AFD - 2018 Registration document

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STATEMENT OF NON-FINANCIAL PERFORMANCE

Fair practices

Over and above its own project-based capacity building activity (through loans and/or subsidies), AFD has acquired specific capacity building tools for its project management, such as the Project start-up, preparation and monitoring facility (FAPS), the Expertise and capacity-building fund (FERC), the Technical expertise and experience-sharing fund (FEXTE), the Financing

of French regional authorities facility (FICOL), and the fund supporting governance capacity building (FRCG). In 2018, commitment authorisations for these tools amounted to €53M. AFD can also use EU delegated loans to enlist technical expertise.

2.7 Fair practices

2.7.1 Initiatives for preventing corruption, fraud, money

underpinned by the pre-existing programme for identifying and managing risks of fraud and corruption. The “Sapin II” training programme will be completed in full in 2019. The obligation to establish a disciplinary system of penalties will not result in any changes, since the current system already meets the requirements of the “Sapin II” Act. Since 2018, the internal control system has included a review analysing the effective implementation of the Sapin II anti-corruption programme within AFD Group. This anti-corruption and influence peddling compliance programme applies to AFD as an industrial and commercial State public undertaking, and also to Sogefom, Fisea and Proparco, along with the subsidiary TR Propasia. 2.7.2 Checks made during a project’s life cycle In accordance with banking regulations, prior to beginning a project, the counterparty and any appropriate shareholders are researched in depth in order to identify the beneficial owner. Persons subject to political exposure are also identified. In order to monitor the execution of projects, procedures for reimbursing and winding up equity investments are monitored carefully because they may reveal fraudulent practices. In addition, at the time of the examination, and then throughout the life of the projects, the Group provides its employees with a filtering tool which consolidates information such as the financial and commercial sanctions adopted by France, the European Union, the United States, the United Kingdom and the UN. Such screening is also included in the processing chain for payments issued by AFD’s Financial Department. The purpose is to ensure that no counterparty or individual involved in such checks, or the supplier or winner of a call for tender funded by AFD, is under financial sanction or operates in sectors under embargo by France, the European Union, the United Nations, the United States or the United Kingdom.

laundering, terrorist financing and tax evasion

Corruption, fraud and any form of misappropriation of public and private aid will cause long-term damage to AFD Group’s mission of acting to protect the most vulnerable populations. The same applies to any funding which, unknown to AFD and Proparco, would lead to money laundering or the financing of terrorism. In order not to unwittingly participate in any of these violations, AFD Group has adopted a general policy implemented through operational procedures describing the checks (1) to be carried out by its employees at the different stages of a project’s life cycle. Moreover, since 2017, AFD Group has been implementing an extensive programme to prevent and combat corruption and influence peddling within the Group, in compliance with the new “Sapin II” act applicable as from December 2016. In 2018, the Group adopted a code of conduct (2) clarifying the expected or prohibited behaviour of Group employees regarding the prevention and fight against corruption and influence peddling in performing their duties. In January 2019, the Group adopted a professional whistle-blowing system open to internal employees and external or temporary service providers working for the Group. In 2018, the mapping of the risks of corruption and influence peddling was integrated into AFD Group’s operational risks mapping. It will be updated every year as from 2019. In addition to the pre-existing evaluation procedure of counterparties, in 2019 the Group will adopt a procedure to evaluate the situation of its tier 1 suppliers with respect to potential risks of corruption and influence peddling. The tightening of checks verifying the merits of transactions (no accounting records likely to conceal acts of corruption or influence peddling) started in 2018 and will be completed in 2019. Awareness and training campaigns for AFD Group employees on the anti-corruption programme started in 2018,

(1) The AFD policy against corruption is public and available on its website: https://www.afd.fr/fr/lutte-contre-la-corruption-politique-generale-de-lafd-et-de-proparco-2013 (2) https://www.afd.fr/fr/code-de-conduite-anti-corruption-du-groupe-afd

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www.afd.fr

REGISTRATION DOCUMENT 2018