Swiss security firm Sicpa convicted of corruption

Sicpa, which was founded in Lausanne in 1927, has been the target of several corruption investigations in Switzerland and overseas. Keystone / Martial Trezzini

The Swiss federal prosecutor has ordered the Vaud-based security ink company Sicpa to pay CHF81 million ($90.6 million) for corporate criminal liability over the payment of bribes in various countries. A former sales manager of the company was also given a conditional prison sentence of 170 days.

According to a statementExternal link by the Office of the Attorney General of Switzerland on Thursday, Sicpa was “criminally liable” for failing to take all necessary and reasonable organisational precautions that “made it possible for employees of Sicpa” to bribe foreign officials.

The prosecutor sentenced the company to a fine of CHF1 million and a claim for damages of CHF80 million due to “identified organisational deficiencies”. This included weakness in corporate governance principles, risk management and compliance.

Sicpa and the ex-employee say they will not appeal against the sentence. The federal prosecutor, however, dropped the investigation initiated against the CEO, who is also the main shareholder of the company. The CEO is, however, obliged to cover some costs of the proceedings. The attorney general’s office also didn’t award him any compensation.

Red flags

The federal prosecutor had initiated corruption proceedings against Sicpa, which specialises in security inks for currencies and documents, in 2015 following a request for legal assistance.

The investigation related to the payment of bribes in various countries, including Brazil, Venezuela and Colombia. The former Sicpa sales manager had made bribes to high-ranking officials in the Colombian and Venezuelan markets between 2009 and 2011, according to the statement. However, the suspicion of embezzlement and money laundering could not be substantiated.

In 2021, the investigation was extended to include the company CEO.

The company has also been the target of several corruption investigations overseas. In the summer of 2021, the company paid CHF135 million to Brazilian authorities to end its legal problems and to keep doing business there.

From milking grease to banknotes

Sicpa was founded in 1927 in Lausanne by Maurice Amon to sell Swiss agricultural products, primarily milk and cream, after Amon invented a new type of milking grease that facilitated the milking process.

The firm quickly pivoted to developing inks for printers and eventually made a name for itself in markets around the world producing ink for banknotes and developing tracing technology to battle counterfeit goods in multiple sectors. Its reputation is built on trust.

A family-owned business, Sicpa is not listed on the stock exchange and has no external investors.