Financial firms face FCPA fines for foreign fraternization

Hiring family members of well-connected government officials could be seen as a business strategy

They say that landing a job is “all about who you know.” Unfortunately for some financial institutions, hires “who know” foreign officials could be a violation of the Foreign Corrupt Practices Act (FCPA.) In response to this possibility the Securities and Exchange Commission (SEC) is aggressively investigating hires that may have been made to curry favor with international entities.

J.P. Morgan Chase disclosed that it was the subject of one such investigation earlier this year, but now additional financial firms, including Morgan Stanley and Citigroup, are facing similar action. U.S authorities have sent letters to both firms, seeking information the people they’ve recently hired.

Executive Editor

author image

Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.