View Full Version : Lloyds fined $350,000,000 for money laundering

11th Jan 2009, 03:16
Lloyds TSB was just fined $350,000,000 (yes, three hundred fifty million) dollars for money laundering - articles in the NY Times, Bloomberg, probably FT (haven't seen it yet).

They've been wiring money in and out of Iran ($300,000,000), Sudan ($20,000,000) and Somalia ($???,???,???) in direct, deliberate and blatant violation of a whole slew of US Treasury Department laws about trading with the enemy - and before you say that US law doesn't apply overseas (and often it doesn't) these transactions went to and from the USA, so the law definitely applies.

The way they did it was to deliberately "scrub" all identifying information from the transactions so the US Treasury and OFAC (Office of Foreign Asset Control) wouldn't know that proscribed countries and known front companies were involved.

Lloyds even admitted to having an internal training manual which told how to scrub the identifying information from the wire transfers so the US authorities wouldn't find them and stop them.

At a press conference the question was asked if any of this money went to terrorists, and the answer was "That's the whole point of having identification on the transactions, we want to block their access to the money. At this point, we don't know WHO got the money."

This has been going on from about 1998 through early 2007. (Yes, even after 9/11, which SHOULD have been some kind of a wake-up call, even to the greediest and dumbest of stupid bankers.) Basically, their fees for moving 1/3 of a billion dollars of questionably sourced money to anonymous recipients who DID have something to hide (or they wouldn't have needed anonymous transfers) was probably 7 to 10 million dollars in wire fees.

So for a paltry $7,000,000 or so, spread over nine years, Lloyds TSB deliberately put millions of people at risk - and who is to say some of these funds didn't go to terrorists who will use them to fund planned attacks in the UK as well as the US? Honest people and small businesses can't get a dime from the banks, but terrorists seem to have no problem at all. Lloyds TSB has been giving them illegal access to the world's banking system for NINE YEARS.

Way to go, Lloyds. Nice to know who our friends are.

11th Jan 2009, 03:46
The tip of a large iceberg I think.

Way to go, Lloyds. Nice to know who our friends are.

Like most people, you probably have around twelve real friends; cherish them, and trust no-one else!

Sir Lee Bīstard
11th Jan 2009, 10:35
Now this cannot be the same lot that GB and his dummy Darling were so keen to take over HBOS? No of course not -different lot entirely:confused:

Low Flier
11th Jan 2009, 12:35
When the US gumment was funnelling billions of dollars into the mujahedeen in the 1980s why didn't they use Barclays?

Too obvious?