Dutch bank 'International Netherlands Group' or we know popularly as ING BANK , a global financial institution offering retail banking, direct banking, commercial banking, investment banking, asset management, and insurance services in the global market, will pay $619 million to settle charges that it secretly moved billions of dollars through the US financial system on behalf of Cuban and Iranian customers, in violation of US sanctions.
ING intentionally deleted information about thousands of transactions that would have linked the money to sanctioned parties in Cuba, Iran, and other countries, the Treasury Department of ING said Tuesday.
The fine, a record for US sanctions violations, defuses multiple criminal and civil probes of ING’s practices between 2002 and 2007 that includes agreements, shield ING from further action by the Department of Justice, US Attorney for the District of Columbia, and the District Attorney for the County of New York, ING said.
The United States imposes financial sanctions on political enemies to hinder their access to the global financial system. The goal is to choke off banks and other sources of capital, limiting their economic growth and their ability to buy weapons, food, and other items available through global trade.
ING appears to have routed about $1.6 billion illegally through US banks, the Treasury said. The actions occurred within ING’s wholesale banking division, which executes transactions for other financial firms and helps them with financing.
ING was charged with the account of knowingly and willfully conspiring to violate two major sanctions laws, the International Emergency Economic Powers Act, which allows the President to regulate commerce in response to foreign threats; and the Trading with the Enemy Act, which restricts trade with Cuba.
The charges were pointed in a filing Tuesday in Federal Court for the District of Columbia. ING did not contest the charges, agreed to the filing, "and has accepted responsibility for its criminal conduct and that of its employees," the Justice Department said in a press release.
Jan Hommen, Chief Executive of ING Bank’s parent company ING Group, called the violations serious and unacceptable. The government’s filings "describe a very different ING than the company we’re all working so hard for today," he said. He also added that the ING has strengthened global risk controls since the illegal activity became known. Among other steps, it closed its Cuban office in 2007, created a central team focused on preventing and detecting money laundering, and added compliance staff.