Risks and Threats Corruption Legal Profession

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    Risks and threats

    of corruption and

    the legal profession

    Sy 2010

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    www.anticorruptionstrategy.org

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    Risks and threats of corruption and

    the legal profession: Survey 2010

    Contents

    Introduction 6

    A.Aboutthesurvey 6

    B.Surveymethodology 7

    C.Abouttheauthors 7

    Survey results 9

    A.Perceptionsoftheimpactofcorruptiononthelegalprofessionathomeandabroad 9

    1. PercePtionS of the imPact of corruPtion on the legal ProfeSSion at home 9

    2. PercePtionS of the imPact of corruPtion on the legal ProfeSSion

    in neighbouring juriSdictionS 11

    B.Risksassociatedwithinternationalbriberyandcorruption 12

    1. Perceived imPact of corruPtion on foreign inveStment 12

    2. buSineSS and comPetitive riSkS 12

    C.Levelofawarenessoftheinternationalanti-corruptionregulatoryframework 16

    1. awareneSS of international anti-corruPtion inStrumentS 16

    2. awareneSS of national legiSlation with extraterritorial aPPlication 18

    D.Theroleoflocalbarassociations,lawsocietiesandlawrmsinaddressing

    thechallengeofcorruption 20

    1. bar aSSociationS and law SocietieS 20

    2. law firmS 21

    Conclusions and recommendations 25

    A.Summaryofconclusions 25

    B.Recommendations 25

    Annex 1 27

    Annex 2 28

    Acknowledgements 29

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    4 anti-corruPtion Strateg for the legal ProfeSSion

    List of Charts and Boxes

    Charts

    Chart1 Doyouthinkcorruptionisanissueinthelegalprofessioninyourjurisdiction?

    (byregions) 9

    Chart2 Doyouthinkcorruptionisanissueinthelegalprofessioninyourjurisdiction?

    (bycountries) 10

    Chart3 Doyouthinkcorruptionisanissueinthelegalprofessioninyourjurisdiction?

    (byage) 10

    Chart4 Doyouthinkcorruptionisanissueinthelegalprofessioninneighbouring

    jurisdictions? 11

    Chart5 Haveyoueverbeenapproachedtoactasanagentormiddlemanina

    transactionthatcouldreasonablybesuspectedtoinvolveinternationalcorruption,eg,foreignbribery? 12

    Chart6 Inyouropinion,whatproportionoflegalprofessionalsinyourjurisdiction

    wouldbewillingtoparticipateorfacilitateinternationaltransactionsthat

    theyrecogniseascorrupt,eg,foreignbribery? 13

    Chart7 Doyouknowofanylegalprofessionalsinyourjurisdictionwhohavebeen

    involvedininternationalcorruptionoffences,eg,foreignbribery? 14

    Chart8 Doyoubelievethatyouhavelostbusinesstootherlawrmsorindividual

    lawyerswhoarepreparedtomakeillicitpaymentstogovernmentofcialsonbehalfoforforthebenetofforeigncompanies/investors? 14

    Chart9 Awarenessofinternationalconventionsoncorruptionandbriberybyregion 16

    Chart10 Awarenessofinternationalconventionsbystateparties 17

    Chart11 Howresponsestopleaseselecttheinternationalanti-corruptioninstruments

    youarefamiliarwitharedistributedwiththepracticeareaofrespondents 18

    Chart12 Doesyourbarassociationorlawsocietyprovidespecicanti-corruption

    guidelinesforlegalprofessionals? 20

    Chart13 Doesyourbarassociationorlawsocietyguidelinesaddressspecicallythe

    issueofinternationalcorruption,eg,foreignbribery? 21

    Chart14 Wheredoesdealingwithcorruptionandforeignbriberyrisksrankwithin

    theprioritiesofyourlawrm? 21

    Chart15 Howresponsestowheredoesdealingwithcorruptionandforeignbribery

    risksrankwithintheprioritiesofyourlawrmaredistributedwithrespect

    tothepositionsheldbyrespondents 22

    Chart16 Doesyourlawrmhaveaclearandspecicanti-corruptionpolicy? 22

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    riSkS and threatS of corruPtion and the legal ProfeSSion: Surve 2010 5

    Chart17 Howresponsestodoesyourlawrmhaveaclearandspecicanti-corruption

    policyaredistributedwithrespecttothepositionsheldbyrespondentsin

    lawrms 23

    Chart18 Approximatelywhatproportionofyourforeignclientsrequireyourrm

    tocertifyanti-corruptioncompliance,eg,FCPAcompliance? 23

    Chart19 Hasyourrmbeensubjecttoanti-corruptionoranti-moneylaunderingduediligenceconductedbyforeignclients? 24

    Boxes

    Box1 Majorndings 6

    Box2 Distributionofrespondentsbygeographicalregion,ageandpositionintheirrms 7

    Box3 Internationalanti-corruptioninstruments 15

    Box4 Extraterritorialapplicationoftheoffenceofbribingaforeignpublicofcial 18

    Box5 Awarenessandage 19

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    6 anti-corruPtion Strateg for the legal ProfeSSion

    legal profession.1 As a consequence, lawyers may beat risk of violating this framework by, for example,their involvement as intermediaries in corrupt

    transactions that would leave them exposed topossible criminal liability.To gain a better understanding of the

    possible risks the legal profession faces in thisever-developing international anti-corruptionregulatory environment, an exploratory survey wasconducted among IBA members. The global survey

    was designed as part of the Anti-Corruption Strategyfor the Legal Profession. Its objectives are: to explorethe level of awareness of the risks of corruption;to investigate the legal professions awareness ofthe tools available to mitigate these risks; and toexamine the role bar associations, law societies andlaw rms have in ensuring the legal profession isequipped to engage effectively in the internationalght against corruption.

