AFP Concludes Foreign Bribery Investigation into SMEC After $9 Million Settlement

The Australian Federal Police (AFP) has finalised a long-running foreign bribery investigation into SMEC International Pty Ltd after reaching a $9 million pecuniary penalty settlement under the Proceeds of Crime Act 2002 (Cth). The AFP stated that the settlement does not involve any admission of liability by the company.

The investigation, conducted as part of Operation Amorce, commenced in 2013 and examined conduct involving SMEC across multiple jurisdictions, including Sri Lanka and Vietnam. The AFP executed search warrants related to the case in 2015 and 2018.

Following a review of the circumstances and public interest factors, AFP investigators decided not to refer SMEC to the Commonwealth Director of Public Prosecutions. The AFP stated this determination aligned with principles in its published guidance regarding self-reporting and cooperating corporations.

Key public interest considerations cited by the AFP included SMEC's cooperation, its provision of internal investigation reports, the waiver of legal professional privilege over certain materials, and the self-reporting of additional individual conduct following the execution of earlier search warrants. The AFP also noted that key individuals allegedly involved are no longer with SMEC, the company has enhanced its anti-bribery and compliance procedures, and significant time had elapsed since the alleged conduct took place.

The settlement was facilitated through the AFP-led Criminal Assets Confiscation Taskforce (CACT) to address alleged benefits derived from the conduct investigated. Beyond the $9 million penalty, SMEC agreed to contribute to the AFP's external legal costs and make a voluntary contribution to an anti-corruption non-governmental organisation.

AFP Commander Criminal Assets, Fraud and Corruption Andrea Quinn said the outcome shows substantial financial consequences follow foreign bribery investigations even if matters do not proceed to criminal prosecution, noting the impact of early cooperation.

Under statutory processes, funds recovered through the Proceeds of Crime Act are managed by the Australian Financial Security Authority and deposited into the Commonwealth Confiscated Assets Account.

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