I. Private Sector Integrity
C4I has historically engaged with global businesses on proactive and leading practice policies, procedures, and practices to prevent, identify, and mitigate corruption. We have played an integral and impactful role in various significant anti-corruption initiatives.
OECD Anti-Bribery Convention
Uneven enforcement of laws prohibiting foreign bribery distorts international business competition and undermines development.
The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (“OECD Anti-Bribery Convention”) promotes a bribe-free, level playing field for companies around the world. It establishes legally binding standards to criminalize bribery of foreign public officials in international business transactions. The Convention is a key instrument for curbing global corruption. The 44 signatory countries are responsible for over two-thirds of world exports and almost 90 per cent of total foreign direct investment outflows.
Some of C4I’s OECD Anti-Bribery Convention and general anti-bribery advocacy work includes:
- Commenting on drafts of the 2021 Revised Recommendation on Further Combating Bribery of Foreign Public Officials in International Business Transactions
- Evaluating the United States Foreign Bribery Enforcement by contributing comments to the 2020 Phase 4 Review of the U.S. Implementation of the Anti-Bribery Convention.
- Contributing to Transparency International’s Annual Progress Reports on the enforcement of the OECD Anti-Bribery Convention.
- Forming a coalition of key U.S. business and labor groups and successfully placing foreign bribery enforcement on the Obama Administration’s agenda, resulting in bilateral exchanges with China and India.
- Defending the Foreign Corrupt Practices Act (FCPA) against attempts to weaken it and successfully advocating for the issuance of FCPA guidance by the Department of Justice and the Securities and Exchange Commission.
- Successfully advocating for the publication by the OECD Working Group of official information on cases and investigations on a country-by-country basis.
- Securing common standards contained in the OECD Recommendation on Bribery and Officially Supported Export Credit that require export credit agencies to adopt stronger anti-bribery requirements and stronger due diligence.
C4I will continue to work to promote the national advocacy campaigns and continue advocating for stronger enforcement of foreign bribery laws by all countries.
Corporate Forum and Public/Private Sector Consultations
C4I works with corporate executives and companies that prioritize corporate integrity and leading compliance practices. The C4I Corporate Forum provides the Coalition’s corporate supporters with opportunities to interact with peers and governmental officials on emerging global issues and integrity-related programs and practices.
Recently, C4I’s Corporate Forums have:
- Featured the U.S. State Department’s Coordinator on Global Anti-Corruption, Richard Nephew – discussing the Administration’s private sector, programmatic, and country-specific anti-corruption priorities and activities.
Examined the disproportionate impact of State Owned Enterprises (SOEs) in the global economy, in a discussion led by Paris-based former OECD General Counsel, avocat and Professor Nicola Bonucci and former OECD Team Lead, - Integrity and Sustainability in State Companies Alison McMeekin.
- Reviewed the interplay of anti-corruption legal and business certification standards, focusing particularly on ISO 37001 – Anti-bribery management systems with BSI Group General Counsel – Americas Steve Sherman.
Other recent C4I gatherings have featured presentations by, and discussions with: U.S. Department of Commerce Assistant Chief Counsel Kathryn Nickerson (on the topic of the negotiations concerning the Indo-Pacific Economic Framework For Prosperity Agreement Relating To A Fair Economy); and Counselor to U.S. Treasury Department Undersecretary and Head of Strategic Illicit Finance Initiatives Chandana Ravindranath (on the topic of the Biden administration’s focus on anti-corruption, integrity and financial transparency).
Practice Guidance
Report: Using Machine Learning for Anti-Corruption Risk and Compliance.
C4I was a leader in the early identification of legal, ethical, and compliance program operational issues associated with artificial intelligence (AI). Our 2021 study is widely respected and continues to be cited by business and governmental leaders as AI usage becomes more mainstream.
Report: The ISO 37001 Anti-bribery Management System Standard: Coalition for Integrity’s Recommendations for Companies Considering Certification
ISO 3701 is as an International Organization for Standardization “management system standard.” A private or public entity may therefore have its ISO 37001 management system audited by an independent accredited 3rd party. A successful audit results in certification of that management system. Certain industry sectors and geographies have embraced ISO 37001 and have encouraged (or in some cases, required) its use. C4I’s ISO 37001 report provides recommendations for organizations to consider in evaluating and conducting ISO 37001 audits.
