for Business. That Code is consistent with the commitments found in APEC's Course of Action on Fighting Corruption and Ensuring Transparency in 2004, and reflects international practice for private sector anti-corruption standards.
Upon further consideration and discussion within the Anti Corruption Task Force, members focused their attention on the practical issues APEC would need to consider when implementing APEC's Code of Conduct. Different aspects of the implementation of this private sector code of conduct were discussed; including issues such as the need to focus on SMEs, the role of APEC in overseeing and implementing the code and how to link these with the Principles for Public Officials.
The Code of Conduct for Business, including details of the implementation plan, will be launched alongside the upcoming CEO Summit in September.
As mentioned earlier, APEC acknowledged the importance of addressing corruption in both the private and public sectors. And in keeping with this idea the ACT developed and approved the Complementary Anti-Corruption Principles for the Public and Private Sectors. The document clearly highlights the benefits of addressing the anti-corruption obligations of both the private sector and the public sector, and it recognizes the necessity of practical implementation by both of a series of joint responsibilities.
Further concrete actions on the business code include a proposal to design a Pathfinder Initiative which would create a practical and effective implementation process. This project aims to encompass the design of a practical implementation plan for the Code of Conduct for Business and it would focus carefully on the needs of Small and Medium Enterprises.
APEC's vision on anti corruption strategies can not be complete without acklowleging that this is an international responsibility that requires joint efforts and sharing experience. APEC Ministers have encouraged the Anti-Corruption Task Force to strengthen cooperation with other international and regional organizations, as appropriate, particularly with the United Nations, the World Bank, the Asian Development Bank (ADB), OECD, and INTERPOL. In particular, I would like to highlight the continuous participation and support to this task force of Transparency International and the ADB OECD Anti Corruption Initiative for the Pacific.
In the field of anti money laundering, APEC Leaders highlight the important role of the United Nations Convention against Corruption (UNCAC) as the first legally binding global instrument specifically targeted to fight the scourge of corruption. APEC agreed that the implementation by our relevant economies of the principles of the United Nations Convention against Corruption that clearly commit its parties to take appropriate measures to prevent money-laundering and laundering of proceeds of crime.
As we all have learned over the last three days of presentations and exchanges of experiences, APEC members' initiatives such as this Thai Anti Money Laundering Workshop can have a positive impact in advancing our commitment towards a cleaner and more honest and transparent community in the Asia- Pacific region.
The purpose of this workshop was to exchange best practices among relevant authorities in the APEC region and raise awareness by bringing money laundering and corruption to the forefront of APEC's anti corruption agenda, and to setting minimum standards for effective implementation that will serve as a precedent and will be followed up by future our activities.
As I noted, proper implementation of anti-corruption measures requires effective cooperative measures. The emergence of new technologies and the growth of international flow of people and capitals have facilitated the commission of trans-national crime such as money laundering. As you no doubt know it is now common for evidence and the proceeds of crimes committed in one economy to be located in another with the consequence of criminals evading justice by crossing borders.
The successful resolution of corruption is one which necessitates the involvement of all stakeholders. Therefore, the prevention and prosecution of serious crimes cannot be achieved without effective international legal cooperation. By working together, we can do much to successfully fight corruption in all its forms.
This issue has been an APEC priority since 2004. Under the Chairmanship of Peru this theme will continue being a priority and I encourage this Task Force and its members to intensify individual and joint actions to fight corruption, ensure transparency and increase cooperation with other multilateral institutions and exchange of information on implementation of domestic anti-corruption commitments.
Following along with this enhanced action in progressing APEC's anticorruption agenda, Peru will continue this series of seminars by organizing the next Regional Symposium: The Fight against Corruption is a Common International Responsibility: Strengthening the Cooperation Mechanisms in the Asia Pacific Region.
I do believe that this upcoming event will continue the way forward promoted by this task force and will also involve the participation of important international organizations such as the United Nations, ABD OECD, IDB, INTERPOL, and representatives of civil society such as the American Bar association and Transparency International. Thanks to these organizations, the APEC anti corruption agenda is enriching its approach and vision.
Needless to say, a comprehensive approach is required to effectively address this matter. Good governance, transparent legal regimes and systems to fight corruption are also vital elements to get and sustain economic development, growth, and prosperity.
In closing I would like to say that I sincerely hope that the efforts deployed by APEC members will prove to be the way forward to develop innovative training and capacity building initiatives to fight corruption and ensure transparency while progressing APEC economic goals. By working together, I am confident that APEC can make a difference to fighting corruption and ensuring transparency, while reducing the cost of corruption that restrains economic growth.
Thank you.