US Charges Industrial Bank of Korea With Laundering Money for Iran - Justice Dept.

WASHINGTON (Pakistan Point News / Sputnik - 20th April, 2020) The Industrial Bank of Korea (IBK) agreed to pay $86 million to settle criminal charges that it illegally moved $10 million of Iranian assets through the US banking system and otherwise failed to establish and maintain anti-money laundering programs required by law, the Justice Department said in a press release on Monday.

"IBK agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay penalties totaling $86 million to prosecutors and regulators, refrain from all future criminal conduct, and implement remedial measures as required by its regulators," US Attorney Geoffrey Berman said in the release.

The settlement included a two-year deferred prosecution agreement, after which the US government will seek to dismiss charges provided IBK complies with remedial measures spelled out in Monday's agreement with prosecutors, Berman added.

The US government agreed to settle due, in part, to IBK's acceptance of responsibility, as reflected in an internal investigation, in which the bank provided regular updates to the US Attorney's Office and made employees available for interviews with investigators, the release said.

IBK agreed to a civil forfeiture of $51 million, half of which will be transferred to the US Victims of State Sponsored Terrorism Fund, plus a $35 million penalty to New York State banking officials.

US anti-terror sanctions have blocked Iran's access to the global banking system for nearly all commercial transactions with the exception of purchases and shipments of humanitarian goods.