The Cooperation Fund for Regional Trade and Financial Security Initiative was set up through initial contributions by the governments of Australia, Japan, and the US.
The fund, to run for three years initially, is open to and seeking further contributions by other countries and organizations.
It will support technical assistance to enhance port security (including airports, cargo ports, and containers) and combat money laundering and terrorist financing in developing countries.
It will finance the establishment of financial intelligence units and legal and supervisory regimes for anti-money laundering and promoting the upgrade of customs security and modernization.
It will also complement measures under the Secure Trade in the Asia Pacific Economic Cooperation Region (STAR) Initiative, which focuses on protecting cargo, ships, international aviation, and people in transit.
The fund may be used for conducting feasibility studies, training, and the development of policies, legislation, systems, and procedures.
Although open to all of ADB’s eligible developing member countries, emphasis will be placed on those that are also APEC economies and most at risk.
"Priority will be given to high impact projects that can catalyze other investment and policy reforms, and have a good chance of local or regional replication," said Rita Nangia, director of ADB’s Finance and Infrastructure Division, the fund manager.
The fund was proposed by the US late last year to enhance trade and financial security.
Cash and in-kind contributions can also support the initiative. These include the new ADB-administered fund, the provision of technical advisers to ADB and selected APEC countries, and a TA facility to support the identification and preparation of ADB investment projects in the areas of trade security.
Meanwhile, Palau and Viet Nam became the 22nd and 23rd countries, respectively, to endorse the regional Anti-Corruption Action Plan initiated by ADB and the Organization for Economic Co-operation and Development (OECD).
The ADB-OECD initiative, launched in December of 2000, is the region’s forum for policy dialogue and cooperation in the fight against corruption.
Its action plan contains legally non-binding principles and standards for strengthening national and regional anti-corruption efforts and unites 23 countries committed to cooperate in their endeavor to reduce the flow of bribery and enhance transparency in public service.