India Can Use The G20 to Fight Corruption and Reduce Global Inequalities — Global Issues read full article at

Regardless of unprecedented challenges, 2022 additionally opened home windows of alternative to maneuver the needle round crucial anti-corruption points, equivalent to anti-money laundering, asset restoration, useful possession, and renewable vitality. Credit score: Shutterstock.
  • Opinion by Sanjeeta Pant (sanjeeta pant)
  • Inter Press Service

An Thought Whose Time Has Come

Regardless of unprecedented challenges, 2022 additionally opened home windows of alternative to maneuver the needle round crucial anti-corruption points, equivalent to anti-money laundering, asset restoration, useful possession, and renewable vitality. When world leaders meet throughout the G20 Indian Presidency , they need to prioritize and construct on this progress, reasonably than make new commitments round these points that they then fail to implement.

In keeping with the UN, an estimated 2-5% of global GDP, or as much as $2 trillion, is laundered yearly. Though the G20 has repeatedly committed to the Financial Action Task Force’s (FATF) anti-money laundering requirements, member nations have been slow to implement policy reforms. Within the wake of the Russian invasion of Ukraine and ineffective financial sanctions in opposition to Russian oligarchs, governments have began reexamining current coverage and institutional gaps, particularly recognizing the role of Designated Non-Monetary Companies and Professions (DNFBPs), also called “gatekeepers.”

G20 member nations are responding to concerns and criticisms from their nationwide counterparts relating to failures to undertake FATF suggestions and clamp down on “dirty money.” Grappling with the need to have the ability to prosecute money-laundering instances and get well billions of {dollars} price of frozen property, they’re additionally amending national laws to have the ability to achieve this.

Lack of useful possession transparency can be aiding the move of laundered cash globally. The G20 recognizes beneficial ownership data as an efficient instrument to battle monetary crime and “protect the integrity and transparency of the global financial system.”

The Russian invasion helped drive house this message, particularly amongst nations which are standard locations for these shopping for luxurious items and property. FATF’s amendment of its beneficial ownership recommendations in early 2022 was well timed. Member nations are additionally introducing new reporting rules, and fast-tracking insurance policies and processes to arrange beneficial ownership registers. Whereas there are nonetheless gaps within the proposed insurance policies – as recognized here– these are essential first steps.

Equally, the transition to renewable vitality, initially raised as an environmental challenge after which as a nationwide safety concern is more and more gaining consideration from a resource governance perspective. Given the size of the potential funding, there’s a must deal with corruption in the energy sector to keep away from potential pitfalls ensuing from a scarcity of open and accountable techniques as we transition to a web zero economic system.

The cross-cutting nature of the trade means a wide range of issues– from procurement and battle of curiosity within the public sector to useful possession transparency- have to be thought of. The worldwide vitality disaster and the Indonesian Presidency’s prioritization of the problem have helped build momentum round corruption within the renewable vitality transition, and this focus should proceed.

Calling on India

Corruption-related points recognized listed here are transnational in nature and have world implications, together with for India. For example, with cash laundering instances rising in India, it can’t afford to treat it as an issue restricted to secure havens just like the UK or the US. The identical is true for the dearth of useful possession transparency or corruption within the renewable vitality transition, which fuels illicit monetary networks in India and past, and which regularly transcend nationwide borders.

Lastly, corruption has a disproportionate impression on the worldwide poor. Virtually 10% of the global population lives in excessive poverty, a lot of whom stay in nations equivalent to India. The G20, beneath the Indian Presidency, offers a singular alternative to make sure the voices of essentially the most weak are heard on the world stage. By prioritizing the anti-corruption agenda and constructing on previous precedence points and commitments, the Indian authorities can lead efforts to bridge the North-South divide.

Sanjeeta Pant is Packages and Studying Supervisor at Accountability Lab. Observe the Lab on Twitter @accountlab

© Inter Press Service (2023) — All Rights ReservedOriginal source: Inter Press Service


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