The Industrial Bank of Korea (IBK) and its New York branch will pay a total of $86 million in criminal and civil penalties to resolve both federal and New York State charges for numerous, systemic sanctions compliance failures that allowed more than $1 billion to be illegally transferred to the government of Iran in violation of U.S. sanctions.
On Monday, the New York State Department of Financial Services (NYDFS) announced a consent order against IBK and fines of $35 million to New York State for violations of New York Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws. “Industrial Bank of Korea until recently failed to demonstrate sustained improvement in its compliance with New York and federal anti-terrorism and anti-money laundering laws,” said Superintendent of Financial Services Linda Lacewell. “With this consent order, DFS is holding IBK accountable for ensuring full continued compliance with the law and its vigilance against unlawful activity.”
