Bank of Cyprus, Lloyds Seek Dismissal of U.S. DOJ Suits, Citing Jurisdictional Issues

By Brian Orsak

Lloyds TSB Bank and Bank of Cyprus said Friday that the U.S. does not have the jurisdiction to pursue money laundering charges against them. The Department of Justice sued Lloyds and Bank of Cyprus on October 15 for nearly $300 million, claiming that the banks knowingly helped a Cypriot millionaire wanted by the U.S. launder profits from an insider trading scheme. If the money is awarded, the penalty will be the largest ever levied by the U.S. for money laundering violations. But the cases should be dismissed because they constitute an "unprecedented attempt to apply the U.S. money laundering statute...