The Biden Administration launches the first United States Strategy on Countering Corruption

Pursuant to NSSM-1, federal departments and agencies conducted an interagency review to take stock of existing United States government anti-corruption efforts and to identify and seek to rectify persistent gaps in the fight against corruption. This first United States Strategy on Countering Corruption is based on the findings of that review and establishes a comprehensive approach to how the United States will work domestically and internationally, with governmental and non-governmental partners, to prevent, limit, and respond to corruption and related crimes. The United States Strategy on Countering Corruption is built on five distinct strategic pillars. Each pillar is further supported by different strategic objectives and specific lines of work. PILLAR ONE: Modernizing, coordinating, and resourcing U.S. government efforts to fight corruption As part of the strategy, U.S. federal government departments and agencies will dedicate additional human resources to establishing anti-corruption work as a core priority of domestic and foreign policy, ensuring coordination with global partners to amplify these efforts. To this end, the United States will strengthen research, data collection, and analysis, all related to corruption; improve information sharing at the national and international levels; organize and resource the fight against corruption more effectively in order to institutionalize this work as a long-term priority; and integrate anti-corruption considerations into regional, thematic, and sectoral priorities, including through new guidance, participation in planning and budgeting processes, assistance reviews, strategic communications, and integration into other sectors. Measures such as the creation of a new anti-corruption task force at the Department of Commerce; the adoption of new measures to improve coordination and elevate diplomatic outreach, multilateral engagement, and the alignment of policy, diplomacy, and foreign assistance; the increase of resources for law enforcement; engagement with Congress to promote adequate resourcing of the anti-corruption agenda through assistance and operating budgets; and the integration of anti-corruption programming and safeguards into the Administration's key priorities, including domestic economic recovery, Build Back Better World, COVID-19 recovery, and climate adaptation efforts, among others, will be carried out to complete this work. PILLAR TWO: Curbing illicit finance The United States will address the shortcomings of its anti-money laundering regime by effectively collecting beneficial ownership information from those who control anonymous shell companies, and by increasing transparency in real estate transactions. The United States will also work with its allies and partners to prevent the establishment of new “safe havens,” while working to end existing ones. The United States Strategy on Countering Corruption also contemplates the finalization of an effective beneficial ownership regulation and the creation of a database of the beneficial owners of certain companies, in order to help domestic and international partners identify “bad actors.” The United States will also work on issuing regulations directed at the persons closest to real estate transactions in order to identify when real estate is being used to conceal ill-gotten money or to launder criminal proceeds, imposing minimum reporting standards on investment advisers and other types of investment funds, among others. PILLAR THREE: Holding corrupt actors accountable The United States Strategy on Countering Corruption also focuses on holding accountable those who choose to engage in corruption. As part of this effort, the U.S. government will enforce existing rules, while working with Congress on the creation of new bodies to address the challenge of corruption in its current state. To achieve its objectives, the United States will use measures such as updating the tools available to hold corrupt actors accountable at home and abroad; collaborating with its partners to create complementary regimes and amplify U.S. efforts; strengthening the capacity of partner foreign governments to pursue accountability in a fair and equitable manner; and reinforcing the capacity of civil society, the media, and private sector actors to prevent corruption and press for accountability. The United States Strategy on Countering Corruption also revealed that the United States will establish a Kleptocracy Asset Recovery Rewards Program that will enhance the U.S. Government's ability to identify and recover stolen assets linked to foreign government corruption that are held in U.S. financial institutions. The program will provide rewards to individuals for information leading to the identification and recovery of stolen assets linked to foreign government corruption held in U.S. financial institutions. This new Strategy also contemplates the launch of an interagency Democracies Against Safe Havens Initiative, which will engage partner countries to coordinate actions on law enforcement, sanctions, and visa restrictions, as well as to detect and disrupt kleptocracy and foreign bribery; work with the private sector to improve the international business environment, encouraging the adoption and implementation of anti-corruption compliance programs by U.S. and international companies; promote relevant anti-corruption clauses in commercial contracts; and elevate diplomatic and development efforts to support, defend, and protect civil society and media actors, including investigative journalists. With respect to cryptocurrencies, the Department of Justice will use a recently created task force, the National Cryptocurrency Enforcement Team, to focus specifically on complex investigations and prosecutions of the criminal uses of cryptocurrencies, particularly crimes committed by virtual currency exchanges, cryptocurrency mixing services, and money laundering infrastructure actors. U.S. departments and agencies will continue to use their regulatory bodies to remove corrupt individuals, companies, and other entities from the federal marketplace and the federal supply chain, by excluding (suspending or debarring) such actors from the United States. PILLAR FOUR: Preserving and strengthening the multilateral anti-corruption architecture Leading within existing institutions and, in consultation with partners, the United States will further strengthen the multilateral system's focus on corruption as a global problem, using all available forums to address shared priorities and eliminate “safe havens” for corrupt actors and their criminal proceeds. The United States Strategy on Countering Corruption contemplates strengthening the institutions that fight against corruption and the enforcement of existing frameworks, as well as redoubling efforts in multilateral forums to advance anti-corruption measures and advocate for robust anti-corruption controls in any multilateral aid. The United States will also preserve and strengthen the international anti-corruption architecture in organizations such as: the Organization for Economic Cooperation and Development (OECD), the Organization of American States (OAS), and the United Nations, including through better implementation of the United Nations Convention against Corruption (UNCAC). The United States will also press the G20 and the G7 to apply strong transparency and anti-corruption measures across all ministerial tracks. PILLAR FIVE: Improving diplomatic engagement and leveraging foreign assistance resources to advance policy objectives To address the global reach of corruption and its harmful effects, the U.S. government will elevate and expand the scale of diplomatic engagement and foreign assistance; protect anti-corruption actors; harness anti-corruption innovation; improve coherence and risk analysis across foreign assistance; and improve security assistance and integrate anti-corruption considerations into military planning, analysis, and operations, among other actions. As reported through the United States Strategy on Countering Corruption, the U.S. Government has already begun to implement actions. Federal departments and agencies will report annually to the President on the progress made toward the Strategy's objectives. Undoubtedly, the publication of the United States Strategy on Countering Corruption confirms that for President Biden's administration, corruption is, as it has already expressed previously, a “core United States national security interest.” The message is clear: it is about fighting corruption at the national and global levels, using every possible resource and structure. Therefore, it is imperative that companies ensure they follow anti-corruption best practices, and that they have in place the appropriate internal anti-corruption controls and policies. For any additional information, please contact our experts: Diego Sierra, Partner: +52 (55) 5258 1039 | dsierra@vwys.com.mx Raymundo Soberanis, Partner: +52 (55) 5258 1034 | rsoberanis@vwys.com.mx Pablo Fautsch, Partner: +52 (55) 5258 1077 | pfautsch@vwys.com.mx