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New Ex-Im Bank guidelines won't prevent US loans to drug cartels

By Gritsforbreakfast

Reacting to an investigative report from WFAA-TV in Dallas that the Ex-Im Bank has been giving multi-million dollar loans to drug cartel members who never paid them back, the agency has issued a new set of non-binding due diligence guidelines aimed at addressing the problem, but to me they seem to leave open many loopholes that could let this happen again.You can read the new guidelines for yourself here (pdf). Called the "Know Your Customer" initiative, the guidelines sound positive on their face but contain a loophole that corrupt bureaucrats could drive a dope-laden truck through, declaring:The guidelines do not constitute a checklist. Nor do they create any specific legal obligation. Rather, Ex-Im Bank?s partners are encouraged to consider these best practices in conducting due diligence...continue to full post

Full post as published by Grits for Breakfast on January 15, 2008 (boomark / email).