Lloyds TSB Bank has announced that it has reached a settlement for US$350 million with both the United States Department of Justice and the New York County District Attorney’s Office in relation to financial transfers that violated US sanctions.

The US Justice Department said Lloyds TSB had acknowledged “criminal conduct” and agreed to forfeit the funds in return for an end to its investigation.

Prosecutors said the bank faked records so clients in Iran, Libya and Sudan could do business with US institutions. (BBC News)

Lloyds TSB disclosed in its interim results for the first half of 2008 that it was in discussions regarding a resolution of the investigation and that it had provided £180 million in respect of this matter

The Office of Foreign Assets Control (OFAC) has confirmed to Lloyds TSB that the amount paid to the United States Department of Justice and the New York County District Attorney’s Office will be credited towards satisfying any penalty it imposes.