Bank Fraud and Violations of International Sanctions Lead to Loss of $619 Million
Banks that violate international sanctions and commit fraud are the target of the Department of Justice and new whistleblower reward laws.  For more information on potential international bank fraud whistleblower rewards, please go to the following webpage 
     International Financial Services Whistleblowers and International Bank Fraud Whistleblowers.
U. S. Bureau of Industry and Security - DOJ Press Release - June 12, 2012
 ING BANK N.V. AGREES TO FORFEIT $619 MILLION FOR ILLEGAL TRANSACTIONS WITH CUBAN AND IRANIAN ENTITIES 
WASHINGTON – ING Bank N.V., a financial institution headquartered in  Amsterdam, has agreed to forfeit $619 million to the Justice Department  and the New York County District Attorney’s Office for conspiring to  violate the International Emergency Economic Powers Act (IEEPA) and the  Trading with the Enemy Act (TWEA) and for violating New York state laws  by illegally moving billions of dollars through the U.S. financial  system on behalf of sanctioned Cuban and Iranian entities.  The bank has  also entered into a parallel settlement agreement with the Treasury  Department’s Office of Foreign Assets Control (OFAC).
The announcement was made by Lisa Monaco, Assistant Attorney General  for National Security; Ronald C. Machen, U.S. Attorney for the District  of Columbia; Assistant Attorney General Lanny A. Breuer of the Criminal  Division; District Attorney Cyrus R. Vance Jr., of the New York County  District Attorney’s Office; James W. McJunkin, Assistant Director in  Charge of the FBI Washington Field Office; Richard Weber, Chief,  Internal Revenue Service (IRS) Criminal Investigation; and Adam J.  Szubin, Director of the Office of Foreign Assets Control.
A criminal information was filed today in federal court in the  District of Columbia charging ING Bank N.V. with one count of knowingly  and willfully conspiring to violate the IEEPA and TWEA.  ING Bank waived  the federal indictment, agreed to the filing of the information and has  accepted responsibility for its criminal conduct and that of its  employees.  ING Bank agreed to forfeit $619 million as part of the  deferred prosecution agreements reached with the Justice Department and  the New York County District Attorney’s Office. 
According to court documents, starting in the early 1990s and  continuing until 2007, ING Bank violated U.S. and New York state laws by  moving more than $2 billion illegally through the U.S. financial system  – via more than 20,000 transactions – on behalf of Cuban and Iranian  entities subject to U.S. economic sanctions.  ING Bank knowingly and  willfully engaged in this criminal conduct, which caused unaffiliated  U.S. financial institutions to process transactions that otherwise  should have been rejected, blocked or stopped for investigation under  regulations by OFAC relating to transactions involving sanctioned  countries and parties.
“The fine announced today is the largest ever against a bank in  connection with an investigation into U.S. sanctions violations and  related offenses and underscores the national security implications of  ING Bank’s criminal conduct.  For more than a decade, ING Bank helped  provide state sponsors of terror and other sanctioned entities with  access to the U.S. financial system, allowing them to move billions of  dollars through U.S. banks for illicit purchases and other activities,”  said Assistant Attorney General Monaco.  “I applaud the agents, analysts  and prosecutors who for years pursued this case.”
“Banks that try to skirt U.S. sanctions laws undermine the integrity  of our financial system and threaten our national security,” said U.S.  Attorney Machen.  “When banks place their loyalty to sanctioned clients  above their obligation to follow the law, we will hold them accountable.   On more than 20,000 occasions, ING intentionally manipulated financial  and trade transactions to remove references to Iran, Cuba and other  sanctioned countries and entities.  Today’s $619 million forfeiture –  the largest ever – holds ING accountable for its wrongdoing.”
“For years, ING Bank blatantly violated U.S. laws governing  transactions involving Cuba and Iran, and then used shell companies and  other deceptive measures to cover up its criminal conduct,” said  Assistant Attorney General Breuer.  “Today’s resolution reflects a  strong collaboration among federal and state law enforcement partners to  hold ING accountable.”
“Investigations of financial institutions, businesses and  individuals who violate U.S. sanctions by misusing banks in New York are  vitally important to national security and the integrity of our banking  system,” said New York County District Attorney Vance.  “These cases  give teeth to sanctions enforcement, send a strong message about the  need for transparency in international banking and ultimately contribute  to the fight against money laundering and terror financing.  I thank  our federal partners for their cooperation and assistance in pursuing  this investigation.”
“Today, ING Bank was held accountable for their illegal actions  involving the movement of more than $2 billion through the U.S.  financial system on behalf of Cuban and Iranian entities subject to U.S.  economic sanctions,” said FBI Assistant Director in Charge McJunkin.   “Investigations of this type are complicated and demand significant time  and dedication from agents, analysts and prosecutors.  In this case,  their steadfast tenacity brought this case through to today’s result,  and we will continue to pursue these matters in diligent fashion.”
