TI’s G20 chapters ask leaders for urgent anti-corruption action

Corruption Watch

2 days ago

Image: Flickr/G20 Brasil

Ahead of the 2024 G20 Rio de Janeiro summit, where leaders will come together to discuss matters of critical import for countries around the world, Transparency International’s chapters in G20 countries have written an open letter to the delegates, urging them to walk their long-standing talk on corruption and take concrete action against threats such as illicit financial flows, inadequate beneficial ownership transparency, and financial secrecy.

Read the letter below.

Dear G20 leaders,

With the 2024 G20 Summit in Rio de Janeiro upon us, Transparency International is writing to you with an urgent appeal to rescue the G20’s anti-corruption agenda. This is especially critical after last month’s G20 Anti-Corruption Ministerial, which delivered a declaration that neglects the G20’s critical role and responsibility in marshalling efforts against cross-border corruption and illicit financial flows. Not only did G20 officials fail to make any new pledges, but the declaration even weakened previous anti-corruption commitments. Now, we look to you to address this inaction by making corruption a central focus of G20 discussions during the Rio Summit, setting the tone for the G20’s future work, including under South Africa’s incoming G20 Presidency.

When Brazil nominated sustainable development and inequality reduction as G20 priorities for 2024, we were hopeful that the G20 would recognise that tackling the pernicious harms of corruption is essential to sustainable development and therefore central to the G20 agenda. However, we are disappointed to see that, just like in previous years, the G20 is treating anti-corruption as a lower-order concern.

Year after year, G20 leaders have reaffirmed their resolve to fight corruption. In practice, we have seen corruption treated more as an afterthought within the priorities of G20 presidencies, leaders’ communiqués and broader G20 conversations. Until this changes, corruption will continue to stymie the G20’s agenda for sustainable development and inclusive growth.

To break this cycle of inertia, anti-corruption efforts must be brought in from the margins and elevated as a core priority for G20 leaders.

In particular, we believe that the G20 is uniquely positioned to tackle illicit financial flows – a scourge on sustainable development that urgently requires a coordinated global response. Many G20 economies are both primary destinations for illicit financial flows and key players in setting international standards. This gives the G20 not only a comparative advantage but also a responsibility to coordinate financial integrity reforms to close the loopholes that allow illicit financial flows to thrive. These are the very same loopholes which, unless addressed as a matter of priority, will render any new G20 effort to promote sustainable development and tackle inequality ineffective.

Transparency International recently outlined our proposals on what G20 actions should look like if we are to stop corruption from undermining global efforts to advance sustainable development and reduce inequality. We believe that the G20 must:

end financial secrecy and finally deliver effective regimes of beneficial ownership transparency;
enact effective regulation and supervision of financial system gatekeepers, without whose help corrupt officials and criminals would not be able to hide and enjoy their illicit wealth; and
strengthen international cooperation and intelligence sharing to prevent, detect and prosecute cross-border corruption.

Only by advancing these priority reforms can the G20 help low- and middle-income countries to mobilise more resources and better protect those funds. We urge you to seize the opportunity presented by this year’s G20 agenda and commit to deliver much-needed financial integrity measures to stop illicit financial flows from landing on G20 shores.

Thank you for your consideration,