GCF/B.12/32
Page18
TheBoardtooknoteofdocumentGCF/B.12/23(limiteddistribution)titled
“Accreditationmasteragreement”.
38.
39.
TheBoardadoptedthefollowingdecision:
DECISIONB.12/31
TheBoard,havingrevieweddocumentGCF/B.12/23titled“TemplateAccreditationMaster
Agreement”:
(a)
TakesnoteoftheinformationprovidedbytheSecretariatindocumentGCF/B.12/23andof
theprogressmadetodatebytheGCFinengagingwithaccreditedentitiesontheexecution
ofAccreditationMasterAgreements;
(b)
ConsidersthetemplateAccreditationMasterAgreementassetoutinannexXXVIadequate
forcompletingstageIIIoftheaccreditationprocess;
(c)
AcknowledgesthatsubstantivechangesfromthetemplateAccreditationMaster
Agreementmaybenecessaryonacase‐by‐casebasisasaconsequenceofnegotiationswith
accreditedentities,whichwilleachhaveuniquecircumstancesandrequirementsthatmay
needtobetakenintoaccount.TheAccreditationMasterAgreementtemplateshouldbe
consideredflexibleenoughtoensureexecutedAccreditationMasterAgreementsarefitfor
purpose;
(d)
RequeststheExecutiveDirectortoregardthetemplateAccreditationMasterAgreementas
thebasisfornegotiationswithaccreditedentities.TheExecutiveDirectorwilldetermine,
inconsultationwiththeriskandlegalteams,andtheRiskManagementCommittee,
whetherornotachangeisconsideredsubstantiveonacase‐by‐casebasis,andwould
requireBoardapproval;
(e)
Decidestoapprovethepolicyguidance,tobedeemedsubstantiveunderparagraph(d)
aboveinrespectofAccreditationMasterAgreementsassetoutinannexXXVII;
(f)
RequeststheExecutiveDirector,asamatterofurgency,toprioritizetheexecutionof
AccreditationMasterAgreementswiththoseentitiesaccreditedbytheBoard,andto
remaininregularcommunicationwiththeCo‐Chairsbetweenformalmeetingson
progressmadetothatend;
(g)
AffirmstheimportanceandurgencyfortheFundtohaveadequatepoliciesaddressing
fraud,corruptionandotherprohibitedpracticesandpoliciesaddressinganti‐money
launderingandcounteringthefinancingofterrorism;
(h)
DecidestoadopttheGeneralPrinciplesonProhibitedPractices,aspresentedinExhibitA
ofthetemplateAccreditationMasterAgreement,astheFund’sinterimpolicyonprohibited
practicestobeobservedbyaccreditedentities,andreadinesspartners;
(i)
RequeststheRiskManagementCommittee,withthesupportoftheSecretariat,tofurther
developtheFund’sPoliciesonprohibitedpracticesforconsiderationbytheBoardatits
fourteenthmeeting;
(j)
AlsorequeststheRiskManagementCommittee,withsupportoftheSecretariat,todevelop
processesandtoolstoimplementtheFund’sinterimpolicy,takingintoaccountstaffing
andresources;and
(k)
NotesthattheSecretariathasbeenmandatedtopursue,asamatterofurgency,entering
intobilateralagreementswithcountriesinwhichtheFundoperatesonprivilegesand
immunitiesreflectingprudentinternationalpractice,consistentwithdecisionB.08/24and
TEMPLATEAMA
17FEBRUARY2016
EXHIBITA‐GeneralPrinciplesonProhibitedPractices
I.
Introduction
1.
The Green Climate Fund (”Fund”) is strongly committed to preventing and combating
fraud,corruption,MoneyLaundering,TerroristFinancingandotherProhibitedPractices
(asdefinedbelow),inaccordancewithinternationalstandards.Inthatregard,itexpects
all individuals and entities involved in Fund‐related Activities (as defined below) to
observethehigheststandardsofethicsandtotakeappropriatemeasurestopreventand
combatsuchProhibitedPractices.
