The U.S. Treasury Department's record fine last month against a subsidiary of Deutsche Borse did more than just signal that Americans would continue to take a tough tack against Iranian sanctions dodgers. It outlined new regulatory expectations, say consultants. The department's Office of Foreign Assets Control (OFAC) fined Clearstream Banking S.A. $152 million for holding securities owned by Iran's central bank in New York-based omnibus accounts. The Luxembourg-based company served as an intermediary for the blacklisted institution even after OFAC warned it of possible sanctions violations, according to the agency, which cited the Jan. 23 fine as its largest standalone...
In response to a spate of costly enforcement actions and increasingly probing questions from regulators, some U.S. financial institutions have implemented controls to better identify parties invested in omnibus accounts.
The financial clearing subsidiary of Deutsche Börse AG will pay the U.S. Treasury Department's sanctions enforcer $152 million for holding money in New York-based accounts on behalf of Iran's central bank.
Deutsche Borse AG will pay $151,902,000 to resolve an investigation by the US Treasury Department's Office of Foreign Assets Control (OFAC), according to a press release the German exchange issued Thursday.
U.S. financial institutions are taking a closer look at accounts held for stock brokers managing money on behalf of multiple parties in the wake of governmental warnings and sanctions-related settlements.