UK’s Strategic Approach against Corruption and Illicit Finance

The world marked International Anti-Corruption Day at the beginning of December. It was a day where governments, businesses, and citizens renewed their commitment to combat the scourge of corruption. As the UK Foreign Secretary David Lammy has said, “corruption… powers mobsters, dictators, and smugglers. If we want safer streets and a safer world, we have to hit them where it hurts – by fighting dirty money.”

If corruption is the theft of public resources, illicit finance is the “getaway car”, enabling ill-gotten gains to be moved and hidden within the international financial system. Illicit finance knows no borders – it is a transnational challenge which undermines trade, threatens national security and impedes sustainable development. This is particularly true in the African continent which, according to the UN, loses nearly $90bn per year in illicit capital flows.

Tackling these threats requires coordinated and collective global action. The UK is playing our part. That is why, on 21 November, Foreign Secretary Lammy launched our new campaign to combat illicit finance and money laundering both at home and overseas. The campaign will drive global action to reduce the harms caused by illicit finance, particularly in developing countries, and prevent the abuse of the international financial system by those trying to exploit it. At the same time, the Foreign Secretary announced a package of sanctions targeting three high-profile kleptocrats and their associates – a key step towards combating corruption. Sanctions are only one tool – but an important one to expose, disrupt and deter corrupt global actors.

Mauritius’ ambition to accede to the OECD Working Group on Bribery will generate transformative changes across the region, position the country as a regional leader and act as crucial preparation for its next assessment by the Financial Action Task Force in 2027

Furthermore, on International Anti-Corruption Day itself, Foreign Secretary Lammy set out a number of measures to tackle corruption and illicit finance in the UK. He announced the appointment of Baroness Hodge as the UK’s Anti-Corruption Champion. Baroness Hodge is a leading Parliamentary and public campaigner on anti-corruption, having strong relationships with key stakeholders and a background in public service in this role. Foreign Secretary Lammy also announced £36 million (Rs 2.14 billion) in support for the UK National Crime Agency, reflecting our commitment to fighting corruption and illicit finance through action at home. And he pledged to bring forward an ambitious government-wide anti-corruption strategy in 2025 to develop a single UK response to tackling corruption, and ensure that this is reflected in the UK’s diplomatic engagement around the world. What the campaign will do is important; how it does it is equally significant. 

Central to this campaign is working in partnership with countries in the region and championing their voice on this increasingly important agenda. This includes deepening partnerships with international financial centres. The UK and Mauritius are open trading nations. We are both rightly proud of the contribution that our financial services sectors make to our respective economies as sources of skills, employment, and tax revenue to fund crucial public services.

Mauritius makes a significant contribution as the transit point for 10 per cent of all FDI into Africa. The UK and Mauritius enjoy a strong partnership on these issues. In particular, Mauritius is an associate member of the International Anti-Corruption Coordination Centre (IACCC). The IACCC is currently assisting investigations in 42 countries across the world and has helped identify £1.45 billion (Rs 86.44 billion) in hidden assets, of which £631 million (Rs 37.6 billion) has been frozen by court orders. The UK’s support for Mauritius’ Office of the Director of Public Prosecutions was recently commended by the DPP. However, there is more we can and must do to prevent the openness of our financial systems from being abused. Mauritius has the potential to further strengthen its position as a regional leader on financial compliance. 

Its ambition to accede to the OECD Working Group on Bribery will generate transformative changes across the region, position the country as a regional leader and act as crucial preparation for its next assessment by the Financial Action Task Force in 2027.

Under Foreign Secretary Lammy’s new campaign, we look forward to deepening our partnership with Mauritius on the anti-corruption front through these international strategies, as well as through concerted domestic action.