This Week in Compliance

Airbus Settles Corruption Probe for USD 3.96 Billion

Welcome to This Week In Compliance: GAN’s weekly news roundup, where we curate the latest stories on compliance and anti-corruption to keep you informed. This week we cover Airbus’ USD 3.96 billion multi-country settlement over corruption charges. Keep reading for this breaking story and find more news below:

Top Story:

Airbus Settles Corruption Probe for USD 3.96 Billion: 

Airbus reached a preliminary settlement this week to settle corruption and bribery probes by U.S, U.K., and French authorities involving penalties amounting to a record EUR 3.6 billion. The U.K. ‘s SFO first started its investigation in July 2016 after the company flagged the irregularities itself. French authorities started their own investigation in 2017 and U.S. authorities followed in 2018. The conduct in question dates back at least a decade. The U.S. investigation also included suspected violations of export controls. The deal is still subject to regulatory approval, with court hearings scheduled for Friday 31 January. It also remains unclear how the fine will be split between the different authorities.

Business:

Boeing Expects 737 Max Costs To Surpass USD 18 Billion:

The release of Boeing’s quarterly earnings this week included a new estimate on the associated costs of the grounding of the 737 Max was announced, surpassing the company’s previously released statements. The fatal crashes involving the new 737 model in 2019 and 2018 resulted in the model’s grounding and in a shutdown of its production. The newly calculated costs include USD 8.3 billion to compensate airlines that lost sales as a result of the grounding of the Max and amount to an approximate of USD 18.6 billion. The sum represents close to 20 percent of Boeing’s annual sales prior to the halt of the Max. As Boeing awaits regulatory approval to restart production for the problem-plagued jetliner, the company’s new CEO is reportedly attempting to tilt the company’s culture towards transparency to restore public trust. 

OxyContin Maker Purdue is ‘Pharma Co X’ in U.S. Opioid Kickback Probe:

Oxycontin maker Purdue Pharma LP has been identified as the unnamed company that was recently charged for disbursing USD 1 million in illegal kickbacks in a Vermont court’s criminal filing documents. The company is already being investigated by the U.S. Department of Justice over allegations of playing a central role in the U.S. opioid crisis and is reportedly facing a tentative multi-billion dollar settlement for their involvement in over 2,600 cities, counties, and states. While the company has publicly stated its intention of collaborating with U.S authorities, they have declined to comment on this latest development.

U.S. Blacklists Foreign Companies Allegedly Supporting Iran’s Petroleum Sector: 

The U.S Department of State blacklisted four companies for breaching U.S. Sanctions in Iran for conducting business with Iranian state-owned oil firm, National Iranian Oil Co. Authorities are alleging the companies supported and facilitated Iranian petrochemical exports by ordering the transfer of millions of dollars to the National Iranian Oil Company as a means of paying Iranian exports. The blacklisting comes after president Trump authorized the Treasury to impose secondary sanctions in relation to the Iran’s state-owned oil firm.

Government:

Peru Court Orders Keiko Fujimori to Return to Prison for Corruption Charges:

Peru’s former presidential candidate, Keiko Fujimori, was ordered by Peruvian authorities to return to prison for 15 months of pre-trial detention. Fujimori, who was accused of accepting bribes from Brazilian construction giant Odebrecht during her political campaign in 2011, had already spent 13 months in jail. Peruvian prosecutors had asked to keep the politician under detention as the risk of her fleeing the country were allegedly going to be higher upon the development of the investigation. While Fujimori will continue to be held in prison until Odebrecht’s probe gathers more information, she has described all accusations as unjust and politically motivated.

Netanyahu Indicted in Court on Corruption Charges After Dropping Immunity Bid:

Israeli PM Benjamin Netanyahu, who asked for immunity from prosecution after having been indicted for corruption charges in three different cases, has withdrawn his initial request. The withdrawal was announced on Netanyahu’s Facebook page during a Washington visit where Israeli PM was supposed to meet Trump for the announcement of the White House’s peace plan. While Netanyahu continues to dismiss the indictments as “personal persecution” by political opponents, the retraction points at future potential legal proceedings against the PM. 

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