Business corruption is becoming an ever bigger investor risk, particularly in frontier/lean markets

ADB: Cracking down and cranking up the anti-corruption
pressure on companies and governments world-wide

Australia Network News reports that "The Asian Development Bank has banned 30 individuals and 31 companies from its projects following the institution's annual check for fraud and corruption."

This is all part of rising global trend and increasing public outrage about the extent and depth of corruption. Of course it is often worse in lean/frontier markets where institutions and legal enforcement is much weaker.

One might argue otherwise perhaps: Australia Network News does go on to say that:

"The number is slightly less than in 2012, when the ADB banned 42 companies and 38 individuals.

The ADB investigated a record 250 cases last year, ten more than in 2012 and says it is experiencing some success in curtailing fraud and corruption."

But the fact that in total the ADB has banned "almost 500 companies and 474 individuals for corruption, collusion or fraud" shows that anti-corruption is being take a little more seriously than in the past.

Seriously enough? No, not a chance. But investors are beginning to price in corruption risk nowadays.

Look at China, where Bloomberg Businessweek reports that "President Xi Leads Biggest Anti-Corruption Push Since Mao"

Hubristic? Maybe a little. But there is no doubt anti-corruption is being taken much more seriously in China, just look at the sales of Rolexes.

Of course in the US, anti-corruption enforcement has been on the rise since the 1977 FCPA came into force.

More importantly we've seen anti-corruption riots in India and the creation of a new 'clean' political party in recent years which is set to challenge the status quo.

And many might argue that a big part of the situation in Ukraine was caused by the naked and vast corruption of the country's former leader and his cronies.

All of this means that monitoring corruption risk is now more important than ever. The Transparency International website and daily newsletter is a helpful guide to some of the trends out there.