ANTICORRUPTION - Reports, surveys, research for students.Read More
The world faces the worst humanitarian crises since World War Two - these are man-made crises and corruption is at the core of each of them - Western foreign policy leaders must make these crises an absolute top priority - they are not right now.Read More
Business's biggest challenge is restoring public trust - "legalized corruption" and rising income inequality are combining to undermine trust in business and political leadership - many citizens equate such lack of trust with corruption.Read More
Presentation to the Transparency School.
Vilnius, July 4 2016.
Organized and hosted by Transparency International Lithuania
“10 Key Corruption Issues”
Frank Vogl, Co-founder, Transparency International
At the core of the global anti-corruption movement is the goal to secure the basic rights of all of all people and ensure a world where everyone can live in dignity. This is also a core driver of the United Nations. But, for 50 years the U.N. was silent on corruption. Today, the U.N. is an increasingly active advocate for anti-corruption.
Presentation by Frank Vogl, April 26, 2016.
Interview on the unfolding crisis in Brazil with BNAmericas, April 11, 2016. ...Fundamentally what we are seeing in Brazil, and in a number of other very important countries, is that the public is demonstrating against corrupt officials.Read More
An interview on CNBC's Power Lunch (April 1, 2016), where I exchange views with Frank Vogl, Co-founder Transparency Intl and the Partnership for Transparency Fund, and author of "Waging War on Corruption - Inside the movement Fighting the Abuse of Power."Read More
Integrity Commissions and Anti-Corruption Bodies across the Caribbean are strengthening efforts to work together, exchange information and build a network. The British Commonwealth Secretariat has been playing a leading role in this effort and hosted a conference in Trinidad and Tobago. The challenges are formidable, from addressing money laundering to corruption related to smuggling of drugs, guns, human trafficking and other crimes.Read More
Keynote opening conference address by Frank Vogl at the FELABAN 49th annual assembly in Miami, November 15, 2015. The Three Ds - Dilma, Donald and Douglas - Corruption in Politics, Banking and FinanceRead More
Anti-corruption expert Frank Vogl was one of the keynote speakers at Felaban 2015. World Finance caught up with him as he left stage to ask if we're likely to see any anti-corruption action, or just more good intentions.Read More
The anti-corruption movement has made progress on many fronts in many countries over the last quarter century. The journey toward substantial elimination of corruption is long, the obstacles formidable and the skepticism ever- present.
This detailed paper traces the progress that the anticorruption movement has made on many issues in many countries. The paper highlight today’s key challenges. The paper was prepared for a conference at York University, Canada, November 5-7, 2015 titled “Educating for Integrity.”Read More
Corruption will not be reduced without a consistent and forceful attack on impunity. The target in the first instance must be grand corruption – the gross abuse of high-level power for private gain that inflicts serious and widespread harm on individuals or society. We need to recognize “Grand corruption goes hand-in-had with human rights abuse,” as José Ugaz, chairman of Transparency International, has noted. Adds, Kumi Naidoo, the head of Greenpeace declared: “Impunity is the absolute abuse of power.”Read More
Frank Vogl - Speech to the Florida International Bankers Association, 15th Anti-Money Laundering Compliance Conference
Miami, Florida, March 5, 2015.
Presentation to FIBA 2015
Kleptocrats, stealing staggering sums of cash from the people that they should serve and wielding enormous power are just one part of the multiple corruption crises gripping the world today.
These crises are contributing to global insecurity, financial and economic instability – they are challenging freedom and democracy in many countries. Moreover, corruption is a prime cause of entrenched poverty in many parts of the world. Many of you are from Latin America, or work with institutions in the region, and one facet of the crisis of corruption today is that the leaders of such important economies and democracies as Argentina, Brazil, Chile and Mexico are right now enmeshed in scandals.
A central argument that I will make today is that there can be no sustainable solutions to corruption and money laundering without civil society leadership. This consideration is inadequately understood by governments, development institutions, corporations including banks, and by many in academia. Transparency International, the global anti-corruption organization, is determined to increase its leadership efforts in this area. We are waging campaigns to unmask the corrupt, to say “No Impunity,” and to press hard for enforcement of anti-money laundering laws and regulations.
Rarely before have the crises of corruption been as widely reported by the media as they are today. Nevertheless, the responses by most governments and most multilateral official institutions are far from satisfactory. Pledges are repeatedly made at the highest international official levels to combat money laundering, to unmask corrupt practices, and to call a halt to the rampant impunity that so many corrupt politicians and their cronies enjoy. But the enforcement actions on these pledges repeatedly fall short.
A number of major banks have lost public confidence because of their failures to implement anti-money laundering regulations. The recent public disclosures about the activities at HSBC demonstrate the yawning gap between the public rhetoric of some top bankers and the practices of their institutions. It was widely reported, based on leaks to the media, that 100,000 people had accounts at the bank’s Swiss branch in 2005-2007, and that there was evidence suggesting that the bank assisted tax evaders.
For many years, I was a newspaper reporter and when it came to scandals in business and politics the order always was: “Follow the money.” Here today our focus is anti-money laundering (AML) with particular emphasis on Latin America. Far, far too much money is fleeing the region – illicitly.
