IACA Board of Governors Meets

At its second meeting of the year on Monday, the IACA Board of Governors approved the Independent External Auditors’ report for the budget year 2016 and discussed preparations for the sixth session of the Assembly of Parties, among other matters.

The external auditors, who were appointed from senior members of national supreme audit institutions or other suitable institutions of Member States, conducted the audit in March and April.

In their result and findings the auditors concluded that IACA has sound financial management, no misstatement of accounts or embezzlement was observed, and the statements were prepared and expenses incurred in accordance with relevant rules, standards, and regulations. The report will be submitted to the sixth session of the Assembly of Parties later this year for final acknowledgement.

In its deliberations on Monday regarding the forthcoming Assembly, the Board also discussed IACA’s next Work Programme for the period 2017-2020, possible resolutions, and side events that could take place within the framework of the event.

Other agenda items at the meeting included current institutional and academic developments at IACA.

The Board previously met in March 2017. Members of the Board serve in their individual capacity and come from all regions of the globe.

Comptroller-General of Mexico City Discusses Cooperation with IACA and UNODC

Mr. Eduardo Rovelo Pico, Comptroller-General of Mexico City, visited IACA last Wednesday to discuss possible joint anti-corruption activities with the Academy. These initiatives will be developed over the coming months and may include, among others, anti-corruption training and technical assistance in coordination with the Field Office in Mexico, Central America and the Caribbean of the United Nations Office on Drugs and Crime (UNODC).

The joint projects will complement the assistance provided to Mexico through UNODC’s programme in the country and region.

In his meeting with Mr. Martin Kreutner, IACA’s Dean and Executive Secretary, Mr. Rovelo Pico outlined various anti-corruption initiatives in Mexico City following the adoption last year of new national legislation in this field.

Mr. Kreutner gave a briefing on current developments at IACA and emphasized the cross-cutting nature of corruption and how it can facilitate other serious crimes such as human trafficking, financing of terrorism, and environmental degradation.

The meeting was also attended by representatives of UNODC’s Field Office in Mexico, Central America and the Caribbean and the Permanent Mission of the United Mexican States to the International Organizations in Vienna. It was part of a visit to Austria by the Comptroller-General that was organized by UNODC.

UNODC is also one of IACA’s initiating partners. Mexico became a Party to the IACA Agreement in 2011.

MACS 2016 - 2018 Class at IACA

IACA’s 2016-2018 Master in Anti-Corruption Studies (MACS) students, who come from 18 countries around the world, have completed the in-class part of their current module on Anti-Corruption, Law, and International Initiatives.

The two-week session, which ran from 1 to 12 May, covered topics including international anti-corruption conventions, the US Foreign Corrupt Practices Act and the UK Bribery Act, national anti-corruption laws, corruption and human rights, and police corruption and collusion. Besides lectures and classroom discussion, the module also included further training in research methods and a study visit to the United Nations Office on Drugs and Crime (UNODC) in Vienna.

Andy Spalding (University of Richmond School of Law), one of the lecturers in this module, wrote an FCPA Blog post about the MACS last week as part of a series of articles about IACA.

In addition, the students took part in a friendly football game against members of IACA’s staff on 10 May, with the Academy’s team emerging as narrow 4-3 winners in an exciting contest.

The MACS is a two-year, in-career programme consisting of seven modules and a master’s thesis and is specifically designed for working professionals. Students from the first four intakes have come from about 40 countries and jurisdictions in all regions of the world.

IACA is currently welcoming applications for the 2017–2019 class, which starts in October this year. For more information and to apply, please click here.

Lithuanian Ambassador Presents Credentials

On 9 May H.E. Mr. Aurimas Taurantas, Ambassador, Permanent Representative of the Republic of Lithuania to the International Organizations in Vienna, presented his credentials to Mr. Martin Kreutner, Dean and Executive Secretary of IACA.

Lithuania acceded to the Agreement for the Establishment of IACA as an International Organization in March 2013.

IACA-Finland Side Event on Anti-Corruption and Crime Prevention

IACA and Finland held a joint side event in Vienna on Thursday that examined how anti-corruption activities can contribute to broader crime prevention. The panel discussion took place in the framework of the 26th session of the United Nations Commission on Crime Prevention and Criminal Justice (CCPCJ).

Expert speakers from government, international and regional organizations, the business sector, and academia emphasized how preventing and fighting corruption can help to address other criminal activities such as corporate bribery, trade in illicit drugs, human trafficking, organized crime, and terrorism.

Furthermore, preventing crime and corruption can only be accomplished via a collective effort that includes all sectors and stakeholders, with support from international and regional organizations.

Other prominent themes included the value of anti-corruption education, training, capacity-building, and other forms of technical assistance, the importance of creating and maintaining a culture of integrity within organizations, and the ability of a professional anti-corruption community to share experiences and multiply efforts.

