Ex-Im Bank guidelines help fight loan fraud
The U.S. Export-Import Bank has adopted “know-your-customer” guidelines to help both the bank and its export customers to ensure creditworthy and legitimate transactions.
Ex-Im Bank was chartered by Congress in 1935 and finances export transactions considered too risky for commercial banks. In fiscal year 2007, the bank authorized $12.6 billion in loans, guarantees and export credit insurance to support about $16 billion of U.S. exports.
Ex-Im Bank has maintained a historic portfolio loss rate of less than 2 percent, which compares favorably to the loss rates of many commercial banks. During the past 15 years, the bank has generated a net positive return of $4 billion.
However, the Ex-Im Bank said it has uncovered instances of fraud in its portfolio and is seeking ways to prevent losses.
“Export transactions have become increasingly complex with significant third party involvement, and Ex-Im Bank, like every lender, faces the challenge of ensuring that transactions are both creditworthy and legitimate,” said Ex-Im Bank General Counsel Howard Schweitzer, in a statement.
To assist with maintaining internal compliance, the Senate confirmed the appointment of the Ex-Im Bank’s first inspector general Mike Tankersley on June 28, 2007.
The “know-your-customer” guidelines may be viewed and downloaded from the bank’s Web site at www.exim.gov/pub/pdf/Due-Diligence-Guidelines.pdf.