Unicredit Settlement Agreement

5. For several years, including 2012, Bank Austria processed transactions through U.S. financial institutions involving countries, entities or individuals subject to OFAC-managed sanctions programs. Bank Austria appears to have engaged in conduct that removed, omitted or undisclosed the dismissals or the interest or participation of sanctioned parties in payment messages in US dollars (USD) sent through US financial institutions. Specific payment practices used by the Bank to deal with sanctions in the United States or through the United States include the use of the Society for Worldwide interbank Financial Telecomnunication (“SWIFT) Message Type (MT) 202, which includes payment information that did not refer to the participation of sanctioned parties or jurisdictions, and the enforcement of payments related to commercial financing agreements that do not identify the participation of sanctioned parties or countries subject to the programmes of sanctions managed by OFAC. 31 C.F.R. Part 560; Sudanese Sanctions Regulations, 31 C.F.R. Part 538; Burmese Sanctions Regulations, 31 C.F.R. Part 537; Syrian Sanctions Regulations, 31 C.F.R. Part 542; and Cuban Assets Control Regulations, 31 C.F.R. Part 515. UniCredit`s decisions were one of the heaviest penalties ever imposed on non-U.S.

companies. Financial institution for violations of U.S. economic sanctions. UniCredit Group`s agreements with OFAC also include 23 compliance obligations (see Appendix A), as has been the recent practice of OFAC in its comparisons with financial and non-financial institutions. These compliance obligations are consistent with the “labels of an effective compliance program” announced last December by the Undersecretary of State for Terrorism and Financial Intelligence Sigal Mandelker[46] and include commitments in five thematic areas: (i) management`s obligation to assess risk, (iii) internal controls, (iv) tests and audits and (v) training , and require annual certifications to meet these commitments over a five-year period. DFS fined UniCredit Group $405 million for uncertain and unsymlar business activities, in violation of New York Banking Act No. 44 and by enabling it to maintain an effective and compliant OFAC compliance program, in violation of N.Y..C.R.R. [37] The DFS stated that the offences amounted to billions of dollars , that New York had not made opaque transactions and its customers in countries where U.S. sanctions were applied, including Cuba, Iran, Libya, Myanmar and Sudan. [38] DFS explained that uniCredit Group had initiated payments and transfer transactions involving thousands of usd transactions. The DFS also stated that the UniCredit Group had carried out transactions on behalf of Sepah Bank, in addition to the IRISL business, which was also on the SDN list in January 2007.

[39] The DFS also called on UniCredit Group to adopt a strengthened sanctions compliance program, similar to that of THEAC and the Federal Reserve Board, including: comprehensive assessment of sanctions risks, enhanced sanctions compliance policies, the establishment of a global emergency sanctions compliance number and enhanced training on sanctions compliance issues. [40] UCB AG also entered into an admission of guilt and a fine of approximately $316 million with DANY. [42] UCB AG pleaded guilty to falsifying first-degree commercial documents and conspiracy to the fifth degree for transporting hundreds of millions of dollars on behalf of county and bank-sanctioned facilities in Manhattan.