Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



Export Development Canada Asks For Signed Declaration Re Anti-Corruption Compliance

The Export Development Corporation (EDC) asks entities with which it does business to make certifications regarding compliance with Canadian and other anti-corruption/anti-bribery laws.  Pursuant to the Corruption of Public Officials Act and the EDC 'Anti-Corruption Guidelines (http://www.edc.ca/english/docs/acpg_e.pdf), the EDC must perform due diligence to ensure that it is not providing support in a transaction involving corruption of foreign public officials.

Signing the declaration in and of itself should not subject an entity to Canada's legal jurisdiction.  However, the signed declaration may be used against the signatory at a later point in time if the signatory bribes a foreign public official contrary to Canadian law and laws of other jurisdiction.

Section 19(1.1(j) of the Export Development Act (Canada) authorizes Export EDC to take steps and do all such things that appear necessary or desirable to protect the interests of the EDC.  As a result, the EDC may ask for the declaration and may end its relationship if bribery occurs.

The morale of the story is that entities doing business with the EDC should have internal controls in place so that the signed undertaking is not the basis for a dispute in the future.

Leave a Reply

remember my information