The U.S. Securities and Exchange Commission said Barclays PLC agreed to pay a $6.3 million fine for breaching the Foreign Corrupt Practices Act by employing relatives and friends of government officials in its Asia-Pacific unit to gain an unfair advantage in its investment banking business.
The regulator noted that the British lender failed to maintain a system of internal accounting methods regarding its hiring practices, while the bank's employees in the Asia-Pacific region fabricated corporate records to conceal the identities of the candidates and the reasons for their employment. Many of the candidates were hired through an unofficial internship program, according to the SEC.
The fine consists of a civil penalty of $1.5 million, disgorgement of $3.8 million and prejudgment interest of $984,040, the regulator added. Barclays did not admit to or deny the charges.
