Société Général S.A. paying $2.3B in OFAC and BSA penalties

The U.S. Attorney's Office for the Southern District of New York announced Monday that criminal charges had been brought against Société Général S.A. (SG) for conspiring to violate the Trading with the Enemy Act (“TWEA”) and the Cuban Asset Control Regulations promulgated thereunder (the “Cuban Regulations”) for SG’s role in processing billions of dollars of U.S. dollar transactions using the U.S. financial system, in connection with credit facilities involving Cuba (the “Cuban Credit Facilities”). Also announced was SG's agreement to accept responsibility for its conduct by stipulating to the accuracy of an extensive Statement of Facts, pay penalties totaling $1,340,165,000 to federal and state prosecutors and regulators, refrain from all future criminal conduct, and implement remedial measures as required by its regulators. Assuming SG’s continued compliance with the Agreement, the Government has agreed to defer prosecution for a period of three years, after which time the Government will seek to dismiss the charges. The $1.34 billion in penalties represents the second largest penalty ever imposed on a financial institution for violations of U.S. economic sanctions.

SG agreed to forfeit $717.2 million in a civil forfeiture action as part of the collective penalties. A separate payment of $54 million will be made to the Office of Foreign Assets Control. Additional payments of $162.8 million to the New York County District Attorney's Office, $81.3 million to the Federal Reserve Board, and $325 million to the New York State Department of Financial Services (NYDFS).

SG and its New York branch also agreed to pay NYDFS $95 million (over and above the OFAC violations settlement) for BSA/AML violations.