Investigations

Regulatory announcement

Glencore Energy UK limited fully resolves investigation by UK authorities

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Ethics and Compliance Presentation

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2021 Ethics and Compliance Report

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On 24 May 2022, Glencore announced resolutions with authorities in the United States, the United Kingdom and Brazil to resolve investigations into past practices at certain Group businesses. 

The following FAQ provides further information about these resolutions.

1.    Who are these agreements with and what are their respective terms? 

Glencore has resolved the previously disclosed investigations by authorities in the United States, the United Kingdom and Brazil into past activities in certain Group businesses related to bribery, and separate US investigations related to market manipulation. Glencore cooperated with these investigations.
 
Under the terms of the US resolutions, Glencore will pay penalties of $700,706,965 to resolve bribery investigations and $485,638,885 to resolve market manipulation investigations by the Department of Justice (“DOJ”) and the Commodity Futures Trading Commission (“CFTC”). Of this amount, $165,930,959 will be credited against other, parallel matters, including in the UK, so that the net amount payable to the US authorities is expected to be $1,020,414,891. The plea agreements entered into by Glencore International AG and Glencore Ltd. with the DOJ each provide for the appointment of an independent compliance monitor for a period of three years to assess and monitor the Company’s compliance with the agreements and evaluate the effectiveness of its compliance programme and internal controls.
 
Glencore Energy UK Limited also has pleaded guilty to charges brought by the UK Serious Fraud Office (“SFO”) in respect of its bribery investigation and will pay a financial penalty and costs of £280,965,092.95, as determined by the Court. 
 
Glencore has further agreed to pay $39,598,367 under a resolution signed with the Brazilian Federal Prosecutor’s Office (“MPF”) in connection with its bribery investigation into the Group.
 
The aggregate payments to resolve the UK, US and Brazilian investigations do not differ materially from the $1,500 million provision recorded in Glencore’s FY2021 results.

2.    What specific claims does this settlement resolve?

The coordinated resolutions comprise five separate resolutions: 

  • In an agreement with the DOJ, Glencore International AG has agreed to pay $428,521,173 in fines and $272,185,792 in forfeiture and disgorgement and has pleaded guilty to one count of conspiracy to violate the US Foreign Corrupt Practices Act related to the Group’s past actions in certain overseas jurisdictions. The Company will pay $262,590,214 to the United States, with up to $136,236,140 to be credited against the resolution with UK authorities and up to $29,694,819 to be credited against any potential resolution with Swiss authorities, both in connection with investigations into related conduct. The DOJ resolution provides for forfeiture of $181,457,195 and credits Glencore for $90,728,597 in disgorgement to the CFTC. The DOJ agreement provides for the appointment of an independent compliance monitor for a period of three years to assess and monitor the Company’s compliance with the terms of the agreement and evaluate the effectiveness of its compliance programme and internal controls. 
  • In a separate agreement with the DOJ, Glencore Ltd. has agreed to pay a fine of $341,221,682 and forfeiture of $144,417,203 and has pleaded guilty to one count of conspiracy to commit commodity price manipulation related to past market conduct in certain US fuel oil markets. Of this amount, $242,819,443 will be credited against the resolution with the CFTC. The DOJ agreement provides for the appointment of an independent compliance monitor for a period of three years to assess and monitor the Company’s compliance with the agreement and evaluate the effectiveness of its compliance programme and internal controls.  
  • Glencore International AG, Glencore Ltd. and Chemoil Corporation (a Glencore subsidiary) have reached a separate agreement to resolve an investigation by the CFTC in relation to civil violations of the Commodity Exchange Act and CFTC regulations, in connection with past market conduct in certain US fuel oil markets as well as past corrupt practices in certain overseas jurisdictions. The companies have agreed to pay $333,548,040 in civil penalties and disgorgement to the CFTC, with the $852,797,810 balance of the penalty to the CFTC being offset against penalties imposed by other authorities. 
  • Glencore Energy UK Limited will pay a financial penalty and costs of £280,965,092.95, as determined by the Court, after pleading guilty to five counts of bribery and two counts of failure to prevent bribery brought by the SFO under the UK Bribery Act 2010. 
  •  Glencore International AG has separately agreed to pay $39,598,367 under a resolution signed with the MPF in connection with the investigation by the MPF into certain Glencore affiliates in relation to bribery allegations concerning the Brazilian state-owned energy company Petrobras arising from the “Operation Car Wash” global probe. 

3.    Where can I find out more about Glencore’s Ethics and Compliance Programme?

You can find more details about Glencore’s Ethics and Compliance Programme on our website.

For further information please contact:

Investors

Martin Fewings    
t: +41 41 709 28 80    
m: +41 79 737 56 42    
martin.fewings@glencore.com

Media

Charles Watenphul    
t: +41 41 709 24 62    
m: +41 79 904 33 20    
charles.watenphul@glencore.com