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This was partially rectified by a 1997 convention among OECD countries requiring legislation similar to that in the U.S. The UN convention, negotiated at a 2003 conference in Merida, Mexico, is more comprehensive, committing signatory government to take steps to prevent corruption as well as to promote international cooperation in efforts to recover assets derived from corruption. It entered into force in December, having been ratified by some 38 nations to date.
“Effectively administered, the UN convention can help to strengthen the rule of law and combat bribery,” according to Stephen J. Canner, USCIB’s vice president for investment and financial services. “U.S. business strongly supports these goals.”
Earlier, industry representatives had expressed some misgivings about a specific provision in the UN convention, Article 35, requiring states to establish a private right of action – raising the possibility that the treaty could serve as a launch-pad for costly litigation against companies in U.S. courts over possibly spurious claims.
“After extensive discussion with the State and Justice Departments, we are pleased that agreement was reached on language in the transmittal package that significantly reduces this possibility,” said Mr. Canner.
In its message to the Senate submitting the convention for ratification, the administration stated that "the current laws and practices of the United States are in compliance with Article 35 and that the United States does not construe Article 35 to require any broadening or enhancing of current U.S. law and practice in any way."
The USCIB-NFTC letter emphasized the importance of standing by these commitments and resisting any attempts to weaken them. The two groups will work together on a joint strategy to ensure ratification when the Senate takes up debate on the UN convention.
Staff contact: Stephen Canner
USCIB-NFTC letter in support of UN Convention Against Corruption
Text of the UN Convention Against Corruption
More on USCIB’s Investment Committee
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