The US Securities and Exchange Commission (SEC) has sought employee information from American and European banks as a part of extended investigations into hiring practices of large banks in Asia.
The US federal authorities are looking into any potential violation of its Foreign Corrupt Practices Act that rules US companies against indulging into bribery activities with foreign officials to gain business.
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Although no allegations have been made yet, the SEC is examining if the banks have breached anti-bribery laws by recruiting relatives of well-connected officials and politicians, reported The Wall Street Journal.
Earlier in March 2013, the regulator has written letters to companies including Credit Suisse Group, Goldman Sachs Group, Morgan Stanley, Citigroup and UBS asking more information about their hiring systems in the region and questioned if they have adopted any special programs for the relatives of influential officials.
The investigation is said to be extension of a 2013 query into JP Morgan Chase & Co.’s hiring practices in the foreign markets, the news agency reported citing a source familiar with the developments.
In 2012, the US authorities have issued civil and criminal charges against a former Morgan Stanley executive for his secret acquisition of real estate and a Chinese official who brought business to the bank.
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By GlobalData
