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.