The event featured panellists Mr. Aarne Kinnunen (Ministry of Justice of Finland), Mr. Pierre Lapaque (UNODC), Mr. Michael Nuster (Telekom Austria Group), Mr. Roel Janssens (OSCE), and Mr. Eduard Ivanov (IACA), and was moderated by Mr. Martin Kreutner, IACA’s Dean and Executive Secretary.

Also on Thursday, IACA briefed Permanent Missions on recent developments at the Academy, including the new International Master in Anti-Corruption Compliance and Collective Action (IMACC).

Thai Ambassador Presents Credentials

On 28 April H.E. Mr. Songsak Saicheua, Ambassador and Permanent Representative of the Kingdom of Thailand to the International Organizations in Vienna, presented his credentials to Mr. Martin Kreutner, Dean and Executive Secretary of IACA.

Thailand acceded to the Agreement for the Establishment of IACA as an International Organization in May 2011.

Responsible Business Conduct: A Conversation with Klaus Moosmayer

Dr. Klaus Moosmayer is Chief Compliance Officer of Siemens and a long-standing member of IACA’s frequent visiting faculty. He is also the Chair of the B20 Cross-Thematic Group on Responsible Business Conduct and Anti-Corruption, which recently released a paper (available here) urging G20 leaders to do more to promote integrity by creating opportunities for responsible companies.

On 3 May Dr. Moosmayer will be in Berlin for the B20 summit, during which the paper’s recommendations will be presented to the German Chancellor Angela Merkel. Earlier this week he was at IACA for part of the Academy’s tailor-made seminar for senior Siemens compliance professionals, and he spoke with us about a range of corporate integrity issues.

In your introduction to the paper, you mention that the business community has seen a lot of great commitments by G20 leaders in recent years and now wants these to be implemented. What reasons do you have to be optimistic on this occasion?

Klaus Moosmayer: Momentum is often created by a specific incident. For example, the first topic we dealt with was transparency and beneficial ownership, which has been on the G20 agenda for a long time. Now it has gained momentum because the Panama Papers issue had such a great impact on politicians. They said, “Oh wow, we’ve had these G20 recommendations and agreements for years, and now we have to implement them.” And now this is happening.

The other point is that it’s important simply to keep the topics on the agenda, and that’s why we fight every year to keep anti-corruption there. Because if it’s removed from the agenda then nobody talks about it.

Given all the recent corporate scandals around the world, there will no doubt be some public cynicism towards the concept of “responsible business conduct”. What specific steps can companies take to counter such perceptions?

KM: Excellent question. First of all, businesses can learn from a scandal and subsequently set an example - take our own Siemens scandal, which happened exactly ten years ago. You need good examples that things can change.

Second, there are always these questions of perception. Do we have more misconduct, more corruption? Or do we just see more due to social media and the global village that the world has become? I think this relates closely to topics such as transparency and beneficial ownership – when you see more cases, that’s a good thing.

How do companies convince their shareholders that responsible conduct is worthwhile when competitors might be gaining an advantage from corrupt and non-compliant behaviour?

KM: First there is the personal side. You can ask a shareholder the question: Do you want to be transparent as a person? When you come home from work do you want to be able to tell your husband, wife, children, or parents what you have done today? Do you want a company in which you hold shares to have people who can act in a corrupt and non-compliant way?

The other thing is that compliance can be a competitive advantage. We see more and more laws, which we are of course advocating for, and ways of incentivizing compliance efforts - in public procurement for example. And we see more companies from jurisdictions that don’t have a good reputation for enforcing anti-corruption laws being interested in compliance topics. This is becoming more global and can become a real threat for companies that don’t see this trend.

Do we attach too much importance to the “tone at the top” for creating and reinforcing ethical cultures within large organizations? Isn’t the “mood in the middle” more important?

KM: Absolutely. Look, don’t get me wrong: if the tone from the top is not there then you’re lost anyway. But the guys on the front line – the purchasing manager, the sales head, and so on – have a huge impact. These middle managers are where young employees are directed to on their first working day. And these employees have questions: “I have a problem - what I should do? Should I speak up or find a solution by myself?” The mood in the middle is crucial for success and sustainable compliance. It’s an ongoing educational effort and fight.

What would you say are the key elements of effective education and training to promote corporate integrity?

KM: Not what they were ten years ago, when you did a training with 25 PowerPoint slides and nothing else. The young generation, including in my own family, learn in a different way - via social media and using games, for example. At Siemens we’re now using compliance games as one way to educate our people. There are so many possibilities to read things, but how will we ensure that people read them?

So I think there has been a huge shift. At the same time, face-to-face contact and learning still matters. Take IACA’s Summer Academy - if you ask the participants afterwards, they say they’ll never forget the in-person meetings and exchanges they had during the programme.

