KfW IPEX-Bank GmbH defines the term "compliance" as ensuring the fulfilment of the legal and regulatory obligations.
The compliance organisation of KfW IPEX-Bank GmbH is subdivided into the areas Prevention of Money Laundering and Combating the Financing of Terrorism, Securities Compliance, Prevention of other Offences, as well as Data Protection.
The corresponding rules, processes and controls are continually adapted to the legal and regulatory legal framework and market requirements.
The business of KfW IPEX-Bank GmbH is governed by the obligations of adhering to market standards and acting in the best interests of all stakeholders. Breaches of rules are consistently pursued and sanctioned.
As a member of KfW Bankengruppe, KfW IPEX-Bank GmbH has committed itself to making responsible and transparent actions understandable. Both the Board of Managing Directors and the Board of Supervisory Directors of KfW IPEX-Bank GmbH recognize the principles of the Public Corporate Governance Code of the German Federal Government (PCGC) and included the recommendations and suggestions of the PCGC during the summer of 2010 into its company rules.
A Declaration of Compliance with the recommendations of the PCGK was issued for the first time on 23 March 2011. Since then any potential deviations are disclosed and explained on an annual basis.
Declaration of compliance with the standards for the prevention of money laundering and terrorist financing
KfW IPEX-Bank GmbH expressly backs international efforts to combat money laundering and the financing of terrorism.
The Federal Republic of Germany is a member country of the Financial Action Task Force (FATF) and the European Union (EU) and has enacted laws and rules designed to implement the anti-money laundering policies of both FATF and the EU. In 1992, section 261 of the German Penal Code, which makes money laundering a criminal offence, took effect in Germany. The Money Laundering Act and the German Banking Act establishes statutory duties for credit institutions in order to prevent money laundering and financing of terrorism.
To satisfy this goal, a minimum standard of requirements must be met. KfW IPEX-Bank GmbH
- designates an anti-money laundering compliance officer
- determines and verifies the identify of its customers
- identifies the beneficial owners for their customers
- identifies politically exposed persons at their customers
- monitors in and outgoing payments
- reports suspicious circumstances / transactions to the authorities
- provides regular training of its employees in the prevention of money laundering and terrorist financing
Our anti-money laundering measures are periodically reviewed and expanded in order to adapt them to new standards or requirements.
KfW IPEX-Bank GmbH also meets the requirements of the Wolfsberg Anti-Money Laundering Principles. The Bank invites its business partners to download this completed document. Please make use of this offer.
Securities compliance relates to the fulfilment of all relevant provisions under securities law for the protection of the bank and its employees.
This activity covers the identification, analysis and reduction of risks that may arise from a breach of securities law provisions and, thus, of implemented securities compliance processes, especially reputation risks, liability and sanction risks for the Management Board and employees of KfW IPEX-Bank GmbH. Extensive processes exist to avoid insider trading.
A core task is the avoidance of conflicts of interest.
In the interests of the customers/business partners, KfW IPEX-Bank GmbH has analysed the conflicts of interest and has taken measures to deal with the conflicts of interest.
KfW IPEX-Bank GmbH handles the topic of prevention of other offences with special attention and diligence. The business policy of KfW IPEX-Bank GmbH does not tolerate the use or acceptance of bribes or other forms of corruption, and this policy is binding for all of its employees. KfW IPEX-Bank GmbH decidedly opposes corruption in any form whatsoever.
The Management Board of KfW IPEX-Bank GmbH has subscribed to its own "Code of Conduct for members of the Management Board of KfW IPEX-Bank GmbH" as a way of emphasising the importance of corruption prevention and in order to serve as an example to the employees.
In addition to the Code of Conduct for the Management Board, an employee code of conduct against corruption has been introduced. This code of conduct calls employees' attention to precarious situations that may get them drawn into corruption against their will. Corruption attempts must be fended off immediately, and superiors and the compliance officer must be informed without delay.
Pursuant to the regulations of the U.S. Patriot Act, U.S. banks or U.S. broker-dealers in securities may in certain instances require obligatory information on banks and financial service institutions with whom they maintain business relations.
