A Global Snapshot of the Top 10 Corrupt Countries

Corruption continues to be a persistent challenge that erodes the general public’s trust, sabotages effective governance, and undermines economic development. Every country struggles with corruption regardless of its economic standing, and this also costs the countries a lot. According to the World Economic Forum, the average cost of corruption per year is at least $2.6 trillion or 5% of global gross domestic product (GDP).

Various organizations continue to assess and rank countries based on their perceived corruption levels, offering insights into how this issue is exacerbated over time. Globally known organizations that conduct these assessments and often publish the ranking of most corrupt countries include:
Organization for Economic Co-operation and Development (OECD)

• United Nations Office on Drugs and Crime (UNODC)
• Transparency International (TI)
• International Monetary Fund (IMF)
• Basel Institute on Governance
• World Bank
• Global Financial Integrity (GFI)
• World Economic Forum (WEF)

What Exactly is Corruption?

Transparency International Corruption Perception Index (CPI) defines corruption as “an abuse of entrusted power for private gain.” It’s a form of criminal offense that can be committed by entities and individuals that are in some kind of authority, such as government officials, CEOs, CFOs, politically exposed persons (PEPs), senior executives, bank managers, and board members.

How is the Corruption Index by Country Calculated?

To calculate the country corruption index, relevant data is taken from at least three different research reports, derived from a total of 13 international surveys and expert evaluations.

Comprehending the International Corruption and Risk Assessment Indexes

These indices are used to identify and compare countries depending on their integrity, transparency, and AML efforts. Here are some of the rankings

• Transparency International’s Corruption Perceptions Index (CPI)

This index ranks countries on a scale of numbers from 0 to 100, where 0 indicates high corruption and 100 means very clean.

• Financial Action Task Force (FATF) High-Risk Jurisdictions

Countries with significant deficiencies in their AML and counter-terrorism financing frameworks have been added to the FATF list of high-risk jurisdictions. The countries listed on the FATF’s blacklist receive more scrutiny from global regulators and financial institutions. Being on FATF’s grey list means the country is working to resolve strategic AML/CTF deficiencies.

• Basel Institute on Governance’s Corruption Index

This index assesses countries based on factors such as illegal financial flows, money laundering risks, and the effectiveness of AML/CFT systems. Countries with higher scores indicate greater money laundering and terrorist financing risks.

• World Bank’s Worldwide Governance Indicators (WGI)

This index tracks the quality of governance in over 200 countries, concentrating on six dimensions, which include corruption control, government effectiveness, and rule of law. WGI is mostly used by regulators and researchers to assess bureaucratic performance and public sector accountability.

• Global Integrity Index

The Global Integrity Index assesses how a country promotes transparency and combats corruption. It examines the laws a country has in place and then compares them with how they are actually implemented. This index offers an insight into the gap between the laws enforced and their real-world practice.

Which are the Top 10 Most Corrupt Countries in the World?

According to World Economics, the following countries are perceived as the most corrupt countries in the world 2025:

Top 10 Corrupt Countries in the World and the Reason Behind It?

The countries listed below are based on findings from the Basel AML Index, Trading Economics, and Transparency International’s Corruption Perceptions Index (CPI), which assesses countries on factors such as governance quality, transparency, and the strength of anti-money laundering frameworks. These indices provide a composite score indicating the perceived level of corruption and financial crime risk across nations.

• Russia

With over 140 million people, Russia is considered the most populous country in Europe. It ranks the highest for corruption challenges due to centralized elite power and weak law enforcement.

• Belarus

Belarus is a landlocked country in Eastern Europe. It ranks second in the list of most corrupt countries in Europe. The reasons behind the corruption in Belarus are its authoritarian control and state dominance.

• Bosnia and Herzegovina

Bosnia and Herzegovina is located on the Balkan Peninsula in southeastern Europe. This country struggles with corruption because of an authoritarian regime and a state-controlled economy.

• Turkey

Turkey is located in West Asia, with a relatively small portion called East Thrace in Southeast Europe. The reason behind being fourth in the list of corrupt countries is that Turkey has political interference in the judiciary and law enforcement. Moreover, it appreciates the practice of favoring friends and associates in public procurement and business dealings.

• Ukraine

Ukraine is the second-largest country in Europe. It is listed  fifth in the world’s top corrupt countries because of likely  Oligarchic influence and an ineffective judicial system.

• Serbia

Serbia is a landlocked country in Southeast and Central Europe. It came sixth on the list of the world’s corrupt countries because of the weak oversight and insufficient enforcement of laws.

• North Macedonia

North Macedonia shares land borders with Greece to the south, Albania to the west, Bulgaria to the east, Serbia to the north, and Kosovo to the northwest. The reason behind being seventh in the list of corrupt countries is that North Macedonia has a weak rule of law and judiciary. Additionally, it faces corruption-related governance challenges that rank it among the top European corrupt countries.