“In today’s environment of increasingly sophisticated financial  markets, it’s critical that global institutions follow U.S. law,  including sanctions against other countries,” said IRS Criminal  Investigation Chief Weber.  “The IRS is proud to share its  world-renowned financial investigative expertise in this and other  complex financial investigations.  Creating new strategies and models of  cooperation among our law enforcement partners to ensure international  financial compliance is a top-priority of the IRS.” 
“Our sanctions laws reflect core U.S. national security and foreign  policy interests and OFAC polices them aggressively.  Today's historic  settlement should serve as a clear warning to anyone who would consider  profiting by evading U.S. sanctions,” said OFAC Director Szubin.  “We  commend our federal and state colleagues for their work on this  important investigation.”
The Scheme
According to court documents, ING Bank committed its criminal  conduct by, among other things, processing payments for ING Bank’s Cuban  banking operations through its branch in CuraƧao on behalf of Cuban  customers without reference to the payments’ origin, and by providing  U.S. dollar trade finance services to sanctioned entities through  misleading payment messages, shell companies and the misuse of ING  Bank’s internal suspense account.
Furthermore, ING Bank eliminated payment data that would have  revealed the involvement of sanctioned countries and entities, including  Cuba and Iran; advised sanctioned clients on how to conceal their  involvement in U.S. dollar transactions; fabricated ING Bank endorsement  stamps for two Cuban banks to fraudulently process U.S. dollar  travelers’ checks; and threatened to punish certain employees if they  failed to take specified steps to remove references to sanctioned  entities in payment messages. 
According to court documents, this conduct occurred in various  business units in ING Bank’s wholesale banking division and in locations  around the world with the knowledge, approval and encouragement of  senior corporate managers and legal and compliance departments.  Over  the years, several ING Bank employees raised concerns to management  about the bank’s sanctions violations.  However, no action was taken.
For decades, the United States has employed sanctions and embargoes  on Iran and Cuba.  Financial transactions conducted by wire on behalf of  Iranian or Cuban financial institutions have been subject to these U.S.  sanctions.  The TWEA prohibits U.S. persons from engaging in financial  transactions involving or benefiting Cuba or Cuban nationals and  prohibits attempts to evade or avoid these restrictions.  IEEPA makes it  a crime to willfully attempt to commit, conspire to commit, or aid and  abet in the commission of any violations of the Iranian Transaction  Regulations, which prohibit the exportation of any services from the  United States to Iran and any attempts to evade or avoid these  restrictions.  IEEPA and TWEA regulations are administered by OFAC.
The Investigation
 The Justice Department’s investigation into ING Bank arose out of  ongoing investigations into the illegal export of goods from the United  States to sanctioned countries, including Iran.  For instance, ING  processed payments on behalf of one customer, Aviation Services  International B.V. (ASI), a Dutch aviation company which was the subject  of a U.S. Commerce Department-initiated criminal investigation, through  the United States for trade services relating to the procurement by ASI  of dual-use U.S. aviation parts for ASI’s Iranian clients.  The ING  Bank investigation also resulted in part from a criminal referral from  OFAC, which was conducting its own probe of ING Bank.
ING Bank’s forfeiture of $309.5 million to the United States and  $309.5 million to the New York County District Attorney’s Office will  settle forfeiture claims by the Department of Justice and the state of  New York.  In light of the bank’s remedial actions to date and its  willingness to acknowledge responsibility for its actions, the  Department will recommend the dismissal of the information in 18 months,  provided ING Bank fully cooperates with, and abides by, the terms of  the deferred prosecution agreement.
OFAC’s settlement agreement with ING deems the bank’s obligations to  pay a civil settlement amount of $619 million to be satisfied by its  payment of an equal amount to the Justice Department and the state of  New York.  OFAC’s settlement agreement further requires the bank to  conduct a review of its policies and procedures and their  implementation, taking a risk-based sampling of U.S. dollar payments, to  ensure that its OFAC compliance program is functioning effectively to  detect, correct and report apparent sanctions violations to OFAC.
The case was prosecuted by Trial Attorney Jonathan C. Poling of the  Justice Department’s National Security Division; Assistant U.S.  Attorneys Ann H. Petalas and George P. Varghese, of the National  Security Section of the U.S. Attorney’s Office for the District of  Columbia; and Trial Attorney Matthew Klecka of the Criminal Division’s  Asset Forfeiture and Money Laundering Section. 
The case was investigated by the FBI’s Washington Field Office and  the IRS-Criminal Investigation’s Washington Field Division, with  assistance from the Treasury Department’s OFAC and the Commerce  Department’s Bureau of Industry and Security.