Typology of Corruption Risks in Commodity Trading Transactions
Commodity trading presents specific and heightened risks of corruption due to the
large amount of money involved in commodity trading transactions, which are source
of important revenues for developing countries, and due to the sophisticated mechanisms
used to channel corrupt payments. These include complex and opaque corporate structures,
the use of off-shore entities, that render the identification of beneficial owners
more difficult, the use of intermediaries (including briefcase or shell companies)
and joint ventures with politically exposed persons (PEPs).
This report maps out corruption risks of cross-cutting relevance for the sales of
oil, gas and minerals that can arise at several points in commodity trading transactions.
It contributes to advancing the global transparency and accountability agenda in commodity
trading, by improving understanding and raising awareness of corruption red flags
and evolving corruption patterns across a wide range of stakeholders, including home
jurisdictions of buying companies, trading hubs, host governments, state-owned enterprises
and buying companies.
Published on June 30, 2021
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