Walmart agrees to pay $137M to settle violations of Foreign Corrupt Practices Act (FCPA)

Source: Walmart Media Library

Walmart (NYSE: WMT) and its subsidiary WMT Brasilia agreed to pay a combined criminal penalty of $137 million to settle investigations into its violations of the Foreign Corrupt Practices Act (FCPA).

The U.S. Department of Justice (DOJ) alleged that Walmart violated the FCPA by failing to implement internal accounting controls to prevent corrupt practices by its foreign subsidiaries. Its Brazilian subsidiary pleaded guilty to violating the law.

According to the DOJ, Walmart fully cooperated with the government’s investigation into its subsidiaries in Brazil, China and India.

It cooperated with the probe in Mexico but failed to provide documents and information on time to the government. It also failed to de-conflict with the government’s request to interview one witness before conducting its own interview.

Under the three-year non-prosecution agreement, Walmart agreed to retain an independent compliance monitor for two years. The $137 million penalty included forfeiture of $3.6 million and a fine of $724,898 form WMT Brasilia.

Walmart turned a blind eye on its foreign subsidiaries’ corrupt practices

In a statement, Assistant Attorney General Benczkowski of the DOJ’s Criminal Division, said, “Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption.”