This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.
Query
Please provide information regarding the potential of the Extractive Industries Transparency Initiative (EITI) to fight illicit financial flows (IFFs), especially on: a) whether EITI reports can be used to detect such flows; b) specific cases where EITI data helped identify corruption; and c) the potential legal barriers for the new EITI standards which include the publication of beneficial ownership.
Content
- Extractive industries and IFFs
- EITI’s potential impact on governance
- EITI data as a tool to track irregularities in the extracting sector
- Potential national (legal) barriers for EITI implementation
- References
Summary
This expert answer focuses on the potential of the data contained in the EITI reports to help improve governance and fight corruption. The first section explains why extractive industries are especially prone to IFFs. The second section explains the main mechanisms through which EITI aims to contribute to fighting corruption and improving governance. This section also explains the most important changes made to the EITI standard in 2016. The third section looks at ways in which the EITI report data has been used, but also points out its current shortcomings. The final section gives a short overview of the legal barriers for EITI implementation.
Authors
Roberto Martinez B. Kukutschka, Transparency International, [email protected]Reviewers
Andrew McDevitt, Transparency International, [email protected]Date
11/01/2017
