Corruption and Money Laundering in International Arbitration: Red Flags, Tribunal Duties, Jurisdiction, Admissibility and Merits, Applicable Law, Proof Standards, and Award Enforceability

Published by a LexisNexis Arbitration expert

Practice notes

Synopsis:

The World Economic Forum estimates corruption costs at least US$2.6tn, equalling no less than 5% of global GDP. Some jurisdictions forfeit as much as 17% of their GDP to corruption (Valle, Martim Della & Schilling de Carvalho, Pedro, ‘Corruption Allegations in Arbitration: Burden and Standard of Proof, Red Flags, and a Proposal for Systematization’, Journal of International Arbitration 39, no 6 (2022)). Losses linked to trade-based money laundering in developing nations reached US$9tn between 2008 and 2017. Yet corruption’s effects go far beyond economics. It penetrates society, curbing growth and development, while weakening consent, democracy, and the rule of law. Arbitrators play a vital part in confronting corruption and money laundering in international arbitration. This Practice Note is intended to help identify and understand how best to address corruption and money laundering questions in arbitrations. Its step-by-step method briefly highlights the central issues that must be weighed to deliver an enforceable award: from uncovering illicit activities and determining the steps required to deal with them, through to considering...

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Dilara Khamitova

Clyde & Co LLP

Dilara Khamitova is a jurist at the Paris office of CLYDE & CO. Her practice focuses on international commercial and investment arbitration as well as on public international law. Dilara is particularly active in sectors such as oil and gas, construction and international trade, advising clients in Europe, Middle East, Africa and Central Asia. She handles arbitrations in English, French and Russian.Prior to joining CLYDE & CO, Dilara acquired wide-ranging experience with the International Arbitration groups of leading international law firms in Geneva and Paris. Her expertise includes advising clients – States, private and State-owned entities - at different stages of international commercial and investment arbitration proceedings under the major arbitration rules, including ICC, ICSID and UNCITRAL. Dilara also acts as secretary or assistant to arbitral tribunals in proceedings conducted under the ICC, SCC, LCIA and DIAC Rules.Dilara holds an LL.M. in...

Nadia Darwazeh

Clyde & Co LLP

Nadia Darwazeh is a Partner and Head of Arbitration of Clyde & Co's Paris office. Nadia has extensive experience acting as counsel in commercial and investor-state arbitrations. She also regularly and sits as arbitrator. Before joining Clyde & Co, Nadia practiced for two decades in the International Arbitration Groups of leading international law firms in Paris, Shanghai, Frankfurt and London and as Counsel at the ICC, where she headed up the Europe, Middle East and Africa team. Nadia is dual-qualified in England & Wales (Solicitor-Advocate) and Germany (Rechtsanwältin). She earned her LLM in International Public Law from the University of Cambridge and her LLB from the University of Warwick. She conducts arbitrations in French, German and English and speaks Dutch and Mandarin Chinese....

Web page updated on 21/05/2026

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