OFAC ANNOUNCES SETTLEMENT AGREEMENT WITH SOCIETE GENERALE

On 19th November, OFAC announced an agreement whereby the French bank agreed to pay $53 million settle potential civil liability for apparent violations of US sanctions.  The settlement resolves OFAC’s investigation into Société Générale SA’s processing of transactions to or through the US or US financial institutions in a manner that removed, omitted, obscured, or otherwise failed to include references to OFAC-sanctioned parties in the information sent to US financial institutions that were involved in the transactions.

https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20181119_33.aspx

https://www.treasury.gov/resource-center/sanctions/CivPen/Documents/20181119_socgen_web.pdf

US FEDERAL RESERVE BOARD FINES SOCIÉTÉ GÉNÉRALE SA $81.3 MILLION FOR FIRM’S UNSAFE AND UNSOUND PRACTICES PRIMARILY RELATED TO VIOLATIONS OF US SANCTIONS AGAINST CUBA

https://www.federalreserve.gov/newsevents/pressreleases/enforcement20181119a.htm

The Bank has signed deferred prosecution agreements with the US Attorney’s Office of the Southern District of New York and the New York County District Attorney’s Office, which provide that, following a 3-year probation period, the Bank will not be prosecuted if it abides by the terms of the agreements, to which Société Générale is fully committed.  The deferred prosecution agreement with SDNY will be subject to court approval in the US.

In addition, the Bank has reached a separate agreement with the New York State Department of Financial Services relating to the Bank’s AML compliance programme in the New York Branch. The Bank has agreed to pay an additional penalty of $95 million in connection with this agreement, which amount is likewise entirely covered by the provision for disputes booked in Société Générale’s accounts.

Under the terms of all the agreements, Société Générale has agreed to pay penalties totalling approximately $1.3 billion to the US Authorities

https://globenewswire.com/news-release/2018/11/19/1653963/0/en/Société-Générale-reaches-agreements-with-U-S-authorities-to-resolve-U-S-economic-sanctions-and-AML-Investigations.html

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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