Siemens has also agreed not to bid for business from the Washington-based World Bank for two years as part of its punishment following the anti-corruption investigations.
“The World Bank Group today announced a comprehensive settlement with Siemens… in the wake of the company’s acknowledged past misconduct in its global business and a World Bank investigation into corruption in a project in Russia involving a Siemens subsidiary,” the bank said on Thursday.
The World Bank added: “As part of the settlement, Siemens has also agreed to co-operate to change industry practices, clean up procurement practices and engage in collective action with the World Bank Group to fight fraud and corruption.”
The 161-year-old conglomerate with activities from nuclear power stations to trains and light bulbs has acknowledged that up to €1.3 billion ($1.8 billion dollars) may have been used illegally to win foreign contracts.
Siemens, which employs some 400,000 people worldwide, found in an internal investigation that the practice was widespread across its numerous divisions.
“This settlement provides significant consequences for past wrongdoing by Siemens,” said Leonard McCarthy, Integrity Vice President at the World Bank.