American lawmakers could ask corporations to pay additional sums for sanctions violations as part of an effort to compensate victims of militant groups included on the U.S. State Sponsors of Terrorism list. The legislators weighed the idea during a Senate Judiciary subcommittee hearing Wednesday that heard testimony in support of allocating portions of future sanctions fines towards settlements granted to the survivors of terror victims who have filed U.S. civil lawsuits to claim funds held at financial institutions. Federal prosecutors and the Office of Foreign Assets Control (OFAC) could append a "compensation bump" to the sanctions settlements, said Eric Lorber,...
Germany's largest bank Wednesday agreed to pay U.S. state and federal regulators $258 million to resolve allegations that its Manhattan branch knowingly processed billions of dollars of banned transactions.
Germany's second-largest bank will pay $1.45 billion to U.S. law enforcement agencies and regulators and fire multiple employees to settle charges that it violated sanctions laws and anti-money laundering rules.
Citigroup has agreed to pay the U.S. Treasury Department $218,000 for processing export bill collection applications linked to Iran and failing to identify suspicious parties with its sanctions software system.
Despite tightened controls on interbank messaging, some bankers looking to hide the role of their blacklisted clients in international wires need only type a single key on their keyboard, according to experts.
High-profile sanctions cases are spurring large banks and third-party software vendors to improve how they identify when counterparts and clients secretly act on behalf of blacklisted entities, say compliance experts.