• Hungary

Hungary lies within the drainage basin of the Danube River. It came in the eighth place in top corrupt European countries because of institutional weakening and rule of law erosion.

• Albania

Albania is located in southeastern Europe’s Balkan Peninsula. It ranked ninth according to Trading Economics because of bribery, informal payments, and weak state institutions.

• Moldova

Moldova is an Eastern European country. It came within the top 10 corrupt EU countries because of political, economic, and institutional weaknesses.

What’s the Impact of Corruption on a Country?

Corruption has lasting repercussions on a country. It harms a country’s economy, hindering its growth and eroding public trust. Let’s discuss this adverse impact in detail:

• Economic Consequences

• Reduced private and foreign investment: Corruption creates uncertainty (policies unpredictable, discretionary powers abused), so investors are less willing to commit long-term capital unless it promises fast returns.
• Distortion of economic activity: It encourages businesses to engage in rent-seeking rather than productive innovation or efficiency. Some firms may focus on securing favoritism, licenses, and permits via bribes rather than competing on quality.

• Government Budget & Public Finance

• Loss of revenue: Bribes reduce taxes, fees, customs, etc., and lead to illegal avoidance of payments to utilities or services. Fraud and embezzlement also drain public funds.
• Misallocation of public spending: Corruption often leads governments to favor large projects that are opaque or prestigious, or those with great opportunities for kickbacks, rather than spending on essential services (health, education, basic infrastructure) that would benefit the majority.

• Social & Institutional Effects

• Underground economy growth: As corruption rises, more economic activity shifts into informal or illicit sectors to avoid regulation, taxation, or dealing with corrupt officials. This reduces transparency, distorts statistics, and undermines policy planning.
• Unequal burden on the poor: Corruption tends to hurt those with fewer resources more severely. Poorer people often can’t pay bribes or gain access to proper services; they also suffer from weak public services when funds are diverted.

• Effects on Economic Reform and Development

• Hampering reforms: Corruption undermines efforts to liberalize economies, reduce red tape, and establish fair competition. Those benefiting from corruption (elites) often resist reforms.
• Weak institutions & Rule of Law: Corruption both stems from and aggravates weak oversight, lack of accountability, and judicial or legislative inefficiencies. Over time, corrupt behavior becomes normalized (“a way of life”), making reforms difficult.

• Other Social Costs and Risks

• Quality/safety issues: Corruption in public works (construction, infrastructure) can lead to substandard materials, unsafe buildings, and disasters (e.g., bridge collapse, dam failure) because corners are cut to reduce cost or speed up profit.
• Distorted consumption and inequality: Wealth concentrates, the lifestyle of elites becomes flashy, ordinary citizens face inequalities in access to basic services; conspicuous consumption rises, which can generate social dissatisfaction.

How Does Corruption Ranking Affect Banking and Compliance Decisions?

An understanding of countries with high corruption rankings helps FIs in assessing their risk exposure and designing an AML Compliance Program accordingly. It must look for the high-risk jurisdiction ones that are on the FATF’s black list and the low score countries within corruption indexes such as CPI, Basel AML Index, IMF, and WGI. This will help the FIs in learning about the businesses operating in those high-risk jurisdictions, and hence they can know about their risk exposure and the need for enhanced due diligence accordingly..

How Financial Institutions That Have to Assess Customer Risk Leverage Technology?

Product and compliance teams within financial institutions face a persistent challenge of combating corruption. They have to maintain systems that align with evolved regulatory expectations. The challenge isn’t just to identify the suspicious activity, but to integrate a technology that helps them comply with relevant regulations. That’s how they can achieve the best solution:

• By adopting a centralized regulatory database to ensure consistent monitoring across diverse jurisdictions.
• Prioritizing AI-powered analytics, where the tasks rely more on systems rather than humans, reduces paperwork and manual errors.
• Collaborating closely with AML solution providers to customize tools that are in line with relevant regulations.
• Promoting a culture of integrity with the help of learning and ethical leadership, so compliance teams remain vigilant, responsible, and less susceptible to misconduct.

How AML Watcher Can Assist Businessess in Assessing the Risk Associated with Corruption?

In a world where hidden transactions and shell companies fuel corruption, AML Watcher acts as a global lens for financial integrity. It assists the compliance teams with a comprehensive database that contains jurisdictions listed by FATF or flagged in Basel’s corruption index. By leveraging advanced adverse media screening, sanctions monitoring, and politically exposed person (PEP) detection, financial institutions can trace illicit money trails before they vanish offshore.

AML Watcher doesn’t just identify red flags; it connects the dots, revealing how corrupt networks operate across borders. Its context-driven risk assessment empowers regulators to focus on real threats, strengthen compliance frameworks, and restore public trust in governance.

In essence, AML Watcher transforms transparency from an ideal into a measurable practice.