2012 CONFERENCE REPORT FOREWORD The World Bank Group’s International Corruption Hunters Alliance (ICHA) is an initiative I have happily inherited, and one that I intend the Bank to continue nurturing. If corruption exists, then so will poverty and from our perspective, corruption amounts to stealing from the poor. This Alliance mirrors what we are striving to ac- complish across the spectrum of our work at the Bank: to focus on solutions while moving away from acquiring knowledge for its own sake. This initiative brings together the toughest advocates, those who have chosen to fight corruption as their lifelong Jim Yong Kim, President, World Bank work even as they sail against the tide. No doubt the knowledge within ICHA is there, as is the determi- Still, our impatience to see corruption defeated and nation to conquer this all-too persistent problem. the need to remain vigilant cannot tempt us to act Unfortunately, practical solutions for how we can haphazardly. Our approach must be informed by stop corruption have always been more difficult to substance and logic so that we are always at our come by. With its focus on leveraging technology, most effective. Wherever we can bring a scientific fostering greater cooperation among anti-corruption approach to anti-corruption, we will be more likely entities, and strengthening enforcement efforts at the to succeed. ICHA can show governments, institu- national level, the second meeting of ICHA propels tions, corporations, and other entities that there is us in the right direction. a path that they can follow to avoid the pitfalls of corruption. From a global viewpoint, our attempts Everyone who has a stake in development should to stamp out corruption, recover stolen assets, and support an aggressive approach to anti-corruption. interdict illicit financial flows have produced mixed Humanity as a whole cannot afford the long-term results. Some countries have been able to vigilantly monetary or moral loss. We have to remember this pursue these agendas, while others remain over- when we are faced with the formidable short-term whelmed by weak institutions or lack of political consequences of clamping down on corruption. The will. I hope the Alliance becomes an ever more effec- World Bank Group will continue to act decisively. tive coalition that consistently delivers meaningful We will suspend funding whenever warranted, we results on this front. will publicly name offenders, and we will always consider the best interests of those whose voices have When ICHA next convenes, I look forward to been muted by poverty. meeting the men and women who are a driving force in the fight against corruption. Until then, let us continue to champion transparency and accountabil- ity through our efforts worldwide. Jim Yong Kim, World Bank Group President INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 1 TABLE OF CONTENTS Foreword........................................................................................................................................1 Welcome Speech, Leonard McCarthy, Integrity Vice President, World Bank...............................................4 Opening Address, Robert Zoellick, President, World Bank......................................................................5 Taking ICHA to the Next Level..........................................................................................................10 Proposed Outcomes.......................................................................................................................11 International Corruption Hunters: Participant Polling Exercise..............................................................16 ICHA 2012 Highlights Theme 1: National Enforcement Measuring the Results of Anti-Corruption Authorities: An Expert Panel by the World Bank’s Advisory Board..............................18 A Colloquium of Prosecution Experts.............................................................................................................18 Corruption Prevention Workshop................................................................................................................20 Visualizing and Using the Impacts of Corruption as Evidence: Expert Round-Table...........................................................21 Managing for Internal Integrity – Good Practice for Investigative and Prosecution Agencies...............................................22 Theme 2: International Cooperation Sharing Strategies and Success Stories for facing the Challenges in International Anti-Corruption Cooperation Efforts..................24 Lifting the Corporate Veil: A Panel Discussion on Transparency in Financial Centers (on-shore and off-shore).............................24 Settlements in Foreign Bribery Cases and Asset Recovery......................................................................................25 Quantification of the Proceeds of Bribery.......................................................................................................26 Open Forum on Tools and Resources for Sharing Anti-Corruption Information and Knowledge.............................................28 Actions to Overcome Impediments to Transnational Investigations and Prosecutions: Active Case Discussions in Collaboration with the World Bank’s Integrity Vice-Presidency...................................................29 Theme 3: Leveraging Technology in the Fight against Corruption Most Useful Forensic IT Programs for Fraud and Corruption Investigators....................................................................31 Whistleblower Laws and Corruption Complaint Handling Mechanisms.......................................................................31 Using Open Source Information in Fraud and Corruption Investigations......................................................................32 Crowd Sourcing and Citizen Engagement: Tools, Tales and Tech for Corruption Hunters.....................................................33 Survey of the Most Useful Technology for Fraud and Corruption Investigators...............................................................34 Regional Meetings.........................................................................................................................37 International Corruption Hunters Technology Expo: Leveraging Information Technology in the Fight against Corruption......................................................39 Operational Skills for International Corruption Hunters: Workshop at the George Washington University Law School.................................................................44 Annex 1: Figures............................................................................................................................46 Annex 2: Photo Gallery...................................................................................................................50 Annex 3: Planning Team..................................................................................................................51 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 3 Welcome Speech Leonard McCarthy, Integrity Vice President, World Bank Good morning everyone. Welcome to all of you. Also to our distinguished guests: the Dean of the Board, the Chair and other member of the Independent Advisory Board, a number of Vice Presidents and Executive Directors present. And especially to the many heads of investigating authorities, attorneys general and anti-corruption commissioners. Most of all, our special appreciation to the President of the World Bank Group, Robert Zoellick who came out to be with us. Today is spe- cial. On this day in 1783, the Montgolfier brothers Leonard McCarthy, Vice President, Integrity Vice Presidency, World Bank in France launched the first public balloon flight. On 5 June 1977, the first personal computer—the referrals as in 2008, when Mr. Zoellick first shaped Apple II went on sale. So if you came here through the new INT-ship. air-travel or on a balloon—and you have your iPad with you, we are in good company. The Independent Advisory Board, which was Chairman Paul Volcker’s and Mr. Zoellick’s genius, On 5 June in the year 1947, history books tell us gives us wise counsel about how to run a top notch that US Secretary of State, George Marshall, out- anti-corruption office. lined the Marshall Plan. It was a bold and visionary move to stem the impending famine and economic We innovate here. Mr. Zoellick paved the way for crisis in war-torn Europe. So, today is an auspicious the World Bank to put in place a system to cross day. Eighteen months ago, when we launched this debar guilty entities, sharpen our integrity due dili- Alliance, Mr. Zoellick said we should ignite a chain gence and use sanctions, settlements and other tools, of crime fighting reactions. Some security experts as creative mechanisms to bring mettle and equity to in the room at the time looked a bit uncomfort- punishment. able. Last night I spoke to the Ombudsman of the Philippines, Madam Conchita Morales. She told me Under his watchful eye, the World Bank now pub- that she has tried to ignite a chain of crime fighting lishes the findings of all its investigations. The judges reactions in her country. As a result, on a morning of our Sanctions Board report their judgments, last week, she found a hand-grenade on her door- just like in any open court where the rule of law is step. They were sending her a message, trying to paramount. intimidate her. But she is tough. Yesterday I screened the Bank’s press releases for There are no grenades, guns or hand-cuffs in this the major high-impact interventions made on the room. Just numbers—and I sense—a passion to be anti-corruption side in recent years. I could mention on the right side of history. One man in this room many, but the record speaks for itself. These successes whose daily actions put him on the right side of his- are all associated with Mr. Zoellick’s astuteness and tory is Robert Zoellick. I spent many mornings the gravitas. last four years listening to the wisdoms he conveys to the Bank’s senior management. From the very beginning Robert Zoellick was this Alliance’s staunchest supporter. We joked at the time Here at the World Bank he has moved the zeitgeist about calling it CSI World Bank, but he was abso- of the institution by fusing high performance with lutely serious about the importance of establishing integrity, and he has truly made this a flagship or- such a group of anti-corruption heavyweights. We ganization. The World Bank is now producing four thank you Mr. Zoellick for your inspiring leadership times as many sanctions, investigations and criminal and support. 4 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Opening Address Robert Zoellick, President, World Bank It’s a great pleasure to welcome you back to the World Bank for this second meeting of the World Bank’s International Corruption Hunters Alliance. This group first began to come together three years ago in Botswana.  At that time, it was made up of only a handful of like-minded corruption fighters. We’ve come a long way since then.  As I look around this room today, I see that there is strength in num- bers. This alliance now has around 250 members, repre- senting six regions across the globe as well as inter- national development organizations, multilateral development banks, and international enforcement entities.  I’m particularly pleased that so many chiefs of law enforcement bodies and heads of internation- al anti-corruption agencies are with us today.  Robert B. Zoellick, World Bank President, delivers the opening address at ICHA 2012 So I’d like to thank all of you for your commitment ernments responsible if they steal or cheat; and driv- and dedication to rooting out corruption.  ing efforts like this one, which make our network of I’d also like to thank the governments of Australia partners stronger and more effective.  It has been a and Denmark, who have recognized the potential of privilege to work with Leonard, and I want to take this initiative and provided generous support to help this opportunity to thank him publicly.   sustain it.  I hope other governments will be moti- At the inaugural meeting of this Alliance, in De- vated by the outcomes of this year’s meeting to lend cember 2010, you agreed on priority actions.  I’m their support as well. pleased to say we’ve made good on our promises.  I especially want to thank Leonard McCarthy. When First, we pledged to step up criminal action against I asked Leonard to head up the World Bank Group’s corrupt officials – and we achieved significant results: Vice Presidency for Institutional Integrity, we were seeking to get beyond some difficult days. I knew we • Indonesia’s anti-corruption commission, the KPK, needed a leader who was recognized globally for his secured jail terms against thirty-nine people; integrity, independence, and effectiveness in fighting seized one billion rupiahs of bribe money in a corruption and strengthening good governance.  sting operation; and is now using a new National Integrity Index to track the performance of I also hoped for someone who could speak from the government officials.  Working with Interpol, the developing world’s perspective; who recognizes that KPK successfully extradited two corrupt fugitives, stealing from the poor is an outrage; that under- both of whom have been tried and sentenced. mining the public trust in new governments, often in fragile situations, is a terrible breach of duty; • The UK’s Serious Fraud Office efforts led to a who could speak in plain language from the heart court order for Macmillan Publishers to pay more about the importance of honesty, fair dealing, taking than £11 million for its unlawful conduct in a responsibility…and attacking corruption, crime, and World Bank education project in South Sudan. cartels.  • And a prosecution by Norwegian authorities led to the bribery conviction of three individuals Leonard has been a true leader – protecting the connected to a World Bank-financed project in Bank’s assets; holding people, businesses, and gov- Tanzania. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 5 Second, the Alliance pledged to improve the quality, shell companies are so rarely prosecuted.  The answer amount, and speed of our information sharing. was that no one could prove these intermediaries’ involvement, and investigators were under no obliga- Our Integrity Vice Presidency, INT, is formalizing tion to conduct proper due diligence on their clients.  information sharing through parallel investigations StAR’s research and training work in Afghanistan, and memoranda of understanding with national Bolivia, Colombia, and Egypt aims to mitigate this authorities.  We’ve seen how these steps give national willful blindness on the part of the financial service law enforcement authorities the power and legitima- providers. cy to share critical information with the Bank.  Greater training on asset recovery – to share exper- For example, INT is currently working with sev- tise and hone operational skills – would help secure eral European prosecuting offices on a corruption even more results.  That’s why, at the end of the investigation that has touched a number of countries week, 100 of you will have the opportunity to learn around the world.  Through close coordination, ex- more about evidence gathering, mutual legal assis- change of information, and trust, these joint efforts tance, and asset recovery from a program StAR is have led to arrests and seizure of ill-gotten gains.  In co-hosting with George Washington University. a separate case, a national authority conducted an investigation based on our referral, leading to arrests Innovation: Using Technology to Get Ahead that will be critical in helping the World Bank ad- dress a major infrastructure project. We need to keep up the progress in these priority areas.   But we need to go further, too. So today I Third, in 2010 the Alliance determined to figure want to focus on how we can be more creative and out how best to share restitution payments and fines innovative in the global fight against fraud and with countries that have been the victims of corrup- corruption. tion.  The World Bank estimates that $20 to $40 bil- lion is stolen every year from developing countries. Technology enables us to gather, analyze, and share information at a rapid pace. The more information Soon after I arrived at the World Bank Group, we we can make available to the general public about created the Stolen Asset Recovery initiative, or StAR how funds are spent – whether it’s public funds – a partnership between the World Bank Group and managed by governments or transactions involving the UN Office on Drugs and Crime, that supports World Bank money – the more we ease the burden international efforts to end safe havens for corrupt on corruption hunters.  Citizens are the best people funds.  to hold governments and institutions accountable.  This is the first step in reducing opportunities to In 2009, StAR provided instrumental support to engage in or be tempted by corruption. the governments of Haiti and Switzerland, leading the Swiss to order  $6 million in assets – allegedly The World Bank Group is already sharing informa- plundered by former Haitian President Jean-Claude tion through our Open Data initiative, which makes Duvalier and his associates —to be returned to thousands of datasets freely available to anyone with Haiti. an Internet connection.  Based on the success of this initiative, we have supported similar programs This year, StAR helped Tunisia secure the return of in Kenya, Moldova, Mongolia, and other countries.  two jets that had been hidden in Europe, worth an The message to our clients is clear: We are open estimated $30 million.  These are important first about what we do and what we know.  You can do steps, as well as a demonstration of international the same. commitment and cooperation toward asset recovery.  But we also know that today we’re only touching the One of the studies StAR released this year asked tip of the technological iceberg.  After sharing infor- investigators in a number of different jurisdictions mation, the second step is to start using it in interac- why the intermediaries who provide the front for 6 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 tive and innovative ways to outsmart corruption and probability that punishment will be imposed in a criminality. At the International Corruption Hunters timely fashion is more important than the severity of Technology Expo in the Bank’s atrium, you will see punishment.  the World Bank’s new Integrity App, which will facilitate reporting on fraud and corruption. Criminal organizations are attracted to places where formal controls from the criminal justice system A large number of our investigations are driven by don’t operate; where informal controls from neigh- information we receive from observant individuals bors or citizens aren’t working; where institutions are working on Bank-funded projects.  