What do you think will be the two or three biggest anti-corruption and compliance challenges for businesses worldwide over the next couple of years?

KM: Corruption schemes are becoming much more sophisticated. They might be disguised as a very nice corporate social responsibility project, a sponsoring deal, or an offset agreement. This all looks like it’s legitimate and good business too. So we have to ask who is really benefiting from this. That’s why the beneficial ownership topic is so important. You always have to try to be a step ahead.

The other topic we still need to address, one in which IACA could play a crucial role, is better collaboration between the public and private sectors. There is progress at the OECD and at the G20 and B20, but it is still like “you are here and we are here and we live in different worlds”. And I understand this. Independence is of course important, but we are ultimately facing the same issue. That is a really difficult topic we have to work on.

Lebanon Joins IACA

With the accession of Lebanon to the Agreement for the Establishment of IACA as an International Organization, the Academy’s constituency increases to 71 Parties. These comprise 68 UN Member States and three international organizations.

The Agreement remains open for ratification by its remaining original Signatories and for accession by all UN Member States and international organizations

Second IACA Tailor-made Seminar for Siemens

This week IACA is delivering its second interactive training programme for senior Siemens compliance professionals from around the world.

Consisting of lectures, discussions, and case studies, as well as a practical exercise in applying game theory in a business context, the seminar covers a range of topical issues. These include international public procurement, ethics and behaviour, corruption cases from the prosecutor’s perspective, measuring corruption, UK Bribery Act enforcement, and investigative journalism and corruption.

IACA delivered its first such seminar for Siemens in May 2016.

Tailor-made trainings are IACA’s customized programmes for specific organizations, corporations, or institutions, addressing the unique challenges that each one faces in preventing and fighting corruption. For more information, please click here.

New B20 Policy Paper on Responsible Business Conduct and Anti-Corruption

The B20, which represents global business in discussions among G20 countries, has released a new paper urging G20 leaders to do more to promote integrity by creating opportunities for responsible companies.

Published by the B20 Cross-Thematic Group on Responsible Business Conduct and Anti-Corruption, the paper (available for download here) makes three main recommendations: establishing beneficial ownership transparency, recognizing compliance efforts, and enhancing Responsible Business Conduct in infrastructure projects.

One of the Group’s central messages is that the regulatory framework in the G20 and beyond must be such that companies realize responsible business conduct is worthwhile. The paper also calls for government entities, business, and other stakeholders to cooperate more effectively in combating corruption, including through collective action initiatives.

The Cross-Thematic Group is chaired by Dr. Klaus Moosmayer, Chief Compliance Officer of Siemens and a member of IACA’s frequent visiting faculty. It includes more than 100 members from 26 countries.

Martin Kreutner, IACA’s Dean and Executive Secretary, said the Academy is ready to play a full part in promoting responsible business conduct worldwide through its education, training, and capacity-building activities, and via other forms of technical assistance.

“International cooperation is essential to fighting and preventing corruption effectively, and the global business community has a vital role to play in this regard. This new B20 paper sends a strong signal in terms of promoting integrity and incentivizing companies that lead the way on compliance,” Mr. Kreutner commented.

The paper’s recommendations will be handed over to the German Chancellor Angela Merkel during the B20 summit in Berlin on 3 May. Germany currently holds the Presidency of the G20.

IACA Dean Meets Austrian Justice Minister

Mr. Martin Kreutner, IACA’s Dean and Executive Secretary, met the Austrian Minister of Justice, H.E. Mr. Wolfgang Brandstetter, in Vienna on Friday to discuss IACA – host-country relations and the increasing importance of international cooperation in the fight against corruption.

“Combating corruption nationally and internationally is essential for safeguarding human rights and strengthening the rule of law, and IACA is making a valuable contribution to fostering international cooperation in this area. The Republic of Austria is pleased to host the organization and looks forward to further productive engagement with IACA in the future,” H.E. Mr. Brandstetter said.

“International cooperation is crucial if the world is to address a series of mounting global threats – including corruption in all sectors - and realize the UN’s 2030 Agenda for Sustainable Development. IACA remains committed to this agenda and is grateful for its close links to, and the continued support from, the Republic of Austria,” Mr. Kreutner concluded.

Other topics for discussion included preparations for the sixth session of IACA’s Assembly of Parties and the seventh Conference of the States Parties (COSP) to the United Nations Convention against Corruption (UNCAC), both of which will take place later in 2017.

Serbian Ambassador Presents Credentials

On 24 April H.E. Mrs. Roksanda Ninčić, Ambassador and Permanent Representative of the Republic of Serbia to the International Organizations in Vienna, presented her credentials to Mr. Martin Kreutner, Dean and Executive Secretary of IACA.

Serbia ratified the Agreement for the Establishment of IACA as an International Organization in December 2011.

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