The House of Commons International Development Committee has released its fourth report of session 2016-17 on Tackling corruption overseas, in which it warns the government over the ramifications of the UK’s exit of the European Union (EU) on the laws and regulations designed to curb corruption both in the UK and overseas.
“A number of the UK regulations designed to increase transparency and tackle corruption stem from EU directives. For example, the [Chapter 10 of the EU Accounting Directive 2013/34/EU7], which obliges all UK registered companies to report payments made to governments in other countries,” the report read. “The Government will need to ensure that such important regulations around industry transparency are not lost when the UK leaves the EU.”
The Government must ensure that tackling corruption is not deprioritised as it negotiates its European exit, the reports continued, and that the momentum to tackle corruption, and the alliances the UK has made with a number of other European countries in this regard, are not lost.
“We would encourage the Government to continue to use its influence with other European countries to encourage them to commit to publishing country-by-country reporting data for multinational enterprises, as it is now permitted in the UK,” the report read.