Citizen involve- weak.  In Guatemala, for example, only 3.5 percent ment can be powerful – if we empower people.  They of murder cases end up in a trial.  That sends a clear know when something isn’t right.  The World Bank message to the criminals.  Integrity app will give them instant access to project information, so they can easily send information and How can we do better? photos to INT.  It will help speed up and broaden the reach of the complaints handling process.  Strong legal frameworks are fundamental – and in the past year we’ve seen the enactment of two power- Interpol has approached the World Bank about ful new anti-corruption laws:  another innovative use of technology: an interna- tional drive to get key countries to produce national Canada is now able to seize, freeze, or sequester the electronic ID cards for migrant workers, whose assets of officials or former officials of foreign states, vulnerable status often makes them easy prey for as well as their family members, where these assets organized crime.  These ID cards will be globally had been inappropriately obtained or misappropriat- verifiable by Interpol and can be used for the receipt ed from the foreign state.  and transfer of electronic remittances.  This excellent idea will give migrant workers greater security at the In China, it’s now a crime to pay bribes to foreign same time it helps law enforcement agencies crack government officials and officials of international down on human trafficking, money laundering, and public organizations. The law covers Chinese citizens other forms of smuggling. and legal entities organized under Chinese law, including foreign invested enterprises established in Innovation: Understanding Corruption China that engage in bribery anywhere in the world. Technology can help us move faster and with greater Strong institutions are also important – because re- accuracy to detect and catch fraud and corruption.  covered funds can’t be repatriated to countries where But we need to learn more about the cancer of cor- institutions fail to manage them properly. Where the ruption. proper mechanisms exist to manage such funds, we need to take advantage of them.  Where they don’t This April, government ministers, private sector exist, we need to create them.  executives, and World Bank experts met for a frank analysis of corruption in infrastructure projects.  We also should be innovative in how we pursue One of the executives from a private bank suggested investigations of corrupt or fraudulent behavior.  It that governments could reduce the incidence of cor- must be crystal clear that corrupt behavior has real ruption by conferring more prestige upon the work costs and consequences.  of public procurement officials.  Tougher qualifica- tions would attract better candidates.  Higher salaries The Bank Group has had success in using negotiated would reduce the likelihood officials will solicit resolutions or settlements.  Firms that enter into bribes and that they will be tempted. settlements don’t escape punishment – in fact, in almost every settlement, the firm has been debarred “Knowing thy enemy” is good advice.  Harvard and subjected to cross debarment. In every settle- professor Matthew Stephenson has examined the ment – as for any case resolved by our Sanctions psychology of corruption, and found that the Board – the nature of the charges and the sanction INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 7 applied is made public and the findings are shared Yet there’s so much more that needs to be done to with relevant government authorities so they may promote and support financial integrity. take action under their national legislations. A 2011 study from the UK’s Financial Services Au- Settlements have, however, proven to be an invalu- thority illustrates some of the challenges.  The study able tool – not only for resolving cases quickly, but describes how British banks are faring in managing also providing a way for firms to acknowledge their money laundering risk in high-risk situations.  The misconduct and clean up or build their own internal report notes that some banks were unwilling to turn integrity programs.  away very profitable business, even if there was a high level of risk that they would be handling the In 2010, for example, the engineering firm Lotti proceeds of crime.  Over half the banks surveyed acknowledged its misconduct in a World Bank-fi- failed to apply meaningful enhanced due diligence.  nanced water project in Indonesia.  As part of its Around a third failed to put in place mechanisms to agreement with the Bank, Lotti repaid $350,000 to identify customers who might be more susceptible to the Indonesian government as restitution for fraudu- corruption. lent invoicing.  As another example, Siemens AG has completely reworked its approach to integrity due diligence in response to investigations by, and settlements with, the World Bank Group, as well as the US Depart- ment of Justice and German authorities. Our investigations and debarments have bite. Since mid-2007, the Bank Group has sanctioned 167 entities while closing more than 600 cases.  Private banks and firms are factoring our debarment decisions into their own due diligence.  Leonard re- cently related to me a conversation with the General Counsel of a major Canadian mining firm, who told him: If the World Bank says it’s OK to work with a We need to insist on greater integrity in financial company, then we say it’s OK too.  Private compa- institutions.  nies will sometimes call INT looking for guidance about the firms that appear on the World Bank’s Last year, enforcement authorities from around the debarment list. globe came together to endorse a World Bank-spon- sored Declaration of Principles.  The declaration em- By reaching out and working with national author- phasized the need for investigative and enforcement ities on investigations, audit, and risk management institutions to work together to better assess and efforts, the Bank is also helping strengthen in-coun- track money flows in and out of key jurisdictions, try capacity and systems.  and report on suspicious transactions – exactly the kind of action we need to reduce dangers in high- For example, the World Bank recently conducted a risk environments.  health sector review with the Global Fund to Fight AIDS, Tuberculosis, and Malaria and USAID, and We need to use the International Corruption Hunt- found that Nigeria had nearly $300,000 worth of ers Alliance to give these ideas more bite and make fraudulent expenses.  As a result, Nigeria removed the most of our collective influence.
Each of you the implicated officials and its Ministry of Finance has the power to effect change in your own country.   then used the Bank’s methodology and findings to The Alliance can give you the technical resources and inform its own review which found almost $1 mil- moral support to keep up the hard fight.    lion in fraudulent expenses.  8 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Looking Ahead Third: we recommend developing a practitioner’s toolkit for using evidence to show the impact of The aim of this Alliance was – above all else – to be corruption on the intended beneficiaries of public useful: to provide effective tools and information so services.  A toolkit would support prosecutions and all of us can successfully prevent and attack corrup- policy work by suggesting how to use this kind of tion. evidence in trials, support mutual legal assistance requests, drive policy change domestically, and build So I’d like to suggest three ideas for your meetings political and public support. this week that can help support the work that you do every day. Over the next few days, I hope that you will come up with other ideas on how we can support one First: We could develop a compendium of resources, another.  examples of cases, draft laws, and regulations that support integrity in financial centers; this project Many of the people in this room have great courage.  could serve as a useful informational resource for all They run risks.  We need to stand by one another.  members of the Alliance. We need to succeed.  Second: Coming out of the discussions in the 2010 I want to thank you again for your fortitude and meeting, we came up with a list of criteria for mea- your commitment, and for joining us as part of this suring the effectiveness of anti-corruption author- important network.  My hat is off to you all.  And ities – such as turn-around time for investigations, I look forward to hearing the results of your discus- successful outcomes, and level of autonomy.  We sions.  need to make this more concrete.  We suggest devel- oping a set of recommendations for how members could use these standards to improve anti-corruption efforts – to speed up investigations, prosecute them successfully, and operate without being influenced by political concerns. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 9 TAKING ICHA TO THE NEXT LEVEL When it was first conceived, two of the primary objectives of the World Bank’s International Cor- ruption Hunters Alliance (ICHA) were to support the creation of global enforcement mechanisms to fight corruption and increase action on the World Bank’s referrals to national authorities. In 2010, ICHA members agreed on priority actions that went even further. They agreed to step-up criminal action against corrupt officials; pursue multi-jurisdictional prosecutions; track and return illegal proceeds; provide effective tools and information to prevent Steve Zimmermann, Director of Operations, Integrity Vice Presidency, The World Bank and combat corruption; and monitor and disclose investigative results. The 2012 ICHA meeting took this work to the cross debarment agreement among multilateral next level, providing a mix of technical workshops development banks tripling the number of cross-de- and global policy discussions; regional meetings barred companies in less than three years; successful that enabled a focus on more local challenges and investigative outcomes as a result of bilateral and priorities; and an International Corruption Hunters’ international cooperation and rising numbers of cas- Technology Expo which provided a forum for the es around the globe are clear evidence of the impact World Bank, our international partners, vendors of our collective action. National and international and other exhibitors to showcase innovative tools, enforcement action against those stealing develop- platforms and apps that are transforming the fight ment resources is gaining pace. against corruption. The World Bank and the Stolen Asset Recovery Initiative (StAR) also partnered with This publication provides a summary of the policy the George Washington University Law School to discussions, regional meetings, technical workshops, deliver a two-day training on financial investigations and Technology Expo of ICHA 2012. The proposed and mutual legal assistance (MLA) to 90 ICHA outcomes of the Second Biennial Meeting of the delegates.1 ICHA are summarized in the following section. The World Bank will work with ICHA members to For the World Bank, the past two years have been a cement these outcomes and to continue to leverage testament to the positive impacts of building inter- anti-corruption efforts around the globe to produce national alliances against corruption. A functional greater tangible results in the fight against corrup- tion. Stephen Zimmermann, Director of Operations, Integrity Vice Presidency, The World Bank 1 Special thanks to Dean Paul Schiff Berman and Susan L. Karamani- an, Associate Dean for International and Comparative Legal Studies, of the George Washington University Law School. 10 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 PROPOSED OUTCOMES subsequently shared with members in a draft format (see pp. 8–9.) At ICHA 2012 members Over the course of two days, members of the Inter- were invited to identify follow-up actions national Corruption Hunters Alliance participated for implementing the matrix and for sharing in policy discussions, regional meetings, technical information about results. Given that there is workshops, and gathered for informal conversations. no one-size-fits-all template or standardized The following is a compendium of conclusions and performance monitoring methodology proposals for concrete action to follow up on these applicable to all anti-corruption authorities, discussions. The World Bank will work with mem- a broad logical performance monitoring and bers of the Alliance to achieve progress on these evaluation framework has been developed. proposed outcomes. The framework and a companion note will be circulated for comments and feedback among Outcome 1: Raising the bar and shaping the the ICHA members and through the ACA policy agenda Portal. 1. At ICHA 2010 members requested a study on Outcome 2: Scaling up capacity and results settlements in foreign bribery cases and asset for ICHA recovery to assess the effects of the increasing trend towards settlements on international 4. A Practitioner’s Toolkit on how to visualize cooperation and the recovery of assets. A the impact of corruption on the intended colloquium on the findings of the study at beneficiaries of public services. ICHA ICHA 2012 has provided a basis for evidence- 2012 drew on international expertise to draw based policy dialogue on this important and up recommendations for using this kind of sensitive issue. The recommendations and evidence in trials, to support mutual legal proposed actions by members will be reflected in assistance (MLA) requests, to drive policy a final edition of the study. change domestically, and build political cover or 2. Large-scale corruption and related money public support. laundering requires company formation and 5. The ICHA 2012 event has enabled the administration services to conceal transactions compilation of a catalogue of resources and and the identities of the principal actors. information on the most useful technology ICHA 2012 will raise the volume on the policy for investigators and prosecutors, including dialogue in this area to voice a collective call forensic software, resources for using open for action. A compendium of resources, case source information in corruption cases; case examples, draft laws and regulations that management systems; software to detect support integrity in financial centers and collusive bidding patterns, and extract, the recommendations by ICHA members will organize and analyze electronic evidence from be given a broad forum through blogging of computers, servers, email, mobile phones and the discussion by ICHA members and other other devices. At ICHA 2012 participants took communication channels. This output will help away knowledge and skills to address the new sharpen the global spotlight on integrity in challenges in the age of digital information. financial centers. This catalogue of resources – of which an initial 3. Advancing the definition and adoption of compendium is provided in this volume – will standards for measuring the effectiveness be updated and disseminated among ICHA of anti-corruption authorities was a goal members. expressed at the ICHA meeting in 2010.  The 6. Crowd sourcing and citizen engagement 2010 conference resulted in an agreement to techniques have typically been used by civil develop a Results Matrix: Measuring Activities society to raise awareness about corrupt of Anti-Corruption Authorities, which was behaviors and to deter wrong-doers. ICHA 2012 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 11 raised awareness of crowdsourcing techniques at the June meeting. The case studies are a among Alliance members and provided practical product of a partnership between ICHA and the advice for enforcement officials about the Harvard Law and International Development potential of these tools for gathering evidence Society (LIDS); the final publication – a report for investigations, as a red flag mechanism for on whistleblower laws and public interest targeting anti-corruption efforts, and for raising corruption complaint mechanisms will reflect credibility and citizen engagement. ICHA will the discussion among ICHA members at the support the dissemination of crowdsourcing June meeting. tools and techniques for fighting corruption. 9. The fight against corruption necessitates an 7. Government expenditures are coming under integral approach that considers not only the increasing scrutiny by parliaments and the importance on enhancing capacity of anti- public to ensure that funds are spent with corruption authorities but also of the many due consideration for economy and efficiency complementary institutions and agencies that and that officials act with integrity. Anti- can make their work successful, such as the corruption agencies and audit institutions judiciary and the police. For ICHA 2012 a have amassed considerable experience in how special session for the Africa region discussed the fraud and corruption undermine the public issue of police corruption and how to discourage sector, and are well positioned to engage line it. Police corruption plays a significant role ministries to ensure that these insights are in allowing the transfer of illegal assets across reflected in management, control systems, tools, borders in Africa and attacking this problem is a and training. At ICHA 2012 a Corruption central aspect of the fight against corruption.  A Prevention Workshop gathered experiences mechanism for sharing experiences on what and insights from ICHA members to provide works best in fighting police corruption and initial direction for generating technical notes taking a more integral approach in institution on preventive measures in public and private and capacity building among practitioners sector activities, including due diligence and will be further discussed with participants to be control measures, tools, and training. Some set up in the next months. initial areas of focus have been identified for this work based on requests and feedback from Outcome 3: Strengthening coordination and ICHA members: technical advice on the design communication for improved anti-corruption and implementation of financial disclosure and conflict of interest systems; review and guidance results on the development of a curriculum for youth on anti-corruption and ethics; the introduction 10. At ICHA 2010 members requested a study on of monitoring systems for anti-corruption the quantification of bribery. The findings of authorities and other public agencies. this study, a joint project by the OECD and StAR, were presented in a workshop at ICHA 8. Anti-corruption authorities are increasingly 2012. StAR and the OECD will develop (i) focusing attention on the need for effective training modules for practitioners on the corruption complaint mechanisms as a quantification of bribery and (ii) will explore source of information for investigations and with participants how a working group may be prosecutions, to help detect red flags, and to set up to meet or communicate periodically, to provide avenues for confidential whistleblowers discuss and refine advice about good practices to come forward.  