Lloyds to pay $217 million in Treasury settlement

AP News
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Posted: Dec 22, 2009 11:50 AM

The Treasury Department says Lloyds TSB Bank PLC has agreed to pay $217 million to settle claims that the bank manipulated money transfers to allow customers to skirt U.S. financial sanctions against Iran and other countries.

The department said in a statement Tuesday the alleged violations stemmed from the mid-1990s when Lloyds, with the knowledge of its Iranian bank customers, altered or deleted information in wire transfer instructions.

Lloyds routed at least 4,281 wire transfers worth nearly $37 million through third-party banks in the U.S. between June 2003 and August 2006. The department said that was in violation of regulations related to Iran, Sudan, and Libya.

Earlier this year, Lloyds agreed to forfeit $350 million for the same pattern of conduct, the Treasury statement said.