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Combating bribery in international business transactions

On the basis of the Recommendation of the OECD on combating bribery in international business transactions, the international Convention on Combating Bribery of Foreign Officials in International Business Transactions was adopted in 1997. It came into force for the Czech Republic in March 2000. The purpose of this Convention is to create legal prerequisites for enforcing legal recourse against persons who, in specified cases influence the foreign public official to act or refrain from acting with regard to public duties with the aim of acquiring or preservation of a business activity or other advantage in enterprise abroad.

The purpose of application of the Convention in the state support of the export is to prevent the state support from being given to those exports which were obtained or realized with help of crime of bribery of a foreign public official.

This procedure shall be applied to all types of the insurance with state support, i.e. for the insurance of types B, Bf, C, Cf, D, I, If and Z.

EGAP's procedures have been formulated in such a way so they represent a minimal administrative burden for the exporter during negotiation of the insurance. Declaration of the exporter that he had not breached the relevant provisions of the penal code in obtaining and negotiating of the export contract is a part of the application for the insurance.

In case of proven breach of the §160 and following of the Penal Code, or in case of criminal proceedings against the exporters or persons acting on their behalf, EGAP reserves the right to refuse the insurance of the credit connected with such contract or not to pay indemnification, or apply recourse against the exporter.