Mashreqbank Settles with OFAC, Federal Reserve, and New York Department of Financial Services

On November 9, 2021, Mashreqbank entered into joint settlements with the Office of Foreign Assets Control (OFAC), the Federal Reserve Bank (FRB), and the New York State Department of Financial Services (DFS).  Mashreqbank agreed to pay $100 million in penalties pursuant to a Consent Order with the DFS.  It agreed to make significant changes in its compliance functions.  The wrongdoing arose from illegal and non-transparent payments related to Sudan that Mashreqbank processed through financial institutions in New York State, including Mashreqbank’s own New York Branch, between 2005 and 2014.