Latam Airlines Group

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LATAM Airlines Group has reached agreements with the DOJ and the SEC
July 25, 2016
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Santiago, Chile 25 July 2016 - LATAM Airlines Group announced that it has reached voluntary agreements with the Securities and Exchange Commission ("SEC") and  the Department of Justice ("DOJ") to resolve inquiries into payments LAN Airlines S.A. ("LAN") made 10 years ago in 2006-2007 to a consultant on labor matters in Argentina.

After an exhaustive investigation in which the Company actively cooperated, both agencies concluded in relation to the 2006-2007 consultant payments that the Company did not comply with the provisions of the U.S. Foreign Corrupt Practices Act (FCPA) that require the Company to keep accurate books and records and to establish and maintain adequate internal controls.  

The agreement with the DOJ provides for a total fine of $12.75 million and the agreement with the SEC provides for a payment of $6.7 million plus interest.  

Additionally, LATAM has agreed to retain an independent compliance monitor for a period of 27 months.  

As has been communicated in its corporate financial reports, the company has cooperated fully with relevant authorities throughout this process. 

LATAM and its senior management reaffirm its commitment to complying with the laws of all of the countries where the Group operates. From the time this event occurred, the company has taken action and made significant improvements in its Compliance structure and its internal accounting controls.