French bank Societe Generale has agreed to pay a penalty of $1.3bn to settle the anti money laundering probes in the US.
The bank added that the fine will not impact its results this year.
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Societe Generale settlement details
Majority of the penalty imposed on the bank was for handling of US dollar transactions with Cuba, breaching US sanctions against the country.
The remaining fine was imposed for handling transactions will other countries subjected to sanctions such as Iran.
The penalty was issued by the Federal Reserve, New York State Department of Financial Services (DFS) and Office of Foreign Assets Control of the US Department of the Treasury.
The US Attorney’s Office of the Southern District of New York (SDNY) and the New York County District Attorney’s Office (DANY) were also part of this settlement.
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By GlobalDataAdditionally, Societe Generale agreed to pay another $95m to DFS over the deficiencies in the bank’s money-laundering compliance programme.
As a part of the overall arrangement, Societe Generale entered into deferred prosecution agreements with SDNY and DANY.
According to the agreements, the bank will not be prosecuted after a three-year probation period, if it adheres to all terms.
The French bank also agreed to improve its compliance programme to prevent such violations of US economic sanctions regulations.
Additionally, Societe Generale agreed to retain an independent consultant to assess the progress of subsequent implementation of compliance programme enhancements.
Commenting on the settlement, Societe Generale CEO Frédéric Oudéa said: “Societe Generale has already taken a number of significant steps in recent years and dedicated substantial resources to enhance its sanctions and AML compliance programs.
“More broadly, these resolutions, following on the heels of the resolution of other investigations earlier this year, allow the Bank to close a chapter on our most important historical disputes.
