Sovereign wealth fund interns cost BNY Mellon nearly $15m

Custodians should retrain HR in foreign bribery rules as SEC threatens further action

us-sec
US SEC headquarters in Washington, DC

BNY Mellon has agreed to pay $14.8 million to settle charges it gave student internships to family members of foreign officials at an unnamed Middle Eastern sovereign wealth fund, with which it did business.

But US lawyers have criticised the Securities and Exchange Commission (SEC) for using its clout to reach a settlement with BNY Mellon behind closed doors without judicial scrutiny.

Custodians, meanwhile, should ensure their human resources teams are fully aware of the US Foreign Corrupt Prac