Daily NewsView All News
The U.S. Justice Department is investigating the recruitment practices of global financial services firm Morgan Stanley, as they expand their investigation into whether the recruitment of politically connected Chinese employees has breached U.S. bribery laws, reports Reuters.
An unidentified source confirmed that Morgan Stanley has received a letter from the SEC requesting details of its recruitment practices. According to the same source, the company has not yet been contacted by the Justice Department, possibly indicating that the criminal probe is at an early stage.
This investigation follows reports that the Securities and Exchange Commission (SEC) and prosecutors from the United States are investigating investment bank JP Morgan Chase for similar actions.
According to the report from Reuters, the SEC has asked firms across the global financial services industry to provide information about their recruitment practices concerning the relatives of Chinese government officials.
The SEC and criminal prosecutors at the Justice Department are examining whether hiring practices violated the Foreign Corrupt Practices Act, a U.S. law that prohibits bribes or special favours to foreign government officials in exchange for business.