G20: Take action on corruption
The G20 has both the power and responsibility to clamp down on cross-border corruption and illicit financial flows. How obvious should corruption be before it’s a G20 priority?
Illustration: Transparency International
Money Gliders storm and disrupt the G20 Summit
Forty-eight hours before the 2024 Leaders’ Summit in Rio de Janeiro, Brazil, Transparency International filled the city’s sky with giant dollar bills to call attention to the G20’s failure to address corruption. Six paragliders with canopies customised with US$100-bill designs flew over Rio. They ended their flight on a public beach in Rio’s Barra da Tijuca neighbourhood, touching down on a banner which read: “How obvious should corruption be before it’s a G20 priority?”
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To spotlight this critical issue and get the leaders’ attention, Transparency International collaborated with an award-winning advertising agency INNOCEAN Berlin. The creative team designed and manufactured custom canopies, and enlisted a team of professional pilots who set the flight trajectory.
The problem
Corruption sabotages sustainable development and perpetuates inequalities between and within countries. Across the G20, persistent financial secrecy, complicit enablers and insufficient cooperation on cross-border cases facilitate cross-border corruption and illicit financial flows. And yet, the G20 has been treating corruption as a lower-order concern. This has meant very few meaningful commitments and even less action.
Unless the G20 countries fix serious financial integrity flaws within their economies, money that should be funding sustainable development in low- and middle-income countries will continue to be stolen, laundered and invested abroad.
The solution
The G20 should stop treating anti-corruption as a silo issue that can be solved without a high-level commitment. To unlock progress, leaders must bring anti-corruption from the margins to the core of the G20 agenda, in 2024 and beyond. In doing so, G20 leaders should put their full weight behind priority reforms where they can have the greatest impact:
- End financial secrecy and finally deliver effective regimes of beneficial ownership transparency.
- Enact effective regulation and supervision of financial system gatekeepers, such as company formation agents, real estate agents and lawyers.
- Strengthen international cooperation and intelligence sharing to prevent, detect and prosecute cross-border corruption.
How we got here
June. Transparency International organised a roundtable on the sidelines of the G20 Anti-Corruption Working Group’s meeting in Paris, France. We outlined financial integrity as a critical area for G20’s efforts on sustainable development and inequality reduction. See also: G20 Position Paper: Financial integrity for sustainable development and inequality reduction.
August. Ten years after G20 promises to crack down on anonymous companies, Transparency International took stock of where G20 countries stand. See also: G20 and corporate transparency: Put your money where your principles are.
October. The third-ever G20 Anti-Corruption Ministerial took place in Natal, Brazil. The officials adopted a declaration on sustainable development. In our view, the declaration neglects the G20’s critical role and responsibility in marshalling efforts against cross-border corruption.
November. Transparency International’s representatives from across the G20 wrote an open letter to G20 leaders asking them to salvage the anti-corruption agenda.
During the 10th session of the Conference of States Parties (CoSP) to the UN Convention against Corruption (UNCAC) in Atlanta, Transparency International and Transparency International Brazil organised a civil society meeting with the Brazilian co-chair of the G20 Anti-Corruption Working Group.
Following Russia’s invasion of Ukraine, the G20 had a divisive year under the Indonesian presidency. All year long, Transparency International had repeatedly urged the G20 to stop kleptocrats and prioritise measures for combatting cross-border corruption and illicit finance. The G20 Leaders’ Bali Summit managed to produce a joint communiqué, but failed to make progress on the critical issue of transnational corruption.
More than three years after the G20 beneficial ownership principles were adopted, our G20 Leaders or Laggards? report found that 11 G20 countries still had weak or average beneficial ownership legal frameworks.
Transparency International’s report Just for Show? assesses the extent to which G20 members were fulfilling their commitments one year after the adoption of G20 principles on beneficial ownership transparency. The study revealed that 15 G20 countries had weak or average beneficial ownership legal frameworks.
G20 leaders pledged to crack down on anonymous companies. The adoption of High-Level Principles on Beneficial Ownership Transparency at the 2014 Brisbane Summit, for which we pushed, was an important milestone in shaping global consensus on the issue.
In 2010, G20 leaders established the Anti-Corruption Working Group “in recognition of the significant negative impact of corruption on economic growth, trade and development.”
At the Pittsburgh Summit, alongside the launch of the G20 Framework for Strong, Sustainable and Balanced Growth, leaders noted the importance of preventing illicit financial flows to protect resources being mobilised for development.
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