US Justice Department Confirms Billion-Dollar Fine on Société Générale for Sanctions Violations

After the French bank Société Générale announced in September that it had been fined by the US, American officials confirmed on Monday that the bank was fined $1.3 billion for violating US sanctions against Cuba, Iran, and other countries. According to a report by AFP on Monday, November 28, citing the US Department of Justice, this is the second-largest financial penalty imposed on a financial institution for violating US sanctions. Jeffrey Berman, a lawyer from Southern New York, stated: "Today, Société Générale admitted to the intentional violation of US sanctions laws and the long-term concealment of these violations, which resulted in the illegal transfer of billions of dollars through the US financial system." He also warned that "other banks should take note: enforcing US sanctions laws is a top priority for this agency and our partner agencies." The New York Department of Financial Services, involved in this case, announced that Société Générale conducted more than $12.5 billion in transactions with Iran in an inappropriate and non-transparent manner. According to the US Department of Justice, Société Générale also conducted over 2,500 transactions related to Cuba through US financial institutions from 2004 to 2010. This has resulted in nearly $13 billion that should have been blocked due to US sanctions or halted for inspection in accounts being paid out. Société Générale expressed regret over this situation and announced that it is currently hiring more agents to train its team to fully comply with sanctions laws. As the second-largest banking institution in France, Société Générale has been involved in several investigations and lawsuits in recent months. The bank also paid about €1 billion in 2017 due to allegations related to Libya, and following these issues, the deputy CEO of Société Générale reportedly resigned due to the management of these complaints.