Transparency International's Corruption Perceptions Index (CPI) for 2024 reveals persistent global challenges in combating public sector corruption. The CPI evaluates 180 countries and territories, assigning scores from 0 (highly corrupt) to 100 (very clean), based on perceived levels of public sector corruption.
The 2024 CPI indicates that over two-thirds of countries scored below 50, highlighting widespread corruption concerns. Notably, 47 countries recorded their lowest scores since 2012, underscoring the enduring nature of corruption worldwide.
Denmark maintained its position as the least corrupt nation with a score of 90. The U.S. experienced a decline, scoring 65 and dropping from 24th to 28th place. This marks its lowest position since 2012, attributed to issues like undue industry influence on policies, particularly concerning climate and environmental matters.
Meanwhile, countries experiencing conflict or with highly restricted freedoms and weak democratic institutions occupy the bottom of the index and have the lowest scores:
- South Sudan (Score 8)
- Somalia (Score 9)
- Venezuela (Score 10)
- Syria (Score 12)
- Equatorial Guinea (Score 13)
- Yemen (Score 13)
- Eritrea (Score 13)
- Libya (Score 13)
- Nicaragua (Score 14)
- Sudan (Score 15) and
- North Korea (Score 15)
In the 2024 CPI, Cyprus achieved a score of 56 out of 100, reflecting a 3-point increase from the previous year. This advancement elevated Cyprus to the 46th position among 180 countries, marking the second consecutive year of progress. Despite this positive trend, it's important to note that Cyprus' score remains below its peak of 66 in 2009. Additionally, public perception surveys indicate that a significant portion of the population still views corruption as a widespread issue. The recent improvements suggest that Cyprus is making strides in enhancing transparency and combating corruption. Continued efforts are essential to sustain this momentum and address the challenges that remain.
For regulated firms, the CPI serves as a valuable tool in their due diligence and risk assessment procedures. Geographical risk is a key consideration in due diligence procedures, as corruption levels vary significantly between countries and regions. Businesses engaging with partners in jurisdictions with low CPI scores should apply more scrutiny, conduct thorough background checks, and implement transaction monitoring mechanisms. Enhanced due diligence (EDD) may be required when dealing with politically exposed persons (PEPs), industries prone to bribery, or countries with weak regulatory frameworks. By incorporating geographical risk factors into compliance programs, firms can strengthen their risk mitigation strategies and reduce the likelihood of exposure to corrupt practices.
The 2024 CPI emphasises how corruption exacerbates global issues, notably the climate crisis. Countries with higher corruption levels struggle to implement effective environmental policies, hindering efforts to combat climate change.
The 2024 Corruption Perceptions Index serves as a critical reminder of the ongoing battle against public sector corruption. While some nations have made progress, the global community must intensify efforts to promote transparency, strengthen institutions, and enforce anti-corruption measures to address this pervasive issue effectively.
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