F.A.Q.

Environment and Social Development Policy

ETDB applies robust due diligence processes and integrates environmental and social safeguards across all operations, in support of sound governance and sustainable development. The Bank is fully committed to the core values and the principles of environment & social development. Its charter strictly mandates that the environment & the social development aspects are taken into consideration for any financial engagement by the Bank. All its policies under the Charter of Agreement specifically lays down rules and regulations to this effect.

The Negative List of Products Policy

The Bank must observe in all its operations compliance to the maximum extent possible with the applicable rules and regulations regarding procurement of goods and services, national legislation of member states, and with the provisions of the international conventions, treaties and agreements that limit, restrict or prohibit use, proliferation, generation, or otherwise disfavor the financing of operations that facilitate dealing in goods and services that pose a threat to health and safety of humans, other species, or the environment in general. The Bank maintains a Negative List of Products, including an Environmental Exclusion List, which defines goods and services excluded from financing under all operations. This includes, inter alia, weapons and military goods, tobacco, alcohol, narcotics, wildlife products, and radioactive materials.

Anti-Money Laundering

Money laundering is the act by which proceeds of crime are made to appear legitimate. It is defined as the conversion or transfer of property, knowing that such property is the proceeds of crime, for the purpose of concealing or disguising its illicit origin, or of assisting any person involved in the commission of the predicate offence to evade legal consequences; or the concealment or disguise of the true nature, source, location, disposition, movement, or ownership of property known to be derived from crime. Money laundering typically occurs in three stages—placement, layering, and integration—where illicit funds are introduced into the financial system, moved through complex transactions to obscure their origin, and ultimately reintroduced into the legitimate economy.

Financial Integrity and Compliance

Established by an international treaty, ETDB’s operations are confined to financing development projects, supporting small and medium-sized enterprises (SMEs), and promoting trade among member states, in line with its mandate as a multilateral development bank. Hence, ETDB is not involved in retail and commercial banking activities such as offering savings accounts, personal loans, credit or debit cards, cheques, money orders, demand drafts, or payment services. Accordingly, Anti-Money Laundering (AML), Anti-Bribery and Corruption (ABC), sanctions, and Counter-Terrorist Financing (CTF) requirements are implemented in line with internationally accepted standards. The Bank ensures that its selection of project sponsors, clients, co-financiers, and counterparties is consistent with these standards. All transactions are subject to ongoing monitoring to ensure full compliance with AML, CFT and Know-Your-Customer (KYC) requirements.