Anti-Bribery and Corruption

Israel recently ratified the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (The OECD Anti-Bribery Convention).

In July 2008, an amendment to the Israeli Penal Law incorporated the offence of bribery of a foreign public official (Section 291A to the Israeli Penal Law 5737-1977). This offence prohibits offering, providing or facilitating bribery to a foreign public official, for the purpose of promoting business activities, or to obtain an advantage relating to such activities. The purpose of bribery can be the promotion of business activities or obtaining an advantage in such promotion in a direct manner, for instance, by payment of sums to an influential foreign official, or the promotion of business activities indirectly, for instance, by payment of sums to a foreign official in return for information illegally disclosed, for the purpose of providing the bribery maker or facilitator with an advantage in achieving a transaction or such activities.

An individual, including but not limited to, an exporter, or an Israeli company, who directly or indirectly offer, make or facilitate, or attempt to offer, make or facilitate, bribery or corrupt payments to foreign officials, also through brokers or agents, may face criminal prosecution in an Israeli court of law.

In the case of a corporation, the corporation itself, as well as the officers involved in the actual bribery may face criminal prosecution.

Ashra, like other OECD member which are ECA’s, is required to comply with the OECD's guidelines regarding  bribery and to include in its documents related to Foreign Trade Risks Insurance, statements and disclosures from the Exporters and Insureds, regarding non-bribery. Ashra will also be required to report to the authorities in any case a bribery issue is brought to its attention.

ASHRA recommends all Policy holders to develop, apply and document control systems relating to non-bribery, and to raise awareness of the issue among all parties involved in their business, regarding  compliance with anti-bribery laws in the countries in which they operate.

For more information see:

Ministry of Justice
Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
World Bank Listing of Ineligible Firms
OECD Council Recommendation on Bribery and Officially Supported Export Credits
Combating Bribery of Foreign Public Officials Brochure, published by Ministry of Justice