For ICHA 2012 a series of and tools, and to identify training needs in the case studies were drafted on public interest area of quantification of the proceeds of active whistleblower laws and corruption complaint bribery. handling mechanisms in India, Peru, UK, Morocco, ICGLR, and Bhutan. These were 11. ICHA members are familiar with the shared and discussed with ICHA members challenges of working across legal systems, and have experiences to share about successful 12 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 collaborative actions that overcame impediments new technologies a survey will be conducted to transnational investigations. Through two among various anti anti-corruption authorities. separate sessions on international cooperation, The results, along with the discussion among ICHA 2012 collected insights to help document ICHA members, will be documented with case studies of successful experiences in recommendations for enhancing information overcoming challenges in transnational sharing and communication for corruption corruption cases. Focus will be given to fighting officials. both formal and informal mechanisms for 13. ICHA members shared the experience of collaboration and how such collaboration can Nigeria, which in collaboration with the UK expedite the investigative process for both prosecuted and convicted a former Delta State parties, whether working on cases that involve governor. The Nigerian experience shows a multiple jurisdictions or between national successful collaboration with the UK relating to authorities and the World Bank. the investigation, prosecution and conviction 12. Many new web sites and portals have emerged of a case of grand corruption. Practitioners since 2005 about anti-corruption initiatives from different African countries working on and tools, and a large amount of resources corruption agreed that collaboration among has been dedicated to design and maintain African countries is still very weak and should them. Their impact and effectiveness remain be strengthened, as more illegal assets are unclear however.  ICHA 2012 brought being transferred across African borders and together practitioners from civil society, the deposited in banks within the continent. One donor community and the private sector of the impediments of such collaboration is who have been involved in such virtual the lack of domestication of country laws to initiatives to promote discussion of the needs the UN convention against corruption, which of practitioners when it comes to information has been signed by many countries. Full legal about anti-corruption and to help improve collaboration is impeded by the incompatibility global cooperation on fighting corruption. To of national legal frameworks in this area. A capture the impact of and experiences with mechanism for sharing experiences among practitioners will be a first step in improving collaboration among countries. Participants and the WB staff will continue communication to set up such mechanism. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 13 Draft results matrix: Measuring selected activities of anti-corruption authorities (ACA) Category Indicator Process Methods and Challenges 1 Complaints: Number of valid Number of complaints as a percentage Manifested in crime information systems complaints about corruptly-influenced of corruption investigations initiated. and monitored at least bi-annually. conduct1 that result in preliminary and/ Existence of “hotline” and measures of use or full criminal investigations. (frequency, response time and quality). 2 Investigations: Number/type Percentage of investigations that mature Data captured by ACA and report to of/disposal rate and outcome of into full prosecutions; percentage of Parliamentary/Executive/or Prosecutorial investigations of corruptly-influenced completed cases/opened cases in a year or oversight bodies. Data may not be allegations. set period; percentage of completed cases/ comparable across countries because of total cases (carryover + new) in a year or definitional differences. set period; and establishing turnaround time of investigations. 3 Prosecutions: Total number of As a percentage of overall criminal Data captured by prosecution systems prosecutions of corruptly-influenced conviction rates; average trial time; and and reported publicly. (Case management charges completed annually, average number and percentage of corruption system should be designed to encompass trial time, outcome and conviction rate. prosecutions completed annually, relative these performance indicators.) Include to number of prosecutions generally. any consequences of not meeting the objectives. Data may not be comparable across countries because of definitional differences. 4 Reasons why full investigations are List of common causes could include: lack Will require public right of access to terminated without prosecutions; and of sufficient evidence; fickle witnesses, information regarding termination why prosecutions result in discharge, intimidation of witnesses or prosecution; of investigations and right to request acquittal or non-guilty verdict. incompetence of prosecution, etc. reasons. Court judgments should be publicly available. 5 Investigations and prosecutions Number of investigations and prosecutions Sufficient resources and capacity available resulting from income and asset based on or accessing disclosure to review and cross-verify disclosures. disclosure and conflict of interest information. Effective cross-verification Access to a range of financial information provisions in national law. and management of disclosed information, across agencies and outside the country including agreements for effective sharing (as needed). of information across agencies/institutions. 1 The definition of crimes of “corruption” will vary by country. “Corruptly-influenced conduct” includes these specific crimes, but also tries to cap- ture other illicit conduct that is caused or influenced by corrupt conduct. 14 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Draft results matrix: Measuring selected activities of anti-corruption authorities (ACA) Category Indicator Process Methods and Challenges 6 Functional autonomy of investigation Statutory powers that reflect independent Self-assessment and/or external and/or prosecuting body and extent operation, including: right to subpoena, evaluation of degree of independence of to which independent functioning is inspect, interrogate, search and ancillary the investigating or prosecuting authority secured under local law. powers. Description of oversight/ and the functioning of an external supervision by outside authority. oversight authority, in addition to the courts. 7 Reliance on and accession to Adoption of legislation criminalizing Who makes the final decision; the head International Instruments, i.e. UNCAC, foreign corrupt practices and efficiency of of the Anti-Corruption Unit/Prosecution the Palermo Convention and Foreign mutual legal assistance and parliamentary Service, the Attorney General or the Bribery legislation in major corruption processes relating to international Minister of Justice. cases. cooperation in criminal matters. 8 Monies/assets recovered and Percentage of recovery from corruption Threshold of countries active in asset deposited; compensation awarded to cases versus total amount in a criminal recovery and forfeiture; and governments’ harmed or interested parties, arising asset recovery account or assets under resilience to take the profit out of crime from proceedings against corruptly- restraint or preserved; amount of and report outcomes. influenced-behavior. compensation awarded. 9 Frequency and impact of focused Percentage of respondents with confidence Credibility of evaluation structures, impact opinion and assessment surveys, and trust in criminal system, investigating/ studies, and format and extent of public measuring public trust and confidence prosecuting body, etc. Percentage of discourse. in and outputs of ACAs; and the criminal respondents reporting decrease in justice system generally. frequency of bribe payments, perceived nepotism, decrease in corruption in public procurement, etc. 10 Preventive mandate: quality and impact Evaluation of institutional framework; Need for access and reconciliation of of preventive actions by authority in integration and extent to which roles information from multiple sources, inside addressing symptoms of corruptly- of private sector and civil society are and outside ACA. Efficiency of third influence behavior. recognized. Examples of preventive party accountability monitoring and the measures: existence and effectiveness of inclusion of decentralized data. audit mechanisms and merit-based system for HRM; number of training and outreach activities on AC; number of transparency sites and portal visits; existence and effective use of access to information procedures (FOIA), etc. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 15 World Bank’s International Corruption Hunters Alliance: Participant Polling Exercise The World Bank conducted an interactive polling Figure 1: In your opionion, what is the main challenge to the exercise to gauge perceptions of corruption among effectiveness of your agency / organization? ICHA members. The following is a summary of the results of the polling exercise:2 • Participants were asked:” In your opinion, what is the main challenge to the effectiveness of your agency / organization?” As shown in figure 1, “political interference” is perceived as the biggest challenge among ICHA participants (25 percent). This figure is higher than in 2010 when 23 percent of respondents reported political interference as the main challenge for their agency. • To gauge whether concerns regarding fraud and corruption have grown, participants were asked: “How concerned are you about fraud and Figure 2: How concerned are you about fraud and corruption in corruption in your country today compared to your country today compared to a year ago? a year ago?” As shown in figure 2, more than 50 percent of the delegates from South Asia, Latin America and the Caribbean and Sub-Saharan Africa reported that their concern has increased over the past twelve months. Delegates from North America and East Asia and Pacific instead reported the level of corruption is about the same today compared to a year ago. Breaking down the answer by type of agency, it appears that this concern has increased among representatives from the private sector, civil society and check and balance institutions. Representatives from development agencies and police agencies report that the level of corruption today is the same as a year ago. Figure 3: How concerned are you about fraud and corruption in your country today compared to a year ago? 2 This polling exercise was prepared by the World Bank’s Poverty Reduction and Econom- Sri Mulyani Indrawati, Managing Director, World Bank ic Management Group. For more information see http://www.acauthorities.org/aca. 16 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 • Participants were also asked the following Figure 4: Regarding corruption risks in your question: “Regarding corruption risks in your country, where do you see the most significant country, where do you see the most significant vulnerabilities (reponses by government offices vulnerabilities? “ As shown in figure 4, most of and development agency)? the respondents representing check and balance institutions, anti-corruption authorities (ACAs), police and development agencies responded that “public procurement,” “political corruption” and “judicial system” are the most significant vulnerabilities. Campaign financing is more of a concern to civil society and the private sector. As shown in figure 5, the most significant vulnerabilities for all regions are “political corruption”, “public procurement” and “delivery of goods/works/services”. • Participants were asked “What support would you want ICHA to provide to your agency/ organization over the next 18-24 months?” 27 percent of the participants responded that they would like support in collaborating with other Figure 5: Regarding corruption risks in your members of ICHA. While, 13 percent opted country, where do you see the most significant for support in preventive initiatives and 19.1 vulnerabilities (reponses by region)? percent for investigative and forensic advice and for sharing knowledge and experience with ACAs and other partners. 17.1 percent of participants chose support in the introduction and use of information technology tools. Figure 6: What support would you want ICHA to provide to your agency / organization over the next 18-24 months? 27.0% Facilitate collaboration with others 19.1% Share knowledge and lessons learned 19.1% Investigative and forensic evidence 17.1% Support the introduction/use of IT tools Francesca Recanatini, leader of the World Bank’s Anti-corruption Thematic Group, 13.8% Support preventive initiatives runs the polling exercise. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 17 ICHA 2012 HIGHLIGHTS THEME 1: NATIONAL ENFORCEMENT Activities of Anti-Corruption Authorities, which was subsequently shared with members in a draft Measuring the Results of Anti-Corruption Authorities: format. The purpose of this session was to validate An Expert Panel by the World Bank’s Independent the matrix; discuss how ICHA members could adopt Advisory Board this standard; and what kind of follow-up arrange- Established in September 2008, the Independent ments could be developed to monitor the results. Advisory Board (IAB) provides advice to the World The session also touched on the crucial issue of swift Bank Group on a range of governance and anti-cor- follow-up on referrals among international and ruption measures, fulfilling a recommendation made national authorities, and how such collaboration can by the Independent Review of the World Bank’s be used as a lever to increase effectiveness in transna- Integrity Vice-Presidency (INT), led by former U.S. tional matters, also in environments where political Federal Reserve Chairman Paul Volcker. support to the anti-corruption agenda is nascent. This session was organized as a dialogue between The IAB helps protect the independence and national authorities and a panel of IAB members strengthens the accountability of INT by giving bringing an international perspective. The IAB led advice on policies and procedures and on the depart- and facilitated a discussion on how to create syn- ment’s interactions within the World Bank Group. ergies between ICHA and national authorities for It also provides advice to the President of the World improved investigation and prosecution results. Bank Group and the Audit Committee on the performance of INT and the implementation of the related Volcker Panel report recommendations. Independent Advisory Board (IAB) Members • Peter Costello was Australia’s Treasurer from 1996 to 2007 and chaired the APEC and G-20 Group of Finance Ministers; • Chester Crocker was U.S. Assistant Secretary of State for African Affairs from 1981-89 and also chaired the board of the United States Institute of Peace; • Simeon Marcelo served the Philippines as Ombudsman and as a prosecutor in the impeachment of former President Joseph Estrada; • Mark Pieth chairs the OECD Working Group on Bribery in International Business Transactions and A Colloquium of Prosecution Experts is a professor at Basel University. Speakers: • James Hamilton, President, International Session Coordinator: Association of Prosecutors Anders Agerskov, Lead Specialist, Integrity Vice • Professor Githu Muigai, Attorney General, Kenya Presidency, The World Bank • Charles Leacock, Director of Public Prosecutions, Barbados The 2010 ICHA conference resulted in an agree- ment to develop a Results Matrix: Measuring • William Jacobson, Chief Compliance Officer, Weatherford, USA; 18 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Moderator: The broadening of focus from prosecution to other Nancy Boswell, former President and CEO, Trans- approaches, such as naming and shaming and asset parency International, USA recovery was hailed as a positive development. Some of the alternative approaches raised in the discussion Session Coordinator: are included in Figure 1. El Cid Butuyan, Senior Litigation Specialist, Integri- ty Vice Presidency, The World Bank Figure 1. Proposed alternative approaches The fight against corruption is a global law enforce- to overcoming challenges in transnational ment challenge involving multi-jurisdictional issues corruption prosecutions and multinational actors. In this session, heads of prosecution agencies and other experts shared recent success stories and challenges in transnational an- ti-corruption cases. Panelists and participants put forward the following proposed alternative approaches to overcoming challenges in transnational prosecutions: Panelists and participants raised the following key challenges in law enforcement and transnational • Shift to non-prosecutorial strategies such as ‘naming and prosecution: shaming,’ asset recovery, travel visa bans, and other measures; • Proactive law enforcement, e.g., undercover operations and • Delays in the execution of Mutual Legal Assistance wire taps (although there are constitutional or statutory (MLA) requests; prohibitions against these measures in some countries); • Anti-corruption laws do not always reach key • Deferred / non-prosecution agreements with corporations; stakeholders in the private sector, e.g., media, • Corporate self-regulation, e.g., internal compliance banks, and business owners; procedures, use of socially responsible investment indices, • In many countries, there is widespread corruption etc.; and selective prosecution; this reality makes • Collective agreements and action, e.g., OECD (Anti-Bribery cooperation particularly difficult (and perhaps Convention), World Economic Forum (Partnership Against undesirable) in transnational cases; Corruption Initiative); • The difficulty of following the money trail in • Legislation, e.g., whistleblower protection acts (to incentivize certain jurisdictions (the so-called “safe havens” disclosure and protect informants), conflict of interest laws; like Liechtenstein and the Isle of Mann); • Developing a political culture of accountability through, for example, prosecution of prominent public officials; • Corruption problems within anti-corruption authorities and the judiciary; and/or their lack of • Actively engaging civil society groups as stakeholders in these efforts. financial or political independence; • The undermining of criminal justice systems by organized crime networks; Measuring the success of such approaches is diffi- • The legality of “facilitation payments” through cult, but an important area for further development, political campaign contributions. given that tallying numbers of prosecutions alone is recognized as an unreliable measure. It was also Participants discussed a variety of anti-corruption noted that public perception of anti-corruption tools and approaches and stressed the need for mul- enforcement may not always be accurate, and often tilateral and proactive law enforcement, corporate distorted by media coverage. self-regulation, and the enforcement of international treaties and conventions through domestic legisla- tion. Participants raised the questions of whether there is an excessive emphasis on and preoccupation with prosecution as the remedy for corruption. