Lloyds Bank in $217 million settlement with U.S.

By Reuters Staff
December 22, 2009

WASHINGTON, Dec 22 (Reuters) – Britain’s Lloyds TSB Bank Plc reached a $217 million settlement of charges it violated U.S. sanctions regulations, the Treasury Department said on Tuesday.

The department’s Office of Foreign Assets Control said the settlement concerned the bank’s manipulation and deletion of information about U.S. sanctioned parties in wire transfer instructions routed through third-party banks in the United States.

The settlement follows charges Lloyds faked records so clients from restricted countries, including Iran, could do business with it.

The department said Lloyds’ obligation for the $217 million has been deemed satisfied by the bank’s prior $350 million payment to the U.S. Department of Justice and the New York County District Attorney’s Office arising from the same pattern of conduct.

As part of its settlement, Lloyds will conduct annual reviews of its polices, procedures, and a sampling of U.S. currency payments to determine whether any of those payments subject to U.S. regulations are being illegally processed.

“We are committed to running our business with the highest levels of integrity and regulatory compliance across all of our operations,” Lloyds said in a statement.

Last week Switzerland’s Credit Suisse Group AG said it will pay $539 million to settle charges it failed to comply with U.S. laws.

Court documents accused Credit Suisse of violating U.S. laws by moving hundreds of millions of dollars illegally through the U.S. financial system on behalf of sanctioned countries such as Iran.

(Reporting by Nancy Waitz; Editing by Kenneth Barry)

((nancy.waitz@thomsonreuters.com; +1-202-310-5477; Reuters Messaging: nancy.waitz.reuters.com@reuters.net)) Keywords: USA TREASURY/LLOYDS

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