August 17, 2005
JS-2684

Treasury Statement on Civil Penalty Imposed Against the
New York Branch of Arab Bank, plc

"The U.S. Department of the Treasury's Financial Crimes Enforcement Network and the Office of the Comptroller of the Currency today imposed a $24 million civil penalty on the New York branch of Arab Bank, plc, for systemic Bank Secrecy Act failures.

"The Bank Secrecy Act requires financial institutions doing business in the Unites States to implement robust anti-money laundering systems and controls tailored to their operations and the risks associated with them.  Such regimes are critical to protecting our financial system from the abuses of money laundering and terrorist financing.

"Financial institutions are critical partners in our efforts to ensure the integrity of the global financial system.  Today's action reflects the Department of the Treasury's resolve to ensure that this partnership is effective."