II. U.S. Transparency and Accountability
C4I believes that transparency and accountability are essential characteristics of democratic governance at the federal, state, and local levels. Transparency serves two important purposes. First, it opens governmental operations and processes to those it serves. A transparent government allows people to participate in the democratic process and to keep informed of government budgets, spending, and projects. Second, transparency is a powerful weapon against corruption. When government processes are transparent, it is more difficult for corruption to occur.
Accountability goes hand in hand with transparency. An accountable government is one that is responsive to the needs of the people it serves. It listens to the voices of its citizens and uses this citizen feedback to shape and improve its policies and programs. Together, transparency and accountability stimulate public engagement, improve government responsiveness, and thereby strengthen and enrich the democratic process.
C4I continues to support and promote transparency and accountability in the United States as a strategic priority. Our work on this subject includes the following portfolios:
State Ethics
States are important change agents in the United States’ democratic process. Policies and programs first enacted at the state level can lead to federal government policy shifts and legislative action.
To support the democratic process at the state level, C4I has analyzed state-level ethics and disclosure laws to determine where improvement can be made. In 2018 we released a unique report on States With Anticorruption Measures for Public Officials (SWAMP Index). This report graded and compared all fifty states and DC on their laws and regulations surrounding ethics and integrity in state government.
In 2019 C4I issued another States-related report: Enforcement of Ethics Rules by State Ethics Agencies: Unpacking the S.W.A.M.P. Index. This report examined how state ethics agencies enforce their own ethics laws. It also graded and ranked states on how transparency regarding that enforcement.
We continued our work in 2020 for two reasons. First, C4I saw improvement in the ethical framework in many states, as a result of our advocacy and that of state-based organizations. Secondly, we experienced greater engagement from state ethics agencies, showing greater interest in our report and findings. As part of our methodology, we sent the 51 reports to the relevant agencies in each state. Each agency was given the opportunity to comment on the report to provide clarification. For the 2020 report we received comments back from 34 states as compared to 24 in 2018.
Federal Ethics and Stimulus Oversight
Oversight of Infrastructure Spending
C4I released a 2021 report on Oversight of Infrastructure Spending at the start of the Biden administration, including recommendations to prevent and detect corruption, waste, and abuse in infrastructure spending related to the proposed $1 trillion surface infrastructure bill and the estimated $3.5 trillion human infrastructure budget.
C4I is in the process of updating this report to evaluate the extent to which the 2021 report’s recommendations were adopted or not, and to analyze documented cases of corruption, waste, and abuse related to the Infrastructure and Investment Jobs Act and the CARES Act.
Anti-Corruption Recommendations for the Biden Administration
C4I’s 2021 report identifies existing gaps in domestic law and global anti-corruption frameworks, and recommended specific actions for more effective anti-corruption enforcement.
Oversight of the CARES Act
C4I’s 2020 report highlights past success stories of U.S. agency and departmental Inspectors General, and examines the related “lessons learned” for application to the CARES Act. Importantly, studies consistently demonstrate that Inspectors General recover dramatically more money than they receive in budget appropriations.
III. Beneficial Ownership Transparency
Every year, several million corporations, LLCs, and other business entities are formed in the United States—with many states collecting less information from the individuals forming these entities than from people applying for a driver’s license. Information about natural persons who directly or indirectly exercise substantial control and persons who receive substantial economic benefits from the company/legal entity is not collected. This anonymity facilitates domestic and foreign corruption by allowing individuals to hide their identities and their corruptly obtained assets behind the façade of a U.S. corporation. In contrast, the UK and the EU have made significant strides to require increased transparency related to legal entities.
Our past advocacy includes:
- In February 2022, C4I submitted comments to the Financial Crimes Enforcement Network (FinCEN) of the Treasury Department on a proposed rule that would address the vulnerability of the U.S. real estate market to money laundering and other illicit activity.
- Also in February 2022, C4I submitted comments on notice of proposed rulemaking to implement the beneficial ownership reporting requirements in the Corporate Transparency Act (CTA).
- In May 2021, C4I submitted comments to the Financial Crimes Enforcement Network’s (FinCEN) advanced notice of proposed rulemaking (ANPR) to implement the beneficial ownership reporting requirements in the Corporate Transparency Act.
- In December 2017, the Coalition for Integrity submitted comments for the official record of the Joint Hearing entitled “Legislative Proposals to Counter Terrorism and Illicit Finance.” Our comments focused on the beneficial ownership section (Section 9) of the draft “Counter Terrorism and Illicit Finance Act.”
- C4I has also consistently supported federal legislation related to transparency in the corporate formation process that would require states to collect beneficial ownership information.
