Reducing AFM Fine for SBM Offshore
Bribery Case
eyesonsuriname
Amsterdam, Feb.19th 2025–The fine imposed by the Dutch Financial Markets Authority (AFM) on SBM Offshore has been substantially reduced from 2 million to 675,000 euros. This penalty, which was imposed in 2019 for failing to timely inform investors about bribery issues in Brazil, was significantly lowered after legal opposition by the Trade and Industry Appeals Tribunal (CBb).
The case originates from a massive corruption scandal where SBM Offshore’s sales agents paid bribes to state oil companies, particularly in Brazil, to secure contracts. The AFM claimed that between 2012 and 2014, the company withheld inside information about potential bribery on four occasions – information that should have been immediately shared with investors due to its potential impact on the stock price.
However, the CBb ruled that SBM Offshore was negligent in only one instance: when the company delayed announcing its exclusion from Brazilian contracts. The other AFM allegations were dismissed due to insufficient evidence that SBM Offshore could have foreseen at the time that Brazilian authorities would actually establish bribery.
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These bribery cases, which extended to Equatorial Guinea and Angola, have hit SBM Offshore hard. The company had to pay hundreds of millions of euros in fines and settlements in various countries, including the United States, the Netherlands, Brazil, and Switzerland. Moreover, two former top executives were sentenced to prison terms.
This CBb ruling is final, as the tribunal serves as the highest court in this case.