Proactively Protecting Your Business As Anti-Bribery and Corruption Regulations Continue Evolving in the EMEA Region
This article covers how corruption is impacting the EMEA region, recent regulatory developments and how to optimise your anti-bribery and corruption program while prioritising core business objectives.
Escalating corruption in EMEA drives negative economic and climate impacts
The just-released 2024 Corruption Perceptions Index (CPI) from Transparency International exposes escalating corruption levels across the globe, with more than two-thirds of countries scoring below 50 out of 100.2 The Western Europe and European Union (EU) regional average on the CPI has dropped for the second consecutive year to 64 out of 100.3 Only 6 of the 31 countries assessed in the region show improvements in their scores, while major economies including Germany (CPI score: 75) and France (CPI score: 67) showed declines.4 The lowest scoring EU and Western Europe countries include Malta (CPI score: 46), Romania (CPI score: 46) , Bulgaria (CPI score: 43) and Hungary (CPI score: 41.)5
The picture is also bleak for the Middle East and North Africa portion of EMEA as CPI numbers indicate corruption remains deeply entrenched with the area’s average score increasing by just one point to 39 out of 100, well below the global average of 43.6 The scores in this geographic area closely follow along the region’s trajectory of economic strength. Higher scores are seen in developed economies from United Arab Emirates (CPI score: 68), Qatar (CPI score: 59), Saudi Arabia (CPI score: 59) followed by Bahrain (CPI score: 53), Kuwait (CPI score: 46),South Africa (CPI score: 41), Morocco (CPI score: 37) and Tunisia (CPI score: 39) and going markedly lower in Iraq (CPI score: 26) Libya (CPI score: 13) and Syria (CPI score: 12).7The root of corruption lies in government officials and politicians circumventing democratic integrity and the ethical standards that typically guide fair market trade for their own personal gain. Bribery and corruption are often the gateway crimes opening avenues for human and wildlife trafficking, narcotics, climate abuse and arms trade and smuggling to flourish. Unchecked bribery and corruption negatively influence market integrity and fair competition while also impacting the viability of global supply chains and distribution channels. These issues are compounded in regions where economic disparity is more pronounced and the impacts on society, security and climate safety are more exacerbated.
Robust regulations reinforce incentives for ethical business conduct
The disparate application of anti-bribery and corruption (ABC) laws and subsequent penalties across the EMEA region, and on the global scale, diminishes the incentive for businesses to maintain strong bribery and corruption prevention programs. The EU is still assessing updates to EU Anti-Corruption Framework Standards which aim to build upon existing EU ABC regulations by better harmonising regulatory expectations around public and private sector corruption in one legal instrument that can be consistently applied across member states. The upgraded framework is still being finalised toward an end goal of an EU regulatory standard that imposes penalties for various corruption-related activities, such as bribery and abuse of function, with criminal liability for both individuals and companies.
The prospect of strong and coordinated bribery and corruption enforcements incentivise businesses to avoid the reputational damage and expenses of ABC penalties. Recent headlining bribery and corruption enforcements of $3.9 billion7, $124 million and $98 million8 underscore the power of a compelling enforcement environment. The United States’ recent introduction of a 180-day pause of the initiation of any new Foreign Corrupt Practices Act (FCPA) investigations or enforcement actions9 adds another layer of uncertainty to an already complicated global regulatory environment and may unintentionally also weaken corporations’ commitment to ABC compliance.
This “work-in-progress” status of anti-bribery and corruption regulations leaves companies in limbo. Businesses are obligated to comply, or face enforcements, under already-established ABC regulations including the United Nations Convention against Corruption, the United Kingdom Bribery Act and France’s Sapin II. Those same businesses are simultaneously forced to operate and establish internal ABC policies and processes without clear and consistent regional and global regulatory expectations in place.
Finding confidence amidst regulatory confusion with a clear ABC plan
Businesses typically face a one-two punch when bribery and corruption take place. First come the expenses incurred from the regulatory penalties, enforcements, personal liabilities and required remediation activities. A business must also manage the supply chain and operations disruptions, loss of brand affinity and erosion of investor, employee and consumer trust. These direct and indirect costs can inflict long-term performance impacts and reputational damage. The current and fluid status of the ABC regulatory climate isn’t typically a consideration for customers and shareholders — they expect corporate accountability and good-faith global citizenship are already a consistent part of your company’s culture.
It is imperative to implement an effective ABC program even though the regulatory environment is currently in flux. Committing to a culture invested in high levels of transparency and accountability across the enterprise and global supply chains is the first step. Establishing and periodically reviewing and updating ABC compliance programs and training helps position your business to adapt as regulatory expectations evolve.
Truly understanding the real-time politically exposed persons (PEP) and sanctions risk across relationships with customers, vendors and third-party suppliers is the core of an effective ABC strategy. This effort starts with defined risk assessment and screening workflows designed to complement core business operations. You can increase supply chain visibility and decision efficiency by choosing solutions that connect you to continuously updated global intelligence and automate risk-based screening for potential exposure to:
- Sanctions
- Politically exposed persons and associates
- Enforcements
- Adverse media
- Denied parties
- State-owned companies
The 2024 Corruption Perceptions Index results indicate bribery and corruption still exist at unacceptable levels in EMEA and continue to systemically impact economic stability, regional security and environmental health. An absence of standardised ABC regulation and enforcement in the region combined with recent regulatory signals from the United States leaves businesses at uncertain regulatory crossroads and still facing a global mandate to avoid exposure to bribery and corruption risk. Acting now to establish or strengthen your ABC program can pay sustainable dividends in keeping your business prepared and well positioned as EMEA’s regulatory climate around bribery and corruption continues to take shape.
Learn more about how we can help you strengthen your ABC program.
2. https://www.transparency.org/en/cpi/2024
3, 4 and 5. https://www.transparency.org/en/news/cpi-2024-western-europe-eu-leaders-hollow-efforts-cause-worsening-corruption-levels
6. https://www.transparency.org/en/press/2024-corruption-perceptions-index-authoritarianism-chokes-climate-action-in-the-middle-east-and-north-africa
7. Office of Public Affairs | Airbus Agrees to Pay over $3.9 Billion in Global Penalties to Resolve Foreign Bribery and ITAR Case | United States Department of Justice
8. SEC.gov | SEC Enforcement Actions: FCPA Cases
9. https://www.whitehouse.gov/presidential-actions/2025/02/pausing-foreign-corrupt-practices-act-enforcement-to-further-american-economic-and-national-security/