This report builds on the work of World Peace Foundation’s Compendium of Arms Trade Corruption, a collection of more than 40 cases of corruption in the arms trade and the broader military sector. It discusses both the ‘red flags’ – the warning signs that help citizens, NGOs, governments, and those companies seeking to avoid corruption to identify and avoid corruption risks – and the ‘Red Diamonds’, the underlying politics and economics of the arms trade that create situations where companies and governments actively choose corruption at a high level.