In the context of mergers and acquisitions (M&As), it is an asset found to be “tainted”, as a result of due diligence, with legacy corruption issues. Such legacy corruption arises in relation to specific types of assets including oil and gas fields, mining concessions or telecom licenses.

Tainting is usually identified due to legacy behaviors, enhanced beneficial ownership, etc. Tools such as improved disclosures and compliance or audit procedures can help identity cases of tainting prior to an M&A transaction.