An3 - E0700243 Bank Settles U.S. Inquiry Into Money...

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E0700243 Bank Settles U.S. Inquiry Into Money Laundering By TIMOTHY L. O'BRIEN Published: November 9, 2005 Source: http://www.nytimes.com/2005/11/09/business/09bank.html Federal prosecutors said yesterday that the Bank of New York agreed to pay $38 million in penalties and victim compensation in a deal stemming from a six-year investigation of fraud and money laundering involving suspect Russian and American bank accounts and other fraudulent transactions. Prosecutors said the bank, one of the nation's oldest, did not adequately monitor and report suspect accounts at the bank. The bank agreed to make what prosecutors described as "sweeping internal reforms to ensure compliance with its antifraud and money laundering obligations." Authorities said that the bank has "accepted responsibility for its criminal conduct" and that it will not be prosecuted as long as it complies with the terms of the deal for three years. Bank of New York also agreed to allow an independent examiner to monitor its operations. The investigation, which began in 1998 and ended last year, first became publicly known in the summer of 1999 when Russia's pell-mell rush to privatize formerly state-owned assets resulted in widespread criticism of insider deals and possible corruption among Russia's business elite and officials of the Kremlin. The fine, which is among the largest ever assessed against an American bank for money laundering violations, consisted of $14 million for failing to supervise suspect Russian accounts and $24 million for a separate series of fraudulent activities involving a branch on Long Island.
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This note was uploaded on 07/29/2011 for the course BUS 444 taught by Professor Lynn during the Spring '11 term at Keuka.

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An3 - E0700243 Bank Settles U.S. Inquiry Into Money...

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