Commodity trader Trafigura has reached a settlement to pay approximately $127 million to resolve a U.S. Department of Justice probe concerning bribes paid to Brazilian officials in exchange for securing oil contracts, as announced by both the DOJ and the company on Thursday. Trafigura Beheer BV, the parent company of Trafigura Group during the relevant period, has agreed to a criminal fine of $80.5 million and forfeiture of an additional $46.5 million after pleading guilty to a conspiracy to violate the Foreign Corrupt Practices Act.
The resolution concludes a protracted investigation by the DOJ into Trafigura’s illicit practices involving bribery payments to Brazilian officials to facilitate business dealings with the state-owned oil company, Petroleo Brasileiro SA (Petrobras). In anticipation of the settlement, Trafigura had earmarked $127 million in December to cover potential fines associated with the DOJ probe into “improper payments” in Brazil. This settlement aligns with a broader trend of significant fines imposed by the U.S. government on major commodity traders for corruption-related offenses, with recent cases involving Gunvor, Glencore, Freepoint Commodities, and a Vitol subsidiary.
The enforcement actions underscore the regulatory scrutiny faced by traders operating in regions susceptible to corruption risks, highlighting the imperative of compliance with anti-bribery laws like the Foreign Corrupt Practices Act, which prohibits illicit payments to foreign officials.