Chair,

I have the honour to speak on behalf of the European Union and its Member States. Albania, Bosnia and Herzegovina, Georgia, Iceland, Montenegro, North Macedonia, Republic of Moldova, Serbia, and Ukraine align themselves with this statement.

Under this agenda item, I would like to inform of the ongoing EU action to prevent corruption, which remains a priority for EU institutions and EU Member States. Further information can be found in the annual EU Rule of Law Reports, which examine developments across all 27 EU Member States, in four key areas for the rule of law: the justice system, the anti-corruption framework, media pluralism and freedom, and other institutional issues related to checks and balances. Pillar 2 of these reports provides concrete recommendations from the European Commission on how EU Member States can strengthen their institutions, laws and regulations to prevent corruption.

1. Corruption involving organized criminal groups (UNCAC CoSP Resolution 10/5)

   We recall that the European Union co-sponsored Resolution 10/5, adopted by the Conference of the States Parties in Atlanta in 2023 on “Measures to address corruption involving organised criminal groups”. This was the first UNCAC resolution focusing on interlinkages between organised crime and corruption. It remains most relevant for all Parties, and we encourage its further implementation.

   Through corruption, organised crime networks may infiltrate all sectors of society and influence decision-making processes. The EU is taking this threat seriously. The EU Strategy to tackle Organised Crime for the period 2021-2025 sets out tools and measures to dismantle organised crime structures, disrupt business models of criminal networks, and address the financial aspects of organised crime such as rules on money laundering and confiscation.

   The new European Internal Security Strategy, unveiled in April this year, will intensify the fight against criminal networks. The European Commission will review the current EU legislation in this area and propose a renewed legal framework on organised crime to strengthen the response.

   The EU is also working on strengthening its legal framework on corruption, aiming for EU-wide rules on prevention, criminalisation of offences, and investigation and prosecution of corruption. The negotiations are currently in the final phase. 

   As announced by European Commissioner Michael McGrath in his hearing at the European Parliament last year, the Commission also intends to develop the first EU anti-corruption strategy. Broad consultations are envisaged. 

   Through its cooperation projects, the EU is also supporting anti-corruption efforts in partner countries. For instance, the CRIMJUST project supported the creation of a guide to international criminal cooperation in the investigation and prosecution of corruption; it was formally adopted by the Association of Latin American Prosecutors (AIAMP) in April.

2. Good practices and challenges with respect to beneficial ownership information in order to detect, deter and prevent acts of corruption and to enhance the recovery and return of assets (UNCAC CoSP Resolution 10/6)

   Resolution 10/6 on “Enhancing the use of beneficial ownership information to strengthen asset recovery” contains important recommendations. We must make sure that crime does not pay. The traceability of financial information is not only essential to navigate the complex ownership structures used by criminals to obscure the identity of beneficial owners, but also to deter corruption more broadly.

   The EU legislation on anti-money laundering ensures that beneficial ownership information is accessible to competent authorities and financial intelligence units. It encourages EU Member States to maintain central registers gathering beneficial ownership information and enhances cross-border cooperation.

3. Challenges and good practices in the protection of reporting persons (UNCAC CoSP Resolution 10/8)

   Resolution 10/8 on “Protection of reporting persons” was a landmark document, underscoring the critical role of whistle-blowers in the detection and reporting of corruption, and calling for the creation of confidential and protected reporting systems. 

   The EU ‘Whistleblower Protection Directive’ provides whistle-blowers with strong protection, thus safeguarding their freedom of expression and ensuring the enforcement of EU law. The EU Directive corresponds to the requirements of the UNCAC resolution. It requires EU Member States to establish effective channels to enable whistle blowers to report breaches, to properly investigate and act upon whistle-blowers’ reports, and to protect them against retaliation.

   The EU also demonstrates its continued commitment in this area by supporting the implementation of Resolution 10/8 in the form of a side event this Thursday. Let me take the opportunity to encourage all States Parties to participate in this event, which will complement our exchanges in this Working Group with the perspective from civil society.

4. Prevention of corruption in procurement at various government levels and the effective use of ICT to prevent, detect, deter and counter corruption in procurement (UNCAC CoSP Resolution 10/9)

   Resolution 10/9 on “Promoting transparency and integrity in public procurement in support of the 2030 Agenda for Sustainable Development,” sponsored by France, promotes transparency and integrity in public procurement to ensure that funds are not diverted away from intended projects and services. 

   Several EU directives tackle corruption in procurement and their scope goes beyond the UNCAC resolution. The EU directives aim to achieve a procurement market that is competitive, open, and well regulated. The EU’s Rule of Law Report also assesses each EU Member State’s performance on access to public procurement. 

5. Incentives for the private sector to adopt integrity measures to prevent and combat corruption (UNCAC CoSP Resolution 10/12)

   The role of the private sector remains critical, as outlined in Resolution 10/12 on “Providing incentives for the private sector to adopt integrity measures to prevent and combat corruption”. 

   Various EU directives encourage the private sector to adopt integrity measures, by requiring large companies to disclose non-financial information, including anti-corruption policies, to establish safe reporting channels and protect whistle-blowers, and to implementcompliance programs that include integrity measures to counter money laundering and associated corruption.

   The proposed Directive on anti-corruption aims at further preventing and combating corruption in the private sector, in particular by harmonizing the definition of bribery and respective sanctions across the EU.   

Thank you for your attention.