Sweeping actions against Italian bank, U.S. subsidiaries, for sanctions violations results in $158 million fine

An Italian bank and two of its U.S. subsidiaries face a $158 million fine for unsafe and unsound practices related to inadequate sanctions controls and supervision of the subsidiaries.

The Federal Reserve said Monday in a release, that UniCredit, S.p.A., a foreign bank operating in the United States and headquartered in Italy and its two subsidiaries are also required to improve their sanctions compliance program, including procedures to address specific vulnerabilities identified by the Fed.

In a separate release, the Treasury Department (which, through its Office of Foreign Assets Control (OFAC), worked with the Fed in fining the banks) said it had reached three separate settlements – for $611 million – with three UniCredit group banks: UniCredit Bank AG in Germany, UniCredit Bank Austria AG in Austria, and UniCredit S.p.A. in Italy. Treasury said the settlements resolve OFAC investigations in apparent violations of a number of U.S. sanctions programs, “including those related to weapons of mass-destruction proliferation.”

The two agencies also noted that the combined penalties to be paid by the UniCredit banks (including those alreaded outlined, and others) total approximately $1.3 billion.

Federal Reserve fines UniCredit $158 million for firm’s unsafe and unsound practices related to inadequate sanctions controls and supervision of subsidiary banks

U.S. Treasury Department Announces Settlement with UniCredit Group Banks

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