KfW IPEX-Bank offers its business partners the possibility to download its Global Certification Form. You are kindly requested to make use of this possibility in order to avoid waste of effort by making a written request to KfW IPEX-Bank GmbH, which is in our mutual interest.
This Statement is made under Section 54 of the UK Modern Slavery Act 2015 ("the Act"). It sets out the steps that KfW IPEX-Bank GmbH London Branch ("the Branch") took during the financial year ended on 31 December 2019 to ensure that slavery and human trafficking does not occur in any of its supply chains or in any part of its business. This statement will be reviewed annually for publication after every financial year.
Remuneration policy transparency in connection with consideration of sustainability risks in accordance with Article 5 of REGULATION (EU) 2019/2088 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019 on sustainability‐related disclosures in the financial services sector
We provide financing for the benefit of the German and European economies as part of our promotional mandate. We are one of the world’s leading export and project financiers and we use our strong earnings position as a commercially active subsidiary to ensure the promotional activities of KfW promotional bank. As an active, competent and reliable partner, we, together with the German and European export industry and our global corporate customers, are shaping the transition towards sustainable economic, social and environmental development in Germany, Europe and worldwide.
We provide long-term sustainable financing for this transformation process. We support technological progress by developing suitable financing solutions with the aim of securing livelihoods and quality of life for future generations. In this sense, we make a positive contribution to the implementation of the United Nations’ Sustainable Development Goals (SDG). We are committed to the Equator Principles and therefore explicitly include not only economic aspects, but especially also social and ecological aspects in our lending decision-making processes.
Consideration of sustainability risks already forms an integral part of our company’s process for agreeing objectives. KfW IPEX-Bank’s remuneration strategy is geared towards achieving the goals set out in the bank’s business and risk strategy. It sets the framework for KfW IPEX-Bank’s remuneration system, which, as a company management tool, is therefore aligned with the organisation’s overarching strategic objectives. The objectives anchored in our remuneration strategy include:
- Aligning remuneration processes and tools with KfW IPEX-Bank’s business and risk strategy and with the group-wide remuneration strategy, taking into account the corporate culture and objectives;
- Managing, encouraging and acknowledging good performance and consistent results delivered by organisational units and employees;
- Ensuring that remuneration systems are free from discrimination (no discrimination based on gender, ethnicity, sexual orientation, age, religion or disability);
- Ensuring that remuneration systems are designed appropriately, taking particular care to avoid incentivising disproportionately risky activity.
In addition, the remuneration system is based on the company’s values and the corporate culture, especially the risk culture (risk appetite), and is consistent with KfW IPEX-Bank’s long-term interests. The design of the remuneration systems and of remuneration governance represents an integral part of KfW IPEX-Bank’s holistic risk management. Risk-related performance data is taken into account when assessing performance at company level and at the level of each organisational unit and individual. We intend to continue honing how ESG factors are embedded into performance management and the remuneration strategy.
As of February 2016
1. Fundamental principles
(1) Members of the Management Board fulfil their responsibilities arising from the law, the Articles of Association of KfW IPEX-Bank GmbH (KfW IPEX-Bank), the Rules of Procedure for the Management Board, their employment contract and the nature of the function assigned to them in an independent, non-partisan and disinterested manner.
(2) Members of the Management Board may not pursue personal interests in performing their management work. They must avoid situations that could lead to conflicts of interest. In particular, they must avoid situations which lead to a financial gain for the board member him-/herself or for related parties, such as their spouse or partner or persons living in the same household as the board member, or for a minor child. Every member of the Management Board will inform the other board members of any conflicts of interest before a resolution or decision is adopted by the board.
(3) Members of the Management Board will at all times conduct themselves in a manner that maintains and promotes the good name of KfW IPEX-Bank and public confidence in KfW IPEX-Bank.
