In the News: 3M Settles Bribery Charges in China Subsidiary; China Recognizes Data as Assets; and China Increases Controlling Shareholder Responsibility

MAPLEWOOD, MN/USA – JUNE 20, 2014: 3M corporate headquarters building. Credit: wolterke/Adobe Stock;

3M Settles Bribery Charges in China Subsidiary With Huge Penalty

American conglomerate 3M has settled U.S. anti-bribery law charges in its China subsidiary, according to Reuters. The board of 3M has agreed to pay more than $6.5 million to resolve the U.S. charges of the Foreign Corrupt Practices Act violations (FCPA) related to its subsidiary in China. The SEC alleged that the subsidiary provided Chinese government officials with overseas travel to induce them to purchase 3M products, according to an SEC filing. Employees at the 3M subsidiary also colluded with local travel agencies to make such arrangements, paying nearly $1 million to fund at least 24 trips for Chinese government officials that included guided tours, shopping visits, day trips and other leisure activities, the filing alleged.

Employees arranged the trips and activities by planning a company-approved itinerary of attending legitimate educational events and then creating additional tourism itineraries for Chinese officials at or near the location of the legitimate events, which were overseas. In 2018, 3M discovered that some employees had gone around internal company controls and ethics policies, which it reported to the U.S. government. 3M will pay a mandated repayment and prejudgment interest totaling $4.6 million and a $2 million civil penalty.