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Member, Beacon International Group, Ltd.
LONDON--The U.K. government has imposed new anticorruption rules on companies buying export credit insurance from the Export Credit Guarantees Department.
The ECGD, a government-backed facility, said in a statement that measures designed to weed out bribery and corruption among participants in its insurance program would be implemented May 1.
Under the rules, the ECGD will obtain additional information from coverage applicants to ensure no improper payments are made to win contracts, and it will have greater authority to inspect exporters' documents, the statement notes.
Applicants will have to provide the ECGD with a copy of their governance practices, affirm that they do not engage in corrupt activity and show they have procedures in place to prevent such activity.
In addition, the anticorruption rules will be extended to affiliates of applicants and their directors and employees.
The ECGD noted that it would void insurance contracts for companies found to engage in corrupt activity and seek repayment for any claims paid.