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 19 Moderator: Galina J. Mikhlin-Oliver, Director of INTSC, The World Bank Session Coordinators: • Steve Burgess, Senior Operations Officer, Integrity Vice Presidency, The World Bank • Francesca Recanatini, Senior Public Sector Specialist, Public Sector & Governance, The World Bank Government expenditures are coming under increas- ing scrutiny by parliaments and the public to ensure that funds are spent with due consideration for economy and efficiency and that officials act with in- tegrity. Anti-corruption agencies, audit institutions, and private investors have amassed considerable experience in how fraud and corruption undermine Conchita Carpio Morales, Ombudsman, Office of the Ombudsman, Philippines the public sector and private investments in develop- ment projects, and are well positioned to engage line ministries to ensure that these insights are reflected Corruption Prevention Workshop in management, control systems, tools, and training. Speakers: • R. B. Domah, Board Member of ICAC, Mauritius The session gave participants a better practical understanding of a range of corruption prevention • A. K. Ujoodha, Director-General and Chairman efforts from across the world. To set the scene, each of ICAC, Mauritius of the panelists gave short summaries of why preven- • Mr. Gyeltshen, Deputy Chief of Investigation, tive efforts were carried out, how they were designed Bhutan and delivered, what they accomplished, and what • Conchita Carpio Morales, Ombudsman, Office of challenges they faced. the Ombudsman, Philippines • Phil Matsheza, Lead Anti-Corruption Policy Advisor in Democratic Governance Group of the Bureau for Development Policy, UNDP • Barbara Fredericks, Assistant General Counsel for Administration, Department of Commerce, USA • M. Rohil Hafeez, Chief Risk Officer, CRV- Investment and Credit Risk (IFC), The World Bank • Judith Pearce, Corporate Reputational Risk Advisor, MIGA, The World Bank 20 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Visualizing and Using the Impacts of Corruption as Figure 2. Corruption prevention interventions Evidence: Expert Round-Table that might be applied in different settings Speakers: • Maria Schnebli, Federal Prosecutor, Switzerland, • Secilia Hinojosa, Head, International Judicial The Panel discussion touched on a long list of possible Cooperation Unit and Extraditions, Attorney interventions that might be applied in different settings, General’s Office, Peru including: • Juan Ronderos, Case Officer, Inter-American • Risk assessments/risk mapping Development Bank • Public advocacy programs • Governance workshops Coordinator: David Hawkes, Head, Special Litigation Unit, • Codes of ethics for civil servants and contractors World Bank Integrity Vice Presidency • Income and asset disclosure declarations for civil servants • Transparency/freedom of information This session analyzed the impact of fraud and cor- • Training of civil society monitors/observers ruption beyond the money flow. Speakers presented cases in which fraud and corruption reached far • Coordination of agencies beyond the direct impact of a particular scheme. • Multi-stakeholder governance coalitions Ms. Hinojosa introduced the Fujimori case which • Competition for best firms in the private sector involved a large number of officials in several parts of • The use of integrity due diligence by the private sector as a the Peruvian Government and military, and exposed preventive tool tainted networks that exerted influence far beyond • Systems audits/technical audits individual transactions. One of the tools used exten- sively in this investigation relied on graphic visual- • Measurement of impacts ization of the corrupt relationships to make the large • Media outreach amount of evidence and its implications accessible. In addition, the panel discussed the use of traditional and innovative evidence for mutual legal assistance Questions and comments from the floor confirmed and transnational cooperation. An area for further that these and other forms of preventative measures research will be to visualize the impact of corruption are being tried, with mixed levels of success, in many on designated beneficiaries especially in a develop- other countries. There is a real interest in the ICHA ment context. membership for more information, analysis of experiences and results, and practical guidance about initiatives and programs aimed at the prevention of corruption. The ICHA network will facilitate con- tinued communication between session participants and other interested members on developments in corruption prevention and will follow up with concrete proposals between now and the next ICHA conference. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 21 presented a range of measures to detect, remedy, and prevent corruption within prosecution offices. Anti-Corruption Office, Argentina: Dr. Julio Vito- bello outlined the main functions of the Anti-Cor- ruption Office (AO) of the Ministry of Justice of Argentina. The AO is located under the jurisdiction of the Ministry of Justice and Human Rights. The office has two divisions: one in charge of Transpar- ency and Prevention Policies and one in charge of Investigations. The Division of Investigations is responsible for the receipt of complaints, conducts investigations into offences against the state such as illicit enrichment, fraud and bribery, and can intervene at the judicial level acting as a plaintiff. The Division of Transpar- ency is responsible for the ethical oversight of public officials and is the responsible body for the adminis- Dr. Julio Vitobello, Head, Anti-Corruption Office, Ministry of Justice, Argentina tration of financial disclosures. The AO also plays an international role with the Mechanism for Fol- low-Up on the Implementation of the Inter-Ameri- Managing for Internal Integrity — Good practice for can Convention against Corruption (MESICIC) and Investigative and Prosecution Agencies at the Implementation Mechanism of the United Nations Convention against Corruption (UNCAC). Speakers: • Dr. Julio Vitobello, Head, Anti Corruption Office, Ministry of Justice, Argentina Figure 3. Measures for managing internal integrity • Karyn Kenny, International Advisor for Asset Forfeiture and Money Laundering, Department of in investigative and prosecution agencies Justice, USA • Hans Jakob Folker, Deputy State Prosecutor, The following is a selection of measures presented by panelists from Denmark Argentina, the USA and Denmark for preventing and detecting internal integrity issues in investigative and prosecution agencies Chair: • Annual audits Heike Gramckow, Ph.D., Senior Counsel, Legal Vice Presidency, Justice Reform Group, The World • An IT system that tracks processes, decisions and other information Bank • A framework of standard operating procedures to guide operations and limit discretion Session Coordinator: • Vertical control structures Agustin Flah, Legal Consultant, Legal Vice Presiden- • Regular publication of public reports cy, The World Bank • Web publication of decisions Considering the essential role of prosecutors in • An internal peer control approach upholding the rule of law and pursuing government • Conflict of interest prevention and control mechanisms accountability, the integrity of prosecutorial opera- • Policies that regulate the receipt of gifts tions is of special importance. At the same time, this critical role also exposes prosecutors to certain pres- • Pre- employment background screening sures and can make them vulnerable to corruption. • Post-employment controls Delegates from Argentina, Denmark and the USA 22 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Department of Justice, USA. Ms. Karyn Kenny outlined the General Ethics Principles of the US De- partment of Justice (DOJ). The DOJ uses pre-em- ployment principles such as a rigorous background screening, drug screening, limited hiring directly from law schools, and institutional reputation. Post-employment controls prohibit USDOJ employ- ees from participating in certain activities with their former agency in case of undue or unfair influence. The Standards of Conduct of the USDOJ has provi- sions limiting the political involvement of USDOJ employees, and also specifies USDOJ policies in relation to gifts. USDOJ employees may not accept Carmen Lapointe, Under-Secretary-General, United Nations Office of Internal Oversight, gifts from anyone doing business, seeking to do busi- signs a memorandum of understanding with Leonard McCarthy, Vice President for Integrity ness or regulated by the DOJ, with the exception of at the World Bank Group. gifts of a value of less than $20. The Office of Professional Responsibility (OPR), • Conflict of Interest: Rules on impartiality are which reports directly to the Attorney General, vital, both to protect the official and to ensure investigates allegations of misconduct involving the public’s confidence in police and prosecution Department attorneys that relate to the exercise of services. A police officer or prosecutor may not their authority to investigate, litigate or provide legal take part in the investigation of a case if, for advice. example, the police officer– or his or her family members – are parties to the case or, in other Police and Prosecution Service, Denmark. Mr. respects, have special personal or financial interests Hans Jacob Folker outlined the core values and in the outcome. decorum requirements of the Danish Police and Prosecution Service, the strict rules on gifts, and the Participants in the session proposed the develop- prevention of conflicts of interest. ment of a good practice note on approaches for managing internal integrity in agencies responsible • Decorum Requirements: Due to the nature of for handling corruption cases. Such a note would police and prosecutorial work there is a rigorous outline the different elements of good management requirement that police officers and prosecutors and practical examples from different agencies. The conduct themselves in a way as to uphold the development of such note would ideally include a dignity of the office. survey of ICHA participants and others who could • Acceptance of Gifts: Police officers must abstain provide good practice examples, such as the Interna- from accepting a gift if it has any bearing on their tional Association of Prosecutors or the International official duties. Association of Anti-Corruption Agencies. Responses would be compiled and summarized in a good prac- tice note for dissemination. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 23 THEME 2: INTERNATIONAL international cooperation has produced successful COOPERATION enforcement outcomes. As national laws differ and each case presents different facts and circumstances, participants took away lessons learned to apply to Sharing Strategies and Success Stories for facing the their respective situations. Challenges in International Anti-Corruption Cooperation Efforts Speakers: • Eric Tan, Director, Corrupt Practices Investigation Bureau, Singapore • Aderito de Jesus Soares, Commissioner, Anti- Corruption Commission, Timor Leste • Ali Sulaiman, Commissioner, Investigation and Prosecution Directorate, Federal Ethics and Anti- Corruption Commission, Ethiopia • Andhi Nirwanto, Deputy Attorney General for Special Crimes, Office of the Attorney General, Indonesia Eric Tan, Director, Corrupt Practices Investigation Bureau, Singapore Session Coordinator: Merly Khouw, Lead Investigator, Integrity Vice Pres- idency, The World Bank Lifting the Corporate Veil: A panel discussion on transparency in financial centers (on-shore and off-shore) There are legal, institutional and many other obsta- Speakers: cles to effective international cooperation in corrup- • Frederic Raffray, Crown Advocate, Crown Office, tion cases. From information sharing protocols, evi- Guernsey dentiary requirement differences, the actual conduct • Brian Grow, Enterprise Correspondent, Thomson of enforcement actions and actors, to institutional Reuters and jurisdictional limits. Knowing how to handle the expected and sometimes unanticipated challeng- • Elise Bean, Staff Director and Chief Counsel, es that arise in cases of international cooperation United States Senate Permanent Subcommittee on have a significant impact on case outcomes. One of Investigations the priority actions from the 2010 ICHA meeting — fostering international cooperation in the fight Chair: against corruption — led to the signing of Memo- Emile Van Der Does, Senior Financial Sector Spe- randa of Understanding (MOUs) between the World cialist, Stolen Asset Recovery (StAR) Initiative Bank and authorities in a number of partner coun- tries. Parallel investigations with national authorities Session Coordinators: have also ensued, as well as follow up on possible • Emile Van Der Does, Senior Financial Sector referral actions. This session provided an opportunity Specialist, StAR; for a candid discussion of what has been the impact • Larissa Gray, Senior Financial Sector Specialist, of these efforts. StAR Senior practitioners from Singapore, Timor Leste, Indonesia and Ethiopia discussed the challenges en- Large-scale corruption and related money laundering countered from their experiences in recent interna- require company formation and administration ser- tional anti-corruption cooperation efforts. Panelists vices to conceal transactions and the involvement of also shared actual case outcomes to illustrate how the principal actors – “the beneficial owners”. Cor- 24 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 rupt actors typically don’t do business in their own will be compiled and made available to ICHA mem- name but will use shell companies, trusts or foun- bers. Examples of national efforts to increase trans- dations to hide from the prying eyes of law enforce- parency (e.g., reports of government committees, ment and to shield their assets. Secrecy provisions draft laws or regulations) will also be included. and lack of transparency can make it hard for those investigating corruption to obtain relevant informa- tion on the companies or other entities established for those purposes. This session illustrated the problem from three different perspectives: a journalist, an on-shore pol- icy-maker, and an off-shore prosecutor. While some jurisdictions have developed laws and regulations to collect beneficial ownership information, other jurisdictions refuse to collect such information and have become an open playing field for misuse. In the United States alone, nearly two million new corpo- rations and LLCs are formed each year, with often limited information publicly accessible on who owns From left to right: Frederic Raffray, Elise Bean, Brian Grow them – the same number of companies per year as the rest of the world combined. The discussion revealed that the lack of transparency in corporate Settlements in Foreign Bribery Cases and Asset Recovery ownership is a very real, concrete problem, with very real consequences. Speakers: • Maria Schnebli, Federal Prosecutor, Office of the Investigative efforts are impeded by the lack of Attorney General, Switzerland complete beneficial ownership information, thus • Ibrahim Lamorde, Executive Chairman, Economic facilitating money laundering and other crimes. and Financial Crimes Commission, Nigeria Fortunately there are efforts being undertaken to • Juan Carlos Cubillo, Public Prosecutor, Public increase transparency in many jurisdictions (e.g., the Prosecutor’s Office, Costa Rica United States proposed legislation attempts to have beneficial ownership information collected by service • Olaf Meyer, Senior Research Fellow, Center for providers and government authorities). However, European Law and Politics, University of Bremen, there are many opponents – business societies, state Germany governments, bar associations – that continue to • Oliver Stolpe, Ph.D., Senior Advisor, Stolen Asset stymie these efforts. More support and pressure is Recovery (StAR) Initiative needed, not only from domestic law enforcement and federal government, but also from the interna- Moderators and Session Coordinators: tional community. • Jacinta Oduor, Senior Public Sector Specialist, Stolen Asset Recovery (StAR) Initiative Policy-makers and relevant government agencies should be encouraged to ensure there are national • Oliver Stolpe, Ph.D., Senior Advisor, Stolen Asset legislative initiatives to collect beneficial ownership Recovery (StAR)Initiative information and call for legislative reform in coun- tries where the necessary controls are not in place. At the inaugural meeting of the International Cor- Practitioners need to continue to be resourceful in ruption Hunters Alliance (ICHA), a request was pursuing all available avenues to obtain the missing made to the Stolen Asset Recovery Initiative (StAR) information. A list of available resources, reports and to undertake a study on settlements in foreign news by the World Bank and other organizations bribery cases and their implications for the return of INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 25 assets. StAR undertook the study and presented to the conference a paper titled, ‘Left Out of the Bar- Figure 4. Highlights of discussion on gain, Enforcing Foreign Bribery Laws and Implications settlements in foreign bribery cases for Asset Recovery’. These findings were discussed by a panel of prosecutors, investigators and an academic, and asset recovery who shared their own experiences with settlement cases in Switzerland, Nigeria, the United States, Costa Rica and Germany. The discussion highlighted the following issues: • Is the increase