British bank pays $327 million to settle Iran laundering claims

A British bank has agreed to pay $327 million to settle charges it helped Iran hide funds from regulators in violation of U.S. money-laundering laws.

Federal and local regulators announced Monday that the bank agreed to settle after facing claims in August that it used roughly 60,000 transactions over a decade to help funnel money for Iran and other sanctioned nations, including Burma, Libya and Sudan. The bank previously had paid out $340 million to New York financial regulators to settle those initial charges that it was laundering billions for Iran.

This new settlement marks the end of a broad investigation by federal and local watchdogs, including the Justice Department, Treasury Department, Federal Reserve and the Manhattan district attorney.

Under the settlement, the bank will pay $132 million to the Treasury Department, and another $100 million to the Federal Reserve.

“Investigations of financial institutions, businesses, and individuals who violate U.S. sanctions by misusing banks in New York are vitally important to national security and the integrity of our banking system," said New York District Attorney Cyrus Vance. "These cases give teeth to sanctions enforcement, send a strong message about the need for transparency in international banking, and ultimately contribute to the fight against money laundering and terror financing."

According to the Treasury Department, the bank's London office and Dubai branch used payment tactics that interfered with U.S. economic sanctions, such as omitting references to sanctioned locations or entities from messages sent to U.S. banks. Obscuring that information allowed the bank to move "millions" through the U.S. financial system in spite of the sanctions.

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