PARIS (dpa-AFX) - French lender Societe Generale SA (SCGLF.PK, SCGLY.PK) agreed to pay total penalties of more than $1.3 billion as part of resolution with Federal and State Prosecutors and Regulators, the United States Attorney for the Southern District of New York said.
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced criminal charges against Société Générale S.A consisting of a one-count felony information charging Societe Generale with conspiring to violate the Trading with the Enemy Act or 'TWEA' and the Cuban Asset Control Regulations promulgated thereunder for Societe Generale's role in processing billions of dollars of U.S. dollar transactions using the U.S. financial system, in connection with credit facilities involving Cuba.
Berman also announced an agreement under which Societe Generale agreed to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay penalties totaling $1.34 billion to federal and state prosecutors and regulators, refrain from all future criminal conduct, and implement remedial measures as required by its regulators.
Assuming Societe Generale's continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of three years, after which time the Government will seek to dismiss the charges.
Separately, Société Générale confirmed that it agreed to pay penalties totaling approximately $1.3 billionto the U.S. Authorities. This amount is entirely covered by the provision for disputes booked in Société Générale's accounts. These agreements will not have an additional impact on the Bank's results for 2018.
Under the terms of these agreements, Société Générale has agreed to pay penalties totaling approximately $1.3 billion to the U.S. Authorities, including $53.9 million to OFAC, $717.2 million to the U.S Attorney's Office of the Southern District of New York , $162.8 million to the New York County District Attorney's Office, $81.3 million to the Federal Reserve, and $325 million to the New York State Department of Financial Services.
In addition, the Bank has agreed to a Consent Order with DFS relating to components of the Bank's anti-money-laundering ('AML') compliance program in the New York Branch. The Consent Order requires the Bank to pay a civil money penalty of $95 million in light of deficiencies noted by DFS, which amount is likewise entirely covered by the provision for disputes booked in Société Générale's accounts. The Consent Order requires the Bank to continue a series of enhancements to its New York branch's AML compliance program. After a period of 18 months, an independent consultant will conduct an assessment of the Branch's progress on the implementation of its AML compliance program.
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