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In an over-regulated society corruption is inevitable. (MICA)
Forcing human mind to follow rules, which are unnecessary and biased make them revolutionary and they move towards revenge. Corruption is one of ways to take revenge from government.
Few people believe laws are made to be broken so this is case of economic phenomenon of regulatory arbitrage.
Over regulation can lead to complex laws and if population fails to understand those laws then they can unintentionally break laws. For example tax system is so complex in our country that many people are failing to pay taxes due to complexity.
Example of over regulation could be complex traffic rules. If traffic rules are too complex then eventually people will fail to understand so break those rules.
Corruption is a personal equation and holds good or bad depending on an individual's and organization's personal value systems. Regulations, like democracy are a systemic phenomenon; both have nothing to do with each other.
Over regulating simple things of daily life can create problems; but regulations are must to run the complex modern life.