Cleaning Up: Tackling Bribery and Corruption in a Changing World

In an interview with Financier Worldwide, Pillsbury International Trade partner Aaron Hutman said three key factors are driving bribery and corruption risk:

• First, the pandemic caused actual or perceived scarcity, particularly early in the crisis, and deep pockets were chasing limited resources. Various government officials and private personnel had to decide who got what, with substantial opportunity and incentive for corrupt offers.
• Second, governments sought to maintain orderly trade and business amid a breakdown of supply and supply chains, putting underpaid, frontline personnel in a position of gatekeeper.
• Third, governments, multilateral funding organizations and charitable groups have made massive expenditures in reaction to the economic, medical and personal challenges introduced by the pandemic, with procurement and distribution of relief funds always fertile ground for corruption and bribery.

“The pandemic environment has fostered a substantial increase in corruption, fraud and money laundering,” said Hutman. “We will not know the full extent until the current crisis crests and enforcement officials in the U.S. and around the world have the ability to look back, investigate and prosecute. However, I would expect to see a wave of such enforcement beginning in 2021 and 2022.”

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