PO-03-II
EXIMBANK
ANTI-BRIBERY POLICY
FOR OFFICIALLY SUPPORTED EXPORT CREDITS
Revision 2015
- Introduction
In its capacity of the official export credit agency of Romania, in compliance with the provisions of the OECD Arrangement on Officially Supported Export Credits (hereinafter referred to as the OECD Arrangement) and theOECD Recommendation on Bribery and Officially Supported Export Credits[1] (hereinafter referred to as the OECD Recommendation), EximBankadopts a set of measures meant to prevent and combat bribery in international business transactions which have a repayment term of 2 years or more, hereinafter referred to as export transactions.
The OECD Arrangement aims at ensuring that the OECD Participants grant balanced official support in international transactions so that competition between exporters is based on quality and price of exported products and services rather than on the most favorable officially supported financial terms and conditions.
To the same end, the OCDE ratified the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions[2] (1997) and issued the OECD Recommendation on the measures that the Participants and non-Participants to the OECDArrangement should take before granting official support for an export contract which is susceptible of being awarded as a result of fraud or bribery. Bribery is a criminal offence under the Romanian law and is punishable according to the Romanian legislation.
The OECD Arrangement was adopted in the EU law by means ofthe Regulation (EU) No 1233/2011 of the European Parliament and of the Council on the application of certain guidelines in the field of officially supported export credits (hereinafter referred to as the Regulation (EU) No 1233/2011). Annex II to Regulation(EU) No 1233/2011 is the text of theOECD Arrangement in force.
According to theRegulation(EU) No 1233/2011theprinciples and guidelines from the OECDArrangement are binding and directly applicable in all Member States.All Member States that apply export credit support programs shall comply with the terms and conditions established by the Participants to the OECDArrangement.
Taking into consideration the legal framework and the OECD Recommendation, EximBank Policy establishes the set of principles applied by EximBank when providing official support for export credits on behalf and for the account of the Romanian State.
In compliance with the OECD Arrangement and OECDRecommendation,the relevant terms are defined as follows:
- export credit - represents a financial facility which allows a foreign buyer to purchase goods/services from a Romanian exporter and pay them within a certain period from delivery (deferred payment). The export credit can have the form of supplier credit or buyer credit.
- officially supported export credit[3]- represent various types of financial support granted by the state to facilitate the execution of export of goods, services or financialleases, which have a repayment term of 2 years or more. Official support may be provided in different forms: direct credit/financing and refinancing, interest rate support, export credit guarantee or insurance of non-payment risks associated with the foreign buyer or its country;
- credible evidence[4]- is defined as the evidence of a quality which, after critical analysis, a court would find to be reasonable and sufficient grounds upon which to base a decision on the issue if no contrary evidence were submitted;
- bribery[5]- is defined as an offer, promise, or giving of any undue pecuniary or other advantage, whether directly or through intermediaries, to a public official of the Romanian state, to a foreign public officialor to an international organizationpublic official, in order that the official act or refrain from acting in relation to the performance of official duties, in order to obtain or retain business or other improper advantage in the conduct of an export transaction.
- Specific Actions and Measures
The principles established in the OECD Recommendationare being transposed into EximBank activity as follows:
-EximBank shall informall applicants (exportersand lending banks) about the legal consequences of bribery in international business transactions under the Romanian law in force and encourage them to develop and apply appropriate management control systems that combatbribery.
-EximBank values and promotes the ethical principles, moral integrity, and professional and transparent business conduct. EximBank personnel is aware of and complies with EximBankCodeof Ethics. EximBank personnel is aware of the legal consequences of bribery, of the possibility to identify and duty to report bribery, identification and management of conflict of interest in compliance with EximBank Policy on Conflicts of Interest.
-EximBank applies know your customer measures in order to mitigate the risk of potential reputational losses resulting from negotiationsor approval of financial instruments that might support export transactions based on bribery.
-When EximBank receives an application to support an export transaction (export of goods/services or financial lease)[6] through EximBank export credit insurance instruments on behalf and for the account of the State which have a repayment term of 2 years or more, EximBank requires the exporter and the lending bank to provide a declaration regarding:
-Whetherthey have or havenot been engaged in bribery in relation to the export transaction for which they apply for EximBank official support;
-Whether they are or are not currently undercharge in a national court or have been convicted in a national court or been subject to equivalent national administrative measures for bribery within a five-year period preceding the application;
-the identity of the natural/legal persons acting on their behalf in connection with the export transaction, and the amount and purpose of commissions and fees paid.
-Whether they are or are not listed on the publicly available debarment lists of the following international financial institutions: World Bank Group, African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development and the Inter-American Development Bank.
The Declaration shall be provided as per forms F87/I-ORG-CS “Bank DeclarationRegarding the Export Transaction”and F88/I-ORG-CS “Exporter DeclarationRegarding the Export Transaction”, respectively.
-Through this Declaration, both exporters and lenders shall undertake not to engage in bribery in export transactions.
-EximBank shall deny approval of export credit support if there is credible evidence that the export contract was concluded as a result of bribery.
-If, after export credit support has been approved bribery has been proven, EximBank shall take appropriate actions, such as denial of payment, indemnification, or refund of sums provided.
-If there is credible evidence regarding bribery, EximBank shall inform immediately the Romanian law enforcement authorities.
Forms:
F87/I-ORG-CSBank Declaration Regarding the Export Transaction
F88/I-ORG-CSExporter Declaration Regarding the Export Transaction
Approved by C.I.F.G.A. Decision no 127/28.07.2015 1
[1]OECD Recommendation on Bribery and Officially Supported Export Credits-TD/ECG(2006)24
[2]Convention on Combating Bribery of Foreign Public Officials in InternationalBusiness TransactionsC (97)123
[3]As stipulated in Chapter I art.5 of the OECD Arrangement adopted by Regulation (EU) no 1233/2011
[4]As per art.1 h)from OECD Recommendation
[5]As per Annex 1 to OECD Convention
[6]According to the OECD Recommendation