Societe Generale Fined For Violations Of US Sanctions

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Societe Generale, a French banking giant,has agreed to pay the authorities of the United Ststs of America $1.3 billion (£1 billion) in order to settle investigations into its handling dollar transaction alleging that it violated US sanctions on Iran, Cuba, and other countries.

US authorities said that the bank processed billions of dollars in illegal transactions to parties in nations that are under US sanctions, including Sudan, Iran, Libya, and Cuba.

Societe Generale said that the penalties would not have an effect on the results of the bank for this year and would be paid from a pot that was set aside for disputes.

In a separate agreement, the bank will also pay a penalty amounting to $95 million relating to its anti-money-laundering (AML) compliance programme.

Frederic Oudea, the chief executive of the bank, stated: “We acknowledge and regret the shortcomings that were identified in these settlements, and have cooperated with the U.S. Authorities to resolve these matters.”

He added: “Societe Generale has already taken a number of significant steps in recent years and dedicated substantial resources to enhance its sanctions and AML compliance programmes.”

He continued: “These resolutions, following on the heels of the resolution of other investigations earlier this year, allow the Bank to close a chapter on our most important historical disputes.”

The fines were issued by the U.S. Department of Justice, Federal Reserve, the New York County District Attorney’s Office, the New York Department of Financial Services, and the U.S. Treasury’s Office of Foreign Assets Control.

The bank is informally known as SocGen. It has been dogged for more than a year by a series of costly legal disputes. It said that the last case that remained to be settled was the one that is related to dollar transfers that were made on behalf of entities in countries that are subject to the U.S. economic sanctions.