Shares of industrial product maker 3M (MMM) - Get Report closed down 2.3% Friday at $173.98 after the company disclosed it has launched an internal investigation into whether it violated the U.S. Foreign Corrupt Practices Act, or FCPA.
The company said it discovered travel activities and related funding and record-keeping issues stemming from marketing efforts by certain Chinese business groups. That discovery led to the company launching ts investigation into whether it has violated the FCPA.
The company said it has retained outside counsel and a forensic accounting firm to assist in the investigation. The company also disclosed that it alerted the Department of Justice and Securities and Exchange Commission of the possible violation on July 23.
The FCPA was enacted in 1977 "for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business."
About six weeks ago, the SEC charged Walmart (WMT) - Get Report with violating the FCPA by failing to investigate anti-corruption risks by subsidiaries in Brazil, China, India and Mexico. Walmart agreed to pay more than $144 million to settle the charges and another $138 million to resolve parallel charges brought by the DOJ.