Australia Climbs Back into Top 10 on 2024 Corruption Perceptions Index
Transparency International has released its 2024 Corruption Perceptions Index (CPI), ranking Australia 10th out of 180 countries with a score of 77 out of 100. This marks Australia’s return to the top 10 for the first time since 2016, reflecting a significant improvement from its 13th place ranking in 2023.
Attorney-General Mark Dreyfus attributed this advancement to a series of reforms implemented in 2024, including new foreign bribery and anti-money laundering laws, as well as the establishment of the Administrative Review Tribunal. He emphasised the detrimental effects of corruption on democracy, institutions, and public funds, and reaffirmed the government’s commitment to combating corruption.
A key component of Australia’s anti-corruption strategy is the introduction of the “failure to prevent” foreign bribery offence, which came into effect on 8 September 2024. This legislation holds corporations liable if their associates—defined broadly to include employees, agents, contractors, and subsidiaries—engage in bribery of foreign public officials for the corporation’s benefit. To defend against such charges, companies must demonstrate that they had “adequate procedures” in place to prevent bribery.
Penalties for failing to prevent foreign bribery are substantial, with fines reaching up to $33 million, three times the benefit obtained from the bribe, or 10% of the company’s annual turnover, whichever is greatest.
To mitigate the risk of liability, it is imperative for organisations to implement comprehensive anti-bribery and corruption (ABC) programs. These programs should encompass regular staff training to ensure employees understand anti-bribery laws and the company’s policies, robust internal controls, and ongoing monitoring and review of the program’s effectiveness. Such measures not only help prevent bribery but also serve as evidence of the organisation’s commitment to ethical conduct, which can be crucial in legal defences.
The recent improvements in Australia’s CPI ranking underscore the positive impact of these regulatory changes and the importance of proactive compliance measures by organisations. By fostering a culture of integrity and ensuring rigorous adherence to anti-bribery laws, Australia aims to continue its progress in combating corruption and enhancing its international standing.
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To read more about the Transparency International 2024 Corruption Perceptions Index click here.