D Insurance of an export buyer credit against the risk of non payment Examination cut-off criteria of non-banking entities

Non-banking entities

The basic evaluation criteria in providing insurance of export credit risks which EGAS as the insurer primarily assesses mainly based on information provided by the applicant for insurance, and the fulfilment of which has negative impact on the possibility to provide insurance of export credit risks, are the following:

  • The non-banking entity, its direct owners1 and actual owners2, controlled persons on which the non-banking entity is financially dependent or, where applicable, controlled persons with which the non-banking entity constitutes a single risk3, and the country of registered office of the non-banking entity are subject to international sanctions regimes;
  • The non-banking entity, its direct owners1 and actual owners2 and/or controlled persons on which the non-banking entity is financially dependent or, where applicable, controlled persons with which the non-banking entity constitutes a single risk3 do not comply with regulations on the prevention of money laundering and terrorist financing;
  • The non-banking entity and its direct owners1 or actual owners2,3 are subject to insolvency proceedings or similar proceedings as the obligated person;
  • The non-banking entity is not a duly established and existing company4.

1 Direct owner means another legal or natural person that has property interest in a business corporation – non-banking entity.

2 Actual owner of a non-banking entity means

  1. legal or natural person that factually or legally exercises directly or indirectly decisive influence on the management or operation of the enterprise of the non-banking entity; indirect influence means influence exercise through another person or other persons,
  2. legal or natural person that itself or based on an agreement with another member(s) disposes of more than 25% voting rights of the non-banking entity; disposing of voting rights means a possibility to exercise voting rights based on one's own discretion regardless of whether and on the basis of what legal reason they are exercised, or a possibility to influence the exercise of voting rights by another person,
  3. legal or natural persons acting in concert that dispose of more than 25% of voting rights of the non-banking entity, or
  4. a legal or natural person that is the recipient of the proceeds of the non-banking entity's activities based on another fact.

3 The composition of which is known to the applicant for insurance as of the day of examination based on data it has available and/or from publicly available sources.

4 Not registered in the respective commercial register or a similar register.

© EGAP  2017
Site Map