Regulators Step Up Probe Into Bank Hiring Overseas

The US Securities and Exchange Commission is widening its investigation into whether banks in Asia have cropped-fca-singapore.jpgbreached anti-bribery laws by employing the relatives of high-ranking public officials.

The SEC sent letters in March to Credit Suisse Group, Goldman Sachs Group, Morgan Stanley, Citigroup Inc and UBS AG requesting more information on hiring practices, according to reports. The regulator started to investigate JP Morgan‘s hiring history in 2013.

None of the insitutions have been accused of wrongdoing.

Investigators are examining possible connections between employees hired as a result of referrals from foreign officials and clients, the Wall Street Journal reported, and consequently whether there were connections between hiring  “an unsuitable employee to the bank’s winning a contract or other new business.”

Attempting to influence a foreign official with a view to winning business is a breach of the US Foreign Corrupt Practices Act.

Source: WSJ


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