Export-Import Bank Criticized For Its Lack Of Due Diligence And Risk Management In Connection With Trafigura
The Foreign Corrupt Practices Act enforcement agencies bring enforcement actions against companies in which the allegations often include lack of due diligence or risk management in connection with certain transactions.
As explained on its website, the Export-Import Bank of the United States (EXIM) “is the official export credit agency of the United States. EXIM is an independent Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services. Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The agency’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; EXIM consistently maintains a low default rate and closely monitors credit and other risks in its portfolio.”
The Office of Inspector General (OIG) of EXIM “routinely shares information with EXIM on fraud risks.”