Thursday 11, October 2018 by Kudakwashe

Mashreq reaches $40 million settlement with New York regulator


A consent order from the New York State Department of Financial Services stated that Mashreq’s New York branch failed to maintain an effective and compliant anti-money laundering program.

Mashreq has agreed to pay $40 million to the New York regulator for breaches in its anti-money laundering controls and gaps in its US sanctions compliance programme, reported Reuters.

The regulator also found out that Mashreq and its New York branch failed to maintain and make available at the branch appropriate books, accounts and records of transactions detailing investigations into any possible US sanction breaches.

However, the consent order did not specify any willful violation.

In a statement, the lender confirmed the agreement and stated that it remains committed to maintaining and enhancing its compliance with regulatory expectations.

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