SEC Charges Colombian Conglomerate Grupo Aval S.A. With FCPA Violations, Orders $40M Settlement

The Securities and Exchange Commission today charged Grupo Aval Acciones y Valores S.A. (Grupo Aval S.A.), and its bank subsidiary Corporación Financiera Colombiana S.A. (Corficolombiana) with violating the Foreign Corrupt Practices Act (FCPA). The charges were made after it was found that Grupo Aval's affiliate paid bribes to government officials in Colombia to win an extension of a highway infrastructure contract. In order to settle the SEC charges, Grupo Aval S.A. agreed to pay a fine of $40 million. The joint venture partner of Corficolombiana also paid over $20 million to the Department of Justice as part of the settlement. Furthermore, the SEC required Grupo Aval and Corficolombiana to cease and desist from violations of the FCPA. The SEC praised Grupo Aval for their cooperation and remediation during the investigation. Finally, the SEC applauded the assistance provided by the Colombian Superintendent of Industry and Commerce.