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18 - Dealing with Corruption

from Part V - Systemic, Trans-Substantive and New Issues

Published online by Cambridge University Press:  08 October 2021

C. L. Lim
Affiliation:
The Chinese University of Hong Kong
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Summary

The issue of corruption is exemplary for the role of public policy in arbitration. Corruption is a “bilateral” criminal act involving the briber and the taker of the bribe, with varying nuances of solicitation on both sides.1 Both sides have an interest in keeping corrupt activities secret. Yet, regardless of the intentions of the parties, there is a universal consensus that corruption cannot be tolerated in international business relations. When international business transactions tainted by corruption are submitted to international arbitration, the notion of party autonomy finds its limits in the transnational public policy against bribery and corruption. No award can be allowed to take effect if it is seen to condone corruption. International arbitration derives its legitimacy from applying the law, including public policy rules prohibiting corruption.

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Publisher: Cambridge University Press
Print publication year: 2021

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