On August 18, 2015, the SEC announced that BNY Mellon has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act by providing student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund. The SEC’s order finds that BNY Mellon lacked adequate internal controls to prevent and detect the improper hiring practices. According to the order, BNY Mellon did not evaluate or hire the family members through its existing, highly competitive internship programs that have rigorous hiring standards.

The press release is available at: http://www.sec.gov/news/pressrelease/2015-170.html and the SEC order is available at: http://www.sec.gov/litigation/admin/2015/34-75720.pdf.