Glencore unit gets US subpoena on compliance with money-laundering laws

The logo of commodities trader Glencore is pictured in front of the company’s headquarters in Baar, Switzerland, July 18, 2017. (Reuters pic)

BENGALURU: Commodities trader and miner Glencore Plc said a subsidiary had received a US Department of Justice subpoena requesting documents and records on compliance with the Foreign Corrupt Practices Act and US money-laundering statutes.

Shares in Glencore, a major exporter of Nigerian and Venezuelan crude, fell more than 10% in early London trade. The company was the top loser on the British bluechip index.

The documents requested from subsidiary Glencore Ltd relate to the group’s business in Nigeria, the Democratic Republic of Congo (DRC) and Venezuela from 2007 to present, Glencore said, adding it was reviewing the subpoena.

The US Foreign Corrupt Practices Act makes it a crime for companies to bribe overseas officials to win business.

Glencore is also one of the world’s largest producers of cobalt, primarily from the DRC.

The company paid US$308.1 million to the DRC in 2017, according to Glencore’s report on payments to governments.

Glencore also paid US$94.3 million to Nigeria for crude oil purchased from state-owned companies, according to the report.