International Regulations/Best Practices

• The Equator Principles

  Initially this principle was initiated by a number of small banks, with IFC, in a meeting in London in October 2002.

  The theme of the meeting was discussing one general standard in relation to environment and social policy when dispensing financial credit for any kind of industry and can be adopted globally. The outcome of the meeting was issuance of Equator Principle which was launched on 4 June 2003. Until June 2006, there are 41 bank has adopted, increasing from 10 banks when this initiative has just begun.

  On 6 July 2006, revised edition of Equator Principle was launched to adjust them with document amendment of 'Performance Standards' as produced by IFC on 21 February 2006. Therefore, revision of Equator Principle has similarity with Environmental and Social documents in "Performance Standards" developed by IFC.

   

• ABN AMRO Forestry and Tree Plantation Policy

  The ABN AMRO's policy on forest and wood industry was initially adopted at Oktober 2001. With this policy, ABN AMRO would not finance companies or projects connected to illegal logging activity, over exploitation within HCVF [High Conservation Value Forests], or to public who do not have clear policy to respect for human being or local communities.
   

• ADB Forest Policy

  The first ADB policy on forestry sector was made in 1995. But due to worsen forest degradation and the emergence of new priority in development including forestry sector, ADB revised its policy towards forestry since 1995. The revision itself started in 2000, and the result were two revised drafts in 2002 and 2003. Unfortunately, discussion on revision draft discontinued in 2006. Therefore, reference on ADB policy on forestry still refer to the above 1995 document.

  Some important view in ADB policy document on forestry is, among others, ADB would not finance rural infrastructure or other public investment project that has direct or indirect impact to forest degradation and deforestation; involve NGOs in all process of the forestry project from project design stage up to implementation and monitoring; ADB also explicitly do not provide financial assistance to road infrastructure project that cross "old-growth forests".

  ADB have more...
   

• Politically Exposed Persons [PEP's]

  PEPs principle first time came into existence as a response to the Ferdinand Marcos and his wife scandal case who kept money from corruption activity in Swiss banks. The fact that the money is illegal has ruined Swiss banks reputation. The effect was the Swiss bankers then started to pay attention to and created list of politically important and strong people in foreign countries both those who have become their customers and those who have not. The use of PEPs principle is still limited and not standardized.

  The use of PEPs principle becomes stronger corresponds to the enactment of Patriot Act, October 2001 as the consequences of terrorist attack on WTC twin tower in New York, 11 September 2001. PEPs handling is included in Section 312 of the Patriot Act. PEPs is used as an instrument....[continue......]