AB InBev Paid About $6 Million Over FCPA Controls and Whistleblower Violations

Summary

In September 2016, the U.S. Securities and Exchange Commission found that AB InBev violated the Foreign Corrupt Practices Act's books-and-records and internal-controls provisions in connection with its Indian operations. The SEC found that an Indian joint venture used third-party sales promoters to make improper payments to government officials to obtain beer orders and increase brewery hours, while related expenses were recorded as legitimate promotional costs. The SEC also found that a separation agreement impeded a former employee from communicating directly with SEC staff. AB InBev agreed to pay approximately $6 million in disgorgement, interest and penalty and accepted reporting and cooperation obligations. Source: U.S. Securities and Exchange Commission https://www.sec.gov/files/litigation/admin/2016/34-78957.pdf