Payment settles allegations banking giant violated US sanctions on money transfers to Iran
By APTuesday, December 22, 2009
Lloyds to pay $217 million in Treasury settlement
WASHINGTON — The Treasury Department says Lloyds TSB Bank PLC has agreed to pay $217 million to settle claims that the bank manipulated money transfers to allow customers to skirt U.S. financial sanctions against Iran and other countries.
The department said in a statement Tuesday the alleged violations stemmed from the mid-1990s when Lloyds, with the knowledge of its Iranian bank customers, altered or deleted information in wire transfer instructions.
Lloyds routed at least 4,281 wire transfers worth nearly $37 million through third-party banks in the U.S. between June 2003 and August 2006. The department said that was in violation of regulations related to Iran, Sudan, and Libya.
Earlier this year, the British bank agreed to forfeit $350 million for the same pattern of conduct, the Treasury statement said.
In an e-mailed statement, Lloyd spokeswoman Sara Evans said the bank is “committed to running our business with the highest levels of integrity and regulatory compliance across all of our operations.”
As part of the settlement with OFAC, Lloyds will conduct annual reviews for the next two years of the bank’s policies and procedures, according to the Treasury Department. The United Kingdom’s Financial Services Authority will be involved in developing the scope of and approving an independent third party to oversee the review.
