Background 

On 6 December 2021 the U.S Government issued its first Strategy on Countering Corruption (the Strategy) outlining how the US will prevent corruption through its work with foreign governments and other agencies. The Strategy was published after a National Security Study Memorandum review identified anti-corruption as a core national security interest for the U.S.

The Strategy highlights the global dimensions of corruption, how international financial systems can be abused to hide assets and money-launder proceeds of crime, and the detrimental effect corruption has on the rule-of-law, democracy and the protection of a fair and equitable society for U.S citizens.

The Fact Sheet: U.S Strategy on Countering Corruption published to accompany the Strategy states that these announcements mark 'a new chapter' in U.S efforts to prevent and limit corruption. 

The Five Pillars

The Strategy sets out five pillars of work around which U.S government anti-corruption work will be organised;

1. Modernizing, coordinating, and resourcing U.S. Government efforts to fight corruption

The U.S will adapt its approach to address the way corruption manifests in the globalised economy. Corruption related research, data collection and analysis will be enhanced, as will domestic and international data sharing. 

The Strategy states that the US will organise and resource the fight against corruption more effectively and integrate anti-corruption considerations into regional, thematic and sectoral priorities. There will also be an increased focus on the transnational dimensions of corruption. 

2. Curbing illicit finance

The Strategy recognises that to counter corruption, the U.S must tackle effectively money laundering and other criminal activities that fuel corruption. Deficiencies in the U.S anti-money laundering regime will be addressed, and the U.S will work with other countries to tighten global regimes. 

3. Holding corrupt actors accountable

The U.S will hold accountable those who engage in corruption by both enforcing rules already in place and updating anti-corruption measures to hold corrupt actors accountable at home and abroad. 

The Strategy also commits to working with other countries to create complementary regimes, and to strengthening foreign partner governments to be able hold corrupt actors accountable through international partnerships and initiatives.

The ability of the media and private sector will benefit from growing collaboration and communication to allow society at large to better prevent corruption and push for accountability. 

4. Preserving and strengthening the multilateral anti-corruption architecture

The U.S will lead within existing institutions and, in consultation with partners, build new fit-for-purpose platforms to further strengthen the multilateral system’s approach to corruption as a global problem. This will involve bolstering anti-corruption institutions and existing frameworks, while also pushing anti-corruption to partners to meet their obligations, and holding accountable those who fail to do so. 

5. Improving diplomatic engagement and leveraging foreign assistance resources to advance policy goals.

The Strategy identifies that diplomatic engagement, foreign assistance, and multilateral lending can bolster partner government will and capacity to foster ethical behaviour, strengthen legal regimes and ensure enforcement of anti-corruption measures, and organize effective mitigation of, and responses to, the use of strategic corruption, among other actions.

In light of this, the Strategy aims to advance anti-corruption policy goals by expanding the scale of diplomatic engagement and foreign assistance. The U.S will protect anti-corruption actors, and apply new technical approaches and tools to promote transparency and detect fraud and illicit finance.

The Strategy envisages a more joined up approach in relation to foreign assistance, allowing for better risk analysis and understanding of corrupt networks.

Security assistance will also be improved to integrate anti-corruption considerations into military planning, analysis and operations. 

What does this mean for business in Africa?

The Strategy clearly shows that tackling anti-corruption will be a priority of the Biden-Harris administration moving forwards. 

The Strategy also acknowledges that corruption is a global issue, and commits to increased co-operation between governments and foreign agencies. 

The Strategy uses Africa as an example of the impact of corruption, noting that every year an estimated $88.6 billion (equivalent to 3.7 percent of Africa’s GDP) leaves Africa in the form of illicit capital flight. Given many African nations score poorly on the Corruptions Perceptions Index, it is likely that the Strategy will result in an increased focus on the continent from the U.S government and anti-corruption agencies due to the number of African nations identified as having serious corruption problems. 

Companies operating in Africa, and with African companies, should be alive to the U.S government's heightened attention on anti-corruption, and exercise caution in their business operations. Companies should also ensure that anti-corruption and bribery policies are suitably reviewed and updated to prevent falling foul of any offences due to the likelihood of increased scrutiny.

If you would like to discuss anything in this article further, please contact Erin Broughton.