Basics

Why asset declarations exist

Asset and interest declaration systems require public officials to report what they own, earn and are involved in, so that conflicts of interest can be prevented and unexplained wealth can be detected. The UN Convention against Corruption asks states to set up such systems.

• According to the World Bank and UNODC Stolen Asset Recovery Initiative (StAR), income and asset disclosure is intended to help deter the use of public office for private gain and to support a climate of integrity in public administration.¹
• Article 8(5) of the UN Convention against Corruption (UNCAC) asks states parties, where appropriate, to establish systems requiring public officials to make declarations to appropriate authorities about outside activities, employment, investments, assets and substantial gifts or benefits that could create a conflict of interest.¹
• Article 52(5) of UNCAC, in the chapter on asset recovery, says each state party shall consider establishing effective financial disclosure systems for appropriate public officials, with appropriate sanctions for non-compliance.¹
• Article 52(6) concerns officials with an interest in, or signature or other authority over, a financial account in a foreign country. UNCAC review teams have recommended that states such as Mexico and Mongolia consider requiring officials to report such accounts.^2,3
• Compliance with these articles is assessed country by country in the second cycle of the UNCAC Implementation Review Mechanism, whose executive summaries describe each country's declaration system and make recommendations.^2,3
• StAR's guide drew on the World Bank's Public Accountability Mechanisms data on the legal frameworks for disclosure systems in 88 countries and reported that 88 percent of countries in its data had some legal framework for income and asset disclosure.¹

Sources

1. Stolen Asset Recovery Initiative (World Bank and UNODC), Public Office, Private Interests: Accountability through Income and Asset Disclosure (28 March 2012)
2. United Nations Office on Drugs and Crime, Executive summary: Mexico, UNCAC Implementation Review Mechanism second cycle (3 December 2018)
3. United Nations Office on Drugs and Crime, Executive summary: Mongolia, UNCAC Implementation Review Mechanism second cycle (26 January 2023)