ADB/OECD Anti-Corruption Initiative for Asia and the Pacific THE CRIMINALISATION OF BRIBERY IN ASIA AND THE PACIFIC Proceedings of the 10th Regional Seminar for Asia and the Pacific Held in Kuala Lumpur, Malaysia, 23-24 September 2010, and hosted by the Malaysian Anti-Corruption Commission ADB/OECD Anti-Corruption Initiative for Asia and the Pacific THE CRIMINALISATION OF BRIBERY IN ASIA AND THE PACIFIC Proceedings of the 10th Regional Seminar for Asia and the Pacific Held in Kuala Lumpur, Malaysia, 23-24 September 2010, and hosted by the Malaysian Anti-Corruption Commission Asian Development Bank Organisation for Economic Co-operation and Development Publications of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific – The Criminalisation of Bribery in Asia and the Pacific: Frameworks and Practices in 28 Jurisdictions. Paris, ADB/OECD 2010. – Criminalisation of Bribery: Proceedings of the 10th Regional Seminar for Asia and the Pacific. Paris, ADB/OECD 2010. – Strategies for Business, Government and Civil Society to Fight Corruption in Asia and the Pacific. Paris, ADB/OECD, 2009. – Supporting the Fight against Corruption in Asia and the Pacific: ADB/OECD Anti-Corruption Initiative Annual Report 2007. Paris, ADB/OECD, 2008. – Fighting Bribery in Public Procurement in Asia and the Pacific. Proceedings of the 7th Regional Technical Seminar. Paris: ADB/OECD, 2008. – Asset Recovery and Mutual Legal Assistance in Asia and the Pacific. Proceedings of the 6th Regional Technical Seminar. Paris: ADB/OECD, 2008. – Managing Conflict of Interest: Frameworks, Tools, and Instruments for Preventing, Detecting, and Managing Conflict of Interest. Proceedings of the 5th Regional Technical Seminar. Manila: ADB/OECD, 2008. – Mutual Legal Assistance, Extradition and Recovery of Proceeds of Corruption in Asia and the Pacific: Frameworks and Practices in 27 Asian and Pacific Jurisdictions, Paris: ADB/OECD, 2008. – Curbing Corruption in Public Procurement in Asia and the Pacific: Progress and Challenges in 25 Countries, Manila: ADB/OECD, 2006. – Denying Safe Haven to the Corrupt and the Proceeds of Corruption: Enhancing Asia-Pacific Co-operation on Mutual Legal Assistance, Extradition, and Return of the Proceeds of Corruption. Proceedings of the 4th Master Training Seminar. Manila: ADB/OECD, 2006. – Knowledge-Commitment-Action against Corruption in Asia and the Pacific: Proceedings of the 5th Regional Anti-Corruption Conference. Manila: ADB/OECD, 2006. – Anti-Corruption Policies in Asia and the Pacific: Progress in Legal and Institutional Reform in 25 Countries. Manila: ADB/OECD, 2006. – Anti-Corruption Action Plan for Asia and the Pacific with country endorsing statements. Manila: ADB/OECD (2002; reprinted 2005). – Curbing Corruption in Tsunami Relief Operations. Manila: ADB/OECD/TI, 2005 (available in English, Bahasa, Sinhala, and Tamil languages). – Controlling Corruption in Asia and the Pacific: Proceedings of the 4th Regional Anti-Corruption Conference. Manila: ADB/OECD, 2005. – Anti-Corruption Policies in Asia and the Pacific: The Legal and Institutional Frameworks. Manila: ADB/OECD, 2004. – Effective Prosecution of Corruption. Proceedings of the 1st Regional Training Seminar. Manila: ADB/OECD, 2003. – Taking Action against Corruption in Asia and the Pacific: Proceedings of the 3rd Regional Anti-Corruption Conference. Manila: ADB/OECD, 2002. – Progress in the Fight against Corruption in Asia and the Pacific: Proceedings of the 2nd Regional Anti- Corruption Conference. Manila: ADB/OECD, 2001. – Combating Corruption in Asia and the Pacific: Proceedings of the Manila workshop held in 1999. Manila: ADB/OECD, 2000. These documents are available for download from the Initiative‘s Web site at www.oecd.org/corruption/asiapacific/publications 2010 Organisation for Economic Co-operation and Development, Asian Development Bank All rights reserved ISBN TBC This publication was prepared by the Secretariat of the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific, composed of Asian Development Bank (ADB) and Organisation for Economic Co-operation and Development (OECD) staff. The findings, interpretations, and conclusions expressed in it do not necessarily represent the views of ADB or those of its member governments or of the OECD or its member countries. ADB and OECD do not guarantee the accuracy of the data included in this publication and accept no responsibility whatsoever for any consequences of their use. The term ―country‖ does not imply any judgment by the ADB or the OECD as to the legal or other status of any territorial entity. ADB/OECD Anti-Corruption Initiative for Asia and the Pacific Contents Foreword ............................................................................................... 