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Introduction 1.1 Nature and Purpose of the Policy
The purpose of the Gift and Entertainment Policy (‘the Policy”) is to set the guidelines to be followed by Kuwait Finance House (“KFH” or “the Bank”) employees in the cases of providing and receiving gifts, entertainment and other promotional item.
1.2 Objectives of the Policy
The guidelines set forth below are introduced to ensure the provision and receipt of gifts, entertainment and other promotional item is done in good faith and they are not used with the intention of obtaining an improper commercial or other advantage.
1.4 Non-Compliance Situations
Any instances of non-compliance by insiders with this Policy will be dealt with by the Head of Compliance (“HOC”) as it deems fit. The Board of Directors (“BoD”) will be advised of such instances including the action initiated by the HOC Disciplinary action, which may include termination, should be addressed in conjunction with Human Resources department.
KFH staff are encouraged to report any suspicions of breaches of the Gift and Entertainment policy in accordance with the KFH Whistleblowing policy.
1.5.2 The policy shall be reviewed at least once a year by the Head of SSB to ensure that it is in line with the industry leading practices and caters for other applicable changes/ guidelines issued by any regulatory changes introduced by the regulatory authorities.
1.5.3 Amendments to the policy may be made as a result of one or a combination of the following reasons:
- Changes in laws and regulations
- Changes in functions and activities of the Bank
- Changes in business processes
- Changes in the organizational structure of the Bank
- Changes in job roles, duties, and descriptions
- Any other change, where the management deems necessary to update the Bank’s policies.
- Any significant modifications arising out of the review shall be recommended to the Board of Directors who shall decide whether a modification to the policy is needed and how amendments can be undertaken.
1.7 Definitions
Gift - includes all gifts of products, services, cash or cash equivalents (such as cheques, travelers cheques, gift cards, gift certificates, vouchers, loans and shares) and all business courtesies, gratuities, discounts, favors and other things of value for which the recipient does not pay the fair value.
Entertainment - includes all meals, drinks, hospitality, recreation (such as tickets or invitations to sporting or cultural events), travel, accommodation (such as hotel stays) and other forms of hospitality which are of value and for which the recipient does not pay the fair value.
Promotional Item” includes any other expenditure, such as travel and accommodation expenses that relate to the promotion, demonstration, or explanation of products or services.
2. Policy Statements
2.1 General
All employees are strictly prohibited from:
Offering, promising, authorising or providing any gift, entertainment or other promotional item to any person; or
- Requesting, soliciting, agreeing to receive, accepting or receiving any gift, entertainment or other promotional item from any person
- If it is:
- Within any of the categories of “Unacceptable Gifts, Entertainment and other Promotional Item” as set out in section 2.2; or
- Not in accordance with the Gift Principles (see section 2.3).
These prohibitions apply whether the gift, entertainment or other promotional item is provided or received directly by the employee or by someone acting on his/her behalf. The employee is responsible for ensuring that they do not breach these prohibitions. If there is any doubt about what to do, the employee must consult the Head of Compliance.
2.2 Unacceptable Gifts, Entertainment and other Promotional Items
The provision or receipt of certain types of gifts, entertainment and other promotional expenses are never acceptable, irrespective of value. These are:
Provided for improper advantage: any that is provided (or could reasonably be interpreted as being provided) with the intention of obtaining, retaining or rewarding any improper commercial or other advantage for the Bank, for the employee, or for any other person or in order to induce any person to act improperly or to reward them for doing so;
- Received for improper advantage: any that is received where the employee knows or suspects that it is offered or provided with the intention of inducing the Bank, him/her, or any other person to provide any improper commercial or other advantage to any person or to act improperly or to reward the Bank, the employee , or any other person for doing so;
- Conflict of interest: any that may give rise to, or may be seen as giving rise to, a conflict of interest (in other words, a conflict between competing interests which may impair the ability to make objective unbiased business decisions);
- Reciprocal: any that is provided or received with the intention or an expectation of reciprocity, i.e. for something in return;
- Tenders: any that involves parties in a tender or competitive bidding process where the Bank is tendering or bidding;
- Prohibited: any that is known to be prohibited by the other party’s organisation or not Shari’a acceptable;
- Cash or a cash equivalent: any that comprises cash or a cash equivalent (including cheques, travellers cheques, gift cards, gift certificates, vouchers, loans and shares or other securities);
- Inappropriate: any that is inappropriate or offensive or that might otherwise adversely affect the Bank’s reputation or the reputation of those involved;
- Personal capacity or concealed: any that is provided to the employee in a personal capacity rather than the Bank’s or that is concealed (that is, provided secretly rather than openly);
- Breach of law: any that is in breach of any applicable laws or regulations, including local laws.
