The Organization for Economic Co-operation and Development recently completed its reviews of the implementation and enforcement efforts in Belgium, New Zealand and Russia of the OECD's Anti-Bribery Convention. The reports reveal that all three countries still have a long way to go to eradicate the bribery of foreign public officials involving international business transactions.

A summary discussion of the findings are below: 

Belgium

According to the OECD Working Group's phase-three report on the implementation of the OECD's Anti-Bribery Convention in Belgium, the country has had very few foreign bribery investigations and prosecutions. In the 14 years since the entry into force of the foreign bribery offense in Belgium, only one case of bribery of foreign public officials has been concluded, the OECD stated.

The OECD attributes this bleak figure to the “flagrant lack of resources for Belgian law enforcement authorities.” The working group “strongly recommends that Belgium more vigorously prosecute cases of foreign bribery involving Belgian nationals and companies,” the OECD stated.

The report also recommends that Belgium:

Adopt as a priority the legal provisions necessary for Belgian citizens to be held effectively liable for foreign bribery;

Ensure that the statute of limitations (and possibilities to suspend it) allow for the effective investigation and prosecution of foreign bribery;

Increase the level of sanctions for foreign bribery, particularly in relation to penalties against companies; and

Investigate foreign bribery allegations revealed in the context of international cooperation.

The report wasn't all bad news; it also highlighted Belgium's positive efforts toward tackling foreign bribery. For example, the working group stated that it “welcomes the first conviction of non-Belgian nationals and companies for the foreign bribery offense,” which the Brussels Appeal Court confirmed in May.

The working group also welcomed several regulatory clarifications made to several elements of the foreign bribery offense, as well as the tax regime for explicitly prohibiting the tax-deductibility of bribes.

The report further recommends a written report by Belgium in October 2014 on certain recommendations. The working group invites Belgium to submit a written follow-up report on all recommendations in October 2015.

New Zealand

New Zealand also “must significantly increase its efforts to detect, investigate and prosecute foreign bribery,” according to its phase-three report on the implementation of the OECD's Anti-Bribery Convention in the country. Since joining the convention over 12 years ago, New Zealand has not prosecuted any cases of foreign bribery, and only four allegations have surfaced to date.

“Outdated perceptions that New Zealand individuals and companies do not bribe may have also undermined detection efforts,” the OECD stated. Recommendations made by the working group to improve New Zealand's fight against foreign bribery, include:

Broadening the possibilities for holding companies liable for foreign bribery and ensuring they face significant sanctions for this crime;

Addressing gaps in the Crimes Act regarding the foreign bribery offense;

Strengthening New Zealand's capacity to detect, investigate, and prosecute foreign bribery through law enforcement training;

Raising greater awareness of the risks of foreign bribery and of channels for reporting allegations to law enforcement; and

Ensuring the non-tax deductibility of all bribe payments, including those paid through intermediaries.

The good news is that New Zealand has broadened the range of confiscation tools under its legislation, and assets derived from foreign bribery can now be confiscated by the new Police Asset Recovery Unit without waiting for the outcome of criminal proceedings.

The country also has adopted a comprehensive whistleblower protection law and made efforts to encourage and facilitate whistleblowing. Steps have also been taken to review the framework for mutual legal assistance to ensure requests for information from foreign countries are effectively addressed.

The working group invited New Zealand to submit a written report in six months on progress made in establishing the liability of legal persons for foreign bribery, and every six months thereafter, if needed. As with other working group members, New Zealand will submit a written report to the working group within two years on steps it has taken to implement the new recommendations. This report will also be made publicly available.

Russia 

Russia has yet to address key provisions of the OECD Anti-Bribery Convention, which entered into force in Russia in April 2012. “It has not yet fully implemented recommendations for strengthening its framework for combating foreign bribery and should be more proactive in detecting, investigating and prosecuting foreign bribery cases,” the OECD stated in its phase-two report on the implementation of the OECD's Anti-Bribery Convention in the Russian Federation.

The report urges Russia to adopt appropriate legislation against foreign bribery as a matter of high priority. In particular, the report recommends that Russia:

Expand the scope of its foreign bribery offense so that it applies to all cases covered by the OECD Anti-Bribery Convention;

Further strengthen its recently instituted framework for holding companies liable for foreign bribery;

Take steps across law enforcement and related agencies to implement a proactive  approach to detecting, investigating and prosecuting foreign bribery offenses and related accounting offenses;

Take measures to allow for the seizure and confiscation of the bribe and its proceeds in proceedings against natural and legal persons and improve coordination and accountability among law enforcement authorities; and

Raise the profile of foreign bribery in its anti-corruption efforts, specifically targeting Russian individuals and companies operating internationally.

The working group highlighted positive aspects of Russia's efforts to fight foreign bribery, including the explicit dis-allowance of the tax deductibility of bribes to foreign public officials. Russia also recently passed a statutory requirement for companies in Russia to have anti-corruption measures in place and has assisted other parties to the Anti-Bribery Convention in their investigations of foreign bribery.

Russia will make a special written follow-up report to the Working Group on its actions to implement the Working Group's recommendations before the end of 2014.

All three reports—Belgium, New Zealand, and Russia—include a comprehensive list of recommendations made by the working group for each country, and includes an overview of recent enforcement actions and specific legal and policy features for each country for fighting bribery of foreign public officials.