in settlements a negative or positive The study finds that there has been an increasing development for enforcement in foreign bribery cases? trend of settlements in enforcement actions in- Panelists from Nigeria, Costa Rica and the US were of the volving foreign bribery, resulting in large monetary opinion that settlements were effective and in some cases, sanctions (a total of more than US $ 6.2 billion) the only viable option. Other speakers argued that increased ordered against bribe payers. Analyzing a dataset transparency in settlements and increased involvement of 366 settled cases over the last thirteen years, the of affected countries would be necessary to ensure the study finds that only three percent of the monetary maximum effectiveness of settlements. sanctions imposed have been returned to countries • Several speakers recommended caution on the conclusion whose officials have been bribed. Reviewing the dif- that settlements do not negatively affect international ferent types of settlements in civil and common law cooperation and mutual legal assistance. While noting that jurisdictions, the study concludes that settlements this case is rather unique, some speakers considered the do not normally create legal impediments to inter- BAE case a good illustration of how settlements could be an impediment to international cooperation. national cooperation or to Mutual Legal Assistance requests, nor do they normally preclude cases from • Some speakers stressed the need to further evaluate the link being brought in other jurisdictions. However, the between settlements and the return of assets to affected study identifies some practical barriers to interna- countries. They argued that this analysis should review whether all monetary sanctions from settlements are tional cooperation that are specific to settlements “eligible” for asset return, as well as how affected countries and presents a number of best practices to mitigate may take action themselves against parties to a settlement; these barriers. an area which it was recommended the study should further explore. One key conclusion of the panel discussion was the need to suggest a set of guidelines on settlements, focusing on increased transparency, sharing of infor- Quantification of the Proceeds of Bribery mation and proactively informing affected countries of the existence of a settlement process and available Speakers: legal avenues for redress. Participants welcomed the • France Chain, Principal Analyst, Anticorruption recent trend towards multi-jurisdictional settlements, Division, Organisation for Economic Cooperation which they encouraged, so that affected countries and Development (OECD) could get more involved in the negotiation process. • Jeanne Hauch, Consultant, Stolen Asset Recovery (StAR) Initiative StAR plans to make use of the ICHA network to • Miguel Cortes, Procurador de Ética Pública, Costa seek further information pertaining to some of the Rica cases referenced in the study, to be included in the final edition in Spring 2013. • Olaf Meyer, Senior Research Fellow, Center for European Law and Politics, University of Bremen • Jacinta Oduor, Senior public Sector Specialist, Stolen Asset Recovery (StAR) Initiative 26 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Session Chair and Coordinator: Ms. Hauch presented the main findings of the Jean-Pierre Brun, Senior Financial Sector Specialist, OECD-StAR study on existing methods for calculat- Financial Market Integrity, The World Bank ing the gains made by companies that pay bribes to win contracts or gain unfair advantages. Countries In bribery cases, illicit proceeds are not only the are using methods including the gross revenue meth- bribes paid to dishonest officials. These proceeds od, the net revenue method and additional profit also include revenues, profits or benefits earned by a method to accurately calculate ill-gotten gains in the company as the result of a business authorization or five major types of active bribery (see Figure 5). a contract obtained by bribing an official. Prosecu- tors, law enforcement agencies and courts can seek the confiscation or the recovery of these proceeds Figure 5. Five major types of active bribery of active bribery. Quantification is the first step in confiscating and recovering ill-gotten gains. At the inaugural meeting of the International Corruption (i) Securing contracts; Hunters Alliance (ICHA) in December 2010, a request was made to undertake a study on the quan- (ii) Obtaining business authorizations (including permits and tification of the proceeds of bribery. The OECD licenses); and StAR have developed a joint publication, the “Identification and Quantification of the Proceeds of (iii) Avoiding expenses or other costs (such as by paying bribes to enable a company to import or export equipment Bribery.” This session shared the results of the study without the proper licenses); and presented the various methods that are or can be used to calculate ill-gotten gains. (http://www1.worldbank. (iv) Expediting red tape (such as by paying bribes to customs org/finance/star_site/publications/Quantification.html) officials to expedite shipping), and (v) Gains derived from lax internal controls and inaccurate books Mr. Brun highlighted the significance of this topic and records. in corruption and asset recovery cases and provided an overview of the legal remedies that support the confiscation or recovery of the profits from bribery. The study gives examples of how to identify and cal- Mr. Meyer described the various civil remedies used culate bribery’s gains using methods such as the gross to recover proceeds of corruption, particularly com- revenue method and the net revenue method in cases pensation and contractual restitution, and explained of contracts won, business authorizations obtained that quantification methods used by practitioners in and other common corruption practices. court proceedings may be similar as those used in confiscation cases. Ms. Chain explained that remedies vary across Mr. Cortes made a presentation of accounting and jurisdictions and include: confiscation, repayment statistical methods used in Costa Rica to quantify of profits, fines, and compensation. She stressed the the “social damage” caused by corruption cases and importance of challenges related to confiscation in obtain compensation for the State. the context of the implementation of the OECD Convention on Foreign Bribery. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 27 Figure 6. Examples of two methods for quantifying bribery Examples of methods examined in the study “Identification and Quantification of the Proceeds of Bribery.” • The net revenue method (United States). A company paid bribes of $5 million to third parties who delivered the money to the foreign officials. In return, the company obtained $100 million dollars’ worth of contracts to build communications networks for state-owned enterprises in the foreign country. The company paid $25 million for the cost of goods sold for the projects. Using the “net revenues” or “net profits” method, the total penalty that the company Open Forum on Tools and Resources for Sharing Anti- was ordered to pay was calculated as: gross revenues from Corruption Information and Knowledge contracts ($100 million) minus the cost of goods sold ($25 Speakers: million) plus the amount of bribes paid ($5 million), resulting in the net revenue of $80 million as the amount subject to • Panagiotis Papadimitriou, Associate Crime confiscation or repayment. Prevention and Criminal Justice Officer, United Nations Office on Drugs and Crime (UNODC) • The gross revenue method (United Kingdom). Using an agent, a company paid bribes of £1.1 million to secure • Jeffrey Kwaterski, Knowledge and Stakeholder contracts to supply prefabricated housing worth £9.1 Services Director, Transparency International million. Using the gross revenue method to calculate the • Alexandra Wrage, President, TRACE International ill-gotten gains, the court ordered the confiscation of £9.1 million. Under the gross revenue method, the amount to • Francesca Recanatini, Senior Public Sector be confiscated is not adjusted based on costs or expenses Specialist, The World Bank incurred by the briber in obtaining or executing the contract. Source: http://www1.worldbank.org/finance/star_site/ Chair: publications/Quantification.html Vice-Minister Luiz Navarro, Office of the Comptrol- ler General, Brazil In conclusion, Jacinta Oduor stressed the need for Session Coordinator: Francesca Recanatini, Senior training for practitioners, based on her experience as Public Sector Specialist, The World Bank a former Prosecutor in Kenya. Jean-Pierre Brun con- firmed that the StAR initiative and the OECD will Web sites and portals play a central role in com- develop training sessions for interested jurisdictions bating corruption in the twenty-first century. Such to equip practitioners with a working understanding technologies have enabled a sudden increase in the of legal and financial concepts needed to identify quantity, quality and speed of communication, as and quantify proceeds of active bribery. their widespread use has given political voice to mil- lions, motivated masses and revived efforts to fight corruption. However, their impact and effectiveness remain unclear. This session brought together prac- titioners from civil society, the donor community and the private sector that have been involved in such virtual initiatives to promote a global and open discussion of the real needs of practitioners when it comes to the type of information that practitioners and experts from different sectors and with differ- 28 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 ent roles may require and the most effective way to Session Chair and Coordinator: deliver it to them. Mamta Kaushal, Advisor to the Director of Opera- tions, Integrity Vice Presidency, The World Bank The panelists shared with the participants a num- ber of tools and resources that have been developed The session aimed to equip participants with an recently to promote information and knowledge understanding of the benefits and challenges of about anti-corruption (see Figure 7). Panelists also working across legal systems and with international highlighted the innovative features of these tools and organizations. The World Bank has made significant approaches. progress in its efforts to work more closely with national investigative and prosecutorial authorities. The panelists highlighted the importance of coor- These collaborations have highlighted both the dinating the many initiatives that have emerged in benefits and limitations of working across different the past decade to avoid duplication and to promote criminal and administrative frameworks. This session synergy. The Chair suggested the potential role of brought representatives of the American, Colombi- the ICHA and of the International Association of an, Dutch and Swiss systems together with the INT ACAs as coordinators and facilitators of the many staff with whom they have worked closely on specific on-going and emerging initiatives. cases. The panelists shared their experiences—both the positive and negative, and how they overcame Actions to Overcome Impediments to Transnational certain unforeseen impediments to this new collab- Investigations and Prosecutions: Active Case Discussions oration. in Collaboration with the World Bank’s Integrity Vice Presidency Panelists discussed the benefits of their collaborative Speakers: efforts—including the complementary nature of • Paul Haynes, Senior Investigator, Integrity Vice their various investigative mandates and how such Presidency, The World Bank collaboration can expedite the investigative process for both parties. Panelists also discussed the challeng- • Kathleen M. Hammann, Special Assistant United es they have faced in these collaborative efforts— States Attorney, Department of Justice, USA including legal and policy limitations on sharing • Christopher Kim, Senior Investigator, Integrity of information; diverging interests of the different Vice Presidency, The World Bank systems—and how they have been able to overcome • Walter Maeder, Chief Federal Attorney, Office of some of these challenges. The discussion drew on the the Attorney General of Switzerland panelists’ actual experience from three active cases that are in various stages. • Peter Slort, Commissioner, Royal Netherlands Embassy • Gianpiero Antonazzo, Senior Investigator, Integrity Vice Presidency, The World Bank • Martin Moreno, Head, Anti-corruption Prosecutor’s Office, Colombia • Monica Jimenez, Prosecutor, Anti-corruption Prosecutor’s Office, Colombia INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 29 Figure 7. Examples of tools and resources for sharing anti-corruption information Brazil – Office of the Comptroller General for corruption and enhance the ability of people and organizations Luiz Navarro de Baritto Filho (Vice-Minister, Office of the to counter it. TI works with experts from companies, universities and Comptroller General, Brazil) set the stage for the panel discussion by other NGOs to create tools suited to a range of situations in many presenting the different technological initiatives and instruments that sectors of society. have been introduced and used to promote transparency, access to From monitoring public procurement processes, to concrete guidance information, and to lower corruption by the Brazilian government. for companies on avoiding extortion and curtailing bribery, to reliable www.transparencia.gov.br diagnostics for measuring and mapping corruption, TI tools give UNODC- TRACK individuals and institutions creative solutions to some of the most Panagiotis Papadimitriou (Associate Crime Prevention and Criminal common challenges in countering corruption. Over the years, TI tools Justice Officer, United Nations Office on Drugs and Crime) introduced have been adopted by governments, businesses, researchers and civil UNODC’s collaborative web-based platform called Tools and Resources society groups in a wide range of fields. www.transparency.org for Anti-Corruption Knowledge (TRACK). TRACK creates a single site Four sets of tools were discussed in the panel: where such knowledge can be accessed, including case studies, best • Private sector tools, which include the Business Principles for practices and policy analyses. The key objective of TRACK is to provide Countering Bribery a web-based portal and collaborative forum to facilitate the collection and dissemination of knowledge related to the United Nations • Public sector tools, which include Integrity Pacts Convention against Corruption (UNCAC), and serves as a platform for • Tools for corruption researchers, which include the GATEway Toolbox legal and non-legal knowledge on anti-corruption and asset recovery • Tools for activists, educators and other members of civil society, matters generated by regional and international institutions. This which include the Corruption Fighters’ Toolkits platform enables Member States, the anti-corruption community, and the general public to access the anti-corruption and asset recovery The GATEWAY ToolBox, in particular, aims at collecting, sharing and knowledge generated by such institutions in a central location. expanding knowledge on corruption assessment. The toolbox allows www.track.unodc.org those who wish to measure corruption to match their needs with existing diagnostic tools. Trace International The toolbox provides access to both a database of existing diagnostic Alexandra Wrage (President, TRACE International) introduced the tools, searchable by key criteria and updated at regular intervals; TRACE Registered Access Code (TRAC) initiative, which is offered by and an accompanying set of topic guides on how to select and use TRACE Inc. TRAC is a single, globally accepted identification number diagnostic tools. for businesses, individuals, charities and trusts. The mission of TRAC is to provide a secure platform for companies and individuals who are Anti-Corruption Authorities (ACAs) Portal committed to transparency to share certain key information with their Francesca Recanatini (Senior Public Sector Specialist, The World personal and professional networks. www.traceinternational.org Bank) presented the Anti Corruption Authorities (ACAs) portal. This In order to generate a TRAC, TRACE collects personal information Initiative is a virtual platform that offers the opportunity to ACAs staff about TRAC Applicants (e.g., those who have submitted an application and practitioners to connect, collaborate and articulate new ideas for a TRAC that is currently in process), TRAC Holders (e.g., those to to collectively address common challenges. The information and whom a TRAC is issued), and their respective owners and authorized tools provided help ACAs understand (a) how they can become more representatives, when applicable.  