Anti-Bribery and Corruption Compliance in Bhutan

Bhutan, a small country nestled in the Himalayas, has made significant strides in combating corruption and promoting transparency. The government’s commitment to serving the state and the king has contributed to keeping corruption levels low compared to its South Asian neighbors.

Judicial System: Very Low Risk

• Only 1% of companies perceive the courts as a major constraint
• Bribes and irregular payments are rarely exchanged
• The government generally respects the independence of the judiciary

The courts in Bhutan are considered a very low-risk area for businesses. With only 1% of companies perceiving them as a major constraint, the judicial system is trusted to operate fairly and impartially.

Police: Very Low Risk

• No reports of corruption or intimidation
• The government has implemented effective measures to prevent corruption and promote transparency within the police force

The police force in Bhutan is also considered to be very reliable. With no reports of corruption or intimidation, the public can trust that the police are working to maintain law and order.

Public Procurement: Moderate Risk

• Bribes and irregular payments sometimes being exchanged
• Favoritism is perceived to occasionally influence the decisions of procurement officials when awarding contracts

However, the public procurement sector carries a moderate risk of corruption. While bribes and irregular payments are not common, favoritism can still occur in the contracting process.

Legislation

Bhutan has a comprehensive legal anti-corruption framework in place, which includes:

• Criminalizing abuse of office
• Money laundering
• Embezzlement
• Active and passive bribery
• The bribery of foreign public officials
• Mandatory asset declaration for public servants

The Anti-Corruption Act provides a robust framework for combating corruption.

Civil Society

• Freedom of speech and press are protected by law in Bhutan, but self-censorship is prevalent
• A freedom of information law has been passed, but government entities are reluctant to share information
• NGOs and professional associations are still developing in the country

While Bhutan’s laws protect freedom of speech and press, self-censorship remains a concern. The government has also been slow to implement its freedom of information law.

Conclusion

Bhutan’s commitment to combating corruption and promoting transparency is evident in its comprehensive legal framework and effective enforcement mechanisms. While there are still areas for improvement, the country’s efforts to limit corruption have been praised by international organizations.