Identification and Quantification of the Proceeds of Bribery
Revised edition, February 2012
This study focuses on the identification and quantification of the proceeds of active bribery in international business transactions. Public and private organisations alike have long recognised that bribery of public officials is harmful to good governance, economic development and competitive conditions. Confiscation and recovery of the proceeds derived from foreign bribery are key elements in the international framework to fight corruption of public officials.
Chapter 1 introduces the international legal framework for the treatment of the proceeds of active bribery and catalogues the legal remedies available in various jurisdictions, and how these remedies may interact. Chapter 2 defines five principal types of proceeds of active bribery and analyzes how they may be quantified. Each system is illustrated by examples from countries using such methods, as well as commentary on some practical challenges linked to the calculation of proceeds. Chapter 3 offers a compilation of case summaries to illustrate the principles covered in the preceding chapters.
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Identifying and quantifying proceeds
This Chapter considers the different types of proceeds of active bribery, namely: (a) proceeds from contracts obtained through bribery; (b) business authorisations, permits or licenses to operate; (c) expenses or losses avoided; (d) expedition of delays; and (e) gains from using lax internal controls and inaccurate or incomplete books and records. Each type of proceeds could be identified and quantified by using different methods depending on the legal framework, e.g. confiscation/disgorgement, damages or restitution. The quantification methods are illustrated through case examples. The Chapter ends by considering some practical challenges posed by factors including the time period and the interest rates used to calculate proceeds, agent fees, administrative costs, indirect benefits, partial transactions, and the bribe payment(s). More detailed summaries of most of the illustrative cases can be found in Chapter 3.
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