BANK OF TOKYO-MITSUBISHI UFJ TO PAY $250M TO NY IN SETTLEMENT

(The following is a reformatted version of a press release
issued by the Office of the Governor of New York and received
via electronic mail. The release was confirmed by the sender.) 
June 20, 2013 
GOVERNOR CUOMO ANNOUNCES BANK OF TOKYO-MITSUBISHI UFJ TO PAY
$250 MILLION TO STATE FOR VIOLATIONS OF NEW YORK BANKING LAW
INVOLVING TRANSACTIONS WITH IRAN AND OTHER REGIMES 
Conduct Involved Countries and Entities Subject to International
Sanctions, Included Approximately 28,000 Transactions Totaling
an Estimated $100 Billion 
Governor Andrew M. Cuomo today announced that Bank of Tokyo
Mitsubishi-UFJ, Ltd (“BTMU”) has agreed to pay $250 million to
the New York State Department of Financial Services (“DFS”) for
violations of New York Banking Law in connection with
transactions involving countries and entities subject to
international sanctions, including the regimes of Iran, Sudan,
and Myanmar. 
Between 2002 and 2007, BTMU moved billions of dollars through
New York for government and privately owned entities in Iran,
Sudan, and Myanmar, and entities on the Specially Designated
Nationals (SDN) list issued by the U.S. Treasury Department’s
Office of Foreign Assets Control (OFAC). BTMU agreed that the
conduct at issue involved approximately 28,000 U.S. dollar
clearing transactions through New York totaling an estimated
$100 billion. 
During the period of those violations, BTMU systematically
engaged in a practice under which its employees removed
information from wire transfer messages that could have been
used to identify the involvement of countries and persons
subject to international sanctions. In fact, BTMU established
written operational instructions on this practice, instructing
employees that “in order to avoid freezing of funds” they should
“omit” information that could have identified the fact that the
transactions involved an “enemy country.”
“The State is providing tough oversight of the financial
institutions in New York to protect our economy and communities
in the wake of the recent financial crisis,” Governor Cuomo
said. “We identified nearly 28,000 illegal transactions totaling
$100 billion by BTMU with countries under international
sanctions in clear violations of New York State law. Today’s
agreement will send a clear message that we are working
aggressively to restore and uphold accountability on Wall
Street, and those who try to go around the law will be caught.” 
Benjamin M. Lawsky, Superintendent of Financial Services, said,
“We have and will continue to take a hard line in rooting out
misconduct at banks that threatens our national security.
Whenever and wherever we uncover serious wrongdoing, we will
take strong enforcement action to protect our country from money
laundering, terrorism, and other dangerous misdeeds.” 
As part of today’s agreement, BTMU will make a payment of $250
million to the State of New York. Additionally, BTMU shall
install an independent consultant for a term of one year that
will report directly to DFS and evaluate risk controls relating
to sanctions compliance in the New York branch and the
implementation of appropriate corrective measures. 
The consultant will be required to abide by the new code of
conduct that DFS outlined in a reform agreement that was
announced earlier this week. That code of conduct is designed to
help ensure the independence and autonomy of the consultant from
the bank, and to make explicit that the consultant works for DFS
rather than BTMU. 
Under the agreement, BTMU will submit written plans for approval
to DFS to improve the company’s Bank Secrecy Act/Anti-money
Laundering (BSA/AML) related sanctions compliance programs,
policies, and procedures, as well as enhance management
oversight of those programs. Upon approval of these plans by
DFS, BTMU will begin to implement those changes. 
Superintendent Lawsky said, “BTMU took an important step today
toward addressing these serious transgressions. It is vital that
companies continue to self-report violations and those that do
not run the risk of even more severe consequences.” 
Additional news available at www.governor.ny.gov
New York State | Executive Chamber | press.office@exec.ny.gov |
518.474.8418 
(bjh) NY 
#<873920.660640.3.4.1.0.76>#
 
 
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