3M has agreed to pay more than $6.5 million to resolve charges that it violated the books and records and internal controls provisions of the Foreign Corrupt Practices Act, according to an Aug. 25 news release by the U.S. Securities and Exchange Commission.
The SEC’s order finds that employees of a 3M wholly owned subsidiary based in China arranged for Chinese government officials employed by state-owned healthcare facilities to attend overseas conferences, educational events, and healthcare facility visits as part of marketing and outreach efforts. The arrangements to attend the events were often a pretext to provide the Chinese government officials with overseas travel, including tourism activities, to induce them to purchase 3M products.
Read the full release on sec.gov for more details on the findings.
Without admitting or denying the findings by the SEC, 3M has agreed to cease and desist from committing or causing any future violations of these provisions. The company has also agreed to pay $4,581,618 and a $2 million civil penalty.
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