BNY to pay Russia in Money Laundering suit
On September 16, 2009, the Russian News and Information Agency RIA Novosti announced that Russia’s Finance Minister Alexei Kudrin said the Bank of New York will pay Russia’s customs authorities at least USD 14 million as an out-of-court settlement of a USD 22.5 billion money laundering lawsuit.
The Federal Customs Service had asked for the compensation from the Bank of New York (BNY) as it accused the bank of helping to transfer billions of USD in shadow imports to Russia in the late 1990s.
According to Kudrin, the US authorities had failed to prove similar money laundering charges against the bank, but BNY paid them USD 14 million in costs acknowledging its employees’ mistakes. He said, “The sides have come to an amicable settlement and agreed that some costs, amounting to no less than the sum paid to the US government should be paid”.
Kudrin’s statement was confirmed by Wall Street Journal report that cited people close to the talks with Russia’s customs service that court costs would be paid in the case.