Glencore subpoenaed over US money laundering probe and now shares are crashing


Glencore

Commodities giant Glencore has received subpoenas from the US Department of Justice as part of a money-laundering probe.
Shares crashed over 10% when Glencore revealed the investigation.

Shares in commodity giant Glencore plunged on Tuesday morning after it was revealed that the company has received a subpoena from the US Department of Justice as part of a money-laundering investigation.

Glencore released a statement on Tuesday morning saying that it has been asked to hand over documents in relation to a corruption probe, and is “reviewing” the subpoena. It relates to Glencore’s operations in Venezuela, Nigeria, and the Democratic Republic of Congo.

Investors have taken flight on the news, with shares dropping more than 10% in early morning trade. They have since recovered a little, and by just after 8.45 a.m. BST (3.45 a.m. ET) are down around 8.2%.

“Glencore Ltd, a subsidiary of Glencore plc, has received a subpoena dated 2 July, 2018 from the US Department of Justice to produce documents and other records with respect to compliance with the Foreign Corrupt Practices Act and United States money laundering statutes,” the company said in a statement to the stock market.

“The requested documents relate to the Glencore Group’s business in Nigeria, the Democratic Republic of Congo and Venezuela from 2007 to present. Glencore is reviewing the subpoena and will provide further information in due course as appropriate,” it added.

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Source:: Business Insider

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