effective to address corruption and (b) which factors can help reinforce their ability to resist efforts to undercut effectiveness. Transparency International The information is provided directly by ACAs’ staff through the use Jeffrey Kwaterski (Knowledge and Stakeholder Services Director, of surveys and interviews. At this stage more than 60 agencies have Transparency International) provided an overview of the multiple tools responded and shared their experiences and lessons learnt, while and resources that Transparency International has developed since implementing an AC Strategy in their country. the mid-1990’s. Part of Transparency International’s work has been www.acauthorities.org to develop and promote practical tools that reduce the opportunities 30 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 THEME 3: LEVERAGING TECHNOLOGY IN THE FIGHT Figure 8. Useful forensic tools for extracting AGAINST CORRUPTION evidence from electronic devices Most Useful Forensic IT Programs for Fraud and Corruption Investigators 1. Extracting evidence from computer hard drives. Useful Speakers: forensic tools include: • Aaron Philipp, Manager, PwC • EnCase, www.guidancesoftware.com/encase-forensic.htm • Hany Farid, Professor, Department of Computer Science, Dartmouth College • Forensic Tool kit (FTK), http://accessdata.com/products/computer-forensics/ftk • Open source (free) tools, e.g., Session Coordinator: http://penguinsleuth.org Michael Kramer, Consultant, Integrity Vice Presi- dency, The World Bank 2. Extracting evidence from cell phones and other mobile devices. Useful forensic tools include: Much of the evidence in fraud and corruption cases • Cellebrite, www.cellebrite.com is located on computer hard-drives, in email corre- • Oxygen, www.oxygensoftware.com spondence, and other electronic devices. In many • Paraben Seizure Device, cases the subjects of the investigation attempt to http://www.paraben.com/device-seizure.html conceal or delete this information, requiring so- 3. Extracting evidence from social networks and cloud phisticated tools to find, recover and re-assemble computing. the evidence. In some cases, it may be necessary to recover or analyze digital images to identify fraud- Few off-the-shelf products exist for this sector. Investigators must contact the provider, e.g., Facebook or Twitter, to learn ulent or forged documents. This session presented how to collect the desired data. some of the most useful forensic tools to accomplish these tasks. Source: http://www1.worldbank.org/finance/star_site/ publications/Quantification.html Mr. Philipp discussed useful technology and soft- ware to recover electronic evidence from computer hard drives, cell phones and other mobile devices; Whistleblower Laws and Corruption Complaint and from social networks and cloud computing. He Handling Mechanisms demonstrated several forensic IT tools that are of particular interest to fraud and corruption investiga- Speakers: tors. • Carla Salazar, Secretaria General, Controlaría, Peru • Sri Kumar, Commissioner, Central Vigilance Professor Farid, who leads the image science and Commission, India digital forensics group at Dartmouth College illus- • K. Subramaniam, Officer on Special Duty, Central trated some of the technology available to determine Vigilance Commission, India whether photographs or documents have been forged or altered. He displayed examples of digitally • Hari Mulukutla, Technical Advisor, Regional altered photographs and documents, with examples Resource Governance Project West Africa, GIZ from his own case work and research along with • Gisela Mation, Team Lead, Harvard Law and tools for assessing the reliability of images. International Development Society (LIDS) www.hanyfarid.org or www.fourandsix.com. Chair: Lisa Bhansali, LCR, Regional Governance and An- ti-Corruption Adviser, The World Bank INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 31 Discussant and Session Coordinator: the eastern provinces of the Democratic Republic Alexandra Habershon, Coordinator, the World of Congo (https://cirgl.org/IMG/pdf/Projet_2-1-3-_Initiative_ Bank’s International Corruption Hunters Alliance, sur_la_Prevention_des_Crimes4-10-06.pdf) Integrity Vice-Presidency Participant questions and discussions centered on Anti-corruption authorities are increasingly focusing the following topics: mechanisms for protecting attention on the need for effective corruption com- complainant confidentiality and continued commu- plaint mechanisms as a source of information for nication with complainants to assist investigations; investigations and prosecutions, to help detect red strategies for deterring or identifying politically mo- flags, and to provide avenues for confidential whis- tivated or frivolous complaints; the use of incentives tleblowers to come forward. Public complaints about for whistleblowers; IT challenges in the use of mo- corruption are an important source of information bile reporting mechanisms (low connectivity areas, for corruption investigations, and can provide literacy, multilingual populations); public outreach, valuable evidence and witnesses for prosecutions. education and mobilization; challenges associated The analysis of corruption complaints can also assist with the use of complaints as evidence in corruption authorities in directing their resources more effec- prosecutions. tively for prevention purposes. While the need for ef- fective corruption complaint mechanisms is gaining The final case studies report will reflect the discus- increasing attention, there are many questions about sion at the ICHA meeting. By examining practices how best to design and implement such systems in different jurisdictions, the report seeks to con- in different contexts, particularly when leveraging tribute to a better understanding of the legal and information technologies (IT) for that purpose. regulatory framework for public interest corruption complaint systems, and of practical challenges faced This session presented the preliminary findings of by authorities in implementing these systems in a a series of case studies on Whistleblower Laws and variety of contexts. The report addresses questions Public Interest Corruption Complaint Handling such as how best to leverage technology for maxi- Mechanisms, a project undertaken for ICHA 2012 mum public outreach? How to collect, classify and in partnership with the Harvard Law and Interna- manage the data? How to manage confidentiality? tional Developments Society (LIDS). After a brief What protections are afforded to whistleblowers in introduction to the case studies project, represen- different jurisdictions? How to follow-up on com- tatives of the responsible agencies from a selection plaints? How to report to complainants and the of the case studies were invited to present the legal public about results? Particular focus is given to the framework and implementation mechanisms for use of technology to facilitate corruption complaint handling corruption complaints in their jurisdiction handling and reporting. and to answer questions from ICHA members about their experiences. Using Open Source Information in Fraud and Corruption Investigations • Peru’s Controller General’s Office presented its Sistema Nacional de Atención de Denuncias Speakers: (SINAD) www.contraloria.gob.pe; • Elisabeth Wiramidjaja, Investigator, Integrity Vice Presidency, The World Bank • India’s Central Vigilance Commission (www.cvc.nic.in) presented its VIGEYE project • Peter Dulvy, Director, James Mintz Group http://cvc.vigeyegpms.org; • Rex van der Riet, Consultant, Integrity Vice • The German Agency for International Presidency, The World Bank Cooperation (GIZ) presented a project it is supporting under the auspices of the International Chair: Conference of the Great Lakes Region (ICGLR) Michael Kramer, Consultant, Integrity Vice Presi- to develop a regional whistleblower mechanism for dency, The World Bank the extractive industries, with a regional focus on 32 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Research is an integral and often overlooked and Crowd Sourcing and Citizen Engagement: Tools, Tales and under-funded aspect of investigative work. Research Tech for Corruption Hunters in open source materials (and commercial databases) Speakers: can provide inexpensive, unique information that • Rob Baker, Founder, Ushahidi, USA might be otherwise unavailable to investigators. Open source materials allow researchers to easi- • Omoyele Sowore, Founder, Sahara Reporters, ly “cross” borders, explore theories, vet witnesses, Nigeria profile subjects, and identify evidence. All of this can • Hazel Feigenblatt, Managing Director, Global be done while maintaining the confidentiality of the Integrity, and Founder of Quien Paga Manda, investigation. Costa Rica The presenters of this session concentrated on Chair & Session Coordinator: practical information for investigators regarding best Tariq Khokhar, Open Data Evangelist, DECDG, practices for investigative researchers. Topics that The World Bank were covered include the most important types of records to focus on, the value of some commercial This session familiarized participants with the sources and case examples where research has proved principles of crowd sourcing for citizen engagement especially helpful. and the role technology can play in such work, and presented examples and strategies for applying these Private sector investigators, often working on the tools and principles for anti-corruption work. Crowd defense of corruption targets, are adept at using open sourcing technologies have typically been used by source information and rely on thorough research civil society to raise awareness and deter wrong-do- in all aspects of their work. Prosecutors and public ers. This session provided practical advice for en- sector investigators need to take advantage of the forcement officials about the potential of these tools same resources. for gathering evidence for investigations, as a red flag mechanism for targeting anti-corruption efforts, and Open source information can now often be tied for raising credibility and citizen engagement. seamlessly with link analysis and visual analysis software such as i2 Analyst Notebook. Attendees The session started with a panel discussion that were shown how a case could be presented visually. offered a background to and general principles of They were also shown how information from social citizen engagement and crowd sourcing. Expert networks could be analyzed with the same software. panelists then presented tools, technologies, and communities from a number of countries and high- See Annex 1, Figure 9 for a list of frequently used lighted their anti-corruption efforts, challenges they commercial and free online sources useful to investi- have faced, lessons they have learned and advice for gators. attendees wishing to further explore or implement any of the work they have seen. The session finished with a discussion to put together the “Top 5 tips on crowdsourcing for anti-corruption results” (see Figure 10). INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 33 Survey of the Most Useful Technology Figure 10. Top 5 tips on crowdsourcing for Fraud and Corruption Investigators for anti-corruption results Speakers: • Sanjay Subramanian, Partner, PwC 1. Define your crowd and your objective. • Heidi Hennrich-Hanson, CIO, Corporate Line of Crowdsourcing is about harnessing distributed knowledge and Business, The World Bank capabilities. Before you start an anti corruption crowdsourcing initiative, • Carlos Cortez, Information Officer, COIMT/INT, identify your crowd. Is it everybody or just some groups? Where are they and how can you reach them? Are parts of this crowd already connected The World Bank in existing communities or social networks? Leverage existing resources to quickly reach the people you want to and make it very clear what you’re trying to achieve, why and what specific actions individuals can Coordinator: take to help. Be transparent about everything you’re doing and make it Michael Kramer, Consultant, Integrity Vice-Presi- easy for people to get involved. dency, The World Bank 2. It’s not all about technology, but do chose technology strategically New and inexpensive software programs and other There are several available tools, technologies and platforms that have technologies that can greatly assist the investigative been successfully used for crowdsourcing in anti-corruption work, process are entering the market at a rapid pace. but the choice of technology is far less important than good project Many investigators, however, are not aware of such planning, with some relevant performance indicators. While tools specifically designed for crowdsourcing exist, as Sahara Reporters products or how to apply them effectively in their demonstrates – mainstream technology, popular in a local context cases. This session addressed these issues. – a blog and a YouTube channel, can also be leveraged successfully. 3. Understand the “mobilization of shame” to get citizens Mr. Subramanian presented technology and soft- engaged ware that is useful at each of the major stages of Reports of corruption will often come in as fragments so invest in an investigation, including programs to (i) detect verifying the veracity and quality of claims. To solicit action, build a potential fraud and bid rigging, (ii) extract and ana- narrative that people can relate to. If a report of corruption is centered around an individual or a company – think like a tabloid newspaper – lyze evidence from computers, cell phones and other people will engage with the story of bad behavior and are more likely electronic devices, (iii) exploit on-line information to take action or speak out. These are the stories that are most likely to sources, and (iv) organize and analyze large data and be picked up and amplified by other channels such as the media and text files. official bodies. If this happens, highlight these results and praise your community. The session included a presentation of the following 4. Return value to the community software programs: Working with the community to understand the problem as well as how to collect information from them is one part of the challenge, but understanding how to regularly update them and with what 1. Programs to detect fraud and bid rigging: information is part of retaining the incentive to participate. This could a. A new, inexpensive and easy to use mean working with your data to create digestible reports or crafting stories so that the community remains involved and invested, and able Excel-based software developed by the to see the impact their participation is having on the anti-corruption International Anti-Corruption Resource initiative. Invest up-front in keeping your platform current and active so Center (IACRC), http://iacrc.org, to analyze users have an incentive to return and participate. bids for indicators of bid rigging and 5. Promote security, explain risk, don’t forget the fraud, as well as an online guide to such “offline” world information http://guide.iacrc.org; If monitoring corruption in a certain community comes with a higher level of risk, making sure the community understands that risk is b. Google Refine 2.5, http://code.google.com/p/ paramount. One report of personal attack or a rumor of hacked google-refine, a free tool to clean data, such as software could undermine the means of sourcing data as well as the bidding or procurement files, to assist in the results of an anti-corruption initiative. Consider working closely enough analysis of such data for indicators of fraud with communities that they understand security both online and offline. and other misconduct. 2. Programs to extract and analyze electronic 34 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 evidence from computers, cell phones and other electronic devices, including primarily: a. “EnCase,” a product of Guidance Technologies www.guidancesoftware.com/encase- forensic.htm, and Forensic Tool Kit (FTK), http://accessdata.com/products/computer-forensics/ ftk, which are widely-used tools to extract electronic evidence from computer hard drives and email files; b. Cellebrite, http://www.cellebrite.com, a popular program used to obtain evidence from cell phones and other mobile devices. The above products were not discussed at great length, as another ICHA Session, “Forensic IT Tools for Fraud and Corrup- tion Investigators,” was devoted exclusively to this topic. 3. On-line sources of information, including a powerful new research tool, www.arachnys.com to obtain business and other information from developing countries, as well as number of other sources of interest to investigators. This topic was also covered in depth in another Session on “Open Source Information for Investigators.” 4. Programs to convert large volumes of complex information into visual presentations including i2, http://www.i2group.com, and “Tableau,” www.tableausoftware.com, Ms. Hennrich-Hanson and Mr. Cortez presented the new Case Management System for the World Bank’s Integrity Vice-Presidency, developed in collaboration with GoPro, an Icelandic software provider, www. gopro.net. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 35 Figure 11. Survey of useful software and technology for corruption and fraud investigators Detection stage: Internet resources: Software to detect fraud, corruption and bid rigging in development Many on-line databases in the categories below can be useful in fraud projects, to assist in the evaluation of complaints, or to continuously and corruption cases. See http://guide.iacrc.org/free-and-subscription- monitor business transactions for indicators of fraud. internet-sites for a comprehensive listing of websites in the following categories: IACRC collusion detection software www.iacrc.org • Address, map and satellite photo sites SAS collusion detection software • Compliance sites http://www.sas.com/solutions/fraud/index.html • Corporate registries Picalo data analysis software • Business reports www.picalo.org • Debarment and suspension lists ACL; ACL Acerno • General information sites on the internet http://www.acl.com • Information on agents Idea • Media reports http://www.audimation.com • US and international court records Active Data for Excel • US and international public records http://www.informationactive.com • US and international telephone directories Benford’s law • Sites to verify educational credentials http://en.wikipedia.org/wiki/Benford%27s_law Data analysis software: Computer Forensics: Software to extract relevant data from laptops, hard drives, cell phones, Actionable Intelligence Technologies etc., including data that the subject has attempted to delete. Below is (Financial Investigation Software): only a small sample of the many programs. http://aitfis.com EnCase i2 Analysts Notebook www.guidancesoftware.com www.i2group.com Forensic Tool Kit (FTK) Xanalysis http://accessdata.com/products/computer-forensics/ftk http://www.xanalys.com I-look forensics Text mining software: http://ilook-forensics.org Polyanalyst Knoppix- Penguin Sleuth http://www.megaputer.com/polyanalyst.php http://www.penguinsleuth.org/linuxforensics/pensleuth.html Case organization software: Other forensic programs are listed in the following websites: CaseSoft suite of products http://en.wikipedia.org/wiki/Computer_forensics http://www.casesoft.com http://en.wikipedia.org/wiki/List_of_digital_forensics_tools http://www.digitalintelligence.com/forensicsoftware.php E-discovery www.tucofs.com http://www.ediscoverytools.com/products.html http://ftitechnology.com/default.aspx http://www.vound-software.com/home (Intella) 36 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 REGIONAL MEETINGS Regional meetings at ICHA 2012 offered partici- its investigative results and international cooperation pants an opportunity to meet regional counterparts, efforts. Romania’s National Integrity Agency (ANI) discuss local priorities, and identify ways of im- presented the institution’s program for transitioning proving regional collaboration. Although a global its income and asset disclosure administration to a Alliance, one of the strengths of the ICHA is the op- new technological platform that will facilitate com- portunity it provides to bring together practitioners pliance, verification and investigations. Recent legal from a single region who may otherwise rarely have initiatives in Albania include the creation of “Joint occasion to meet. For the 2012 ICHA meeting, re- Investigative Units” under the Prosecutor General’s gional sessions were intended to be both closed and Office to improve collaboration in fighting corrup- informal conversations. For a full summary of the tion, the adoption of a law