Bank Of New York Settles Bank Secrecy Act Case
It emerged this week that the Bank of New York (BNY) has agreed to pay $38
million to settle a case involving violations of the US Bank Secrecy Act committed
by its employees and customers. The case centred on the unlicensed transmission of billions of dollars from
an illegal money transferring business in Russia through BNY accounts. The unauthorised transfers reportedly allowed Russian citizens and taxpayers
to move money out of the country to the United States without paying customs
duties and taxes to the Russian authorities. Under the settlement agreement, BNY will pay $26 million to the US government
and a further $12 million to those affected by a fraudulent escrow account scheme
which was also under investigation. The Bank has also been obliged to admit that its anti-money laundering program
was inadequate, and to enact internal reforms to address this deficiency. .
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