Colombian Conglomerate Grupo Aval and Its Bank Subsidiary to Pay $40 Million to Settle FCPA Violations

The Securities and Exchange Commission today charged Colombian conglomerate Grupo Aval Acciones y Valores S.A., aka Grupo Aval S.A., and its bank subsidiary, Corporación Financiera Colombiana S.A. (Corficolombiana), with violating the Foreign Corrupt Practices Act (FCPA). Grupo Aval, whose shares are traded on the New York Stock Exchange, agreed to pay $40 million to settle the SEC charges.

According to the SEC’s order, Corficolombiana and a joint venture partner won a contract from the Colombian government for a 328-mile highway infrastructure project in Colombia. The SEC alleges that Corficolombiana, through its former president and with the joint venture partner, bribed government officials in Colombia to win an extension to the contract. At least $28 million in illicit payments were paid with the knowledge, approval, and assistance of Corficolombiana’s former president. According to the SEC’s order, Corficolombiana caused Grupo Aval’s violations and provided Grupo Aval with an improper financial benefit totaling approximately $32 million.

Source: Colombian Conglomerate Grupo Aval and Its Bank Subsidiary to Pay $40 Million to Settle FCPA Violations