BNDES - Brazilian Development Bank
   




The BNDES and the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions

One of the BNDES’ main goals is to support the sale of high added-value goods and services produced and exported from Brazil.

The goods and services are part of international negotiations between Brazilian export companies and importers located in several countries. Several foreign governments are among the importers of Brazilian goods and services.

Foreign governments enter into trade agreements with Brazilian exporters to purchase Brazilian goods and services, and it is the BNDES that often finances the exports of these goods and services.

Financing is generally formalized through financing contracts between the BNDES and foreign governments that purchase goods and services, with the exporters’ consent. Disbursements are made in Brazilian Reals, in Brazil, into the bank account of the exporting company, on behalf of foreign governments, who assume the debt with the BNDES.

Since the advent of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions , entered into by the Organization for Economic Cooperation and Development (OCDE)Link para um novo site , the BNDES has intensified internal measures to combat corruption of foreign public officials.

In compliance with the Convention, the BNDES has implemented the measures described below:

Declarations of Commitment

Exporter’s Declaration

The BNDES offers support for export products through it Pre- and Post-Shipment lines, which requires the exporter to sign a Declaration of Commitment, in compliance with Resolution Nº. 62, August 17, 2010Link para um novo site . In this document, the exporter declares that it is aware that Brazil joined the OECD Convention and that the country complies with all standards and regulations in combating crimes against foreign public administration as established in the Brazilian Penal Code. Additionally, the exporter is obliged and promises to disclose any act of its knowledge, related to the offenses provided for therein. Failure to comply with these rules can result in the suspension of official support.

Declarations by the Financed Party

The BNDES requires three declarations from parties receiving financing. One affirms that the process to choose and contract the exporter meets all requirements established in the laws of the financed party’s country. This declaration must be confirmed by an authorized attorney in accordance with the legislation in the financed party’s country.

The terms of the second declaration state that the financed party is aware that Brazil is a signatory to the OECD Convention and that conducting active corruption and trading influence in international commercial transaction are crimes classified in the Brazilian Penal Code.

A third declaration form the financed party, which states that it is aware that Brazilian or foreign companies can be held administratively and civilly accountable under Law Nº. 12,846Link para um novo site, of August 1, 2013, for practicing acts that are harmful to national or foreign public administration, which affect public property, the principles of public administration or international commitments Brazil has assumed.

Specific anti-corruption clauses in the BNDES’ contracts

In addition to the aforementioned declarations, in the BNDES’ financing contracts for export credit, there is a clause that conditions the disbursement of each installment of credit to the absence of any obstruction against official Brazilian support, due to the commitments undertaken by Brazil under the OECD Convention.

Disclosure of the OECD Convention

Aiming to improve awareness, perception and better identification of actions to implement the OECD Convention, the BNDES, in this section on the site, provides information on the Convention’s terms regarding the recommendations related to combating corruption in international transactions. The BNDES’ website on exports and international insertion also offers a link to the CGU’s website on the OECD Convention.

On this site, in the Declaration of the Convention, under the topic  “Official Text of the Convention Available,” as well as other interesting links, such as the Revised Recommendation of the Council on Combating Bribery in International Business Transactions of 1997, the CGU summary, the list of signatory countries, the reports resulting from the evaluation of the first and second implementation phases of the OECD Convention, among other information.

Forwarding complaints

The  BNDES’ Ombudsperson is the institutional channel responsible for receiving complaints or questions regarding acts committed by foreign public officials in projects financed by the Bank.

Other measures

Ethics

The Ethics Committee at the BNDES system, aims to, among others:

  • clarify and rule on behavior that indicate ethical breaches;
  • guide the employees of the BNDES System on ethical conduct, including relationships with citizens and the protection of public property; and
  • receive complaints, verify facts and apply ethical reprimand to Bank employees.

The Ethics Commission is a member of the Management System of Ethics of the Federal Executive Branch. The BNDES participates in the National Forum for Ethical Management of State Enterprises, which conducts seminars on the topic.

Another role of the Commission is to apply the Code of Ethics of the BNDES System, which includes relationship issues that reach beyond the BNDES system in terms of not colluding with any type of irregularity. The official calls offering public posts make express reference to the ethics code, so that candidates wishing to join the BNDES’ staff have prior knowledge.

Research of Registration

The BNDES, to begin or continue any business relationship with its customers, requests them and potential stakeholders to provide registration information concerning, among other things: the controllers and managers of the respective companies; the company’s history concerning its relationship with society, including the National Financial System, suppliers and control bodies; as well as information that can help characterize, or not, any politically-exposed people (PEP). Registration forms are available on this website.

Concerning credit for export operations, the BNDES previously checks if exporters appear on public lists of companies punished by public administration, list of companies forbidden to enter into contracts with public administration, as well as international lists, such as exclusion by the World Bank, the African Development Bank, Asian Development Bank, the European Bank for Reconstruction and Development and the Inter-American Bank for Reconstruction and Development, among others.



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