NEED FOR REGULATION OF MECHANISMS TO COMBAT CORRUPTION IN INTERNATIONAL COMMERCIAL AND INVESTMENT ARBITRATION

Abstract

Faced with a high rate of corruption in all spheres of social organization, there is an
inevitable need to regulate mechanisms for combating corruption in both international
commercial and investment arbitration.
The first point of discussion is whether in international commercial arbitration the
arbitrator has the authority to examine the existence of corruption in relation to the contractual
relationship subject to arbitration or if this is a reserved option for the state court in the
annulment proceedings from the perspective of violation of public policy rules.
The next significant issue analyzed in this paper, from the aspect of international
commercial arbitration, is the need to regulate an additional ground for annulment - the
existence of corruption in the direction of a transnational definition of corruption, as stated in
the UNCITRAL Model Law of 1985 (later revised in 2006), so that following the example of the
UNCITRAL Model Law, states incorporate this amendment into their national legislations.
Additionally, the current legal regulation regarding the annulment of arbitration
decisions made in international commercial arbitration due to the existence of corruption will
be examined indirectly, i.e., the possibility for the arbitration decision to be annulled if it is
established but from the aspect of violation of public policy rules.
Regarding investment arbitration, the question of strengthening tools for combating
corruption within the arbitration process and in the annulment process will be addressed.
An analysis of relevant judicial practice from the perspective of annulment, both in
international and investment arbitration, will not be omitted.