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Barclays to Pay $298 Million in Foreign Bank Case

Barclays has agreed to pay $298 million over criminal allegations that it illegally engaged in financial transactions with banks in Cuba, Iran, Libya, Sudan and Burma, the Justice Department disclosed in court papers filed Monday.

A woman leaves a branch of Barclays Bank in central London, Monday, April 23, 2007. ABN Amro NV and Barclays PLC announced Monday they have agreed to merge, in the largest cross-border combination in European banking history. (AP Photo/Sang Tan)
Sang Tan
A woman leaves a branch of Barclays Bank in central London, Monday, April 23, 2007. ABN Amro NV and Barclays PLC announced Monday they have agreed to merge, in the largest cross-border combination in European banking history. (AP Photo/Sang Tan)

The countries are all under economic and trade sanctions by the U.S. government.

Barclays and the Justice Department entered into a deferred prosecution agreement that will delay any criminal proceedings for two years while Barclays demonstrates to federal prosecutors that it is complying with U.S. laws.

The bank was accused of violating the Trading with the Enemy Act and the International Emergency Economic Powers Act.

The bank will pay $149 million to the United States and an additional $149 million under an agreement with the Manhattan district attorney's office in New York.

According to the court papers, Barclays concealed the transactions that it carried out with banks in the sanctioned countries from 1995 to 2006.

The bank violated U.S. and New York state criminal laws by allowing the movement of hundreds of millions of dollars through the U.S. financial system on behalf of banks from Cuba, Iran, Libya, Sudan, and Burma, the court papers in the case stated.

The U.S. government and Barclays will present their proposed agreement to a federal judge for recommended approval.

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