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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.”

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Issues To Consider From The Trafigura Enforcement Action


This previous post covered the net $100.2 million FCPA enforcement action against Trafigura concerning conduct in Brazil.

This post highlights additional issues to consider.


Trafigura was under FCPA scrutiny since at least early 2019 (see here from the prior post).

Thus, from start to finish the company was under scrutiny for approximately 5 years.

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Next Up … Trafigura


First it was Sargeant Marine in 2020 (see here for the prior post).

Then it was Vitol in 2020 (see here for the prior post).

Then it was Glencore in 2022 (see here for the prior post).

Then it was Freepoint Commodities in 2023 (see here for the prior post).

Then it was Gunvor in 2024 (see here for the prior post).

Next up in the list of commodities trading (or related) companies to resolve an FCPA enforcement action is Trafigura (a company which has been under FCPA and related scrutiny for years). After accounting for various credits for related foreign law enforcement actions, the net FCPA settlement amount is approximately $100.2 million (a criminal fine amount of $53.66 million and a forfeiture amount of $46.51 million).

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Checking In On Trafigura


Trafigura, a global commodities company has been under Foreign Corrupt Practices Act, and related scrutiny, for several years.

Last week, the Office of the Attorney General of Switzerland announced that a criminal indictment was filed against the company (and others) in connection with an alleged bribery scheme in Angola.

The statement reads:

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Friday Roundup


Scrutiny alert, the irony of it all, just saying …, not sure why, no more third parties, and for the reading stack. It’s all here in the Friday roundup.

Scrutiny Alerts

AAR Corp.

The company, a provider of aviation services with numerous U.S. government contracts, recently disclosed:

“The Company retained outside counsel to investigate possible violations of the Company’s Code of Conduct, the U.S. Foreign Corrupt Practices Act, and other applicable laws, relating to the Company’s activities in Nepal and South Africa.  Based on these investigations, we self-reported these matters to the U.S. Department of Justice, the U.S. Securities and Exchange Commission and the UK Serious Fraud Office.  The Company will fully cooperate in any review by these agencies, although we are unable at this time to predict what action, if any, they may take.”

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