Settlements

ST-423
BNY Mellon
BNY Mellon
United States
Securities and Exchange Commission
Unidentified Middle East nation
2015
8/18
Unknown
Legal Person
Civil
Cease and Desist Order
Disgorgement of Profits, Prejudgment interest, Civil Fine
$14,800,000
$8,300,000
$1,500,000
$5,000,000
$0
NA
$0
NA
Art.16
Art. 1, Art. 2, Art. 8
Bribery of Foreign Officials, Internal Controls Violations
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission, Bank of New York Mellon "has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund. An SEC investigation found that BNY Mellon did not evaluate or hire the family members through its existing, highly competitive internship programs that have stringent hiring standards and require a minimum grade point average and multiple interviews. The family members did not meet the rigorous criteria yet were hired with the knowledge and approval of senior BNY Mellon employees in order to corruptly influence foreign officials and win or retain contracts to manage and service the assets of the sovereign wealth fund. According to the SEC’s order instituting a settled administrative proceeding, the sovereign wealth fund officials requested that BNY Mellon provide their family members with internships, and they made numerous follow-up requests about the status, timing, and other details of the internships for their relatives." (Source: SEC Press Release, "SEC Charges BNY Mellon With FCPA Violations," August 18, 2015.)