Options for Operationalising Transparency in Commodity Trading Transactions

Annex A. OECD initiatives on corruption in commodity trading

The OECD hosts a number of initiatives focusing on illicit financial flows and corruption in the commodity trading sector. For ease of reference, the outputs of those initiatives are listed below.

Thematic Dialogue on Commodity Trading Transparency

Hosted by the OECD Development Centre, the Thematic Dialogue on Commodity Trading Transparency was launched in response to the call made at the London 2016 Anti-Corruption Summit to provide a multi‑stakeholder dialogue platform for collaboration on how the global and multifaceted challenges of corruption in commodity trading can be addressed from both the supply and demand sides. The outputs of the Thematic Dialogue (listed below) provide complementary and mutually supportive tools that home countries, trading hubs, trading companies and producing countries, including state-owned enterprises, can use to reduce drivers of corruption, increase transparency and achieve improved accountability in commodity trading.

• OECD (2020), How to Select Buyers of Oil, Gas and Minerals: Guidance for State-Owned Enterprises, OECD Development Policy Tools, OECD Publishing, Paris, https://doi.org/10.1787/a522e6c0-en.

• OECD (2021), Typology of Corruption Risks in Commodity Trading Transactions, OECD Development Policy Tools, OECD Publishing, Paris, https://doi.org/10.1787/590e80e8-en.

• OECD (2021), Options for Operationalising Transparency in Commodity Trading Transactions, OECD Development Policy Tools, OECD Publishing, Paris, https://doi.org/10.1787/70007e06-en.

• “Online Mapping Tool of State-Owned Enterprises and Their Subsidiaries” (2021), https://www.oecd.org/dev/online-mapping-tool-state-owned-enterprises-their-subsidiaries.htm.

• “Online Stocktake of Company Reporting Requirements Applicable in Different Trading Hubs” (2021), https://www.oecd.org/dev/company-reporting-requirements-different-trading-hubs-stocktake.htm.

Illicit Financial Flows in Oil and Gas Commodity Trading

Led by the Anti-Corruption Task Team (ACTT), a subsidiary body of the OECD’s Development Assistance Committee (DAC), the OECD-DAC’s Programme of Work on Illicit Financial Flows in Oil Commodity Trading is undertaken in dialogue with oil producing African economies, and aligns with the OECD’s high priority afforded to tackling IFFs. Focusing on the vulnerabilities to IFFs that arise in the oil sales process, the OECD-DAC Programme of Work highlights what OECD members and partners can do to mitigate IFF risks in the commodity trading sector, including through official development assistance (ODA) and in their role as the home or host of the range of markets and enablers that may raise or exacerbate IFF risks.

• Anderson, C. (forthcoming), “Review of complementary ODA engagement efforts in reducing IFFs in oil trade activities and identification of potential points for ODA intervention”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Anderson, C. and D. Porter (forthcoming), “Illicit financial flows in oil and gas commodity trade: Experience, lessons and proposals: Phase 1 Report”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Engebretsen, R. (forthcoming), “Assessment of the track record of trade transaction transparency efforts to date”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Engebretsen, R. (forthcoming), “A layman’s guide to the commodity-trading sector”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Hickey, S. and G. Mohan (forthcoming), “Assessment of the impact of best-practice reforms on oil governance in Africa’s new producers”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Naval, C. (forthcoming), “The role of transnational investigative and advocacy work and fiscal transparency initiatives as vehicles in anti-corruption engagements in oil-producing countries”, OECD IFFs and Oil Trading Programme Working Paper, OECD Publishing, Paris.

• Nesvetailova, A., Palan, R., Petersen, H. and R. Phillips, R. (2021), “Workstream 2 Report: IFFs and Commodity Tradings -- Mapping Networks of Corporate Arbitrage in Oil and Gas Trading”, University of London, London, https://researchcentres.city.ac.uk/_data/assets/pdf_file/ 0005/583565/IFFs-AND-COMMODITY-TRADING-final-oct-2020-.pdf.

• OECD (forthcoming), IFFs, Oil Commodity Trading and Development: Findings and Mitigating Actions, OECD Publishing, Paris.