The U.S. Treasury Department's sanctions enforcement agency fined a Japanese bank nearly $8.6 million Wednesday for violating sanctions against Iran, Sudan, Myanmar, Cuba and weapons proliferators.
Federal bank examiners failed for at least four years to identify widespread signs of money laundering at Wachovia Bank, frustrating officials who helped levy a $160 million penalty against the institution last week.
The bank will forfeit $21.6 million in a deferred prosecution agreement with the U.S. Justice Department and pay a $10 million penalty for failing to adequately monitor a Mexican money transfer business that moved millions of dollars in illegal drug proceeds through the bank.
The bank, a subsidiary of Tokyo-Mitsubishi UFJ, said it set aside $10 million after the OCC disclosed that it plans to issue a civil money penalty and cease and desist order against the institution.
The Financial Services Agency ordered Bank of Tokyo to improve its New York branchs policies for identifying politically exposed persons, correspondent accountholders and other high-risk customers, including those who conduct frequent wire transactions.
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