2.3 The “Gift Principles”
Any gift, entertainment or other promotional item (as well as not violating section 2.2) must be in accordance with the following gift principles:
- Good faith: provided in good faith with the intention only to build or maintain legitimate business relations or offer normal courtesy;
- Token or modest: either (1) token and of minimal or nominal value (such as small promotional items, diaries, calendars, or other similar items bearing the brand or logo of the provider) or (2) modest in value and not lavish or extravagant, both in isolation and when considered in the context of other gifts, entertainment and other promotional item offered to or by the same party;
- Reasonable and appropriate: reasonable and appropriate in terms of the type, the value and the occasion and frequency of provision in the particular circumstances, including local cultural sensitivities;
- Reasonable business practice: consistent with reasonable business practice, including local cultural sensitivities and Shari’a principles; and
- Legal: permissible under all applicable laws and regulations, including local laws.
2.4 Prohibition
Employees are prohibited from:
Seeking to avoid any requirement under this Policy in respect of any gift, entertainment or other promotional item by paying personally for it.
- Actively solicit, request or demand any form of gift, entertainment or other promotional expense from any person or organisation.
- Allow a close family member to accept gifts, services, loans or preferential treatment from anyone—customers, suppliers or others—in exchange for a past, current or future business relationship with the Bank
- Solicit donations/gifts from third parties (e.g. customers, suppliers, brokers, contractors, etc) for himself/herself or family members
- Provide or receive a gift, entertainment or other promotional items if it could be considered by others as engaging in bribery or a consideration for an official or business favour
- Offering anything of value to a government official for the purpose of influencing the recipient to take or refrain from taking any official action, or to induce the recipient to conduct business with the Bank.
3. Accepting/Declining Gifts, Entertainment or other Promotional Items
All questions about the appropriateness of accepting a gift or invitation shall be discussed with the respective line manager prior to acceptance.
In certain situations, it may be appropriate to accept a gift and place it on display at the Bank or have the gift appraised and donate the same to charity organizations, dealing with the Bank.
All gifts, entertainment or other promotional item accepted must be reported in writing to the line manager with a copy to Human Resources Department.
If any gift, entertainment or other promotional item is offered to or received by you but is not permitted in accordance with this Policy, it must be politely declined. You may refer the provider to this Policy as your reason for declining.
However where refusing would cause offence, and where an apology and a return is simply not possible, gift may be accepted after formally declaring the case to CEO and obtain his approval.
4. Provision of Gifts, Entertainment or other Promotional Items
Appropriate gift, entertainment or other promotional items may be offered to customers by persons authorized to do so, subject to Bank's policy, Shari'a, applicable rules and to the authority limit.
Corporate entertainment such as hosting business lunches, dinners or formal receptions are permitted within pre-agreed limits or budget limits approved by the CEO.
Excessive entertainment however should be discouraged unless there is strong reason to do so and is agreed in advance with the CEO.
Other offerings such as event management e.g. week-end seminars for customers or social events are also permitted within limits agreed by the CEO.
Any exceptions to the above should be agreed in writing in advance with the CEO.
5. Register
Each Business Unit must maintain a Register of Gifts Received and Provided which should be available for periodic review by Compliance or Audit departments.
1.1 Nature and Purpose of the Policy
This Policy sets out the Group’s responsibilities, and the responsibilities of those covered by this Policy (see section 3), in observing and upholding the Banks’ anti-bribery and corruption commitments. It contains anti-bribery and corruption procedures and provides guidance on how to recognise and deal with the risk of bribery and corruption and on how to seek guidance as necessary.
The purpose of the Anti Bribery and Corruption Policy (‘the Policy”) is to set out the guidelines that must be adopted by Kuwait Finance House (“KFH” or “the Bank”) and those covered by this Policy in order to protect KFH’s reputation.
1.2 Objectives of the Policy
The guidelines set forth below are introduced to help protecting the Bank and its employees from the risk of bribery and corruption, to maintain high legal and ethical standards and thereby to protect the KFH’s reputation.
1.4 Non-Compliance Situations
Any instances of non compliance by insiders with this Policy will be dealt with by the Head of Compliance (“HOC”) as it deems fit. The Board of Directors (“BoD”) will be advised of such instances including the action initiated by the HOC Disciplinary action, which may include termination, should be addressed in conjunction with Human Resources department.
KFH staff are encouraged to report any suspicions of breaches of the Anti Bribery and Corruption policy in accordance with the KFH Whistleblowing policy.
1.5.2 The policy shall be reviewed at least once a year by the Head of SSB to ensure that it is in line with the industry leading practices and caters for other applicable changes/ guidelines issued by any regulatory changes introduced by the regulatory authorities.
