The Foreign Corrupt Practices Act (FCPA) isn’t just for technology companies —manufacturers can run afoul of the law as well. Automated teller machine (ATM) manufacturer Diebold Inc. has learned this lesson the hard way and now faces a $48 million settlement after foreign bribery charges.
The Securities and Exchange Commission (SEC) claims that Diebold attempted to bribe officials from China, Indonesia and Russia in exchange for government contracts on ATMs. The government estimates that Diebold spent $1.8 million on travel for foreign dignitaries and an additional $1.2 million in bribes to Russian officials to falsify books and records. In one instance, the SEC says, Diebold allegedly paid for Chinese bank officials to take a two-week trip around Europe, including stops in Paris and Rome.