Three news to start your week: August 14
Colombian conglomerate Grupo Aval and its bank subsidiary to pay $40 Million to settle FCPA violations
(SEC)
Grupo Aval and its bank subsidiary Corficolombiana, are accused by the Securities and Exchange Commission of breaking the Foreign Corrupt Practices Act (FCPA). The SEC accusations against Grupo Aval, whose stock is traded on the New York Stock Exchange, were resolved with a $40 million payment.
According to the SEC's directive, a 328-mile highway infrastructure project in Colombia was awarded a contract by the Colombian government to Corficolombiana and a joint venture partner. The SEC claims that Corficolombiana bribed government officials in Colombia through its previous president and the joint venture partner to get an extension of the contract. With the former president of Colombia's knowledge, consent, and cooperation, at least $28 million in illegal payments were made. The SEC's ruling states that Corficolombiana was responsible for Grupo Aval's crimes and gave them a $32 million unlawful financial benefit.
US, UK, Canada sanction Lebanon's central bank ex-governor over alleged corruption
(Reuters)
On Thursday, the United States, the United Kingdom, and Canada issued penalties against Riad Salameh, the former governor of Lebanon's central bank, accusing him of engaging in corrupt activities to benefit himself and his allies.
In messages to Reuters, Salameh refuted the claims made by the three sanctioning nations and vowed to fight them. He claimed that earlier inquiries had already resulted in freezing some of his assets.
Salameh's "corrupt and unlawful actions have contributed to the breakdown of the rule of law in Lebanon," the US Department of Treasury claimed in a statement.
Wells Fargo, BNP Paribas, and others to pay $555M in fines for use of messaging apps
(Wall Street Journal)
Several financial institutions, including Wells Fargo and BNP Paribas, agreed to pay two authorities roughly $555 million after acknowledging that their staff violated record-keeping regulations using restricted messaging apps.
Several US brokerage operations of Wells Fargo, BNP Paribas, Bank of Montreal, Société Générale, and Mizuho Financial Group are among the companies involved in the settlement with the Securities and Exchange Commission and the Commodity Futures Trading Commission. The claims were also resolved with the two regulators by the brokerage firms Houlihan Lokey Capital, Moelis & Co., Wedbush Securities, and SMBC Nikko Securities America.
