SEC Investigates Bribes paid to Abu Dhabi Investment Authority

The SEC launched an investigation to determine whether U.S. financial firms made unlawful payments in connection with obtaining or seeking to obtain investments from sovereign wealth funds – payments which might have violated the Foreign Corrupt Practices Act (“FCPA” or “Act”).

The Abu Dhabi Investment Authority, which channels Abu Dhabi’s oil profits into investments – are
large pools of cash that governments draw from their reserves to make investments. The SEC’s investigation, although in an early stage, appears to focus on whether certain U.S.- based banks, hedge funds and private equity firms – either directly or indirectly – made illegal payments to employees or representatives of sovereign wealth funds.