ING Bank NV agreed to pay $619 million to settle allegations that it violated rules against conducting business on behalf of Cuban and Iranian clients in U.S. financial markets, Reuters reported.
The Dutch bank entered into deferred prosecution agreements with the U.S. Justice Department and Manhattan, N.Y., district attorney, according to court records. U.S. authorities said ING moved billions of dollars illegally through banks in Manhattan from the early 1990s through 2007 by concealing the nature of the transactions. ING is the fourth major bank to settle with New York and U.S. authorities over "stripping" wire transfer information to hide that they were illegally moving money through banks in New York on behalf of clients subject to U.S. sanctions. ING Bank's apparent violations, which totaled more than $1.6 billion routed through the United States despite U.S. sanctions, arose out of policies at multiple offices of ING Bank's wholesale banking division.
Neither parent company ING Group NV's insurance nor its banking operations in the United States were subjects of the investigation. ING Bank has assured the U.S. Treasury Department's Office of Foreign Assets Control that it has terminated the conduct leading to today's settlement.