International Conference “Developing trends in combating corruption, money laundering and recovering criminal assets in Europe”

Prague, 20-21 October 2015

Distinguished Ministers[1],

Ladies and Gentlemen,

Let me start by conveying my sincere thanks and appreciation to the authorities of the Czech Republic and to the donors: the EEA (European Economic Area) and Norway Grants for their initiative to organise this event, which brings us all together to debate on good practices and challenges in the fight against corruption, money laundering and criminally acquired assets recovery.

Over the years our Organisation took innovating initiatives when it made, in the early nineties, the fight against corruption and money laundering one of its priorities; because these two inter-related crimes defy all values of the Council of Europe: democracy, human rights and the rule of law.

Since then, preventing and combating corruption and money laundering has moved to the forefront of national and international debate and the Council of Europe continued to be a pioneer in tackling them, equally from the repressive and from the preventive perspective.  

An important step forward in this area is the recent adoption of the Recommendation 7/2014 of the Committee of Ministers on the protection of whistle-blowers, aiming to bringing into the open information on activities that have harmed or threaten the public interest. Whistleblowing is about protecting human rights and the rule of law in a democratic society and about making Europe a safer and better place. I am pleased that this subject is on the agenda of this Conference.

But whistle-blowers’ protection is of course not the only theme of our debates. The 2014 Report by the Secretary General singled out disguised or corrupt political financing as threats to democracy in a number of countries. GRECO peer evaluations noted lax or ineffectual financial transparency requirements for political parties and candidates, the absence of truly independent monitoring bodies, and the insufficient pursuit of violations of political finance rules.

This issue falls largely outside direct governmental control and is influenced by the political parties and parliaments themselves. Parties and parliaments will need encouragement to generate the political will to address this matter and I look forward to the conclusions of the debates you will have this morning on the subject.

On the corruption prevention side, the Council of Europe puts a strong emphasis on the need to reinforce integrity in the judiciary, strengthen transparency within the judicial system. There is a clear need to strengthen the commitment by parliamentarians to corruption prevention in their own ranks while carrying out their public duty.

However, several GRECO reports identified the lack of clear commitment to ethical conduct. Mechanisms for obtaining help, advice or training are limited and the procedures for responding to ethical violations are sometimes ineffective.  In several member states, people have taken to the street their protest against corruption and bad governance as promises of morality and ethics are not enough.  The frequent failure of politicians and political parties to deal with the concomitant issues is corroding their legitimacy in the eyes of voters, old and young.  Indeed, understanding what constitutes integrity and the objectives of instilling an integrity culture – be it among MPs, judges or prosecutors - is of paramount importance for the establishment of rule of law in any country. Choosing the prevention of judicial corruption as one of the main themes of this Conference was an inspired decision.

Last year GRECO started to reflect on the thematic scope of the Fifth Evaluation Round planned to be launched in 2017. The themes under discussion demonstrate that there are still many burning issues related to governance and democratic security which often trigger public concern and disatisfaction. I am confident that our group or experts will manage to choose an evaluation theme that is of relevance and that will help to effectively respond to citizens’ concerns as regards the integrity of the institutional infrastructure on which democracy rests.

As you well know, MONEYVAL, the Council of Europe’s monitoring body in the anti-money laundering area pays a lot of attention to effective implementation of the anti-money laundering preventive measures, aimed at protecting the global financial system from illegal funds infusions. But when it comes to international transactions operated through one of the most sophisticated and technologically advanced systems in the world – namely the financial system - any step to effective implementation of sound national structures require risk assessment, resources and effective international co-operation.  

Organised crime and unfortunately often corrupted public officials regularly hide illegal profits behind complex, multinational corporate structures. Many major investigations come to a halt because of inaccurate, delayed or unavailable information about the real owners of the companies. I am certain that the tomorrow’s debates will bring some light to the questions that all of you have in relation the beneficial ownership and politically exposed person’s identification, and the application of the international requirements on national risk assessment.

In our Organisation we recognize that fighting corruption and money laundering without strong asset recovery mechanisms would produce limited results in practice. Therefore, the Secretary General’s Report recommends the countries to pursue more asset-sharing agreements. More countries should ratify the Warsaw Convention to take advantage of its provisions for obtaining information on bank accounts and improve domestic investigations and international co-operation.  

Excellencies,

Ladies and gentlemen,

The recent financial crisis, with its devastating worldwide effects, has highlighted the importance of a renewed commitment to tackling corruption and money laundering in all forms. No other crimes do more to undermine political stability and economic growth of our countries by spoiling legitimate resources and undermining the public trust in the executive, legislative and judicial power. 

Acknowledging the importance of preventing and combating economic crimes, the Council of Europe provides a full package support to its member States by employing a triangular approach:  standard-setting, through Conventions, Recommendations and guidance; monitoring, executed by its monitoring bodies GRECO and MONEYVAL; and technical assistance in legislative reforms, effective implementation and international cooperation.

The Council of Europe is ready to continue to support actions aimed at enhancing countries’ capacities to prevent and fight these threats. International cooperation, sharing good practices and challenges encountered in the efforts to achieve higher level of transparency in political life, efficient prosecution of corrupt officials, successful implementation of the anti-money laundering preventive measures and effective asset recovery systems are a “must”. As all these principles are essential conditions for democracy and rule of law. 

I wish you a fruitful Conference.