BNY Mellon disclosed in a Form 8-K filing with the Securities and Exchange Commission last week that certain of its current and former employees have received a Wells Notice for potential violations of the Foreign Corrupt Practices Act.

On Jan. 23, BNY Mellon said the SEC made a preliminary determination to recommend an enforcement action against certain current and former employees for alleged violations of the FCPA “in connection with the provision of a limited number of internships to relatives of sovereign wealth fund officials,” the company stated. “BNY Mellon received a similar Wells Notice in the fourth quarter of 2014.”  

The Wells Notice, which is neither a formal allegation nor a finding of wrongdoing, allows BNY Mellon the opportunity to provide its reasons for why the proposed enforcement action should not be filed, and to address the issues raised by the SEC before a decision is made on whether to bring an enforcement proceeding.

BNY Mellon said it is not possible to predict the ultimate resolution or financial liability with respect to this matter at this time.

 

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