(4) Members of the Management Board are obliged to maintain confidentiality. They may not exploit any trade or business secrets to which they become party in the course of their duties without the prior consent of KfW IPEX-Bank. These obligations will remain in force after a board member leaves the services of KfW IPEX-Bank. Even after leaving the services of KfW IPEX-Bank a board member may not, in particular, testify either in or out of court on the affairs of KfW IPEX-Bank or make declarations relating to the affairs of KfW IPEX-Bank without prior consent.
2. Acceptance of gifts
(1) Members of the Management Board may not demand, solicit a promise of or accept any advantage from their work either for themselves or for a third party.
(2) An advantage is not deemed to be prohibited within the meaning of subsection 1 above if the Management Board has approved the acceptance of the gift or benefit in advance. If it is impossible or inexpedient to obtain prior approval, the board member will notify the board of the acceptance of the benefit and obtain the board's retroactive approval. There is no requirement to obtain approval (either prior or retroactive) if the material value of the gift does not exceed EUR 50. The board member will notify the Management Board of gifts with a material value of over EUR 50 which it is inexpedient to turn down due to the particular circumstances of the gift or other national or international customs. The notification must also contain a proposal for the utilisation of the gift. The Management Board will decide on how the gift will be used. The acceptance of gifts must also be guided by the fundamental principles set out in section 1 above.
(3) The acceptance of gifts from public authorities and other public administration bodies or from supranational organisations is generally permitted. The acceptance of such gifts must be guided by the fundamental principles set out in section 1 above.
3. Invitations to events
(1) Members of the Management Board may accept invitations to conferences, receptions and cultural events, including the provision of reasonable food and drink, if the attendance of the board member at the event relates to their function or is in the interests of KfW IPEX-Bank. This also applies to related persons such as spouses or partners of the board members if the related persons are included in the invitation and the accompaniment of the board member takes place in the interests of KfW IPEX-Bank or is in keeping with international customs. Any entrance, travel and accommodation expenses incurred in connection with the event, including the expenses of the accompanying related persons, will be paid by KfW IPEX-Bank. Assumption of any entrance, travel and accommodation expenses by the organiser is only allowed if justified and, in exceptional cases, it cannot be handled any other way. In such a case the assumption of the expenses must be explained to the Management Board, including mention of the justifying circumstances.
(2) Acceptance of invitations from public authorities and other public administration bodies or from supranational organisations is generally permitted. Subsection 1 sentences 2 and 3 above apply mutatis mutandis.
(3) The acceptance of invitations to events must be guided by the fundamental principles set out in section 1.
(4) Members of the Management Board must notify the board of events they have attended.
4. Lecturing and speeches
(1) Fees may not be accepted for lectures and speeches which are related to the assigned activities of the board member or occasioned by the function assigned to him/her or which may be regarded as part of the normal public relations work of KfW IPEX-Bank or as representing its interests. Reasonable travel and accommodation expenses incurred directly in connection with such lectures or speeches may be paid by the organiser. If it is inappropriate to turn down a fee in view of the particular circumstances or national or international customs, the fee must be paid to the bank.
(2) If there are any doubts about whether a lecture or speech meets the conditions of subsection 1 above, the member of the Management Board must consult the Compliance Officer of KfW IPEX-Bank and, if necessary, request a decision by the Management Board.
5. Ancillary activities
(1) Members of the Management Board may not exercise any paid office, trade or profession in addition to their work for the bank.
(2) Ancillary activities, in particular membership of an executive or supervisory board of another company, are only permitted if compliant with the statutory incompatibility rules and limitations on the number of mandates held. In addition they require the consent of the Management Board and the Chair of the Executive Committee. Consent will be refused in particular if the exercise of the ancillary activity leads to a conflict of interest or would hinder the member of the Management Board from fulfilling his/her duties as a board member. Membership of supervisory boards of other companies must be disclosed in an appropriate manner (e.g. on the bank's website).
(3) Consent may be granted for work as a paid or unpaid arbitrator, trustee, expert witness or similar activity for a limited period, provided the time commitment for the activity is compatible with the duties of a member of the Management Board and no conflicts of interest are anticipated. Fees and reimbursed expenses must be standard and proportionate given the service provided. Subsection 2 sentence 2 above applies mutatis mutandis.
