Industrial Bank of Korea Settles U.S., New York Criminal Probes Over $1 Billion Iran Transfer

April 20, 2020

Author: 

Jonathan Stempel

Publication: 

Reuters

Related Country: 

  • United States

The Seoul-based Industrial Bank of Korea (IBK) will pay $86 million to settle U.S. federal and New York state charges for transferring $1 billion worth of illegal payments to Iran on behalf of former client Kenneth Zong. Zong was indicted for sanctions violations and money laundering in December 2016. IBK accepted responsibility for violating the Bank Secrecy Act by failing to maintain adequate anti-money laundering controls at its New York branch. The settlement includes a $51 million forfeiture, a $35 million civil fine, and requires the bank to improve customer due diligence and management oversight. The bank has signed a two-year deferred prosecution agreement with the Department of Justice and a nonprosecution agreement with New York.