II. Scope
2.
TheseGeneralPrinciplesshallapplytoall:
a.
“Fund‐related Activities”, which means any activity which is financed,
administeredorsupportedbytheFund,eitherwithitsownresourcesorthoseof
others, or any activity that materially affects or may affect or otherwise be
relevanttotheFund,and
b.
“Counterparties”, which means any party that contributes to, executes,
implements,bidsfor,benefitsfrom,orinanywayparticipatesin,Fund‐related
Activities,includingreceiving,orbeingabeneficiaryof,agrant,loanorotherform
offinancingorsupportfromtheFund,
in respect of “Prohibited Practices” as defined in paragraph 4 below, including
attemptstocommitorsuspicionsthereof.Fortheavoidanceofdoubt,Fund‐related
ActivitiesincludeFundedActivitiesasdefinedintheAgreement,andCounterparties
includetheAccreditedEntityandanyExecutingEntity.
III. GeneralRequirementsofallCounterpartiesinrelationtoFund‐relatedActivities
3.
4.
TheFundrequiresallCounterpartiesto:
a.
adheretothehighestethicalstandards;
b.
takeallappropriatemeasurestopreventormitigatefraud,corruption,andother
ProhibitedPractices;and
c.
refrain from engaging in Prohibited Practices in connection with Fund‐related
Activities.
Prohibited Practices. The practices defined in this paragraph are prohibited
(“ProhibitedPractices”)15inrelationtoFund‐relatedActivities:
a.
“Corruptpractice”meanstheoffering,giving,receiving,orsoliciting,directlyor
indirectly,anythingofvalue(includingbutnotlimitedtogifts,gratuities,favors,
invitations, and benefits of any kind) to influence improperly the actions of
anotherparty.
b.
“Fraudulentpractice”meansanyactoromission,includingamisrepresentation,
thatknowinglyorrecklesslymisleads,orattemptstomislead,apartytoobtaina
financialorotherbenefit,ortoavoidanobligation.
15Thedefinitionsofcorruption,fraud,coercion,andcollusionareharmonizeddefinitionsadoptedbymultilateral
developmentbanksconsistingoftheAfricaDevelopmentBank(AfDB),theAsianDevelopmentBank(ADB),the
EuropeanBankforReconstructionandDevelopment(EBRD),theEuropeanInvestmentBank(EIB),theInter‐
AmericanDevelopmentBankGroup(IADB),andtheWorldBank(WB).
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TEMPLATEAMA
17FEBRUARY2016
5.
c.
“Coercivepractice”meanstheimpairingorharming,orthreateningtoimpairor
harm, directlyorindirectly,anypartyorthepropertyofthe partytoinfluence
improperlytheactionsofaparty.
d.
“Collusive practice” means an arrangement between two or more parties
designedtoachieveanimproperpurpose,includingtoimproperlyinfluencethe
actionsofanotherparty.
e.
“Obstructivepractice”includes(i)deliberatelydestroying,falsifying,altering,or
concealingevidencematerialtoaninvestigation;(ii)makingfalsestatementsto
investigatorsinordertomateriallyimpedeaninvestigation;(iii)failingtocomply
withrequeststoprovideinformation,documentsorrecordsinconnectionwitha
Fund investigation; (iv) threatening, harassing, or intimidating any party to
preventitfromdisclosingitsknowledgeofmattersrelevanttotheinvestigation
or from pursuing the investigation; or (v) materially impeding the Fund‘s
contractualrightsofauditoraccesstoinformation.
f.
“Abuse” means theft, misappropriation, waste or improper use of property or
assetsrelatedtoFund‐relatedActivity,eithercommittedintentionallyorthrough
recklessdisregard.
g.
A“conflictofinterest”isanysituationinwhichapartyoranyofitsstaffinvolved
in the relevant decision making process has interests that could, or could be
deemed to, improperly influence its performance of official duties or
responsibilities,contractualobligations,orcompliancewithapplicablelawsand
regulations.16
h.