against organized crime regional meetings, please consult the ICHA 2012 and trafficking, and amendments to the Criminal Regional Meetings report. Code on money laundering. Africa Regional Meeting. Practitioners from across Latin America and the Caribbean Regional the region agreed that collaboration between Afri- Meeting. Participants were given a presentation of can countries remains weak and discussed the need the World Bank’s Governance and Anti-Corrup- for information sharing mechanisms, particularly tion (GAC) Strategy, and the Stolen Asset Recovery informal mechanisms between law enforcement (StAR) Initiative. Staff from the Integrity Vice Pres- authorities across jurisdictions. The transfer of stolen idency shared experiences of collaborative investiga- assets across borders for deposit in banks within tions with national authorities in the region. Im- the Continent makes this all the more relevant and proving information sharing across jurisdictions, and urgent. Combating police corruption, particular- the need to strengthen the capacity of corruption ly at the borders, was discussed as a priority, with fighting institutions were highlights of the discus- a need for a multi-pronged approach in terms of sion. Specific requests included the development of civil service administration reform, monitoring and a case management model that could be tailored to accountability mechanisms and the sharing of inno- different institutional requirements, and data analy- vative approaches that have been tested in the region sis tools to strengthen control systems. Strengthening and elsewhere. cooperation between institutions tasked with com- bating corruption domestically was also highlighted East Asia Pacific Regional Meeting. Improving as a priority. information sharing between law enforcement offices in the region was highlighted as a priority, along Middle East and North Africa Regional Meeting. with specialized training for anti-corruption offi- Anti-corruption officials from Jordan, Morocco and cials. A lack of understanding of the legal systems of Saudi Arabia launched the dialogue by sharing some other jurisdictions and unfamiliarity with drafting of their experiences in designing and implementing mutual legal assistance requests and pursuing asset anti-corruption programs. Participants heard about recovery cases were cited as major obstacles. Calls milestones achieved by the Jordan Anti-Corruption were also made for training in forensic auditing; Commission (JACC), including recent amendments the use of open source information; and financial to the legal framework giving the JACC authority to investigations. Participants also explored the use of freeze and seize assets, freeze tainted contracts and public-private collaborations to fight corruption. establish a whistle-blower program. Morocco’s Cen- tral Authority for Corruption Prevention (ACPC) Eastern Europe and Central Asia Regional Meet- shared recent developments including its constitu- ing. Representatives from anti-corruption and pros- tionally endowed investigative powers, and its efforts ecution authorities across the region shared recent to coordinate with civil society and the private sec- developments in their jurisdictions. Poland’s Central tor. Saudi Arabia shared its road map for the creation Anti-Corruption Bureau (CBA) presented some of of the Anti-Corruption Commission (SAACC), INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 37 its institutional structure and mandate. Discussion • Maria Del Carmen Minoso, Senior Operations centered on the importance of national coordination Officer, Operational Services and Quality, Europe in the development of anti-corruption strategies and and Central Asia the need for improved international cooperation. • Steve Burgess, Senior Operations Officer, Integrity Vice Presidency South Asia Regional Meeting. Participants rec- ognized the recent outpouring of public demands in the region for greater accountability in public Latin America and the Caribbean (LCR) – Regional Meeting administration. The importance of developing the Coordinators various building blocks of transparency was dis- • Gianpiero Antonazzo, Senior Investigator and cussed, including right-to-information laws and Regional Team Leader, Integrity Vice Presidency whistleblower systems. Participants called for better • Lisa Bhansali, LCR Regional Governance and information sharing to leverage some of the cre- Anti-Corruption Adviser ative solutions that have emerged in the region and beyond, many of them embedded in new technol- • Anders Hjorth Agerskov, Lead Specialist, Integrity ogies. They underscored the fact that enhancing Vice Presidency anti-corruption institutions is a long-term effort that • Virginia Papanikolaou, Fraud Prevention requires ongoing collaboration and support between Specialist, Integrity Vice Presidency donors and partners. • Joscelyn O’Rell Truitt, Junior Professional Associate, Latin America and the Caribbean, The regional meetings were facilitated by the follow- Operational Services ing World Bank coordinators: • Rosmary Marcela Cornejo Valdivia, Consultant Africa Region (AFR) – Regional Meeting Coordinators • Howard Dean, Senior Investigator and Regional Middle East and North Africa (MNA) – Regional Meeting Team Leader, Integrity Vice Presidency Coordinators • Sahr Kpundeh, Governance and Anti-Corruption • Yannick Stephant, Senior Investigator and Adviser, Africa Region, Core Operations Services Regional Team Leader, Integrity Vice Presidency • Wolfgang K.C. Koehling, Operations Officer, • Guenter Heidenhof, Sector Manager, Middle East Integrity Vice Presidency and North Africa • Rima Al-Azar, Senior Operations Officer, Integrity East Asia and Pacific Region (EAP) – Regional Meeting Vice Presidency Coordinators • Paul Scott Prettitore, Senior Public Sector • Achim Gutschera, Senior Investigator and Specialist, Public Sector and Governance, Middle Regional Team Leader, Integrity Vice Presidency East and North Africa • David S. Bernstein (INTSC), Senior Operations • Behdad M. H. Nowroozi, Senior Financial Officer, Integrity Vice Presidency Management Specialist, Middle East and North Africa • Samia Msadek (EAPFM), Manager, Financial Management, East Asia and Pacific Region South Asia Region (SAR) – Regional Meeting Coordinators Eastern Europe and Central Asia (ECA) – Regional Meeting • Christina Ashton-Lewis, Senior Investigator and Coordinators Regional Team Leader, Integrity Vice Presidency • Vyacheslav Anfinogenov, Senior Investigator and • Anna Pinto Hebert, Senior Operations Officer, Regional Team Leader, Integrity Vice Presidency Integrity Vice Presidency • Nadjib Sefta, Regional Procurement Manager, Regional Procurement Services Unit 38 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 INTERNATIONAL CORRUPTION HUNTERS’ TECHNOLOGY EXPO: LEVERAGING INFORMATION TECHNOLOGY IN THE FIGHT AGAINST CORRUPTION Much about the global environment has changed since the inaugural meeting of the ICHA in De- cember 2010. Rapid developments in digital and social media and the globalization of information are changing the landscape for fighting corruption, presenting new challenges, as well as new oppor- tunities, and a need for new skills for investigators, prosecutors and other anti-corruption experts. The conference agenda included a number of sessions in which participants enhanced their operational skills relating to new technologies, including how to use open source information in transnational corruption investigations, and surveys of the best software for forensic analysis, fraud detection, and data mining; and case management systems. • relevant to an audience of international corruption investigators and prosecutors; In conjunction with the ICHA 2012 conference, the World Bank Group’s Information Management and • supportive of anti-corruption efforts; Technology (IMT) department and Integrity Vice • technologically compatible with international Presidency (INT) co-hosted an International Cor- audiences representing anti-corruption ruption Hunter’s Technology Expo. ICHA members enforcement authorities, and/or demonstrate and partners showcased innovations in the uses of potential relevance to a developing country information technology: context. Figure 12. Exhibitors at the International Corruption Hunters’ Technology Expo World Bank Group Internal Exhibitors International Partners Other External Exhibitors • Information Management and Technology • United Nations Office of Drugs and Crime • IBM Financial Crimes Solutions (UNODC) • Integrity Vice Presidency • GoPro — Advanced Fraud Investigation • The Basel Institute on Governance and Prevention Case Management • The International Finance Corporation (IFC) • The Organization for Economic Cooperation • KYC 360 — The Anti Money- • Poverty Reduction and Economic and Development (OECD): Laundering Community Management (PREM)- CleanGovBiz - Integrity in Practice Anti-Corruption Authorities (ACAs) Portal • Thomson Reuters — Open Calais • Stolen Asset Recovery Initiative (StAR) and • Social Development — Open Development • Practitioner Demonstrations— The World Bank / United Nations Office Technology Alliance (ODTA) James Mintz Group on Drugs and Crime • World Bank Finances • Arachnys • Open Corporates Special thanks to World Bank staff Sana Al-Hajj, Manager, IMT; Andrea James, Information Officer, IMT; and Andres McAlister, Consultant for organizing the Tech Expo. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 39 World Bank Group Internal Exhibitors of surveys and interviews. Each ACA has its own Information Management and Technology (IMT) country profile page and can incorporate relevant provides and develops many of the key tools which materials on the site. The site is constantly updated the World Bank Group relies on to operate, includ- to include additional information as it becomes ing leveraging technology, such as information secu- available (http://www.acauthorities.org/aca). rity services, to protect the institution’s information. Stolen Asset Recovery Initiative (StAR)- The Integrity Vice Presidency (INT) demonstrated World Bank / United Nations Office on Drugs the World Bank Integrity App. The Integrity App and Crime. StAR supports international efforts to enables users to report concerns of fraud or corrup- end safe havens for proceeds of corruption. StAR tion in World Bank financed projects directly to works with our partners and stakeholders in devel- the World Bank Hotline using mobile devices. The oping countries and financial centers around the App enables users to (i) identify and obtain infor- globe for the systematic and timely return of stolen mation about World Bank financed projects based assets. StAR is a partnership between the World on location, type of activity or keyword, (ii) submit Bank and the United Nations Office on Drugs and a report detailing concerns of fraud or corruption; Crime (UNODC). StAR presented 1) its country (iii) upload photographs in connection with that engagement and technical assistance work, 2) policy concern. Users can choose to be identified or remain advocacy in international fora, and 3) innovation & confidential. The Integrity App is currently available knowledge products, including demonstration of the for Apple devices. Versions of the App for other plat- StAR Asset Recovery Watch cases database forms, and a web-based mechanism are under devel- (www.worldbank.org/star) opment (See a blog post on the app launch at https:// blogs.worldbank.org/publicsphere/team/stephen-zimmermann). Social Development - Open Development Tech- nology Alliance (ODTA) is an initiative led by the The International Finance Corporation (IFC) World Bank Institute (WBI) and the World Bank’s is the private arm of the World Bank Group. IFC ICT unit (TWICT) in partnership with the Social provides both investment and advisory services to Development Department (SDV). It aims to bring clients in over 100 countries to promote private together communities within and outside of the sector development. The IFC presented some of the World Bank Group interested in technology-enabled technology it uses to mitigate corruption risks within interventions for social accountability by improving operations, including: transparency, accountability, and citizen engage- ment. The SDV-ODTA booth showcased projects 1. Client Screening Application - Part of Due and activities being carried out by the Bank’s ICT Diligence on IFC clients for social accountability practitioners (http://www.opendta.org) 2. Case Management System - Case tracking and repository tool World Bank Finances. As part of the World Bank’s 3. E-Learning Modules - (Anti-Corruption, AML/ larger Open Data Initiative, the World Bank Fi- CFT, and Integrity Due Diligence) nances open data platform and mobile application focus on sharing financial data about what the Poverty Reduction and Economic Management World Bank is doing through current and historical (PREM)- Anti-Corruption Authorities (ACAs) loan, credit, grant, fund, budget, and expenditure Portal is an open platform for sharing ideas and ex- information. Beyond transparency and serving as periences between ACAs, practitioners and interna- a resource for one-stop answers about the Bank’s tional actors. This web based platform allows ACAs financial activities, the project also seeks to make to articulate new ideas, collaborate with other World Bank financial data re-useable to the public. practitioners and international actors and collec- Anyone can sort, filter, visualize, and share (through tively address common challenges. The information social media & via embed) the data, which is also provided is validated by ACAs staff through the use available through an API. 40 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 2. The Mutual Legal Assistance Request Writer Tool (MLA Tool) has been developed by UNODC as a software application aimed at providing guidance to practitioners through each step of the drafting process of a mutual legal assistance request. The MLA tool is being expanded to include additional asset recovery features (http://www.unodc.org/mla/en/index.html). Organisation for Economic Co-operation and Development (OECD)- CleanGovBiz Initiative supports governments to reinforce their fight against corruption and engage with civil society and the pri- vate sector to promote real change towards integrity. International Partners The initiative draws together existing tools, provides user-friendly guidance to strengthen their imple- The United Nations Office of Drugs and Crime- mentation, improves coordination among relevant UNODC is mandated to assist Member States in players and monitors progress towards integrity their efforts to fight illicit drugs, crime and terror- (www.oecd.org/cleangovbiz). ism. The three pillars of UNODC’s work are: i) field-based technical cooperation projects to enhance The Basel Institute on Governance is an indepen- the capacity of Member States to counter illicit dent and non-profit think-tank based in Switzerland drugs, crime and terrorism; ii) research and analyt- conducting research and offering policy advice and ical work to increase knowledge and understanding capacity building support in public, global and cor- of drugs and crime issues and expand the evidence porate governance/compliance. Through the Interna- base for policy and operational decisions; and iii) tional Centre for Asset Recovery, the Basel Institute normative work to assist States in the ratification and provides training and advisory services in the field implementation of the relevant international treaties, of asset recovery. The Institute combines scientific the development of domestic legislation on drugs, methodology with practical experience and seeks crime and terrorism, and the provision of secretariat to engage partners from all concerned stakeholder and substantive services to the treaty-based and gov- groups (www.baselgovernance.org). erning bodies. Headquartered in Vienna, UNODC operates more than 50 field offices around the world, The Basel Institute on Governance presented: covering over 150 countries. For more information, please refer to http://www.unodc.org/mla/en/index.html • ARIS: an investigation tool to screen suspects for links to corruption, money-laundering and UNODC presented: terrorist financial using open-source information; and 1. The Tools and Resources for Anti-Corruption Knowledge (TRACK) portal brings together • the Basel AML Index: a country-risk ranking knowledge on anti-corruption and asset recovery based on money-laundering/terrorist financial, allowing access to this information in a central financial standards and transparency indicators. location. The portal features the Legal Library The AR Campus is an e-learning platform for on the United Nations Convention against Asset Recovery practitioners. Corruption (UNCAC), an electronic database of legislation and jurisprudence relevant to UNCAC from over 175 States. (www.track.unodc.org) INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 41 Other External Exhibitors environment. The site offers Forums, Articles, Hot IBM. I2 Investigative Software. IBM i2’s Fraud Topics, Videos and free due diligence search tool and solution helps stop internal and external fraudsters in country risk profiles. their tracks by empowering analysts to search mul- tiple data sources simultaneously, find hidden links RiskScreen uses five-step work flow:   and entities, and visualize transactions and timelines. • Step 1, searches US OFAC and UK HMT Investigators and analysts face tremendous vol- sanctions lists (note the UK list includes the UN umes of data which they must correlate in a rapidly and EU lists too);   shifting environment where the evidence can vanish • Step 2 searches Google and adds in ‘key words’ to before anyone is aware a crime has occurred. SPSS help identify political exposure (politically exposed finds hidden patterns and relationships in large data persons);  sets, or big data, that would otherwise be undetect- able through other analysis. Models can be employed • Step 3 adds in criminal ‘key words’ to focus on any looking at past behaviors to determine likelihood of negative information on the search subject;  future events or actions (www.i2group.com). • Step 4 is a neutral search of the internet with no added key words, and  GoPro. GoPro presented its Fraud Investigation and • Step 5 produces a report of all the results that have Prevention case management solution, which deliv- been viewed, providing a useful audit trail and ers targeted support for professional, transparent and record of your search.  