New York Invokes Recordkeeping Law in $250 Million Sanctions Settlement with Bank of Tokyo

By Brian Monroe

New York's financial regulator Thursday said a Japanese bank must pay $250 million for breaking a state recordkeeping law-the second time the agency has used the rule against sanctions violators. On Thursday, the New York State Department of Financial Services (NYSDFS) said in a consent order that the Bank of Tokyo-Mitsubishi UFJ violated the recordkeeping regulation by intentionally omitting incriminating information from interbank messages. The data would have indicated that wire transfers involved Iranians blacklisted under federal law. In operational instructions given to employees, Bank of Tokyo ordered bankers to omit the data-a policy that helped the financial institution clear...