BNY Mellon will pay $14.8 million to settle the SEC accusations that the bank gave internships to family members of a Middle Eastern sovereign wealth fund’s officials.
The SEC says that BNY failed to adhere to the competitive standards of the internship programs, giving a pass to less qualified candidates with connections, reports Reuters. The SEC says the internships allowed corrupt influence over contracts related to the sovereign wealth fund. The unnamed fund has been a BNY client since 2000, and had $55 billion in assets at the bank.
“BNY Mellon deserved significant sanction for providing valuable student internships to family members of foreign officials to influence their actions,” Andrew Ceresney, the SEC’s director of enforcement, said in a statement.
BNY has not admitted nor denied the charges, but said it has moved to “enhance…controls” for the internship and hiring at the firm.
Photo: dierk schaefer