New York Regulator Sanctions PwC for Misconduct in Consulting Role

On August 19, 2014, Benjamin M. Lawsky, Superintendent of Financial Services at the New York State Department of Financial Services (NYDFS), announced that PricewaterhouseCoopers (“PwC”) Regulatory Advisory Services will be suspended for 24 months from accepting consulting engagements at financial institutions regulated by the NYDFS; make a $25 million payment to the State of New York; and implement a series of reforms after improperly changing a report submitted to regulators regarding sanctions and anti-money laundering compliance at the Bank of Tokyo Mitsubishi (BTMU).  PwC removed a warning in an ostensibly “objective” report to regulators surrounding the Bank’s scheme to falsify wire transfer information for Iran, Sudan, and other sanctioned entities.