    The results of this survey were launched at the2010 IBA Annual Conference in Vancouver, Canada.

    A. About the survey

    In April 2010, the International Bar Association(IBA), in cooperation with the Organisation forEconomic Co-operation and Development (OECD)and the United Nations Ofce on Drugs and Crime(UNODC), launched the Anti-Corruption Strategy forthe Legal Profession, a project focusing on the rolelawyers play in ghting corruption in internationalbusiness transactions and the impact on thelegal practice of international anti-corruptioninstruments and associated implementing nationallegislation with extraterritorial application.

    A powerful and developed internationalregulatory framework to combat corruption in allits forms is now in place. It includes international

    legal instruments and national anti-corruptionlegislation that applies to corruption casesboth at home and abroad. Unfortunately, manylawyers remain unaware of the implications ofthis international anti-corruption regulatoryframework on both their legal practice and on the

    Introduction

    box 1 major findingS

    Nearlyhalfofallrespondentsstatedcorruptionwasanissueinthelegalprofessionintheirownjurisdiction.Theproportionwas

    evenhigherover70percentinthefollowingregions:CIS,Africa,LatinAmericaand,BalticStatesandEasternEurope.

    Morethanafthofrespondentssaidtheyhaveormayhavebeenapproachedtoactasanagentormiddlemaninatransaction

    thatcouldreasonablybesuspectedtoinvolveinternationalcorruption.Nearlyathirdofrespondentssaidalegalprofessional

    theyknowhasbeeninvolvedininternationalcorruptionoffences.

    Nearly30percentofrespondentssaidtheyhadlostbusinesstocorruptlawrmsorindividualswhohaveengagedin

    internationalbriberyandcorruption.

    Nearly40percentofrespondentshadneverheardofthemajorinternationalinstrumentsthatmakeuptheinternationalanti-

    corruptionregulatoryframework,suchastheOECDAnti-BriberyConventionandtheUNConventionagainstCorruption.

    Thelevelofawarenessoftheexistenceofanti-corruptionextraterritoriallegislationishigherthanthatoftheinternationallegal

    instruments:60percentofsurveyrespondentswereawareoftheFCPAanditsscope,while30percentwereawareoftheUK

    BriberyActanditsscope.

    Atotalof42percentofrespondentsagreedthatnationalanti-corruptionlawsandregulationswereeffectiveinpreventing

    bothinboundandoutboundinternationalcorruptioncomparedtoveyearsago.

    Youngerrespondents(aged20to30years)were,onaverage,lessawareofinternationalanti-corruptionlawsandnational

    legislationthanolderrespondents.

    Only43percentofrespondentsrecognisedthattheirbarassociationsprovidesomekindofanti-corruptionguidanceforlegal

    practitioners.Ofthese,onlyathirdsaidthatsuchguidancespecicallyaddressestheissueofinternationalcorruption.

    Lessthan40percentofrespondentssaidanti-corruptionwasapriorityattheirlawrmandjustunderathirdsaidthattheir

    rmsdonothaveaclearandspecicanti-corruptionpolicy.

    Morethantwo-thirdsofrespondentssaidtheirlawrmshadnotbeensubjecttoanti-corruptionoranti-moneylaunderingdue

    diligenceconductedbyforeignclients.

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    riSkS and threatS of corruPtion and the legal ProfeSSion: Surve 2010 7

    box 2 diStribution of reSPondentS b geograPhical region, age and PoSition in their firmS

    Partner 67%

    Associate 18%

    Other 15%

    Percentage of respondents by positions in the law firm

    Age 20-30 11%Age 31-40 29%

    Age 41-50 25%

    Age 51-60 21%

    Age 61 and over 14%

    Percentage of respondents by age

    Number of respondents

    1-5

    6-10

    11-20

    21-30

    31 and above

    No respondents

    Number of responses Jurisdictions

    1-5 Albania,Algeria,Austria,Azerbaijan,Barbados,Belgium,Bolivia,BosniaandHerzegovina,

    Bulgaria,Cambodia,CaymanIslands,CostaRica,Croatia,Cyprus,CzechRepublic,Egypt,El

    Salvador,Ethiopia,Finland,Georgia,Ghana,Guatemala,Honduras,Hungary,Iran,Ireland,

    Israel,Kenya,SouthKorea,Kosovo,KyrgyzRepublic,Latvia,Lebanon,Liechtenstein,Lithuania,

    Macedonia,Malaysia,Moldova,Nepal,Nicaragua,Oman,Pakista

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