U.S. authorities fine IBK for violating anti-money laundering act

One of the
largest banks of South Korea – IBK has agreed to pay $86 million fine to the U.S.
law enforcement authorities to settle criminal charges.

The bank is
accused of violating the AML law in the process of arranging remittances
because it failed to grasp the disguised transactions of the company in a
timely manner.

A former
IBK client, Kenneth Zong, who was a U.S. citizen at the time, violated
Iran sanctions by arranging transfers to entities controlled by that country.
He forged the export money he received from the New York branch of the IBK and
transferred it to Iranian officials overseas.

The bank
has admitted that it breached the Banking Secrets Protection Act on the
prevention of money laundering at its New York branch during 2011- 14. Industrial
Bank of Korea allowed an illegal transfer of more than $1 billion to Iran that
violated U.S. sanctions.

As per the reports, the settlements include the forfeiture of $51 million, half of which will be shared with the US Victims of State Sponsored Terrorism Fund, plus a $35 million civil fine will be paid to the New York State Department of Financial Services.

Source - THE NEW YORK TIMES

Latest Posts

Subscribe to Newsletter

Enter your email address below to subscribe to newsletter