The volume of illicit financial flows from Latin America, in excess of $160 billion a year, approximately three percent of GDP, according to Global Financial Integrity GFI). This may be a conservative estimate. But, consider how absolutely crucial this is when noting that real GDP in the region was just an estimated 0.4% last year and may be a mere 0.2% this year, according to forecasts by the Institute of International Finance.[i]
The growth years for the region from 2000 onwards created a stage for a major decline in poverty. The percentage of very poor people in Latin America fell from 42% to 25%.[i] But the region is now stagnating, the prospects for growth are bleak and the risks of increased poverty are significant. The economy of the largest country in the region, Brazil, is, as The Economist magazine reported last week, “in its worst mess since the early 1990s.”[ii]
Just consider how much brighter prospects would be for tens of millions of Latin Americans if instead of vast sums of cash flowing illicitly abroad, these sums were instead invested at home.
Illicit financial flows represent a criminal tax on the citizens of scores of countries. They are the product of organized crime. They result from many transactions pursued by executives at business corporations who personally gain from illegal activities. Most importantly, the illicit outflows of cash from many countries are the means by which politicians, top civil servants and their cronies, transform the funds gained from abusing their public offices into foreign investments.
$1 trillion -- Business and Money Laundering
Illicit financial flows – estimated to be close to one trillion dollars, according to Global Financial Integrity (GFI)[iii], are helped on their way by professional launderers into shell companies registered in countries where the rule is “no questions asked.” The cash then flows into the world’s most attractive investment centers, from Dubai to New York and Miami, London, Paris, Geneva and other locations. And, from there the money travels onwards into corporate investments, fine art, expensive real estate and a host of valuable assets that can be bought and sold in major national and international markets.
The participants at this FIBA conference are deluged with offers by all manner of consultants to acquire new, ever-more sophisticated AML compliance tools and technologies. Businesses are seeing their expenses rise and rise as they strive to ensure sound AML compliance. It would be an enormous benefit to everyone if these costs could be sharply cut. The answer does not rest in new compliance technologies, but in smashing the money-laundering rackets themselves and curbing corruption and this is the prime focus of my presentation today.
DOWNLOAD - the full presentation - FIBA March 2015.
[i] Research by Professor Nora Lustig, Tulane University, presented at the Center for Global Development on February 26, 2015. http://www.cgdev.org/media/declining-inequality-latin-america-presentation
[ii] The Economist, editorial February 28, 2015 – “Latin America’s erstwhile star is in its worst mess since the early 1990s.”
[iii] Global Financial Integrity, December 2014 report on illicit financial flows. http://www.gfintegrity.org/report/2014-global-report-illicit-financial-flows-from-developing-countries-2003-2012/
[i] Institute of International Finance, February 2015, Global Economic Monitor - https://www.iif.com/publication/global-economic-monitor/february-2015-global-economic-monitor
On September 10, 2014, Frank Vogl spoke at the BCS Congress in Buenos Aires, Argentina. He asked the question: Why should things be different? And he responded - The answer rests in the fact that over the last 20 to 30 years the world has changed in revolutionary ways. Now, as never before, the train heading for open and decent government is on the tracks and gaining speed. If you do not see it coming you will be shocked and surprised. If you have the wisdom to see where it is going, then it is time that you jumped on board. The presentation concluded as follows: -
The issue for business people today goes far beyond regulatory anti-corruption compliance. To check the boxes on the compliance forms is no assurance that anything will change.
Integrity in business starts with the tone at the top of the enterprise. The example that leaders of business provide by their own activities can do more than anything else to build corporate values, to establish trust with business partners, at home and abroad.
The business case for values of integrity and anti-corruption has never been stronger and it is set to get still stronger. The rising middle-class will not sit still and see itself squeezed by old elites, or populist politicians driven only by their own greed and arrogance.
You may think that my perspective is unrealistic and that my comments do not apply to Argentina. I respond by suggesting that you take note of the march of recent history. Yes, there are many setbacks and yes in many parts of the world the scale of corruption is absolutely terrible. But, the negatives need to be seen clearly alongside positive developments.The revolutions that created the end of regimes in Tunisia, Libya, Egypt and Ukraine in recent years were all led by civil society organizers able to use social media and other tools to channel the anger of the public at large at the corruption in their governments.
The forces of anti-corruption, promoting transparency and accountability, and demanding justice, are unstoppable. The transformative changes in global finance and business, in media technology and civil society organization all come together to build a compelling case for constructive citizenship.
please read the full speech Frank Vogl address to BCS Argentina September 10 2014
President John F. Kennedy declared to Americans, “Ask not what your country can do for you—ask what you can do for your country.” In too many countries we see politicians, officials and business people asking, “What can my country do for me?”… the combination of a rising educated middle-class in much of Latin America, the globalization of business, the scale and speed of today’s capital markets, the revolution in information technologies and the dynamic growth of civil society – all these trends are combining to promote transparency and accountability.
Today, I want to leave you with two central thoughts on this topic: first, we have seen two decades of increasing cooperation among a rising number of players across the world around the central mission of eliminating corruption; second, we have enormous opportunities to build on the progress and so work jointly as partners to forge outcomes that benefit all peoples.Read More
“2014 will be a banner year in terms of precedent setting prosecution of corporationsin terms of violations of anti corruption laws; in terms of the scale of visible public demonstrations against corruption in large numbers of countries; and, in terms of just media investigations of many aspects of corruption in many countries.”Read More
Corruption is a global phenomenon which has been identified by major nongovernmental organizations and international institutions as a critical threat to political and economic stability, peace, security, and human rights around the world...Read More