Telecommunications Company Paying $965 Million For FCPA Violations
Telia Company AB paid at least $330 million in bribes via a shell company controlled by a Uzbek president’s family member to secure telecom business in Uzbekistan, resulting in a $965 million global settlement with U.S., Dutch, and Swedish authorities for FCPA violations.
Telia Company AB agreed to pay $965 million in a global settlement to resolve FCPA violations tied to bribes paid to secure business in Uzbekistan. The company admitted to funneling at least $330 million through a shell company controlled by a family member of Uzbekistan’s president, falsely labeled as consulting fees for non-existent services, and consented to a $457 million disgorgement to the SEC and a $508 million criminal fine to the DOJ. Portions of these payments may be offset by amounts paid to Dutch and Swedish authorities, but Telia’s total obligation to all four agencies must reach at least $965 million.
Telia Company AB, a Sweden-based telecommunications provider, agreed to pay $965 million in a global settlement to resolve violations of the Foreign Corrupt Practices Act related to systemic corruption in Uzbekistan. The company admitted to paying at least $330 million in bribes through a shell company controlled by a close family member of Uzbekistan’s president, who used his influence to secure favorable regulatory actions for Telia, with payments falsely documented as consulting and lobbying fees for services that never occurred. Telia consented to a $457 million disgorgement to the SEC and a $508 million criminal fine to the U.S. Department of Justice, with the possibility of offsets for payments made to Dutch and Swedish authorities, ensuring a minimum combined payment of $965 million across four jurisdictions. The settlement involved unprecedented international coordination, with enforcement support from agencies in the Netherlands, Sweden, Norway, Switzerland, Latvia, France, Spain, Hong Kong, and multiple offshore financial regulators. The SEC and DOJ highlighted the case as a landmark example of cross-border anti-corruption enforcement, emphasizing the corrosive impact of corporate bribery on markets and governance. Telia also agreed to implement enhanced compliance measures as part of the resolution, acknowledging its failure in internal controls and ethical oversight. This case stands as one of the largest FCPA resolutions in history, underscoring global regulatory commitment to holding multinational corporations accountable for overseas corruption.
Exhibits & Attached Documents (1)
Extracted insights
- $965.00M $965 million $100M–$1B
- $508.00M $508 million $100M–$1B
- $457.00M $457 million $100M–$1B
- $330.00M $330 million $100M–$1B
- agency $457 million in disgorgement to sec
- scheme_term at least $330 million to shell company in uzbekistan
- agency co-director of sec enforcement division
- agency department of justice, dutch and swedish law enforcement
- agency more than $508 million criminal fine to department of justice
- agency Securities and Exchange Commission
- company shell company
- person stephanie avakian
- Telia Company AB agreed to pay $965 million in global settlement
- Telia Company AB violated Foreign Corrupt Practices Act (FCPA)
- Telia Company AB paid bribes at least $330 million to shell company in Uzbekistan
- Telia Company AB consented to pay $457 million in disgorgement to SEC
- Telia Company AB agreed to pay more than $508 million criminal fine to Department of Justice
- Shell Company was controlled by Uzbek government official and family member of President of Uzbekistan
- Stephanie Avakian is Co-Director of SEC Enforcement Division
- Telia Company AB entered market in Uzbekistan
- SEC worked with Department of Justice, Dutch and Swedish law enforcement
Sweden-based telecommunications provider Telia Company AB has agreed to pay $965 million in a global settlement with the Securities and Exchange Commission, U.S. Department of Justice, and Dutch and Swedish law enforcement to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. According to the SEC’s order, Telia entered the Uzbek telecommunications market by offering and paying at least $330 million in bribes to a shell company under the guise of payments for lobbying and consulting services that never actually occurred. The shell company was controlled by an Uzbek government official who was a family member of the President of Uzbekistan and in a position to exert significant influence over other Uzbek officials, causing them to take official actions to benefit Telia’s business in Uzbekistan. “Corporate bribery is not just unfair and illegal, it has terribly corrosive effects on business, government, and society,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division. “As this global settlement demonstrates, the SEC continues to work closely with our counterparts at home and abroad to expose and pursue such corruption.” Telia consented to the SEC’s order requiring the company to pay $457 million in disgorgement, and the company also agreed to pay a criminal fine of more than $508 million imposed by the Department of Justice. Portions of each amount could be offset by payments made in overseas settlements or proceedings brought by the Dutch Openbaar Ministerie or the Swedish Åklagarmyndigheten. Telia’s overall payment to the four agencies must be at least $965 million. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud and Money Laundering and Asset Recovery Sections as well as the Internal Revenue Service, Department of Homeland Security, Dutch Openbaar Ministerie, National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway, Swedish Prosecution Authority, Office of the Attorney General in Switzerland, and Corruption Prevention and Combating Bureau in Latvia. The SEC also appreciates the assistance from regulators and law enforcement in France, Spain, and Hong Kong as well as the Financial Conduct Authority, British Virgin Islands Financial Services Commission, Cayman Islands Monetary Authority, Bermuda Monetary Authority, Cyprus Securities and Exchange Commission, and Central Bank of Ireland.
Sweden-based telecommunications provider Telia Company AB has agreed to pay $965 million in a global settlement with the Securities and Exchange Commission, U.S. Department of Justice, and Dutch and Swedish law enforcement to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. According to the SEC’s order, Telia entered the Uzbek telecommunications market by offering and paying at least $330 million in bribes to a shell company under the guise of payments for lobbying and consulting services that never actually occurred. The shell company was controlled by an Uzbek government official who was a family member of the President of Uzbekistan and in a position to exert significant influence over other Uzbek officials, causing them to take official actions to benefit Telia’s business in Uzbekistan. “Corporate bribery is not just unfair and illegal, it has terribly corrosive effects on business, government, and society,” said Stephanie Avakian, Co-Director of the SEC’s Enforcement Division. “As this global settlement demonstrates, the SEC continues to work closely with our counterparts at home and abroad to expose and pursue such corruption.” Telia consented to the SEC’s order requiring the company to pay $457 million in disgorgement, and the company also agreed to pay a criminal fine of more than $508 million imposed by the Department of Justice. Portions of each amount could be offset by payments made in overseas settlements or proceedings brought by the Dutch Openbaar Ministerie or the Swedish Åklagarmyndigheten. Telia’s overall payment to the four agencies must be at least $965 million. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud and Money Laundering and Asset Recovery Sections as well as the Internal Revenue Service, Department of Homeland Security, Dutch Openbaar Ministerie, National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway, Swedish Prosecution Authority, Office of the Attorney General in Switzerland, and Corruption Prevention and Combating Bureau in Latvia. The SEC also appreciates the assistance from regulators and law enforcement in France, Spain, and Hong Kong as well as the Financial Conduct Authority, British Virgin Islands Financial Services Commission, Cayman Islands Monetary Authority, Bermuda Monetary Authority, Cyprus Securities and Exchange Commission, and Central Bank of Ireland.