“Retaliation against whistleblowers or witnesses” means any detrimental act,
directorindirect,recommended,threatenedortakenagainstawhistlebloweror
witness, or person associated with a whistleblower or witness, in a manner
material to a complaint because of the report or cooperation with a Fund
investigationbythewhistleblowerorwitness.
i.
“MoneyLaundering”hasthemeaningassetforthatparagraphabelow.
j.
“TerroristFinancing”hasthemeaningassetforthatparagraphbbelow.
AdditionalTermsandDefinitions‐Forthepurposesofthisdocument,thefollowing
termshavethemeaningsascribedtothembelow:
a.
“Money Laundering” refers to: (a) the conversion or transfer of property,
knowingthatsuchpropertyistheproceedsofcrime,forthepurposeofconcealing
or disguising the illicit origin of the property or of helping any person who is
involvedinthecommissionofthecrimetoevadethelegalconsequencesofhisor
heraction;(b)theconcealmentor disguiseofthetruenature,source,location,
disposition, movement or ownership of or rights with respect to property,
knowing that such property is the proceeds of crime 17 ; or (c) the acquisition,
possessionoruseofpropertyknowingatthetimeofitsreceiptthatitisderived
fromacriminaloffence.
16Aconflictofinterestmaynot,inallcases,inandofitself,constituteaProhibitedPractice.
17RefertoArticle5oftheUnitedNationsConventionagainstTransnationalOrganizedCrime,2000(thePalermo
Convention). ‐49‐
TEMPLATEAMA
17FEBRUARY2016
b.
“Terrorist Financing” means the act of, directly or indirectly, providing or
collectingfundswiththeintentionthattheyshouldbeusedorintheknowledge
thattheyaretobeused,infullorinpart,inordertocarryoutterroristacts.18
IV. Action to be taken by Counterparties to Combat Prohibited Practices in relation to
Fund‐relatedActivities.
6.
AllCounterpartiesshalltaketimelyandappropriatemeasuresto:
a.
ensure that Fund‐related Activities are carried out in accordance with these
GeneralPrinciples;
b.
discloseandaddressconflictsofinterestinaFund‐relatedActivity.Ifaconflictof
interest or deemed conflict of interest arises, the Counterparty will promptly
informtheFundthereofandshallfollowtheinstructionsoftheFundonhowto
addresssuchconflictordeemedconflict;
c.
preventProhibitedPracticesfromoccurringinrelationtoaFund‐relatedActivity,
including adopting, implementing, and enforcing appropriate fiduciary and
administrativepracticesandinstitutionalarrangementstoensurethattheFund
proceedsintheformofagrant,loan,contractaward,orotherformsoffinancing
orsupportareusedonlyforthepurposesforwhichsuchfinancingorsupportwas
granted;
d.
promptlyinformtheFundofallegationsofProhibitedPracticesfound,suspected
orallegedinconnectionwithaFund‐relatedActivity;
e.
investigate allegations of Prohibited Practices and report preliminary and final
findingsofinvestigationstotheFund;
f.
respond to, mitigate, and remedy Prohibited Practices that are found to have
occurredinaFund‐relatedActivityandpreventtheiroccurrence;
g.
cooperate fully with the Fund in any Fund investigation into allegations of
ProhibitedPracticesrelatedtoaFund‐relatedActivity,andtakeallappropriate
measurestoensurethefullcooperationofrelevantpersonsandentitiessubject
to such investigation, including, in each case, allowing the Fund to meet with
relevantpersonsandtoinspectalloftheirrelevantaccounts,recordsandother
documentsandhavethemauditedbyoronbehalfoftheFund;and
h.
ensurethatindividualsorentitiessanctionedbytheFunddonotparticipatein
Fund‐relatedActivitiesinviolationoftheirsanction.
V. ActionstobetakenbytheFundincasesofProhibitedPracticesinrelationtoFund‐
relatedActivities.
