Monday, August 16, 2010

Barclays to pay $298 million in bank case

Posted on Monday, 08.16.10
Barclays to pay $298 million in bank case
Bloomberg News

Barclays agreed to pay $298 million to settle claims it violated trade
laws by facilitating transactions involving banks from countries under
U.S. sanctions.

Under a deferred-prosecution agreement filed Monday in federal court in
Washington, the London-based bank agreed to pay $149 million to the U.S.
and another $149 million to New York state.

Barclays was accused of violating U.S. financial sanctions against Cuba,
Iran, Libya, Sudan and Burma from about March 1995 through September
2006. Barclays followed the directions of banks in those countries to
omit their names in payment messages sent to the New York branch and to
other financial institutions, according to court papers.

In addition, Barclays amended payment messages to remove information
identifying links to the sanctioned companies, prosecutors said.

Barclays said in February it is being investigated by the U.K. Financial
Services Authority over payments involving people or countries under
U.K. Treasury sanctions. The bank disclosed the Justice Department probe
in 2007.

The case is U.S. v. Barclays Bank Plc, 10cr218, U.S. District Court for
the District of Columbia (Washington).

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