ICC Commercial Crime Service

Why You Are Probably a Victim of International Corruption

If you are reading this, chances are you have been affected by international corruption. Because this type of fraud occurs in the shadows in the form of bribery and other financial crime -- and it happens to corporations and governments rather than individuals -- the problem generally fails to arouse media attention or public anger sufficient to facilitate change. People know it’s a problem, but it’s not personal.

An estimated $1 trillion dollars is paid in bribes every year around the world, Kreutner said, resulting in significant losses to governments. In some African countries, bribes accounted for losses of up to 25 percent of the GDP, while in Asia the number was close to 17 percent. In Europe, the figure is estimated at between 5 to 10 percent of the GDP. Given our global economy, the effects are also global, including public discontent. The latest Eurobarometer survey found that about 76 percent of Europeans believe corruption in government is widespread, and more than half believe it has increased in their own countries. Not only Europeans are distrustful of their government. In the U.S., according to a recent Gallup poll, about 75 percent of Americans believe corruption in the government is widespread.

The IACA is an international organization established to contribute to the fight against corruption through education, research and cooperation among nations.

Kreutner was just one of the experts who addressed ICC FraudNet members at the conference, and participated in panel discussions focused on fraud trends and strategies we use to help victims recover their assets and hopefully a sense of well-being. The purpose of the event is to increase worldwide cooperation in the fight for fair competition and a business environment free of corruption and fraud. For example the keynote speaker was Elena Panfilova, vice chair of Transparency International (TI) and the chair of TI Russia, whose speech included information about tracing property in foreign jurisdictions.

Attended by FraudNet members and strategic partners: Andrews International, BDO, Grant Thornton, The Mintz Group and PwC and international government and business executives, this working event was supported by ICC Austria, Transparency International and the International Anti-Corruption Academy Austria (IACA) and hosted by FraudNet’s Austrian member Bettina Knoetzl of Wolf Theiss.

Kreutner lauded the work of the United Nations Convention against Corruption (UNCAC), which includes 175 countries united in a common goal of reducing bribery and corruption in the next 15 years. Given the size of the problem, he also posed an interesting question. Should international corruption cases be viewed as human rights violations? Some experts think so, and are pushing this view, which could open up a new method of sanctions against the perpetrators.

Nothing illustrates the need for a different view of these crimes more than the economic and human tragedy in Moldova, where an elaborate fraud allowed thieves to make off with an estimated $1 billion from the country’s banks. Because Moldova is among the poorest nations in Europe, the people are suffering the consequences. They are taking to the streets by the thousands to protest, demanding justice and change, which they deserve. However, in addition to finding and punishing the guilty, the government should make every effort to return the people’s money.

The use of conventional techniques by enforcement agencies is not the answer. Casting a wide net around the world using experts in asset tracing and asset recovery is the only way to recover assets stolen as a result of a complicated international fraud. Established in 2004 by the International Chamber of Commerce (ICC), the world’s largest business organization, ICC FraudNet has expert resources in 67 countries, and has recovered assets in similar complicated government cases.

Coming together as a world wide team, and learning about the challenges of global fraud, is not only a reminder of just how big the problem is. It is also a reminder of our successes -- how skilled we are as members of ICC FraudNet, how well we mobilize to help victims and that there are more victories to be won.

Stéphane Bonifassi, of Lebray&Associés, specializes in representing victims of fraud, and is the executive director of ICC FraudNet. Regarded as a Most Highly Individual by WhosWhoLegal: Asset Recovery 2015, he is the former president of the criminal law commission of the International Association of Lawyers (UIA) and the former chair of the business crime committee of the International Bar Association (IBA). Bonifassi regularly speaks and writes about issues including corruption, fraud, asset recovery and mutual legal assistance. He contributed to the book, Asset Tracing & Recovery: the FraudNet World Compendium, and his article The Long Arm of the Law – Obtaining Jurisdiction and Evidence in France, was published in International Legal Practitioner.

ICC FraudNet is an international network of independent lawyers who are leading civil asset recovery specialists in each country. Recognized by Chambers Global as the world’s leading asset recovery legal network, our membership extends to every continent and the world’s major economies, as well as leading offshore wealth havens that have complex bank secrecy laws and institutions where the proceeds of fraud often are hidden. Founded in 2004 by the Paris-based International Chamber of Commerce (ICC), the world’s business organization, FraudNet operates under the auspices of the ICC’s London-based Commercial Crime Services unit.