Gunvor, a key player in the global oil trading market, has made headlines by finalizing a deal with both US and Swiss regulatory bodies, agreeing to pay a substantial sum of $662 million to settle accusations of bribery linked to officials in Ecuador. The settlement includes a hefty $374.6 million criminal fine along with a forfeiture of $287.1 million.
The agreement comes after Gunvor admitted to violating the US Foreign Corrupt Practices Act by engaging intermediaries to secure business deals with Petroecuador, the national oil company of Ecuador. Jean-Baptiste Leclercq, Gunvor’s general counsel, acknowledged the company’s involvement in a conspiracy that breached the FCPA during a hearing in federal court in Brooklyn, New York.
Chairman Torbjörn Törnqvist expressed remorse for the past missteps and emphasized Gunvor’s commitment to enhancing its compliance practices, stating that the company is dedicated to maintaining an “industry-leading compliance program” moving forward. Notably, the settlement does not mandate Gunvor to appoint an external monitor.
The resolution of this case follows years of investigations by the US Department of Justice and the US Commodity Futures Trading Commission into Gunvor’s activities. The company had set aside $650 million for potential settlement costs, as reported by Reuters in December.
Authorities revealed that between 2012 and 2020, Gunvor and its associates paid over $97 million to intermediaries, with the knowledge that some of these funds would be used as bribes for officials in Ecuador. In return for these illicit payments, high-ranking Ecuadorean officials allegedly assisted front companies associated with Gunvor in securing oil-backed loan contracts with Petroecuador.
The conclusion of this high-profile case serves as a stark reminder of the consequences corporations face for engaging in corrupt practices within the commodities sector. Gunvor’s settlement underscores the ongoing efforts by regulatory bodies to combat corruption and uphold integrity in global business dealings.