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Credit Suisse and the FCPA

The Securities and Exchanges Commission (SEC) has charged the Credit Suisse with FCPA violations according to a statement from the American regulator.

The $ US30 million (approximately $AUD40.7 million) fine is based on allegations violation of the anti-bribery and internal controls provision of the Security and Exchanges Act to get business in the Asia-Pacific region.

The disgorgement is 24.9 million (approximately $AUD33.7 million) and $4.8 million ($AUD 6.5 Million) to settle the case.

The regulator said that Credit Suisse would also be paying $US47 million ($AUD63.7 million) in criminal penalties adding up to $77 million (approximately $AUD 104 million).

It was found that over a six-year period Credit Suisse offered to hire of 100 individuals that have been ‘referred’ by government officials, which the SEC claims resulted in ‘millions of dollars in revenue.’

“Bribery can take many forms, including granting employment to friends and relatives of government officials. Credit Suisse’s practice of engaging in these hiring practices violated the law, and it is now being held to account for having done so,” said Charles Cain, Chief of the SEC Enforcement Division’s FCPA Unit.

Foreign Corrupt Practices The FCPA continues to have a major international impact as can be seen from US regulator’s website.:

  • Pansonic Corp paid a $143 million (approximately $AUD 194 million)

  • Dun & Bradstreet paid $9 million (approximately $AUD 12 million)

  • Kinross Gold paid $950 000 (approximately $AUD 1.3 million)

  • Elbit Imaging paid a $500 000 (approximately $AUD 67.8 million)

Earlier this year the FCPA Blog looked at the largest fines of 2017. Richard Cassin wrote that the 11 companies paid $1.92 billion ($AUD 2.6 billion) to resolve FCPA cases. This is different to 2016 where 27 companies paid collected amount 2.48 billion (approximately $AUD 3.4 billion).

The top being the Telia Company who was ordered to pay $965 million ($AUD 1, 3 billion in 2017.

The global financial community will also be watching the Najib Razak saga for his role in the 1MDB scandal. The former prime minister of Malaysia recently pleaded not guilty but had $273 million worth of items seized from his household.

Harry Cassin writes in the FCPA Blog where he looks at spending habits of kleptocrats, that the Department of Justice (DOJ) is also looking to seize $1.7 billion worth assets that b are related to the 1MDB.

What will the will be 2018 FCPA penalty tally?

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