SAI INDIA

Evaluation of Current Situation of

Anti-Corruption in India

P.K.TiwariPrincipal Director

Kulwant SinghDirector

O/o Comptroller and Auditor General of IndiaNew Delhi

NATIONAL ANTI-CORRUPTION STRATEGY AND ACTION PLANS

• Anti-corruption strategy • A draft Anti-corruption strategy has been recommended by CVC.

• Chapters or contents covered in the anti-corruption document

• Objectives & priority areas.• Prevention and criminalization/law-

enforcement measures• Public participation/education.

• Anti-corruption strategy - action plan.

• Yes

• Elements contained in the Anti-Corruption Action plan?

• Specific measures/ institutions /time frame responsible for the implementation of each measure.

Publication of Anti-corruption Strategy

Yes

Contd.• Measures

employed in fighting corruption?

(a) Openness and transparency in the operation of agencies.

(b) Development & implementation of entitlements, norms & standards.

(c) Administrative reform.

(d) Development and enforcement of the code of conduct and the code of professional ethics.

(e) Penalty forms to heads of the agencies in case of occurrence of corruption.

(f) Declaration of assets and income.

NATIONAL ANTI-CORRUPTION AGENCY

• Anti-Corruption Agency Yes

• Main responsibilities/functions of the ACA

• Conduct investigations• Disseminate knowledge on anti-

corruption activities. • Raise public awareness about

the fight against corruption • Identify the causes of corruption

and to propose to the • Research and analysis on

corruption• Keep a database on the statistics

• Yes• Hotline /website in order to facilitate citizens .

LEGAL BACKGROUND

• India criminalize different types of corrupted activities?

• By a Special law on Anti-corruption

• Areas to enact new legislation

• Abuse of position/power• Criminal breach of trust• Extortion• Influence peddling• Nepotism

• Types of measures against corruption .(most to least)

• Preventive policies and measures • Detective actions (prosecutions,

investigations, audits etc.)• Punitive measure (Implementing

criminal and disciplinary sanctions etc.)

• Laws and regulations governing the financing of political parties.

• No.

Contd…

• laws and regulations governing code of ethics of public officials?

• Yes

• laws and regulations governing declaration of assets by public officials.

• Yes

• “accounting and auditing standards” for both public and private sectors.

• yes

• Legal obligation for public officials to report corruption-related offence?

• No

Rate the implementation of the rules/regulation in combating corruptions

Good

International Co- operation

• Ratification of United Nations Convention against Corruption (UNCAC)

• Yes

• UNCAC peer review • Yes

• Anti-corruption conventions, initiatives or international project

ADB-DECD Anti Corruptions Initiative for Asia Pacific. OECD Anti Bribery Working group (Observer) Brazil, Russia, India, China, South Africa (BRICS) Initiative IBSA (India, Brazil, South Africa) Initiative International Association of Anti Corruption Authorities

(IAACA) World Bank Corruption Hunter Alliance

Contd…

Measure of success level of international cooperation

PROMOTING AWARENESS & OTHER MATTERS

• Role of Media • Helped public to recognise the real situation of corruption.

• Role of Society • Active but not effective

• Comparison with past efforts.

• Much higher than past years

• Anti-corruption educational/training programme

• Yes – Schools/public officials/general public

Result of the current fight against corruption

Have had positive impact, contributed to prevent corruption.

PROMOTING AWARENESS & OTHER MATTERS

• Factors which inhibit the result of the fight against corruption.

• Corrupt people are not severely punished• The collusion between law enforcers and corrupt

people• Have not mobilized well people’s and media’s

participation.

Evaluation of Current Situation of

Anti-Money Laundering in India

LEGAL FRAMEWORK

• ML a criminal offence • Yes

• Specific laws and/or regulations covering anti-money laundering .

• yes , PMLA, 2002.

• Covers all money laundering aspects

• Yes

• Rate the implementation of anti-money laundering law

• Good

Financial Intelligent Unit (FIU) functioning as national center

Yes

AML BOARD/AUTHORITY

• Official authority/board in your jurisdiction

• Yes, FIU-IND & Enforcement Directorate.

• Measures of AML . • (a) Report, provide and save information on great value transaction/suspicious transaction(b)Gather, treat and transform information about anti-money laundering.

• AML board/authority enjoy independence.

• Yes – Legal/functional/financial

• Can a citizens inform AML • Yes

Updated rules and information about AML

Yes

AML BOARD/AUTHORITY

• Functions of AML/Board

Developing policies and improving legislation. Data collecting, analyzing, evaluation. Coordination. Raising awareness in the public. Carry out researches, conducting sector-based studies. Requesting any kind of information and documents.

from public institutions and organizations, natural and legal persons, and unincorporated organizations.

Exchange information and documents with counterparts in foreign countries.

• Ranking of effectiveness of AML efforts.

(1 to 3)

[2] Preventive policies and measures (regulations, internal control systems, international cooperation for deterrence, raising awareness )[2] Detective actions (prosecutions, investigations, audits etc.[2]Punitive measure (Implementing criminal and disciplinary sanctions etc.)

FINANCIAL INSTITUTIONS

• AML board/authority require AML & KYC procedures

• Yes

• Legal obligations of AML.

Internal controls and procedures to comply with regulatory framework. Thorough client identification. Having an anti-money laundering officer. Client due diligence procedures. Risk focused assessment of customer base and their transactions. Creating and regularly updating a list of red flags concerning AML. Prohibition of anonymous accounts. Employee training programs regarding AML. Independent audit/compliance function. Identification and reporting of suspicious activities to the appropriate authorities. Monitoring program for suspicious or unusual activities. Policies covering relationships with politically exposed persons consistent with

industry best practices. Policy prohibiting accounts/relationships with shell banks. Policy of protecting employees who report any suspicious transactions.

CONTD…

• Are financial institutions obliged to comply with the legal obligations or administrative policies in terms of client due diligence procedures in your country?

Implementation systems for the identification of its customer, including customer information in the case of recorded transaction, account opening, etc.

Collecting information and assessing its customer’s AML policies and practices.

Screening its customer’s information against sanction lists issued by the government or international bodies.

Are financial institutions obliged to comply with FATF recommendations in your country?

Yes

INTERNATIONAL COOPERATION

• Rate your organization ability to cooperate and exchange financial information at international level

• Very Good

• Is there any cooperation agreements or protocols among the local institutions to share financial information and financial transfers and if it’s involved with money laundering?

• Yes

EDUCATION, AWARENESS & OTHER MATTERS

• The role of citizen participation in fighting money laundering

Promoting public sector transparency and accountability and citizen participation.

Complaint system/ Whistle Blower, and Denunciation: Receiving reports and complaints on money laundering from citizen.

• Punishment of MLA incidents?

The penalties are appropriate

• Factor inhibit the fight against ML.

None

• Controlling systems are the keystone and deterrent of AML

Yes

CONTD…

• AML educational/training programs

• Public officials• Financial institutions.• Business associations and

private companies

• Any high institution(s) providing training workshops for the employees of controlling agencies about methods to detect money laundering.

• Yes

• Result of the current fight against-money laundering

• Have had positive impact, contributed to prevent money laundering

Thank You.