Lloyds TSB to take hit over U.S. breach

Home

Members

Services

News & Info

Entertainment

Help

Content Starts Here

Lloyds TSB to take hit over U.S. breach

06/06/2008 11:13

LONDON (Reuters) - Lloyds TSB will take a 180 million pound hit in the first half of the year as it nears a settlement with U.S. authorities over payments to blacklisted countries including Iran and Cuba.

In a statement filed with its 2007 annual report to U.S. authorities, Lloyds said it was providing information to the Office of Foreign Assets Control, the U.S. Department of Justice and the New York County District Attorney’s Office over "certain historic U.S. dollar payments".

The bank said in the filing it was involved in "ongoing discussions", adding the talks had advanced towards resolution.

It said it did not expect the final payment to have a material adverse effect on its financial position.

U.S. authorities have increased scrutiny over banks operating through the United States as part of efforts to fight money laundering and terrorist financing and to enforce economic sanctions against countries such as Sudan.

They have for months been investigating several large European institutions.

Barclays said earlier this year it had been questioned over dollar payments involving people or firms from blacklisted states and processed through its New York branch.

Lloyds declined to comment on Friday on the details of the investigation.

(Reporting by Clara Ferreira-Marques; Editing by Louise Ireland and David Holmes)

Page: 1 | 2