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UPDATE: ING Groep (ING) Agrees to $619M Payment to Settle Probe into Iranian Sanctions

June 12, 2012 12:03 PM EDT Send to a Friend
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(Updated - June 12, 2012 12:05 PM EDT)

ING Groep's (NYSE: ING) Bank announced today that it has entered into a Settlement Agreement with U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and Deferred Prosecution Agreements with the Department of Justice, the United States Attorney's Office for the District of Columbia and the District Attorney of the County of New York (together the "U.S. Authorities") in relation to the investigation by those agencies into compliance with U.S.
economic sanctions and U.S. dollar payment practices until 2007.

Under the terms of the Deferred Prosecution Agreements, no further action will be taken against ING Bank if it meets the conditions set forth in the agreements. As part of the settlement, ING Bank has agreed to pay a total penalty of USD 619 million. As announced on 9 May 2012, ING Bank took a provision in the first quarter of 2012 to cover this issue.

ING Bank previously disclosed in its annual reports and other public filings that it was in discussions with authorities concerning compliance with OFAC requirements in relation to transactions executed by Commercial Banking. Since 2006, prior to receiving inquiries from the U.S. Authorities, ING initiated two extensive internal investigations. Much of the findings, which were voluntarily disclosed to OFAC, focused on conduct relating to transactions associated with ING Bank's Cuban operations, as well as business with counterparties in other OFAC sanctioned countries. The discussions with authorities on these issues did not involve ING's Insurance and Investment Management operations, nor Retail Banking or ING Direct.

ING Bank has cooperated closely and constructively with regulators and other authorities throughout this process. The U.S. Authorities have recognized ING's substantial cooperation in the resolution and ING's efforts and commitment to continuously enhance compliance within the organisation.




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