US Financial Institutions Take Aim at Corruption with New Anti-Corruption Policies
Corruption has long been a pervasive problem in societies around the world, eroding public trust and undermining governments’ ability to deliver for their citizens. The effects of corruption are far-reaching, exacerbating social, political, and economic inequality, impeding effective governance, and undermining faith in government.
A New Chapter in the Fight Against Corruption
In an effort to combat this scourge, President Joe Biden has established fighting corruption as a core US national security interest. As part of this initiative, the Biden-Harris Administration has released its first-ever United States Strategy on Countering Corruption.
The Five Pillars of the Strategy
The strategy outlines a comprehensive approach to elevating the fight against corruption, with five mutually-reinforcing pillars:
- Modernizing and Resourcing US Government Efforts: better understanding and responding to the transnational dimensions of corruption, prioritizing intelligence collection and analysis on corrupt actors and their networks.
- Curbing Illicit Finance: addressing deficiencies in the US financial system and working with international partners to do the same, including issuing beneficial ownership transparency regulations, enacting regulations targeting real estate transactions, and increasing scrutiny from gatekeepers of the financial system.
- Holding Corrupt Actors Accountable: elevating diplomatic and development efforts to support civil society and media actors, launching a new initiative to detect and disrupt foreign bribery, establishing a kleptocracy asset recovery rewards program, and improving anti-corruption compliance programs with the private sector.
- Preserving and Strengthening the Multilateral Anti-Corruption Architecture: initiatives such as the Open Government Partnership and Extractive Industries Transparency Initiative.
- Improving Diplomatic Engagement and Leveraging Foreign Assistance Resources: elevating anti-corruption work as a priority within diplomatic efforts, expanding anti-corruption focused US assistance, and reporting annually to the President on progress made against the strategy’s objectives.
The Way Forward
The United States Strategy on Countering Corruption marks a new chapter in the country’s efforts to curb corruption’s harmful effects. Federal departments and agencies will report annually to the President on progress made against the strategy’s objectives, ensuring accountability and continued action to combat this scourge.