5 Main Abbreviations and Acronyms ..................................................... 7 Introduction........................................................................................... 9 Acknowledgments and Editorial Remarks ........................................ 11 Opening Ceremony ............................................................................. 13 Keynote Address by The Hon. Tan Sri Dato‘Haji Muhyiddin bin Mohammed, Deputy Prime Minister of Malaysia ........................................... 15 Opening Statement by Mr. Dato‘ Sri Haji Abu Kassim Bin Mohamed, Chief Commissioner, Malaysian Anti-Corruption Commission ...................... 19 Opening Statement by Mr. Kunio Senga, Director General for Southeast Asia, Asian Development Bank .................................................... 23 Opening Statement by Mr. Mario Amano, Deputy Secretary-General, OECD ............................................................................................................ 27 Session 1 International Instruments on the Criminalisation of Bribery ................................................................................................. 31 Criminalisation of Bribery under the UNCAC and the Use of the UNCAC Legislative and Technical Guides (Tanja Santucci) ......................... 33 Criminalisation of Bribery under the OECD Anti-Bribery Convention and Annex I of the 2009 Recommendation on Further Combating Foreign Bribery (Melissa Khemani) ............................................................... 43 Session 2 Challenges in Establishing and Applying Domestic and Foreign Bribery Offences ............................................................ 47 The United Kingdom‘s Old and New Approaches to the Criminalisation of Corruption (Arvinder Sambei) .................................................................... 49 Bribery through Intermediaries (William Loo)................................................. 57 Challenges in Establishing and Applying Domestic and Foreign Bribery Offences in Malaysia (Han Chee Rull) ........................................................... 61 Foreign Bribery Offences under the Korean Legal System (Chang Soo Lee) ................................................................................................................ 65 How Jurisprudence in Hong Kong, China has Interpreted and Complemented Statutory Bribery Offences (Alex Lee) .................................. 69 Session 3 Corporate Liability for Bribery.......................................... 73 Theories of Corporate Criminal Liability (Professor Celia Wells) ................... 75 Good Practice Guidance on Establishing Corporate Liability, and Good Practice Guidance on Internal Controls, Ethics and Compliance (Christine Uriarte) .......................................................................................... 93 Fighting Commercial Bribery in China (Dr. Fei Sun) ...................................... 97 Session 4 Investigative Techniques ................................................ 101 The MACC‘s Use of Special Investigative Techniques in the Investigation of Bribery Cases (Mustafar bin Ali) ......................................... 103 The KPK‘s Use of Special Investigative Techniques in the Investigation of Bribery Cases (Mochammad Jasin) ................................... 107 The Use of Forensic Auditing to Uncover Corruption (Ashwani Kumar) ...... 111 Session 5 Sanctions and Confiscation ........................................... 113 Confiscating and Quantifying Proceeds of Bribery (Alan Bacarese)............ 115 Cross-Debarment and Other Recent Anti-Corruption Efforts in the Asian Development Bank (Clare Wee) ........................................................ 119 Bans from Receiving Public Subsidies and Contracts on Conviction of Corruption in Pakistan (Umer Zaman) ......................................................... 123 Evidence-based Approach to Assessing Corruption: Two Recent Examples and Future Work (Tanja Santucci) .............................................. 127 Annexes ............................................................................................ 129 List of Participants........................................................................................ 131 Seminar Agenda .......................................................................................... 147 ADB/OECD Anti-Corruption Initiative for Asia-Pacific Secretariat Contacts ......................................................................... 151 ADB/OECD Anti-Corruption Initiative for Asia and the Pacific Foreword Created in 1999, the ADB/OECD Anti-Corruption Initiative for Asia and the Pacific supports its members in strengthening their policies, legislation, institutions