VTB Bank Reaches Agreement with U.S. Authorities Regarding Sanctions Violation

VTB Bank, one of Russia's largest banks, has reached an agreement with the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) to resolve allegations that the bank violated U.S. sanctions on Iran.

Under the terms of the agreement, VTB Bank will pay a $10 million civil penalty and implement a comprehensive sanctions compliance program. The bank admitted to processing transactions for Iranian entities that were subject to US sanctions. VTB Bank has also agreed to take steps to prevent future sanctions violations.

OFAC's investigation found that VTB Bank processed transactions through the U.S. financial system on behalf of Iranian entities that were subject to US sanctions. OFAC also determined that VTB Bank failed to implement adequate sanctions compliance controls.

The settlement agreement requires VTB Bank to implement a comprehensive sanctions compliance program designed to prevent future violations of US sanctions laws. The bank must also retain an independent compliance consultant to review its sanctions compliance program and provide an annual report to OFAC on the bank's compliance efforts.

"This settlement demonstrates OFAC's commitment to holding foreign financial institutions accountable for violating US sanctions laws," said OFAC Director Sigal Mandelker. "OFAC will continue to work with its partners around the world to ensure that US sanctions are enforced and that the integrity of the US financial system is protected."

The settlement agreement is a significant victory for OFAC and the US government. It sends a clear message that foreign financial institutions will be held accountable for violating US sanctions laws and demonstrates OFAC's commitment to preventing the circumvention of US sanctions.