Integrity and Compliance Cross-Thematic Group

Integrity & Compliance Taskforce Policy Paper

Excerpts:

RECOMMENDATION 1: Enhance integrity and transparency in public procurement with a focus on infrastructure projects.

To address the susceptibility to corruption of the public procurement process, this recommendation seeks to establish incentives for companies that adhere to high quality standards of integrity and compliance in the form of an eligibility requirement or affirmative competitive preference, ensure the participation of all stakeholders in the procurement process including maximizing the use of digitalization for this purpose, and promote collective action between the public and private sectors.

• Policy Action 1.1: Establish standardized incentives in public infrastructure procurement - G20 Members should establish and enforce incentives, in a way that is consistent with applicable procurement laws, for companies that adhere to high quality standards of integrity and compliance while providing the corresponding guidance and support to small and medium enterprises (SMEs) that would address barriers to their Involvement in public procurement.
• Policy Action 1.2: Ensure openness, fairness, transparency and accountability in the entire procurement cycle of public infrastructure- G20 Member Governments should ensure that all stakeholders are able to participate in the procurement process by enabling timely access to information that is provided in line with the G20
• Anti-Corruption Open Data Principles and across the contracting process and contract cycle, identifying opportunities to employ technology in the procurement process, and streamlining procedures.
• Policy Action 1.3: Build cooperation, trust and strategic alignment between the public and private sectors in relation with infrastructure projects - G20 Members should facilitate collective action between the public and private sectors by developing complementary and joint efforts that prevent corruption while preserving their respective Independence. Taking into account that the building of trust requires a concerted commitment to implement and enforce transparency, G20 Members must also promote initiatives and reporting mechanisms that promote openness, dialogue and accountability.

RECOMMENDATION 2: Implement high standards of ethics and integrity with a focus on SOEs

To address corruption risks of SOEs. this recommendation calls on the G20 Members to ensure that SOEs adhere to and disclose high quality standards of integrity and compliance in line with international good practice, and facilitate joint action geared towards building trust and exchanging lessons learned.

• Policy Action 2.1: Ensure that SOEs commit and adhere to high quality standards of integrity and compliance, and assume accountability to stakeholders including reporting publicly on anti-corruption programs - G20 Members should demonstrate their continuing commitment to upholding integrity by (1) applying high quality standards of integrity and compliance within the public sector Itself, and (ii) ensuring that SOEs and other companies-including SMEs-implement the same standards in line with international good practice and SOE anti-corruption guidelines, and publicly disclose such standards, particularly in connection with procurement and bidding processes.
• Policy Action 2.2: Promote collective action among SOEs, the general government and the private sector- G20 Members should facilitate the professional cooperation between the public and private sectors by developing joint initiatives. building trust and exchanging Information and lessons learned, among others, that encourage the adoption of robust best practices on integrity and the implementation of effective compliance measures across all sectors. Such facilitation should not come at the expense of maintaining a strict separation of government functions from the exercise of ownership of SOEs.

RECOMMENDATION 3: Pursue the implementation of beneficial ownership transparency

To deter the wrongful use of legal persons and arrangements, the recommendation calls on the G20 Members to pursue the full implementation of beneficial ownership action plans, ensure the availability of Information and establish the rules for information exchange.

• Policy Action 3.1: Implement previously established beneficial ownership action plans and ensure consistency in beneficial ownership regulation including for Designated Non-Financial Businesses and Professions (DNFBPs) and legal professional privilege- G20 Members should ensure the implementation of beneficial ownership action plans. making sure that regulation of beneficial ownership is consistent, to remove regulatory arbitrage and to aid businesses who need to provide and use this information from having to comply with differences across jurisdictions. This will ensure a level playing field for all and remove prospective barriers to entry.
• Policy Action 3.2: Mandate public registers of beneficial ownership that utilize globally consistent data classifications and verification of information- G20 Members should ensure access to beneficial ownership information by mandating public registers of beneficial ownership that utilize globally consistent data classifications and verification of Information. This will combat corruption and money laundering at all levels of government and corporate business dealings, as well as ensure transparency in public procurement across the supply chain.
• Policy Action 3.3: Develop rules for effective and efficient exchange of information- G20 Members should scale the availability and use of beneficial ownership information by creating rules to ensure its effective and efficient exchange. International standards on data privacy, data handling and data classification must be defined.