Goldman Sachs reaches $3.3 billion resolution of Malaysia FCPA violations
October 22, 2020
The DOJ and SEC Thursday
imposed $3.3 billion in financial penalties against Goldman Sachs Group Inc. and a Malaysia subsidiaryto resolve FCPA charges related to Malaysian sovereign wealth fund 1Malaysia Development Berhad.
As part of the deferred prosecution agreement,
the DOJ imposed a total criminal penalty of $2.3 billion.
The DOJ said
the case involved $1.6 billion in bribes.The SEC said beginning in 2012,
“former senior employees of Goldman Sachs used a third-party intermediary to bribe high-ranking government officials in Malaysia and the Emirate of Abu Dhabi.”
Goldman Sachs (Malaysia) Sdn. Bhd.
agreed to plead guilty in federal court to one count of conspiracy to violate the FCPA anti-bribery provisions.
In a parallel enforcement action, the SEC
ordered Goldman Sachs Group to pay a civil penalty of $400 million and disgorgement of $606.3 million to settle charges
that it violated the anti-bribery, books and records, and internal accounting controls provisions of the FCPA.
The SEC said
the company will receive a dollar-for-dollar disgorgement credit of $606.3 million based on the U.S. dollar value of similar payments made to the Government of Malaysia and 1MDB as part of the company’s July settlement with Malaysia authorities.The FCPA Blog
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