16 August 2017
visit www.avoka.com

PwC fined $25m for whitewashing bank's sanctions violations

19 August 2014  |  6313 views  |  0 Numbers

PricewaterhouseCoopers has been fined $25 million by New York State's financial watchdog after it sanitised a report for regulators into anti-money laundering at Bank of Tokyo-Mitsubishi UFJ (BTMU).

In addition to the fine, PwC's regulatory consultancy business has also been banned for two years from working for banks regulated by the New York State Department of Financial Services (NYDFS).

 

According to the NYDFS, under pressure from the BTMU, PwC removed a warning from what was supposed to be an objective report into how the Japanese bank falsified wire transfer data for Iran, Sudan and others.

 

During its review, carried out between 2007 and 2008, PwC found that BTMU had been telling employees to strip wire messages of information that would have triggered sanctions compliance alerts - a fact the bank had denied to regulators.

 

PwC initially put its findings in its report to regulators but removed them, under pressure from BTMU, and made several other alterations before submitting its final "sanitised" document.

 

The NYDFS has published parts of emails sent by a PwC director who led the firm's technology and data collection team at the time, which among other things, argue that to "raise an issue of data completeness at this point does not do anyone, especially the bank, any good".

 

Benjamin Lawsky, superintendent, financial services, New York State, says: "When bank executives pressure a consultant to whitewash a supposedly 'objective' report to regulators - and the consultant goes along with it - that can strike at the very heart of our system of prudential oversight."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

US sets sights on ECB's Target2 over Iran sanctions

US sets sights on ECB's Target2 over Iran sanctions

22 February 2013  |  5491 views  |  0 comments | 3 tweets
Standard Chartered set for $330m Iran sanctions settlement

Standard Chartered set for $330m Iran sanctions settlement

06 December 2012  |  4989 views  |  0 comments | 6 tweets | 2 linkedin
HSBC compliance head quits at US hearing

HSBC compliance head quits at US hearing

18 July 2012  |  6429 views  |  0 comments
Credit Suisse expects to pay $536m to settle US sanctions probe

Credit Suisse expects to pay $536m to settle US sanctions probe

16 December 2009  |  6199 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.niceactimize.comvisit www.worldpaymentsreport.com

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10118 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9459 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9247 views comments | 8 tweets | 15 linkedin
HSBC automates documentary trade processing with IBMHSBC automates documentary trade processin...
8315 views comments | 6 tweets | 21 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
7781 views comments | 1 tweets | 2 linkedin