(4) Lecturing and speeches which do not fall under section 4 (1) above as well as writing and academic activities on the part of members of the Management Board are generally permitted, provided the time commitment for these activities does not hinder the member of the Management Board from fulfilling his/her duties as a board member. Board members must state in their articles or speeches that they have been written or prepared in a personal capacity and do not necessarily represent the views of KfW IPEX-Bank. Subsection 3 sentence 2 above applies mutatis mutandis.
(5) Members of the Management Board must inform the Management Board and the Executive Committee every year of all ancillary activities performed by them in the previous year, including the fees and benefits received.
6. Honorary positions
(1) The exercise of honorary positions requires the consent of the Management Board. Consent will be granted for positions in the academic and charitable fields provided they do not interfere with the bank's interests, in particular if the time commitment involved in the honorary position is not expected to hinder the member of the Management Board from fulfilling his/her duties as a board member. If an honorary position is held in the interests of KfW IPEX-Bank, all travel and accommodation expenses will be borne by KfW IPEX-Bank.
(2) Members of the Management Board will inform the Management Board and the Executive Committee each year of the honorary positions held by them in the previous year. The board must also be informed of the costs paid by the bank in connection with the exercise of honorary positions within the meaning of subsection 1 sentence 3 above.
7. Advice by the Compliance Officer
In cases of doubt the Management Board will seek the advice of the Compliance Officer of KfW IPEX-Bank prior to granting approval and/or consent under sections 2-6 above. This applies equally to the members of the Management Board when interpreting and applying the present Code.
8. Financial market transactions by members of the Management Board
(1) Private financial transactions by members of the Management Board must be entirely beyond reproach. Information acquired in the course of a board member's duties may not be used for personal benefit. Board members will report any inside information they obtain on listed companies to the Compliance Officer of KfW IPEX-Bank and will not deal in the securities of the relevant companies for as long as they are in possession of inside information or trading restrictions have been imposed by the Compliance Officer of KfW IPEX-Bank.
(2) Transactions carried out in the course of financial portfolio management, where there is no contact between the portfolio manager and the member of the Management Board before the transaction is carried out, are not affected by the trading restrictions set out in subsection 1 above.
(3) Members of the Management Board will make every effort to ensure that transactions by related persons such as spouses or partners and by persons who live in the same household, as well as transactions by their children are compatible with subsection 1 above.
9. Publication of remuneration
The remuneration paid by the bank to each member of the Management Board in the previous year is published in the bank’s annual report.
This Code of Conduct and any amendments to the Code will be published on KfW IPEX-Bank's website.
Introduction of confidential whistleblower system
KfW IPEX-Bank introduced a confidential whistleblower system as of 1 March 2014. This system was rolled out for all companies of the KfW Group (Group).
The whistleblower system will enable suspected compliance breaches to be forwarded and received in confidence, i.e. criminal offences as well as breaches of the Banking Act (KWG) or similar irregularities.
The whistleblower system is centred around the appointment of a neutral ombudsperson. Whistleblowers can turn to this neutral ombudsperson in confidence with any suspicions they may have. The ombudsperson will accept this confidential information on suspicious cases. Information with a direct link to KfW IPEX-Bank will be forwarded to Compliance at KfW IPEX-Bank (in anonymised form, if preferred). This will enable KfW IPEX-Bank to deal with such information on a consistent basis.
The KfW Group has appointed Arndt Brillinger, lawyer (Brillinger Law Office in Karlsruhe) to be the ombudsperson for all Group companies.
Existing contractual regulations mean that the names and identities of whistleblowers are protected. Only at the request and with the express consent of the whistleblower will their identity be made known to Compliance at KfW IPEX-Bank.
Contact details for ombudsperson
Born in 1956 in Stuttgart, married.
He has been employed in the Brillinger Law Office since 2009. Ombudsman, including Ombudsman Compliance for various companies and organisations
- The ombudsperson is not an arbitration board for third-party disputes with KfW IPEX-Bank or any other company of the KfW Group.
- The ombudsperson is not there to receive complaints which are not connected to suspicions of criminal acts.