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Financial security and anti-corruption
Corruption, fraud, money laundering, terrorist financing, anti-competitive practices, as well as any form of misappropriation of funds allocated to the private sector by Proparco, can cause long-lasting damage to AFD Group by tarnishing its credibility and legitimacy and reducing the outreach of its financing.
One of the most demanding control procedure systems
AFD Group has mitigated this risk by adopting one of the most demanding procedure systems among donors, which allows it to ensure the proper allocation of its loans and guarantees. Proparco is also extremely vigilant over the reputation and governance of the companies in which it makes equity investments, including via investment funds.
As a subsidiary of a public institution, Proparco’s action is in line with national policies to fight against tax havens. AFD Group has a specific and rigorous policy regarding the operations implemented and projects financed in Non-Cooperative Jurisdictions (NCJ), pursuant to the French Tax Code and OECD Global Forum on Transparency and Exchange of Information for Tax Purposes.
Proparco’s financial security mechanism also contributes to promoting good practices for the fight against corruption in its countries of operation. It is applied at all stages: during the appraisal and, on a regular basis, throughout the project life cycle.
Finally, as a banking institution, Proparco is subject to banking secrecy, which in France comes under professional secrecy. This obligation prohibits it from transferring information about its clients to third parties without their consent, except to authorized.