1.5.3 Amendments to the policy may be made as a result of one or a combination of the following reasons:
- Changes in laws and regulations.
- Changes in functions and activities of the Bank.
- Changes in business processes.
- Changes in the organizational structure of the Bank.
- Changes in job roles, duties, and descriptions.
- Any other change, where the management deems necessary to update the Bank’s policies.
- Any significant modifications arising out of the review shall be recommended to the Board of Directors who shall decide whether a modification to the policy is needed and how amendments can be undertaken.
1.7 Definitions
Bribery – essentially involves the giving or receiving of money or anything else of value as an inducement or reward for an improper act. “Kickback” is another term for a bribe.
The recipient of a bribe can be in the Private Sector or in the Public Sector. Bribery can take place where the offer or payment is made indirectly by or through a third party, such as an agent or business partner.
Depending on the circumstances, bribes can take on many different forms. If given or received as an inducement or reward for an improper act, the following could be bribes:
- cash payments.
- gifts (including gifts of cash or cash equivalents).
- hospitality (such as meals, hotel stays or tickets or invitations to sporting and cultural events).
- other promotional expenses (such as travel and accommodation expenses).
- other “favours” that are of value to the recipient (such as letting an individual’s child attend an internship scheme other than through normal procedures, or engaging a company owned by a member of a Public Official’s or customer’s family).
- free use of company services, facilities or property; or
- political contributions or charitable donations.
Corruption - is essentially the misuse of public office or power for private gain; or the misuse of private power in relation to business.
Private Sector - means any company or institution that is not in the Public Sector. Typically, these will be businesses run for private profit.
Public Sector - such as governments, public agencies and organisations, government-owned or controlled commercial enterprises, political parties and charities.
Public Officials - are individuals holding positions or exercise functions in the Public Sector.
Improper - improper commercial or other advantage means an advantage which is brought about because of someone performing (or failing to perform) a function or activity illegally, unethically, in bad faith, not impartially, or in breach of a position of trust. The function or activity could be a public function, a business activity, an activity performed in the course of employment or an activity performed by or on behalf of a body of persons (whether incorporated or not).
An improper act / acting improperly means someone performing (or failing to perform) a function or activity illegally, unethically, in bad faith, not impartially, or in breach of a position of trust.
Facilitation payment - A facilitation payment is usually a small unofficial payment or gift, often in cash, made to secure, facilitate or speed-up the performance by a Public Official of a routine or necessary governmental action or process - such as clearing goods through customs. Typically the action or process in question is one which the Public Official is already under a duty to perform and to which the payer has a legal or other entitlement. Facilitation payments may also be called “facilitating”, “speed” or “grease” payments.
2. General Policy
KFH has no a tolerance for bribery and/or corruption. Bribery and corruption are never acceptable by or on behalf of the Bank. KFH does not engage in bribery or corruption in any form, whether in the private or public sector.
The Bank is committed to act fairly, honestly, openly and in an ethical manner in all their business dealings and relationships. This means:
- Our employees or anyone acting for us must never offer, solicit, promise, give or accept a bribe, kickback or any other improper payment – including ‘facilitation’ payments.
- We comply with all laws and regulations that prohibit bribery and corruption, and we do everything we can to make sure our suppliers, contractors and joint venture partners do the same.
- We never allow ‘facilitation’ or ‘grease’ payments to government officials by anyone who works for KFH or anyone acting for us. This applies no matter how small the amounts are.
3. Who Is Covered By This Policy
3.1 Employees, directors and officers
This Policy applies to KFH, its subsidiaries and associate companies, including joint venture companies in which the Bank has an interest.
This Policy also applies to all individual working in or with the Bank, at any level/grade or jurisdiction. This covers all employees (whether permanent, fixed-term or temporary), directors and officers.
3.2 Third Parties
This Policy also applies to third parties engaged by KFH, including agents, distributors, service providers, consultants, advisers, contractors, seconded and agency staff.
3.3 Other business partners, governments, public bodies and Public Officials
This Policy must be considered when dealing with other third parties with whom you come into contact. These include actual and potential customers, clients and suppliers.
In addition, this Policy must be considered when dealing with organisations in the Public Sector and when dealings with Public Officials.
4. Your Responsibility
4.1 General
- You must read, understand and comply with this Policy.
- Take responsibility for the prevention, detection and reporting of bribery and corruption.
- Avoid any activity that might lead to, or suggest, a breach of this Policy.
- Report as soon as possible if you believe or suspect that a breach of this Policy has occurred, or may occur in the future.
