Lloyds TSB settles US sanctions case with $350 million

by Gill Montia

Story link: Lloyds TSB settles US sanctions case with $350 million

Lloyds TSB has agreed a settlement of $350 million (£231 million) in a case brought in the US over cash transfers relating to clients resident in Iran, Libya and Sudan.

According to reports, the bank has acknowledged to the US Justice Department that it has acted illegally and payment of the agreed sum will bring an end to investigations.

Lloyds had been accused of falsifying records, allowing clients in Iran, Libya and Sudan to conduct business with US institutions, despite the countries being subject to sanctions aimed at preventing the funding of terrorists outfits.

Between 1995 and 2007, transfers were made where information such as customer names, bank names and addresses were removed, in a process known as “stripping”.

The group apparently facilitated the movement of hundreds of millions of dollars involving banned countries, although sanctions against Libya were lifted in 2004.

Lloyds has stated that it has cooperated fully with US authorities and affirmed that it is committed to running its business with the highest levels of integrity and regulatory compliance, across all its operations.

In 2008, it set aside £180 million against a possible settlement but the final figure will be around £231 million, owing to shifts in exchange rate in recent months.