This document discusses corruption around the world and efforts to address it. It begins by noting that Russia alone loses an estimated $310 billion annually to corruption, equal to 1/5 of its GDP. It then provides brief summaries on topics like international anti-corruption laws, indices that measure corruption levels in different countries, and the ISO 37001 standard for anti-bribery management systems. The document discusses challenges in implementing ISO 37001 in Eastern Europe and Central Asia, and ends by asking if the reader has any other questions.

1. The Challenge of Anti Corruption
In the Eastern Europe:
From Antiquity to the Modern Era
Natalia Ivanova & Igor Knazev

2. 2
Is Singapore’s GDP much or little?
It is estimated that Russia alone suffers annual losses
equal to GDP of Singapore, $310 Bn or 1/5 of its own GDP.

3. 3
Meet Sergey
He was born free.
Died in custody aged just
37 after serving 358 days
in a Moscow’s jail.

4. 4
Top 5 Facts About Corruption

5. 5
¾ of Countries Are Below 5

6. 6
EU’s Losses Alone Account For
KUWAIT’s GDP
€120 billion
lost annually
in EU alone

7. 7
½ Of The Workers Across EME & Africa
Consider Corruption A Means of Survival

8. 8
Developing Countries Lose $1.26 Trillion
Annually
Equals to GDP of SWITZERLAND and Saudi Arabia
combined

9. 9
Fewer than half of
respondents knew that
their company’s policy
contains guidance on
gifts or hospitality, and
less than a quarter
knew of policies on
political contributions

10. 10
The Russians Would Put Private Interest
Over The Interest of the Community
Historically. Why?
Mongol-tatarian Yoke imposed in 1242.
Even after the Russian prince would absorb
much of their principles: arbitrary despotic
violence and the total absence of concern
for the welfare of the subject.
Harsh weather conditions and severe winter
Besieged Mentality for centuries:
Russia has been a subject for invasions
for centuries...

11. 11
The Management System Favours
Vulnerability of the Individual

12. 12
Core Values Count
Duality in
the Russian
personality

13. 13
International Anti-corruption Law And
Statistics

14. 14
International Anti-corruption Law
● Domestic bribery (private-to-public and public-to-private)
● Corruption of foreign public officials
● Facilitation payments
● Compliance programs
● Regulators with jurisdiction to prosecute corruption
The main topics in the anti-corruption legislation:

15. 15
Brief Overview of the International Anti-
Corruption Law
• United Nations Convention against Corruption ( October, 2003);
• Council of Europe Convention on Criminal Responsibility for corruption
(January, 1999);
• Organization for Economic Cooperation and Development Convention on
Combating Bribery of Foreign Officials in International Business
Transactions (November, 1997);
• USA Foreign Corrupt Practices Act (December, 1977)
• United Kingdom Bribery act (April, 2010)

16. 16
Ease of Doing Business Index

17. 17
Doing Business Rating Favours Odious
Governments to manipulate with data
Total: 190 positions
Russia - 35 rank
Belarus - 38 rank

18. 18
Corruption Perception Index Sheds More
Light on the Corruption
Total: 180 positions
Russia - 135 rank
Belarus - 68 rank

19. 19
Global Corruption Barometer Index

20. 20
What do people think about corruption

21. 21
Today’s Challenges In the “Russian World”

22. 22
No global standard to design, implement or evaluate an
organization's anti-bribery management system
ISO 37001. Why now?
No shortage of guidance related to anti-
bribery programs and controls; seen as
confusing to some
Majority of guidance seen as U.S. and
Europe-centric
Create a "common language" to help
decrease the time, money and resources
on developing the "right" anti-bribery
program and controls, as well as
evaluating the anti-bribery programs of
other companies

23. 23
ISO 37001 History of The Standard
2011
BS 10500
was
published
2016
In January ISO
37001 reaches
voting stage
1988
Prevention of
corruption act
1977
Foreign
Corrupt
Practices Act
2002
Sarbanes
Oxley Act was
passedEstablishment of
Transparency
International
1993
UK Bribery
Act
2010
2016
Publication of
ISO
37001:2016
2015
Publication of
ISO 37001
draft

24. 24
8.2. Due Diligence 8.3 Financial Controls 8.4 Non-financial Controls
8.5 Implementation of
Anti-bribery controls
by controlled
organizations
8.6. Anti-bribery
Commitments
8.7. Gifts, Hospitality,
Donations and other
Benefits
8.8. Managing inadequacy
of anti-bribery
Controls
8.9 Raising Concerns
8.10 Investigating and
Dealing with Bribery
ISO 37001 assumes a lot of power to
harness the corruption challenge.
But is it enough?
8.1 Operational Planning
and Control

25. 25
ISO 37001. What is important in the
implementation?
● The anti-bribery program can exist within a larger compliance program
● The language used is important
● The anti-bribery risk assessment serves as the foundation for the program's
scope and objectives
● Policies, procedures and controls should be "reasonable and proportionate"
to the bribery risks the organization faces
● Organizations must implement anti-bribery controls where there is "more
than a low risk of bribery"
● Emphasis on continual improvement

26. 26
Key components of ISO 37001
● Conducting a risk assessment.
● Setting up a compliance function to monitor effectiveness of the program.
● Communication of the policy to all relevant personnel and business
associates (meaning, related parties/distributors, etc.)
● Training of personnel and business associates.
● Verifying their compliance.
● Monitoring high-risk payments and benefits to ensure they do not connote a
corrupt intent.
● Implementing controls throughout the business to prevent bribery risk.
● Instituting “whistleblowing” procedures.
● Setting up a formal process for investigating and dealing with any allegations
of potential or suspected bribery.

27. 27
ISO 37001 Implementation Challenges in
EACU
• Сhecking all close relatives with a special check for property (savings in
banks, securities prices, etc.).
• Rotation of civil servants every 5 years
• The abolition of the presumption of innocence on corruption
• Reducing the amount of money in cash and switching to electronic payments
• Combining the fight against corruption and creating economic prerequisites
for eliminating the causes of corruption

28. 28
Any Questions?