US-based financial institution, State Street Bank, has agreed to pay a settlement of $7.5 million for allegedly violating Russia- and Ukraine-related sanctions between 2016 and 2020. The Office of Foreign Assets Control (OFAC) of the US Treasury made this announcement in its statement.
According to the document, State Street Bank and its subsidiary, Charles River Systems, have agreed to pay a sum of $7,452,501 in order to resolve their potential civil liability for apparent violations of OFAC’s Ukraine-/Russia-Related Sanctions Regulations. The statement indicates that the case involves at least 38 instances where invoices were “redated or reissued” on behalf of customers who are said to be subjected to sanctions.
The 38 apparent violations occurred between 2016 and 2020, and involved invoices totaling approximately $1,270,456,” OFAC stated in the announcement. The settlement amount reflects OFAC’s determination that the alleged violations were egregious and not voluntarily self-disclosed, according to the document.
Despite the violations, State Street Bank cooperated with the investigation conducted by OFAC and implemented remedial measures to rectify the situation. These measures include improving its internal compliance program to ensure adherence to all sanctions imposed by OFAC in the future. The bank’s cooperation and commitment to resolving the issue were noted in the statement as well, further emphasizing its efforts to address any potential violations of US sanctions.