Swiss bank UBS pays 100-million-dollar fine for abusing Fed account

0 Comments | AFP, May, 2004

WASHINGTON (AFP) — Swiss banking giant UBS AG will pay 100 million dollars for abusing a US Federal Reserve account to engage in dealings with Cuba, Libya, Iran and Yugoslavia, the Fed said.

UBS agreed to the civil penalty without admitting to any allegations, the Federal Reserve said in a statement.

The Swiss group had been given a Federal Reserve contract to manage an "extended custodial inventory facility," to help distribute and repatriate dollar banknotes.

But UBS officials secretly broke the terms of the deal with the Fed by engaging in dollar banknote transactions with countries subject to US sanctions: Cuba, Libya, Iran and Yugoslavia.

"In violation of law, certain former officers and employees of UBS engaged in intentional acts aimed at...