Wal-Mart Expands FCPA Probe to Brazil, China, India

Wal-Mart Stores Inc. has expanded its investigation of violations of the U.S. Foreign Corrupt Practices Act in Mexico to Brazil, China and India, the retailer revealed Nov. 15 in a filing with the U.S. Securities and Exchange Commission.

The FCPA, a federal law with criminal and civil penalties jointly enforced by the U.S. Department of Justice and the Securities and Exchange Commission, punishes foreign bribery, inaccurate financial records and inadequate controls. In April, after reports it was investigating possible FCPA violations in Mexico, the Bentonville, Arkansas-based retailer was hit with a shareholder lawsuit as shares fell 4.7 percent.

In the latest SEC filing, the company said that in addition to its Mexico investigation, it is “also conducting a voluntary global review of its policies, practices and internal controls for FCPA compliance.”

The filing said that when such allegations are reported or identified, the board of director’s audit committee and the company, together with third-party advisers, “conduct inquiries and when warranted based on those inquiries open investigations. Inquiries or investigations regarding allegations of potential FCPA violations have been commenced in a number of foreign markets where we operate, including but not limited to Brazil, China and India.”

The filing said the company “has been informed by the DOJ and the SEC that it is also the subject of their respective investigations into possible violations of the FCPA” and is cooperating with these investigations.

The filing said the company “could be exposed to a variety of negative consequences” as a result of these matters, including judgments, settlements, fines, penalties, injunctions, cease-and-desist orders, debarment or other relief, criminal convictions and/or penalties, and that shareholder lawsuits may also result.