Honeywell settles legacy Foreign Corrupt Practices Act issues and will pay a total of $202.7 million

CHARLOTTE, N.C., Dec. 19, 2022 /PRNewswire/ -- Honeywell (NASDAQ: HON) has agreed to resolutions with the U.S. Department of Justice ("DOJ"), U.S. Securities and Exchange Commission ("SEC"), and the Brazilian authorities (the Federal Prosecution Service ("MPF"), the Comptroller General of Brazil ("CGU"), and the Attorney General of Brazil ("AGU")) to resolve previously disclosed anti-corruption investigations into the Company's historical operations in Brazil in relation to Petróleo Brasileiro S.A. ("Petrobras") and, with respect to the SEC resolution, also relating to  historical conduct involving the intermediary, Unaoil.  In connection with the resolutions, the Company will pay a total of $202.7 million in penalties, disgorgement, and prejudgment interest.

As has been disclosed in previous public filings (most recently in 3Q 2022), these matters have been fully reserved and no additional financial impact has occurred as a result of these resolutions.

Honeywell has received full credit for its cooperation with this investigation.  In the many years since the events occurred, the company has meaningfully redesigned and continued to evolve its global ethics and compliance program to meet the evolving risk environment. The SEC acknowledged that Honeywell had "strengthen[ed] its ethics and compliance organization."  The Department of Justice echoed this assessment, acknowledging that Honeywell and UOP "engaged in extensive remedial measures . . . including strengthening its anticorruption compliance program by investing in its compliance resources" and has committed to "continuing to enhance its compliance program and internal controls."  Honeywell will not be required to have a monitor and will instead provide reports on its anti-corruption compliance program to the Brazilian authorities and DOJ for one and three years respectively. 

Honeywell has been publicly recognized as Honeywell is a seven-time honoree of Ethisphere's World's Most Ethical Companies award, including in every year since 2019. Honeywell was also named #3 of America's Top 10 Most Transparent Companies overall and #1 in the Industrials segment in Labrador's 2022 U.S. Transparency Awards for its public disclosures.

"We are pleased to have this legacy matter behind us, as these events in no way reflect the current leadership, culture and values that Honeywell has come to establish over a decade since this activity occurred," said Darius Adamczyk, chairman and chief executive officer of Honeywell. "We stand behind our recognized world-class ethics and compliance program and all Honeywell employees are expected to abide by all laws in the countries in which we operate and conduct themselves with the highest levels of integrity at all times."

Honeywell (www.honeywell.com/us/en) delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/us/en/news.