PARIS (Agefi-Dow Jones) – Societe Generale announced Monday it has agreed to pay penalties totaling about $ 1.3 billion (1.2 billion euros) to the US authorities to put an end to their investigations into US dollar transactions by the bank involving countries or persons subject to sanctions by the United States.
"This amount is fully covered by the provision for litigation recorded in the accounts of Societe Generale," said the institution in a statement. "These agreements will not have an additional impact on the bank's results in 2018," said Société Générale.
Virtually all the transactions identified in the agreements as having been carried out in violation of the US economic sanctions concerned Cuba, and proceeded from the same line of revolving credit granted in 2000, said Societe Generale. "The rest of the deal was with other countries under US economic sanctions, including Iran," the bank said.
In detail, Societe Generale will pay $ 53.9 million to the Office of Foreign Assets Control (Ofac), $ 717.2 million to the US Attorney's Office for the Southern District of New York (SDNY), 162, $ 8 million to the District Attorney's Office of New York County, $ 81.3 million to the Board of Governors of the Federal Reserve and the Reserve Bank of New York, and $ 325 million to the Department of Financial Services of New York. New York State (DFS). In a separate statement, the DFS said that the fine that will pay him Societe Generale deals with transactions with Iran, Sudan, Cuba and Libya carried out between 2003 and 2013.
Societe Generale has indicated that it has entered into restraint agreements with the U.S. Attorney's Office for the Southern District of New York and the District Attorney's Office of New York County. These agreements provide that, after a probationary period of three years, no proceedings will be brought against the group provided that it complies with the terms of the agreements, to which Societe Generale has committed without reservation, added the establishment.
In addition, Societe Generale has entered into a separate agreement with the New York State Department of Financial Services regarding the anti-money laundering program of its New York branch. As part of this agreement, the French bank will pay an additional penalty of 95 million dollars (82 million euros) also covered by the provision for litigation recorded in its accounts.
Societe Generale added that it has committed to strengthening the supervision of its compliance program on economic sanctions. The banking group has also agreed with the Board of Governors of the Federal Reserve to hire an independent consultant "in charge of assessing the progress of implementation of the strengthening of its compliance program".
-Eric Chalmet, Agefi-Dow Jones; 01 41 27 47 95; email@example.com ed: LBO
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November 19, 2018 13:34 ET (18:34 GMT)