For Violation of Anti-Money Laundering Law

The U.S. Attorney’s Office and the New York State Department of Financial Services imposed a fine of US$86 million on Industrial Bank of Korea (IBK) for its violation of the U.S. anti-money laundering law.

From February to July 2011, a South Korean trading company in intermediate trade with Iran conducted overseas remittance of the U.S. dollar after receiving export proceeds by using a won payment account in the bank. The Public Prosecutor’s Office of Korea detected a false transaction of the CEO of the company in January 2013, and he was arrested and charged with a violation of the Foreign Exchange Transactions Act. According to the Public Prosecutor’s Office, IBK employees were not aware of the fact and did not conspire with him at that time.

The U.S. Attorney’s Office conducted investigations regarding the transactions of the company and then suspended the indictment of IBK New York as a financial agent through the recent agreement on the fine.

IBK must pay US$51 million to the U.S. Attorney’s Office and US$35 million to the New York State Department of Financial Services.

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