Israel Discount Bank’s (IDB) New York branch managed Iranian accounts and transferred funds to citizens of the Islamic Republic, according to the bank’s 2007 quarterly report, published on Monday.
“The bank notified the Office of Foreign Assets Control (OFAC) of the transactions and hired consultants to examine the matter,” the bank said in a statement.
“An attorney hired to assess the issue said the bank could be fined as much as a million dollars.”
Last month Matthew Bronfman,
the controlling shareholder at IDB, resigned from his post as chairman of the Discount Bank Corp and from the board of the bank's New York branch over alleged irregularities.
In 2005 Israel Discount Bank of New York agreed to pay up to $25 million to settle state and federal claims that it allowed illegal Brazilian money transmitters to move $2.2 billion through its offices during the previous five years.
AP contributed to the report
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