4.2 Prohibitions
You are strictly prohibited from:
- offering, promising, authorising or providing any money or anything else of value to any person (1) with the intention of obtaining, retaining or rewarding any improper commercial or other advantage for the Bank, for you, or for any other person, or (2) in order to induce any person to act improperly or to reward them for doing so, or (3) or knowing or believing that acceptance by the other person would itself be improper.
- requesting, soliciting, agreeing to receive, accepting or receiving any money or anything else of value from any person where you know or suspect that (1) it is offered or provided with the intention of inducing the Bank, you, or any other person to provide any improper commercial or other advantage to any person, or to act improperly or to reward the Bank, you, or any other person for doing so, or (2) the request itself is improper.
- otherwise using any means to obtain, retain or reward any improper commercial or other advantage for the Bank, for you, or for any other person; or
- acting as an intermediary for any third party in any of the things referred to above.
The above mentioned prohibitions apply (1) whether you act directly or act indirectly through someone acting on your behalf and (2) whether the third party concerned is in the Private Sector or Public Sector.
5. Public Officials
5.1 Payments or Other Advantages
Special rules apply in respect of Public Officials. This is because in certain countries it can be a criminal offence involving severe penalties to provide, for example, a gift to a Public Official.
You must not provide any money or anything else of value (including any gift, hospitality or other promotional expense or any other financial or other advantage) to any Public Official for the purpose of influencing the Public Official in the performance of their official functions with the intention of obtaining or retaining business or an advantage in the conduct of business. This is irrespective of whether or not the Public Official actually performs a function improperly. The provision or receipt of any money or anything else of value to or from any Public Official must be pre-cleared by Head of Departments and Compliance Officer.
5.2 Gift Register
Each function within KFH should maintain a register of gifts and donations setting out the person who paid or received the item in question and confirming that this did not influence any decision by or on behalf of the bank or its clients.
5.3 Facilitation Payments
KFH will not make facilitation payments of any kind, even if they are customary business practice in a particular country.
They are treated as bribes under this Policy regardless of size or local standards or cultural norms.
5.4 Charitable Donations
Any charitable donation made on behalf of KFH or using the Bank’s financial resources must be legal under applicable local laws and not be made with the intention of influencing business or official decisions or gaining a commercial or other advantage.
The offering or making of charitable donations may amount to bribery when they are made with the intention of influencing business or official decisions or gaining a commercial or other advantage.
This may be, for example, where a donation is made to a “charity” which is controlled by a Public Official who is in a position to make decisions affecting the Bank.
6. Third Parties Engaged by the Bank
Most anti-bribery and corruption laws impose liability on companies which become involved in direct or indirect bribery. This means that the Bank may incur liability where a third party engaged to represent or provide a service to the Bank makes or receives an improper payment or otherwise engages in improper conduct in the course of their work on the Bank’s behalf.
It is very important, therefore, that you take steps to ensure that a third party engaged to represent or provide a service to the Bank does not make or receive any improper payment or otherwise engage in improper conduct in the course of acting on the Bank’s behalf.
Accordingly, appropriate due diligence steps must be undertaken in respect of such third parties and in monitoring their activity.
All fees and expenses paid to third parties must represent appropriate, justifiable and proportionate remuneration, which is commercially reasonable under the circumstances, for legitimate services rendered by the third party. Any fees and expenses must only be paid to the third party directly and must not be made through another party that has no contractual relationship with the Bank.
The due diligence undertaken in respect of the third party should be kept together with the written contract/agreement as part of the transaction file along with accurate financial records of all payments must be kept.
7. Consequences in case of Policy breach
Employees who breach this Policy may face disciplinary action, including dismissal for gross misconduct or other termination of employment.
KFH will, wherever possible, reserve the right to terminate, contractual relationships with any third party who works with or for the Bank if they breach this Policy or any applicable anti-bribery and corruption contractual provisions.
8. Reporting Bribery and Suspicious Activity
If you become aware of any actual or suspected breach of this Policy, you must raise your concerns as soon as possible.
You may make a good faith report of suspected bribery or corruption or other alleged wrongdoing under the Bank’s Whistleblowing Policy and this will be treated confidentially.
Reporting should be to both the Head of the Business Unit and the Head of Compliance. A standardized reporting template should be developed by the Compliance function.
9. Employee Protection
Individuals who refuse to take part in bribery and corruption, or who raise concerns or suspicions or report another's wrongdoing, are sometimes worried about possible repercussions.
KFH encourages openness and will support anyone who refuses to take part in bribery and corruption or who raises a concern or suspicion or reports wrongdoing in good faith, even if they turn out to be mistaken.
The Bank is committed to ensuring no one suffers any detrimental treatment (such as dismissal, disciplinary action, threats or other unfavourable treatment) as a result of taking such steps. If you believe that you have suffered any such treatment, you should inform your line manager, HR or a senior manager immediately.