RFQ Attachment II - PWS.pdf

EXPORT-IMPORT BANK ON BEHALF OF

OFFICE OF THE GENERAL COUNSEL TO PROVIDE COMPREHENSIVE REVIEW

OF ILLICIT FINANCE RISKS

PERFORMANCE WORK STATEMENT (PWS)

August 19, 2020

1.0 INTRODUCTION

The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform the Comprehensive Review of Illicit Finance Risks as defined in this Performance Work Statement except for those items specified as Government furnished property and services.

2.0 BACKGROUND

In June 2020, EXIM management approved the creation of the Customer Due Diligence Working Group (CDDWG), which is focused on re-designing and upgrading EXIM’s customer due diligence and compliance systems. Under Chairman Kimberly A. Reed’s leadership, the CDDWG will review its Customer Due Diligence (CDD) processes, as applicable to all of the financial crimes, holistically, to assure that EXIM is doing all that is reasonably feasible to preclude bad actors from EXIM transactions, assure that EXIM has sanctions and Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) compliance systems consistent with guidance issued by the relevant regulatory agencies, and to facilitate stronger partnerships with the rest of the national security community.

EXIM intends to undertake a comprehensive, timely review of all of the risks contemplated by the scope of the CDDWG’s work. In order to ensure that EXIM is adequately aware of and positioned to address risks from multiple types of illicit finance, EXIM staff began conducting market research to see if the private sector had the capability to assist with the work and at what cost. Here, “illicit finance risks” include risks related to money laundering, terrorist financing, sanctions evasion, fraud, and corruption. As a trade finance agency that supports transactions all over the world, EXIM automatically has a higher risk profile in many of these areas.

EXIM wants to ensure it has an adequate illicit finance compliance program. There is a consensus regarding the basic elements that will be required in a compliance program. These are the “Four Pillars” of compliance for an illicit finance compliance program:

o A system of internal policies, procedures and controls;

o A designated compliance function with a compliance officer;

o An ongoing employee training program;

o An independent audit function to test the overall effectiveness of the AML program.

There is currently a known requirement for a comprehensive written report to the Board of Directors and Senior Management. In the future EXIM may have a need for requirements to assist areas such as implementation, training and/or audits/evaluation of this program however these are not part of this PWS.

This requirement does not include implementation of recommendations in the report that results from this requirement. EXIM contemplates issuing one or more subsequent requirements for such implementation. Ultimately, EXIM seeks to have an illicit finance compliance program that reflects best practices and legal requirements and reduces EXIM’s risk.

3.0 SCOPE

The contractor shall provide a comprehensive written report that provides, at a minimum, a review of EXIM’s s risks relating to illicit finance (money laundering, terrorist financing, sanctions, fraud, and corruption). The contractor will perform, a risk assessment, an analysis and review of policy and procedures, and will issue, at a minimum, recommendations for remediation and for a comprehensive compliance program.

4.0 OBJECTIVES (NATURE OF WORK)

Desired Outcome: EXIM has a comprehensive understanding of the illicit finance risks the agency faces as well as an assessment of EXIM’s current ability to manage such risks. The Report should provide recommendations for remediation and establish the groundwork for a comprehensive illicit finance risk program.

Constraints: Given the current state of emergency under COVID-19, the contractor may need to do most, if not all, of the associated work remotely. The contractor should have the skills needed for functioning in a remote environment. In order to access EXIM’s network, the contractor would need to be fingerprinted and have a background check and be issued a PIV card.

5.0 APPLICABLE DIRECTIVES

• All services performed under this PWS shall fall within the governance of the Federal

Acquisition Regulation (FAR), applicable Bank policies and directives, and Federal law and regulation (such as Privacy Act, Procurement Integrity Act, etc.). It is incumbent upon the Contractor to be knowledgeable of all applicable laws and regulations.

Bank policies and directives will be made available to the Contractor upon request.

• The contractor will be provided with access to EXIM systems that contain confidential business information and trade secrets. The contractor, and all contractor personnel working on the project, will have to enter into a Non-Disclosure Agreement regarding such information.

• The contractor may also be issued computers, phones or other equipment from the U.S.

Government in order to gain access to the appropriate EXIM systems. The contractor will be required to comply with all U.S. Government rules, regulations and guidance regarding the use of such equipment.

6.0 GOVERNMENT FURNISHED INFORMATION OR PROPERTY

- EXIM may need to furnish the contractor with a computer. EXIM will need to provide the contractor with access to EXIM internal networks to facilitate information sharing and access to the EXIM SharePoint.

- EXIM will need to provide the contractor with access to EXIM information about its product and services. It will also need to provide information, including business confidential information, about the various types of transactions EXIM sees and the parties to the transactions.

7.0 SPECIFIC REQUIREMENTS/TASKS

Contractor shall provide a comprehensive written report detailing its review of EXIM’s illicit finance risks related to money laundering, terrorist financing, sanctions, fraud, and corruption.

This report shall provide at a minimum:

1. A review and analysis of EXIM’s compliance with due diligence requirements of specified U.S. Government commitments applicable to EXIM.

o EXIM shall provide the contractor with copies of certain U.S. Government commitments, including the Financial Action Task Force (FATF), and the Organization for Economic Cooperation and Development Export Working Group 2019 Anti-bribery Recommendation, which the contractor will then incorporate into its review and assessment of EXIM’s policies and procedures.

