(Adds details)
By Katanga Johnson
WASHINGTON, Sept 24 (Reuters) - The U.S. Securities and
Exchange Commission (SEC) said on Friday that Britain's WPP
had agreed to pay more than $19 million to resolve
charges that it violated the anti-bribery, books and records,
and internal accounting controls provisions of the Foreign
Corrupt Practices Act (FCPA).
The world's largest advertising firm did not admit or deny
the SEC's charges but agreed to pay the fine, the SEC said.
WPP implemented an aggressive business growth strategy that
included acquiring majority interests in many localized
advertising agencies in high-risk markets, it added.
Its order found that WPP failed to ensure that these
subsidiaries implemented its internal accounting controls and
compliance policies, the SEC said, referring to issues in India,
China, Brazil and Peru.
It added that because of structural deficiencies, WPP failed
to "promptly or adequately respond to repeated warning signs of
corruption or control failures at certain subsidiaries."
The issues relate to a period between 2013 and 2018.
"A company cannot allow a focus on profitability or market
share to come at the expense of appropriate controls," said
Charles Cain, the SEC's FCPA Unit Chief.
"Further, it is essential for companies to identify the root
cause of problems when red flags emerge to prevent a pattern of
corrupt behavior from taking hold."
Friday's move comes as the nation's top securities watchdog
seeks to stamp out abuses in U.S. markets due to a lack in
required controls by companies.
WPP did not immediately respond to a request for comment.
(Reporting by Katanga Johnson; Editing by Chizu Nomiyama and
Keith Weir)