Lloyds Bank Hit with $350M Fine for Sanctions Bypassing Scam

Crime news has it that London-based Lloyds TSB Bank plc has copped to a massive $350 million fine for violating the International Emergency Economic Powers Act (IEEPA). The bank, accused of skirting sanctions against Iran, Sudan, and other nations, is set to fork over $175 million each to the U.S. and New York County District Attorney’s Office.

According to federal prosecutors, Lloyds engaged in a 12-year scheme that involved stripping identifying information from international wire transfers. By doing so, they enabled more than $350 million in transactions to slip through the cracks of U.S. financial institutions’ filters, thus evading sanctions and potentially funding terrorism.

Acting Assistant Attorney General Matthew Friedrich minced no words: ‘Lloyds facilitated the anonymous movement of hundreds of millions from sanctioned nations, a practice we will not tolerate.’

The IRS Commissioner, Doug Shulman, added that the IRS is committed to tackling sophisticated criminal schemes like this one. ‘We are proud to have shared our expertise in tracking the money trail,’ he said.

Under the IEEPA, it’s a crime to willfully violate sanctions regulations, which Lloyds did by exporting services from the United States to Iran and Sudan. Court documents show that Lloyds’ actions were deliberate and intended to help its customers evade U.S. economic sanctions.

Lloyds has agreed to the deferred prosecution agreements with federal prosecutors and the New York County District Attorney’s Office, accepting full responsibility for their criminal conduct.