2. A comprehensive risk assessment for each type of illicit finance activity (money laundering, terrorist financing, sanctions, fraud, and corruption) based on a review of EXIM’s products and services, customers, and the geographic locations in which EXIM operates and conducts business.

o This shall cover all of EXIM’s products and services, regardless of length of time of financing or value of authorized amount.

Examples include, but are not limited to, EXIM’s Direct Loans, Loan

Guarantees, Working Capital Guarantees, and Insurance products.

o This shall include a review of the risk associated with third-party partnerships, including EXIM’s “City-State Partners”, EXIM insurance brokers, as well as products offered through delegated lending and credit authority extended to lenders and exporters..

o This assessment shall also assess temporary measures applied to some or all of EXIM’s activities, including those authorized under COVID-19.

3. A comprehensive review and analysis of EXIM’s current policies, procedures, and processes with regard to illicit finance risks.

o An assessment of strengths and weaknesses in EXIM’s illicit finance-related policies, procedures, and processes, including whether:

the current policies, procedures, and process appropriately measure, monitor, and control EXIM’s illicit finance risks.

EXIM’s policies, procedures, and processes comply with the due diligence requirements of specified U.S. Government commitments applicable to

EXIM.

EXIM’s policies, procedures, and processes reflect industry best practices.

o The Report must specifically provide a detailed review of EXIM’s customer identification program and risk-based procedures to evaluate if EXIM has enough https://www.exim.gov/fact-sheet-exim-covid-19-assistance information to form a reasonable belief that it knows the true identity of its customers.

o A review of EXIM’s third-party risk management processes.

o A review of EXIM’s staffing needs and technical needs with regard to compliance and risk management.

o A discussion of the potential and/or proposed uses of recent technological advances, including artificial intelligence programs.

4. Recommendations for remediation, as appropriate. This includes:

o Specific recommendations for continuation or improvement, including risk-informed changes to policies, procedures, or processes.

o A description of steps which can be taken immediately to reduce risk associated with illicit finance.

o A description of the relative costs and benefits of the items listed above.

5. Recommendations for a holistic compliance program. This also includes:

o Recommended next steps for designing and implementing a holistic compliance program that addresses EXIM’s illicit finance risks.

o A discussion of training and continuing education of Agency personnel involved addressing the risks associated with illicit finance.

6. Contractor shall provide the COR with Progress Reports on Status of Work.

7. Contractor shall provide portions of its draft report to specified EXIM staff for EXIM review, as coordinated between Contractor and EXIM.

8. Contractor shall provide a Complete Draft Report.

9. Contractor shall provide a Final Report.

For all of the requirements above, the Contractor may need to work with multiple divisions across EXIM. At a minimum, the contractor is expected to work with the business lines (Office of Board Authorized Finance, Office of Small Business), the Office of the Chief Risk Officer, the Office of Strategy and Performance, the Office of General Counsel, and others. The Contractor will also work with the Customer Due Diligence Working Group.

8.0 DELIVERABLES

Item # Deliverable Section Format/

Quantities Due Date

1. Progress Reports on Status of Work

Email with update on progress

7.0 Para 6

Email The 1st and the 15th of each month

2.Portions of draft report as discussed with

EXIM.

Email with draft portions attached to allow feedback and clarifying questions.

7.0 Para 7

Email transmission, draft portions of the report should be in Word or another format that allows group editing.

Starting approximately November 15, 2020.

Comments from EXIM staff due back to Contractor within 3 business days.

3. A Complete Draft Report

Email with a draft report attached to allow feedback and clarifying questions.

7.0 Para 8

Email transmission, draft report should be in Word or another format that allows group review and feedback.

Approximately December 1, 2020. Comments from EXIM staff due back within 5 business days.

4.Final Report Email with attached final report.

7.0 Para 9

Email, PDF or similar version of final report.

December 31, 2020.

9.0 PERFORMANCE REQUIREMENT SUMMARY (PRS)

Comprehensive Report on Illicit Finance Risks The contractor’s performance will be rated for each category on a scale of Poor, Fair, Fully Successful, Very Good, and Excellent.

Task or Deliverable

Performance Indicator

Performance Standard

Acceptable Quality Level

(AQL)

Surveillance Method

Incentives/Dis incentives

Thoroughness of Reports

Report meets requirements outlined in Section 7.

(Quality)

Performance rating will be based upon the thoroughness of the Contractor’s work product in addressing Section 7 requirements.

95% of the Report is determined to accurately address the Requirements outlined in Section 7.

Surveillance by Ex-Im Bank COR will be performed on a monthly basis.

Positive or negative CPARS rating

Schedule Deliverables match service description and delivered in accordance with due dates

On time All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

100% Inspection

Positive or

Cost Control Accurate accounting of actual and projected expenses.

According to the FFP listed in the approved budget per task in the schedule of deliverables

All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

100% Inspection

Positive or

CPARS rating

Management of Key Personnel

Level of Customer Satisfaction

Professional and respectful of all parties.

Appropriate credentials for the work involved.

Attends scheduled meetings if needed.

Available for ad-hoc meetings as necessary for contractual concerns.

Regular and ad-hoc meetings between contractor and Government as needed

No more than five (5) valid customer complaints within the performance period.

Positive or