Anti-corruption, tax and su­stain­able len­ding

You can find links to in-depth information about anti-corruption here. The links open in a new tab.

• World Bank Listing of Ineligible Firms and Individuals 
• The Swedish Anti-Corruption Institute, IMM
• ICC Due Diligence Guide for SMEs 

A corruption assessment is part of EKN’s transaction assessment process.

EKN conducts its assessment as follows:

1. When the guarantee application is received, EKN conducts a screening to identify transactions with a high risk of corruption.
2. When there is any indication of a high risk of corruption, an assessment is made of the application. The scope of the assessment is adapted to the identified risks.
3. For the risk assessment, EKN uses the Swedish Anti-Corruption Institute’s Business Code and the OECD’s Good Practice Guidance on Internal Controls, Ethics, and Compliance.
4. If EKN does not receive the information that is requested, or if the risk of corruption cannot be mitigated, the application does not move forward for decision.

As an exporter, you need to provide EKN with information that enables our assessment of the transaction:

• State if an agent or other representative has been contracted in the export transaction.
• State if you or any agent/other representative is listed in the World Bank Listing of Ineligible Firms and Individuals.
• State if you or any agent/other representative are suspected for bribery or have a record for corruption in any country.
• Declare in the application that you have not and will not commit bribery.
• Declare that you are aware that EKN’s responsibility for the guarantee could cease and that damages already paid may be recovered.
• Specify fees to any agent/other representative.
• Declare that you have read the information regarding the consequences of breaking Swedish bribery legislation.
• Ensure that your responses also apply for other Group companies that are involved in the export transaction.
• Declare that you have understood the importance of developing, applying and documenting an adequate control system for combating corruption.
• State if the completion of the transaction requires a permit from an authority that is responsible for export control, such as ISP.
• Provide EKN with any information regarding buyers whose name has arisen in a corruption context.

Keep in mind

You must be prepared to answer questions concerning your company’s activities to combat corruption and concerning agreements with agents/other representatives.

Use the following links for in-depth information on the regulations and guidelines that EKN adheres to in its efforts to combat corruption. The links open in new tabs.

• Swedish Criminal Code, refer to Chapter 10 Sections 5a–5e (in Swedish)
• OECD Council Recommendation on Bribery and Officially Supported Export Credits
• Good Practice Guidance on Internal Controls, Ethics, and Compliance
• The Swedish Anti-Corruption Institute’s Business Code

Transactions with one party based in a country that is assessed to have deficiencies in its tax legislation or application according to the EU or OECD classification are subject to assessment. The exporter’s tax policy is assessed primarily on whether the policy manages issues of transparency, adheres to applicable tax legislation and the OECD’s Transfer Pricing Guidelines and that the company is not involved in transactions in which the primary purpose is to avoid or reduce tax.

If the exporter does not have a tax policy or does not meet EKN’s requirements, the exporter must sign a declaration to that effect.

As an exporter, you must be prepared to answer questions concerning your company’s tax policy. If you do not have a tax policy or if it does not meet requirements, you must be prepared to sign a declaration to that effect.

In-depth information concerning the OECD’s tax guidelines:

• OECD’s Transfer Pricing Guidelines

1. When a guarantee application is received, EKN checks the transaction against the OECD’s list of countries encompassed by the principles for sustainable lending. A country can be:
   -Green (no restrictions);
   - Yellow (certain restrictions) or;
   - Red (no new loans or guarantees possible for EKN).
2. If the borrower is a public sector entity but not the Ministry of Finance, EKN needs to consult with the IMF and/or the World Bank to determine if the loan is in line with the principles for sustainable lending, which can take extra time.
3. If the transaction clears the above checks, EKN performs a customary credit analysis of the borrower.
4. For countries covered by the regulation, EKN contacts the IMF and the World Bank to inform them that EKN intends to issue a loan to a public sector buyer in the country.

Keep in mind

Contact EKN at an early stage in the transaction so that any questions concerning sustainable lending can be handled in time and communicated in the right manner to the borrower.