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.”
Baker Hughes Under FCPA Scrutiny For Sanctions Issues
If you are confused by the above headline, this post serves as a useful reminder that the Foreign Corrupt Practices Act has always been a law much broader than its name suggests because of its books and records and internal controls provisions.
These provisions, among the most generic legal provisions one can find applicable to issuers, can be implicated in a variety of situations – situations that often have nothing to do with foreign bribery.
For instance, recently Baker Hughes disclosed:
Friday Roundup
Asset recovery, export finance, Och-Ziff related, and for the reading stack.
It’s all here in the Friday roundup.
Asset Recovery
Efforts by the U.S. government to combat foreign corruption are broader than just the Foreign Corrupt Practices Act. For instance, approximately ten years ago the DOJ announced a Kleptocracy Asset Recovery Initiative.
Recently, the DOJ announced:
Hot Off The Press – Printing Company Quad/Graphics Resolves $10 Million FCPA Enforcement Action
This post earlier this week told you that there would likely be more Foreign Corrupt Practices Act enforcement this week as the SEC’s fiscal year draws to a close.
Sure enough as late yesterday the SEC announced an approximate $10 million enforcement action against Wisconsin-based printing company Quad/Graphics for “engaging in multiple bribery schemes in Peru and China.”