
US fines Lloyds TSB $350m for breaking international rules
New York & Washington, DC - UK bank Lloyds TSB has agreed to hand over $350 million (£231 million) to US enforcement authorities for channelling Sudanese and Iranian money into the US banking system, violating the US International Emergency Economic Powers Act. Investigators from the federal US Department of Justice collaborated with the office of 89-year-old Manhattan district attorney Robert Morgenthau. The New York state and federal authorities will share $175 million each of the landmark payout.
The US justice department said between 1995 and 2007 Lloyds routinely removed customer names, bank names and addresses from payments to avoid red flags from US filtering processes. The bank accepts criminal conduct in the case involving at least $350 million originating in Iran and Sudan and other international hotspots. Court documents named Lloyds' offices in London and Dubai, and say the bank commonly referred to its practice as "stripping" or "repairing" wire transfers. Iranian banks Bank Melli, Bank Saderat and Bank Sepah, plus the Sudanese National Bank of Khartoum, were named as Lloyds clients involved. Lloyds must now open its books to CIA, FBI and other investigative agencies to determine the origin of funds.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
CFTC aims to settle ‘hundreds’ of enforcement cases within 30 days
Remediation initiative accompanies new effort to slash penalties for technical violations
Gilt repo clearing mandate on Bank of England’s radar
Sources say regulator mulling benefits of US-inspired regime, but is non-committal
Delving into the European Commission’s proposed overhaul of FRTB
Raft of potential changes would benefit both IMA and SA banks – but only temporarily
Why the survival of internal models is vital for financial stability
Risk quants say stampede to standardised approaches heightens herding and systemic risks
Crypto custody a bit(coin) closer after US accounting U-turn
Federal banking supervisors expected to eventually relax regimes for safeguarding digital assets
Japan’s regulator stands firm behind Basel as peers buckle
Japanese banks fear being at a disadvantage to rivals as Basel III implementation falters
EU racing to comply with active account rules
Industry wants simpler route to exemptions ahead of ‘challenging’ deadline for new clearing regime
CFTC acting chair: ‘We don’t need a Dodd-Frank for crypto’
US regulator wants real-time market surveillance; focuses on rise of liquidity risk