Business

Diebold settles bribery allegations

Diebold makes ATMs and bank security and teller equipment.
Tony Dejak/AP/File 2006
Diebold makes ATMs and bank security and teller equipment.

CLEVELAND — The ATM maker Diebold Inc. has agreed to pay more than $48 million in penalties and restitution to resolve allegations of corrupt business practices overseas, the US government reported Tuesday.

Diebold has agreed to pay a $25.2 million penalty to resolve an investigation into alleged bribes in China and Indonesia and falsified records in Russia, the government said. The goal was to obtain and keep contracts to provide ATMs to state-owned and private banks in those countries, the US Department of Justice said.

In a related action, the Securities and Exchange Commission announced a settlement with Diebold of civil charges under the antibribery law.

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The SEC said the company agreed to pay $22.9 million in restitution and to appoint an independent monitor to oversee its compliance with the law.

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Diebold acknowledged responsibility. Besides ATMs, the Ohio-based company makes bank security and teller equipment.

Under the agreement, the government will hold off on prosecuting two counts of violating antibribery and record-keeping laws and will drop the charges in three years if Diebold abides by the terms.