Fortunately, the recent global financial crisis has spurred the international community to keep the financial system in check and reduce its exploitation by the unscrupulous. During the G-20 summit in September, the world’s leading industrialized and developing economies committed to fight this scourge and reclaim stolen capital for development — an endeavor that puts international financial centers at the front line of the battle. At a time of heightened mistrust of the financial sector worldwide, financial institutions would go a long way in addressing their credibility gap by deepening their commitment to fight corruption.

The Financial Action Task Force, the international body that combats money laundering and the financing of terrorism, has recently agreed to strengthen its efforts against corruption. The task force recognized the proceeds of corruption as a significant risk to the international financial system. It agreed to further cooperation between financial intelligence units and law enforcement. It also decided to strengthen its tools to prevent and detect the abuse of the financial system by cronies and their associates. We strongly welcome these developments, and the World Bank Group will continue to closely work with the FATF for more effective results.

But much more is needed. At the World Bank Group we are working together with U.N. Office on Drugs and Crime on the Stolen Asset Recovery Initiative to underscore that stronger standards are not enough without adequate implementation. To be effective, the financial system needs to be vigilant, to periodically review politically exposed persons’ accounts, to require the declaration of individual owners behind a company and other financial disclosures.

Success will depend on active cooperation between the public and the private sector, along with international organizations and civil society. Financial institutions must become a central part in efforts against theft to ensure there are no financial safe havens for stolen funds. They could begin by taking voluntary initiatives to show they are serious in ensuring that “corrupt money stays out of my bank!”