Typology of Corruption Risks in Commodity Trading Transactions

Description

Foreword Acknowledgements Executive summary 1 Corruption risks across commodity trading transactions: An overview Opacity of ownership and governance structures of key actors involved in commodity trading Use of corporate vehicles in commodity trading transactions Use of front companies to purchase commodities Use of joint venture structures in commodity trading transactions Concealment of beneficial owners of buyers Involvement of politically exposed persons in commodity trading transactions Use of intermediaries in commodity trading transactions Lack of or insufficient corporate due diligence Note 2 Corruption risks in the buyer selection process Opacity of the selection of buyers Use of bribery to secure commodities Existence of conflicts of interest between buyer and seller 3 Corruption risks in the terms of the sales agreement Lack of transparency of the key terms of the transaction Additional risks associated with the use of non-conventional sales agreements Resource-backed finance agreements Commodity-for-product-swap-agreements 4 Corruption risks in the transfer of the commodities Misinvoicing of commodities Misreporting of grade and valuation Misreporting of volume 5 Corruption risks in the collection of the payment Opacity of the revenue flows Manipulation of the foreign exchange rate Lack of transparency of the payment account References Annex A. OECD initiatives on corruption in commodity trading Thematic Dialogue on Commodity Trading Transparency Illicit Financial Flows in Oil and Gas Commodity Trading