Dive Brief:
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A longstanding federal probe into Wal-Mart Stores Inc.’s Mexico operations has found little in terms of bribery or misconduct, although investigators found such problems in India, sources have told the Wall Street Journal.
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After three years, there may not be any charges filed, though there may be a fine against individuals who work for Wal-Mart, including for suspected bribes made in India discovered as part of the investigation, according to the Journal.
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The U.S. Department of Justice, which declined to comment on its investigation, began its probe after the New York Times reported in 2012 that alleged bribes were helping facilitate permits for new Wal-Mart stores in Mexico.
Dive Insight:
The scandal that seemed to reveal major corruption by Wal-Mart appears to be fizzling — a bright spot in a bad week of news for the retailer.
Although the investigation appears to be winding down without unearthing a major scandal, the probe is is ongoing and includes investigative press reports, government inquiries on both sides of the border, and criminal court proceedings that have cost the retailer dearly.
When it comes to the permit process and other deals in foreign countries there are grey areas. In some countries, "gifts" are expected during business negotiations. The U.S. Department of Justice has a guide — including case studies — on how to comply with the Foreign Corrupt Practices Act of 1977, which outlaws the kind of alleged activity that has Wal-Mart Stores in hot water, while still keeping up with business gift customs.