News

Israel Discount Bank Closes Branches as AML Compliance Costs Skyrocket

By Brian Monroe

Israel Discount Bank said costs related to an anti-money laundering compliance settlement with the U.S. government have escalated to nearly $56 million, or more than twice the size of a regulatory penalty assessed against the institution in 2005. U.S. regulators ordered the bank's New York subsidiary to pay more than $20 million in penalties for AML deficiencies that resulted in the transfer of billions of dollars in illicit funds from Brazil through the bank's New York offices. In addition to the penalties, the bank has spent $29.4 million to shore up AML compliance deficiencies and scrutinize suspect transactions, according to...

TO READ THE FULL STORY