OTP BANK GROUP POLICY ON FINANCING THE DEFENSE INDUSTRY
Introduction
The OTP Banking Group is committed to social responsibility and upholds and supports the protection of human rights as outlined in international conventions and global efforts to combat the proliferation of weapons of mass destruction. In line with this commitment, OTP Banking Group seeks, among other things, to avoid participating in the financing and commercial transactions of products that may be used in military conflicts or human rights violations.
Recognizing the challenges posed by the production and use of weapons, both individual states and international parties regulate, among other aspects, the production and trade of conventional weapons and weapons of mass destruction (including controversial weapons) through laws and conventions.
Group Policy
Taking the above principles into consideration, OTP Banking Group is committed to exercising particular caution in its financing activities so as not to become involved in the production, trade, or provision of services related to weapons (or goods and technologies with dual-use for military purposes) for individuals, companies, or countries subject to international sanctions, or in areas affected by civil wars or international conflicts. The OTP Banking Group has a detailed procedure to ensure that transactions do not violate sanctions issued by the United Nations Security Council, the European Union, the competent authority of the United Kingdom, the United States of America, or any other applicable local regulator.
OTP Banking Group does not provide financing related to controversial weapons, including nuclear, biological, chemical weapons, blinding laser weapons, anti-personnel mines, cluster munitions, undetectable fragments, and other weapons that may be prohibited by international legal provisions or considered controversial due to the disproportionate harm or suffering they may cause.
Clients from the defense industry must fully comply not only with local and international laws and conventions on the production and trade of weapons and related services, as well as internationally recognized sanctions and restrictive measures, but must also take into account in their procedures the UN Guiding Principles on Business and Human Rights.
In cases of transactions related to the defense industry, OTP Banking Group enforces strict controls in accordance with relevant embargo regulations and mandatory national legal provisions, including additional verification requirements for defense-related financing.