Anti-Corruption Program
Corruption in international business transactions is now universally recognized as a major impediment to economic development and prosperity. In formal recognition of the global anti-corruption orientation, the member states of the Organization for Economic Co-operation and Development (OECD) passed the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions in 1997, to which Canada is a signatory. In fulfillment of its commitment under this Convention, Canada subsequently passed the Corruption of Foreign Public Officials Act. A guide to this Act is provided by Justice Canada.
In 1998, EDC formally articulated its policy with respect to bribery in its Code of Business Ethics. In 2000, the OECD Working Party on Export Credits and Credit Guarantees (ECG), of which EDC is a member, agreed on an Action Statement on Bribery and Officially Supported Export Credit. This statement was strengthened in 2006 to an OECD Council Recommendation on Bribery and Officially Supported Export Credits and as a consequence, a letter (PDF Format) was sent to all EDC customers apprising them of the changes.
In response to the OECD Convention, the ECG Action Statement and EDC's policy, EDC developed an Anti-corruption Program which consists of guidelines, processes, documentary safeguards, systems enhancements, and the education of customers and employees. Documentary safeguards include the requirement for applicants of EDC support to sign an anti-corruption declaration and/or representations and covenants. EDC's documentation may include, depending on the product and the particulars of the relevant transaction, remedies to EDC such as termination of coverage, denial of claim, suspension of advances and declaration of an event of default. Moreover, EDC will debar any party that has been convicted of bribery until such time as it has been determined that the party has taken appropriate measures to deter further bribery. More details on the measures that EDC will undertake in order to deter the offer or giving of a bribe are outlined in EDC’s Anti-corruption Policy Guidelines (PDF Format).
EDC also recognizes that it is essential to build awareness among its customers about this important aspect of international trade. In this regard, the EDC Anti-corruption brochure (PDF Format) has been developed for customers to explain the challenges of avoiding corruption in international trade, and to suggest actions companies might take to protect themselves.
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General questions about EDC’s programs, policies or documents can be addressed to your EDC contact. However, we cannot provide legal advice or discuss application of the law to specific circumstances. If you have such questions, we recommend that you obtain advice from your legal counsel.