compliant methods of managing complex investi- gatory cases. GoPro’s advanced case management framework is used to securely manage the process RiskScreen was designed to assist users in focusing of gathering, reviewing, and acting on information their internet searches securely. and evidence concerning persons and organizations related to identified and potentially fraudulent KYC360’s Factbook provides unique geographic activities. From the point of notification through to data, and holds legislation, reports, treaties, guidance prosecution, GoPro manages the case integrity and and information on sanctions and AML/ CFT com- its compliance with internal processes and dead- pliance along with Freedom House and Transpar- lines, while keeping track of all participants in the ency International Corruption Perceptions Indices case, their roles, responsibilities, activities, evidence (www.kyc360.com). and correspondence, escalation and enforcement procedures, and overall case status, ensuring that a Thomas Reuters-Open Calais. Thomson Reuters complete and comprehensive electronic file is always combines industry expertise with innovative technol- immediately available; clear, accurate and up-to- ogy to deliver critical information for leading deci- date, with nothing left to chance when dealing with sion makers in the financial, legal, tax and account- such complex and potentially high profile situations. ing, scientific and healthcare markets. The Thomson Advanced statistical analysis throughout the case Reuters Accelus™ suite of products offers solutions to enables informed decisions based on real time in- highly regulated industries to support their Gover- formation, whilst integration with in-house systems nance, Risk and Compliance efforts facilitates ease of use (www.gopro.net). (www.opencalais.com). KYC360 Online Anti-Money Laundering (AML) Practitioner Demonstrations-The Mintz Group Community, www.kyc360.com provides helpful AML The Mintz Group is an investigation and advisory resources for compliance, anti-money laundering services firm that gathers business facts all over the and counter-corruption professionals.  KYC360’s world for international organizations, corporations, internet due diligence search tool, RiskScreen law firms, financial institutions, government agen- supports customer investigation processes in a secure cies and NGO’s, and uses cutting edge investigative technology in international investigations. 42 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Other external vendors: Arachnys (https://www.arachnys.com/) OpenCorporates, the open database of the corpo- Arachnys provides a specialized platform to enable rate world (http://opencorporates.com) has over 40 million data searches regardless of information source, companies in 50 jurisdictions (including over 20 language or format. Much of the data it offers is not US states), and is increasingly working with gov- searchable except through the Arachnys system. This ernments and intergovernmental bodies to improve includes corporate records in a growing number of access to company information. jurisdictions, litigation information across the globe and the widest range of local-language business news A number of key features include: available from any source. • It’s free. Anyone can use OpenCorporates without fee or even registration; • Arachnys mines and refines what’s beneath the surface of the internet in over sixty different • You can search for company names and (where languages, across all emerging markets. Everything published by the company register) previous from Albanian corporate records to Vietnamese company names in all 50+ jurisdictions local news is instantly accessible. simultaneously; • Arachnys software filters information to highlight • It focuses on legal entities, sourced from the only the most relevant information from reliable official company registers, rather than vague ideas sources. of company names, and has provenance for all the information, meaning it can be checked for • Arachnys’s human analysts independently research accuracy and providing a route for additional each resource for trustworthiness.. information; • It provides IDs for the companies based solely on As a result of their interactions with the World the jurisdiction and company number, meaning Bank’s Integrity Vice Presidency and the Stolen Asset OpenCorporates has no embedded IP rights, Recovery Initiative (StAR) following the 2012 ICHA allowing unrestricted use; meeting, Arachnys have incorporated access to data from the financial disclosures of public officials in • It provides an API allowing access to the over 30 jurisdictions where these are publicly acces- information as data under the same share-alike sible online. attribution licence as the rest of OpenCorporates; • Rather than charging for access to the data, OpenCorporates charges for waiving the share- alike restriction, allowing the community to use the data for free and giving proprietary users a highly cost-effective way of benefiting from the open data community’s work. • It is increasingly matching other data to the legal entities, from trademarks, to official gazette notices, to US central contractor register. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 43 OPERATIONAL SKILLS FOR INTERNATIONAL CORRUPTION HUNTERS: WORKSHOP AT THE GEORGE WASHINGTON UNIVERSITY LAW SCHOOL JUNE 7-8, 2012 On June 7 and 8 the Second Biennial Meeting of • A plan for obtaining mutual legal assistance and the World Bank’s International Corruption Hunters the proper procedure for recovering the proceeds Alliance (ICHA) welcomed 90 ICHA members for of crime. a 2-day training workshop, co-hosted by the George Washington University (GWU) Law School. The GWU Law School and the Stolen Asset Recovery Initiative (StAR) each delivered a one-day workshop, repeated on June 7 and 8. Conference participants were assigned to two groups of 45 and attended both workshops. Workshop I: International Corruption Investigations Presenters: Jean Pesme, Manager, Financial Market Integrity and Coordinator, StAR Initiative • Jack D Smith, Professorial Lecturer, George Washington University Law School • Thomas Lasich, Professorial Lecturer, George Washington University Law School • Hari Mulukutla, Anti-Corruption Consultant Workshop II: Mutual Legal Assistance The GW Law School workshop was an “active Presenters: learning” exercise that required participants to trace • Jean Pesme, Manager, Financial Market Integrity the money trail and outline a criminal case for trial & StAR Initiative against a corrupt official in a hypothetical country. • Larissa Gray, Sr. Financial Sector Specialist, StAR Participants worked together in groups of 4 - 6 with Initiative the help of 10 facilitators provided by GW Law School. The evidence trail consisted of 22 docu- • Oliver Stolpe, Sr. Adviser, StAR Initiative ments preloaded on laptop computers. Participants • Jacinta Oduor, Sr. Public Sector Specialist, StAR found clues from interviews, bank records and other Initiative financial documents, and chose from an array of an- • David Hawkes, Lead Specialist, Integrity Vice ticorruption tools, including interviews, subpoenas Presidency, The World Bank and mutual legal assistance requests to solve the case. • Yves Aeschlimann, Sr. Financial Sector Specialist, At the end of the day, teams made 10-minute pre- StAR Initiative sentations on the following three points: • Frederic Raffray, Crown Advocate, Law Officers of • Identification of the criminal violation, the the Crown, Guernsey elements of the crime and proof for each element. • Jeanne Hauch, Consultant, StAR Initiative • Identification of the assets to be recovered and the • Lindy Muzila, Public Sector Specialist, StAR linkage to the underlying offense. Initiative 44 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 The goal of this workshop was to give participants a deeper understanding of the legal framework which underpins the Mutual Legal Assistance (MLA) process, an appreciation of the requirements when seeking assistance and the opportunity to apply this knowledge through practical exercises. It offered an interactive combination of instruction, exchange of good practices among the participants, simulated case scenarios and networking. INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 45 ANNEX 1: FIGURES Figure 9. Useful resources for open source information Resources for Researching Individuals DATABASE NAME WEBSITE COVERAGE PURPOSE Clear clear.thompsonreuters.com US Address histories; personal identifying information; US public records SmartLinx (Lexis Nexis) http://www.lexisnexis.com/smartlinx-info/ US Address histories; personal identifying information; US public records TLO www.tlo.com US Address histories; personal identifying information; US public records Monster.com www.monster.com US CV database; requires subscription Linked In www.linkedin.com Worldwide Professional social networking; requires subscription to see full profiles British public records: births, deaths, electoral; requires sign-up and credit card 192 www.192.com UK payment online Zoom Info www.zoominfo.com Worldwide Biographical and web references to company executives PIPL www.pipl.com Worldwide “Deep web” search of person names Devex www.devex.com Worldwide CV database of development specialists; requires free registration Company Information DATABASE NAME WEBSITE COVERAGE PURPOSE Emerging Company registries and in-depth local press coverage of emerging markets. Arachnys www.arachnys.co.uk Markets Financial disclosures of public officials (where published online). Global Reference Service. 200+ million companies worldwide. Abbreviated Dun & Bradstreet https://solutions.dnb.com/grs Worldwide information Kompass www.kompass.com World Company information. Competitor to D&B (subscription) World Companies database contains abbreviated identifier, executives and TLO www.tlo.com Worldwide family tree information Westlaw www.westlaw.com US+ State Incorporation records Central Contractor Registry www.ccr.gov US+ Central registry for contractors to US government Devex www.devex.com Worldwide Listings of development consulting companies Searchable SEC filings for all publicly traded companies. This is the official US Edgar http://www.sec.gov/edgar.shtml US government site. European Business Registry www.ebr.org EU Links to European business registries Guidestar www.guidestar.org US   All registered and defunct UK companies (public and private); Webcheck is free; Companies House www.companieshouse.gov.uk UK additional searches require payment or Direct account Financial Services Authority www.fsa.gov.uk UK Registry of all publicly traded companies in the UK Corporate Information www.corporateinformation.com World Company info http://www.mca.gov.in/DCAPortalWeb/dca/ Ministry of Corporate Affairs, MyMCALogin.do?method=setDefaultProper- India National company registry Govt of India ty&mode=12 Piers www.piers.com US+ Database of customs and ship manifest information (subscription) Securities & Exchange Commission www.sec.gov US Database of filings of companies traded on US markets; “EDGAR” Edgar USA Spending www.usaspending.gov US US federal contract awards 46 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Figure 9. Useful resources for open source information Property / Assets DATABASE NAME WEBSITE COVERAGE PURPOSE Clear www.westlaw.com US Deed transfer and assessment records for various states and counties Smartlinx (Lexis Nexis) www.lexisnexis.com US Deed transfer and assessment records for various states and counties TLO www.tlo.com US Deed transfer and assessment records for various states and counties Search Systems www.searchsystems.net World Meta search engine that links to state and county records sites Zillow www.zillow.com US Current market values, satellite and ground level photos http://www.landregistry.gov.uk/wps/portal/ UK Land Registry UK Land records for the UK Property_Search Locator DATABASE NAME WEBSITE COVERAGE PURPOSE Fonefind http://www.fonefinder.net/ World Area code and prefix look up. Can identify a land line, cell phone, pager, etc. International White & Yellow Pages http://www.wayp.com/ World International White and Yellow Pages Teldir http://www.infobel.com/teldir/ World International phone directories Superpages www.superpages.co US Person locator Switchboard www.switchboard.com US Telephone directory Yellow Pages.com www.yellowpages.com US Person locator British Telecom www.bt.com UK British directory assistance Canadian phone directory for individuals and business; includes a reverse Canada 411 www.canada411.ca Canada number search       Legal / Litigation DATABASE NAME WEBSITE COVERAGE PURPOSE Combined Judgment and Liens, National Financial Institution Sanctions and Westlaw www.westlaw.com US Legal Actions, Combined State Civl and Criminal, Federal and State Cases, Combined Jury Verdicts, Criminal Records Martindale Hubble www.martindale.com World Comprehensive directory of attorney bios Search Systems www.searchsystems.net US Links to state and local courts News DATABASE NAME WEBSITE COVERAGE PURPOSE Emerging  Company registries and in-depth local press coverage of emerging markets. Arachnys www.arachnys.co.uk Financial disclosures of public officials (where published online). Markets Factiva www.factiva.com Worldwide International press, specializing in financial and industry news. Nexis www.lexis.com or www.nexis.com Worldwide International press, specializes in legal coverage Westlaw (Allnewsplus) www.westlaw.com Worldwide Includes World News Connection INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 47 Figure 9. Useful resources for open source information         Internet Research     DATABASE NAME WEBSITE COVERAGE PURPOSE http://www.networksolutions.com/whois/ Look up registrant information for Internet address. Coverage includes .com, Network Solutions US+ index.jhtml .org., .co.uk and other country designations. http://domains.whois.com/domain.php?ac- Look up registrant information for Internet address. Coverage includes .com, Whois US+ tion=whois .org., .co.uk and other country designations. Way Back Machine www.archive.org Worldwide Contains historical snapshots of websites. Look up registrant information for Internet address. Coverage includes .com, Domain Tools www.whois.domaintools.com US+ .org., .co.uk and other country designations. dir.yahoo.com/Computers_and_Internet/In- ternet/Domain_Name_Registration/Top_Lev- Yahoo Directory of Internet Domains Worldwide List of country-specific domain registrars el_Domains__TLDs_/Registry_Operators/ International_Country_Codes/ Find IP Address www.find-ip-address.org/reverse_lookup Worldwide Identify websites sharing an IP address www.selfseo.com/find_ip_address_of_a_ Self SEO Worldwide Identify the IP address of a website website.php     Credentials Verification DATABASE NAME WEBSITE COVERAGE PURPOSE Education Verification at specific participating US schools (not a universal Student Clearing House www.studentclearinghouse.com US search); requires having signed consent of file. Employment verification in the US based on name and SSN match. Requires The Work Number www.theworknumber.com US having signed consent on file. Devex www.devex.com Worldwide CV database of development specialists; requires free registration Dissertation Express (ProQuest) http://disexpress.umi.com/dxweb US+ Search nearly all North American dissertations to verify PhD credential.     Maps / Satellite Images DATABASE NAME WEBSITE COVERAGE PURPOSE Google Maps www.maps.google.com Worldwide Map source Maps Live maps.live.com   Map source Google Earth earth.google.com Worldwide Satellite images Zillow www.zillow.com US For US residential property views, description and property values Spatial Energy www.spatialenergy.com   Satellite images Digital Globe www.digitalglobe.com   Satellite images Sat Imaging www.satimagingcorp.com   Satellite images 48 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Figure 9. Useful resources for open source information     Compliance / Politically Exposed Persons DATABASE NAME WEBSITE COVERAGE PURPOSE Monitoring of SEC filings for FCPA issues; monitoring of international press for ethiXbase www.ethixbase.com US+ FCPA cases; compendium in international corruption statutes www.rdc.com PEP database, drawing largely on open source material such as press and court Regulatory Data Corp Worldwide https://grid.rdc.com/wss/security/login.html cases. Emerging  Company registries and in-depth local press coverage of emerging markets. Arachnys www.arachnys.co.uk Financial disclosures of public officials (where published online). Markets PEP database, drawling largely on open source material such as press and court World-Check www.world-check.com Worldwide cases PEP database, drawing largely on open source material such as press and court World Compliance www.worldcompliance.com Worldwide cases Excluded Parties List System https://www.epls.gov/ US Current combined US government sanction and debarred lists FCPA Blog www.fcpablog.com NA Source of current awareness regarding FCPA and related cases. Trace International www.traceinternational.org/compendium Worldwide International list of corruption cases.     Meta-databases DATABASE NAME WEBSITE COUNTRY PURPOSE Searchsystems www.searchsystems.net Worldwide Database of databases in the US and internationally BRB www.brbpub.com Worldwide Database finder and local record retriever locator Virtual Chase www.virtualchase.com Worldwide Links to legal, company and other public information source Information on company registry authorities,tax authorities, property Doing Business www.doingbusiness.org Worldwide registrars, etc. Key Commercial sites (partly or wholly subscription based) Non-commercial sites (no subscription required) Source: Elizabeth Wiramidjaja. To help expand or update the resources list please contact ewiramidjaja@worldbank.org INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 49 ANNEX 2: PHOTO GALLERY Otaviano Canuto, Vice President, PREM, World Bank 50 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 51 ANNEX 3: WORLD BANK ICHA PLANNING TEAM Alexandra Habershon, Janice Joshi, ICHA Coordinator Sr. Program Assistant, INT Wendy Plumley, Dina Elnaggar, Sr. Executive Assistant, INT Sr. Communications Officer, INT Michelle Porvaznik, Communications Associate, Ana Maria Chasseloup, INT Temporary Staff, INT Sara Moon, Irma Carrasquero, Temporary Staff, INT Temporary Staff, INT Thank you to all volunteers who made ICHA 2012 possible. 52 INTERNATIONAL CORRUPTION HUNTERS ALLIANCE 2012 Integrity App How can I use the new Integrity App to fight fraud and corruption?  Identify World Bank financed projects  Report concerns of fraud or corruption in World Bank financed projects  Send images related to those concerns  Access information about the World Bank’s integrity program  View the World Bank list of debarred firms and individuals Download for free from iTunes A World Bank Group initiative sponsored by the Governments of Australia and Denmark, StAR, and the Governance Partnership Facility www.worldbank.org/icha