Lloyds reaches $217 mn settlement with US Treasury

British banking entity Lloyds TSB Bank has reached a $217 million settlement with the US, related to transactions with countries, including Iran and Sudan, that are subject to American economic sanctions.

Lloyds has issues concerning its "intentional manipulation and deletion of information about US sanctioned parties in wire transfer instructions routed through third party banks located in the US", the Treasury Department has said.

Following the settlement with the US Treasury's Office of Foreign Assets Control (OFAC), the bank has agreed to shell out $217 million, the Treasury noted in a statement on Tuesday.

The amount would be covered by $350 million, which the firm had paid to the US related to similar charges earlier in 2009.

Firms coming under American regulations are barred from having business with parties which have US economic sanctions on them. Lloyds has good presence in the US.

"Lloyds routed at least 4,281 electronic fund transfers totalling nearly $37 million through third-party banks located in the US in apparent violation of the International Emergency Economic Powers Act and OFAC regulations related to Iran, Sudan, and Libya," the statement noted.

The violations happened from June 2003 through August 2006.