The US Department of Justice has been prosecuting foreign firms accused of bribery outside of the US for some while, but this is the first time a resolution has been reached jointly by US and French authorities.
US Department of Justice has issued a statement on June 4 saying that French bank Societe Generale (SocGen) and its subsidiary SGA Societe Generale Acceptance have admitted their guilt in paying $90 million in bribes to Libyan officials between 2004 and 2009 and manipulating the London InterBank Offered Rate (LIBOR), one of the world’s “leading benchmark interest rates.” The companies also agreed to pay more than $860 million in penalties based on the illegal gains, obtained by the bank in the result of these violations.
“For years, Societe Generale undermined the integrity of global markets and foreign institutions by issuing false financial data and by fraudulently securing contracts through bribery,” Acting Assistant Attorney General Cronan said, commenting on the reached resolution.
He also added that the SocGen case sent “a strong message” to those involved in transnational corruption and manipulations that their actions would be met “with a global and coordinated law enforcement response.”