Bank's Internships Violate Foreign Corrupt Practices Act

The U.S. Securities and Exchange Commission (SEC) obtained an unprecedented result when The Bank of New York Mellon (BNY Mellon) agreed to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing internships to relatives of officers of a Middle Eastern sovereign wealth fund. BNY Mellon will pay US$14.8 million in penalties, disgorgement and interest.

The FCPA applies to issuers whose securities are traded on a U.S. stock exchange or over-the-counter market, business entities organized or based in the U.S., and foreign entities that act in the U.S. in furtherance of a corrupt payment, as well as the officers, directors and employees of such entities. It prohibits those entities and persons from giving anything of value to a foreign official to influence him or her in order to obtain or retain business.