- Company will pay Rs 1002 Crore to the US Securities Exchange Commission (SEC)
- Walmart will pay US $ 960 crores to the Department of Justice
- The company had defied the law during business in India, China, Brazil and Mexico
The e-commerce company Walmart has agreed to pay US $ 1964 million fine to US Department of Justice with the Securities Commission (SEC), the US Department of Justice. Rs 1002 crore to SEC and Rs 960 crore will be paid to the Department of Justice, so that the company can get rid of criminal charges.
Walmart blames FCPA act violation
- The SEC had accused Walmart of violating the FCPA (Foreign Corrupt Practice Act). During the investigation, the company accepted its mistake. The SEC said in its investigation report that the retail company defied the law during business in India, China, Brazil and Mexico.
- According to the SEC, Walmart’s third party intruders (intermediaries) violated the FCPA. Intermediaries had given money to government officials from other countries for ignoring the FCPA.
- The commission also says that for more than a decade, Walmart did not launch Anti Corruption Compliance Program. In the meantime, the company made its foot in the international market very fast.
- Charles Cain, Head of the Information Division, FCPA Unit of SEC said that the company could avoid many problems by controlling its internal accounting, but he continued to ignore it constantly.