The Securities and Exchange Commission (SEC) has announced it will not be prosecuting Ralph Lauren Corporation after the company voluntarily admitted paying bribes to Argentine government officials over a four-year period.

Instead, the regulator has announced a non-prosecution agreement (NPA), which will see Ralph Lauren Corporation pay out more than $700,000 (£458,000) in illicit profits and interest obtained in connection with bribes paid by a subsidiary to customs officials in Argentina from 2005 to 2009.

In parallel criminal proceedings, the US Justice Department has entered into an NPA with Ralph Lauren Corporation and the company will also pay a $882,000 (£577,000) penalty.

The SEC says it will not be charging Ralph Lauren with violations of the Foreign Corrupt Practices Act (FCPA) because the company acted swiftly to report the bribes once they were identified via its own internal review of its worldwide internal controls and compliance procedures.

George Canellos, acting director of the SEC's division of enforcement, said: 'When they found a problem, Ralph Lauren Corporation did the right thing by immediately reporting it to the SEC and providing exceptional assistance in our investigation. The NPA in this matter makes clear that we will confer substantial and tangible benefits on companies that respond appropriately to violations and cooperate fully with the SEC.'

Ralph Lauren's review uncovered details of bribe payments and gifts totalling $593,000 (£388,000) paid through its customs broker to ensure the company's products could be imported without the necessary paperwork, and to avoid the inspection of prohibited products and inspections by customs officials.

Since discovering the bribes, SEC said it was satisfied Ralph Lauren Corporation had taken substantial remedial action which included implementing a comprehensive new compliance programme and carrying out a risk assessment of its operations worldwide. The company has ceased operations in Argentina.