Japan’s Bank of Tokyo-Mitsubishi UFJ (BTMU) has been fined US$250,000
million by the state of New York for illicit laundering transactions
with countries under sanctions, including Myanmar.
The transactions are thought to total over $100 billion between 2002 and 2007. A press release from New York’s Department of Financial Services (NYDFS)
suggests that there were up to 28,000 individual illegal transactions.
Other sanctioned countries mentioned in the violations include Iran and
Sudan.
BTMU bank employees had been routinely removing information from
transfers, primarily the identities of blacklisted countries, according
to the NYDFS.
The statement showed that BTMU had handed written instructions to
employees asking them to “omit” sensitive information “in order to avoid
freezing of funds.” No information has been released on just how much
of the $100 billion worth of transactions were funneled in Myanmar.
According to a statement released by BTMU, the illicit activity was
identified in 2007, and the bank has since taken steps to improve their
compliance with money laundering rules and bank secrecy laws.
Along with the $250 million fine, the NYDFS will require BMTU to put
together an independent consulting branch that will operate within the
company for at least a year, ensuring their commitment to improved
transparency.
The news is likely to keep investors on their toes, serving as a
reminder that despite easing sanctions in Myanmar, the relationship
between the country and foreign regulators remains under close watch.
The fine is thought to be part of a push by American regulators to
stamp out funding violations to sanctioned countries. Earlier this year,
British banking giant HSBC was fined $1.9 billion for similar crimes
involving laundering in its Mexican branches while Standard Chartered
was fined $667 million for similar offences, including laundering in
Myanmar.
source: Mizzima
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