7.
TheFund,throughtheIntegrityUnitoranyofficeoftheFunddulyauthorisedtoreceive
reports,investigate,andaddressallegationsorsuspicionsofProhibitedPracticespriorto
theestablishmentoftheIntegrityUnit,shall:
18AccordingtoArticle2oftheInternationalConventionfortheSuppressionoftheFinancingofTerrorism,aperson
commitsthecrimeoffinancingofterrorismifthatpersonbyanymeans,directlyorindirectly,unlawfullyand
wilfully,providesorcollectsfundswiththeintentionthattheyshouldbeusedorintheknowledgethattheyareto
beused,infullorinpart,inordertocarryoutanoffensewithinthescopeoftheConvention:(a)Anactwhich
constitutesanoffencewithinthescopeofandasdefinedinoneofthetreatieslistedintheannex;or(b)Anyother
actintendedtocausedeathorseriousbodilyinjurytoacivilian,ortoanyotherpersonnottakinganactivepartin
thehostilitiesinasituationofarmedconflict,whenthepurposeofsuchact,byitsnatureorcontext,istointimidate
apopulation,ortocompelagovernmentoraninternationalorganisationtodoortoabstainfromdoinganyact.
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TEMPLATEAMA
17FEBRUARY2016
a.
informaCounterpartyofcredibleandmaterialallegationsorotherindicationsof
ProhibitedPracticesrelatedtoaFund‐relatedActivity;
b.
havetherighttoinvestigate allegationsindependently orincollaborationwith
competentauthoritiesand/ortheCounterparty;
c.
informtheCounterpartyoftheoutcomeofanyinvestigation;
d.
havetherighttorejectordisqualifyaproposalforaFund‐relatedActivityif it
determines that the Counterparty has directly or indirectly engaged in any
ProhibitedPractices;
e.
havetherighttosanctionanyCounterpartyforengaginginProhibitedPractices
in accordance with the Fund’s policies, guidelines and procedures, as may be
adopted and amended from time to time; sanctions may result in that
Counterparty‘sexclusionfromparticipatinginaFund‐relatedActivityindefinitely
orforastatedperiodoftime;
f.
withoutlimitingthegeneralityoftheforegoing,havetherighttoimposeoneor
more of the following measures on a Counterparty for engaging in Prohibited
PracticesinconnectionwithaFund‐relatedActivity:
i. Reprimand – the Fund may send a formal letter of reprimand of the
Counterparty’sbehaviour;
ii. Cancellationorsuspension–theFundmaycancelorsuspendaportionof
FundproceedsallocatedtoaCounterpartybutnotyetdisbursedundera
financingagreementorcontractforgoodsorservices;
iii. Debarment–theFundmaydeclareaCounterparty,eitherindefinitelyor
foraspecifiedperiodoftime,ineligible:
1) TobeawardedfuturefinancingfromtheFund;
2) TobeawardedacontractfinancedbytheFund;
3) To benefit from a contract financed by the Fund, financially or
otherwise,forexampleasasubcontractor;and
4) TootherwiseparticipateinFund‐relatedActivity,inwholeorin
part;
iv. ConditionalNon‐Debarment–theFundmayrequiretheCounterpartyto
comply, within specified time periods, with certain remedial,
preventative or other measures as acondition to avoid debarment. In
theeventtheCounterpartyfailstodemonstrateitscompliancewiththe
prescribedconditionswithinthetimeperiodsestablished, a debarment
may automaticallybecome effectivefora period oftime;
v. Restitutionoffunds–theFundmayrequirerestitutionofimproperlyused
ordivertedFundproceeds;and
g.
have the right to (i) share information on sanctions imposed pursuant to
subparagraphs e and f with other international organisations, multilateral
institutionsandcompetentauthorities,and(ii)recognisesanctionsdetermined
by other international organisations, multilateral institutions and competent
authorities,ifappropriate.
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