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India Can Use The G20 to Fight Corruption and Reduce Global Inequalities — Global Issues


Despite the unprecedented challenges, 2022 also opens up many opportunities to turn around important anti-corruption issues, such as anti-money laundering, asset recovery, beneficial ownership and renewable energy. .  Credit: Shutterstock.
Despite the unprecedented challenges, 2022 also opens many opportunities to turn around important anti-corruption issues, such as anti-money laundering, asset recovery, beneficial ownership and renewable energy. . Credit: Shutterstock.
  • Opinion by Sanjeeta Pant (sanjeeta)
  • Associated Press Service

An idea whose time has come

Despite the unprecedented challenges, 2022 also opens up many opportunities to turn around important anti-corruption issues, such as anti-money laundering, asset recovery, beneficial ownership and renewable energy. . When global leaders meet during India’s G20 Presidency, they must prioritize and build on this progress, rather than making new commitments around these issues that they subsequently fail to deliver. .

According to the United Nations, it is estimated that 2-5% of global GDP, or up to $2 trillion, laundered annually. Although the G20 has many times committed the Financial Action Task Force (FATF) anti-money laundering standard, member countries have slow implementation of policy reform. After Russia’s invasion of Ukraine and ineffective economic sanctions against Russian oligarchs, governments have begun to review existing policies and institutions. spacespecial role recognition of Designated Non-Financial Businesses and Professions (DNFBP), also known as “gatekeepers”.

G20 member countries are reacting concerns and criticism from their country partners regarding the non-application of FATF recommendations and the control of “dirty money”. Struggling with need to be able to prosecute money laundering and recover billions of dollars worth of frozen assets, they also amendment of national law to be able to do so.

Lack of transparency on beneficial ownership is also supporting the flow of money laundered globally. G20 beneficial ownership data recognition as an effective tool to fight financial crime and “protect the integrity and transparency of the global financial system.”

The Russian invasion has helped bring this message home, especially in countries that are popular destinations for buyers of luxury goods and properties. of FATF amending beneficial ownership recommendations early 2022 is timely. Member countries are also introducing new reporting rulesand Quick follow up policies and procedures set up Register for beneficial ownership. While there are still gaps in the proposed policies – as identified here– these are important first steps.

Likewise, the transition to renewable energy, initially raised as an environmental issue and then as a national security concern, is gaining increasing attention from a number of people. nation. resource management perspective. Given the potential size of the investment, it is necessary to deal with corruption in the energy sector to avoid the potential pitfalls of lack of open and accountable systems as we transition to a net zero economy.

The cross-cutting nature of the industry means a problems– from procurement and conflicts of interest in the public sector to transparency of beneficial ownership – should be considered. The global energy crisis and the Indonesian President’s prioritization of this issue have helped build momentum corruption in the renewable energy transition and this focus must continue.

Calling India

The corruption-related issues identified herein are transnational in nature and have global implications, including India. For example, with money laundering cases increase in india, it can’t see it as a problem limited to safe havens like the UK or the US. The same is true for the lack of transparency about beneficial ownership or corruption in the renewable energy transition, which fuels illicit financial networks in India and beyond, and often cross national borders.

Finally, corruption has a disproportionate impact on the poor globally. Almost 10% of the world’s population live in extreme poverty, many of them in countries like India. The G20, chaired by India, offers a unique opportunity to ensure the voices of the most vulnerable are heard at the global level. By prioritizing an anti-corruption agenda and building on past priority issues and commitments, the Indian government can lead efforts to bridge the North-South gap.

sanjeeta pants is the Director of Programs and Learning at the Accountability Lab. Follow The Lab on Twitter @accountlab

© Inter Press Service (2023) — All rights reservedOrigin: Inter Press Service

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