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Lloyds TSB

Lloyds TSB

Industry: 
Banking
Value of USG Contracts: 
28
Symbol: 
NYSE:LYG
States: 
FL
NY
Country: 
UK
Sources: 

"Since 2009, the Justice Department, the Treasury Department and the Manhattan district attorney’s office, working largely in concert, have brought charges against five foreign banks, contending they moved billions of dollars through their American subsidiaries on behalf of Iran, Cuba and North Korea, sponsors of terrorism and drug cartels. The cases against the five banks all included deferred prosecution agreements and required the banks — ABN AmroBarclaysCredit Suisse, Lloyds and most recently ING — to forfeit a substantial amount of assets. The cases typically have not involved United States banks. Unlike foreign institutions, American banks were prohibited from originating or receiving such transactions from Iran. That enabled them to largely sidestep the conduct that has helped ensnare foreign banks." (New York Times, "Deutsche Bank’s Business With Sanctioned Nations Under Scrutiny," 8/17/12)

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"Lloyds TSB agreed to pay a $350 million fine to the United States government last year after an investigation found that the company had stripped information from transactions in order to channel Sudanese and Iranian money into the American banking system in violation of United States sanctions. Prior to the bank's decision to leave Iran in 2008, Lloyds received federal grants from the Farm Service Agency."  From 2000-2009, the company was the recipient of $20 million US federal funds.  They have withdrawn their investments in Iran.  (The New York Times, "Profiting from Iran, and the US," 3/6/2010)

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"Lloyds Banking Group PLC on Tuesday became the latest bank to reach a settlement with American authorities over the handling of funds for countries under U.S. sanctions such as Iran.  The U.S. Treasury's Office of Foreign Assets Control announced a $217 million settlement related to Lloyds's 'intentional manipulation and deletion' of information in wire-transfer instructions that were routed through third-party banks located in the U.S." (The Wall Street Journal, "Lloyds Settles U.S. Case Over Iranian Transactions," 12/23/09)

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“Evidence of Iran's efforts to acquire sensitive materials also is emerging from investigations by state and federal prosecutors in New York into whether a number of major Western banks illegally handled funds for Iran and deliberately hid Iranian transactions routed through the U.S….Documents detailing Iran's metals acquisition efforts are being reviewed by U.S. law-enforcement and intelligence officials, people involved in the matter said. Manhattan District Attorney Robert Morgenthau said he is conducting a broad inquiry into illegal transactions by Iran. Last week, Lloyds TSB of London agreed to pay $350 million to settle U.S. sanctions-busting charges with Mr. Morgenthau's office and the Justice Department. The bank admitted it violated U.S. law but said the practice has ceased. There are nine other banks that we think were doing this, said Mr. Morgenthau in an interview, including Barclays PLC of the U.K.  A Barclays spokesman had no comment beyond a prior disclosure confirming the inquiry. Other banks under scrutiny in the probe include Credit Suisse and Deutsche Bank, people with knowledge of the inquiries said." (The Wall Street Journal, "Fresh Clues of Iranian Nuclear Intrigue," 1/16/09)

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"Lloyds TSB has agreed to forfeit $350m (£231m) to law enforcement authorities in the US after admitting breaking ­international sanctions by secretly channelling Sudanese and Iranian money into the American banking system. In the biggest penalty ever levied for a breach of US sanctions, the British bank has accepted responsibility for criminal conduct in a case involving" (The Guardian, "Lloyds forfeits $350m for disguising origin of funds from Iran and Sudan," 1/10/09)

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"It also emerged at the end of March that three European banks--Barclays and Lloyds TSB, both of the UK, and Credit Suisse of Switzerland--face investigation by the US Justice Department and the New York district authorities over whether they purposely hid the origins or destinations of transactions in order to circumvent sanctions against Iran, Cuba, Sudan and Libya. The investigations follow a federal probe into a Dutch bank, ABN Amro, in 2005, after it was fined for obscuring references in wire transfers and processing payments involving Iran and Libya. The US Treasury Department said in a warning to financial institutions in March that banks in Iran disguised their involvement in proliferation and terrorism. Like many other European banks, Credit Suisse moved to cut ties with Iran at the end of 2005." (Economist Intelligence Units Country)

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