Typology of Corruption Risks in Commodity Trading Transactions

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