Ofac Settlement Agreement Societe Generale

Deferred law enforcement agreements are subject to judicial authorization in the United States. Despite the commission of more than 1,000 monstrous sanctions violations – including the creation of documented procedures to circumvent US sanctions – Societe Generale obtained a significant mitigation credit and ultimately paid only 53% of the basic fines calculated by OFAC. Not only has Societe Generale submitted a voluntary disclosure and accepted the prescription of the statute of limitations (which increasingly appears to be an expectation of OfAC to secure cooperative loans), but it also appears to have conducted a wide-ranging internal investigation spanning several years and several areas of activity. In addition, the Bank appears to have made significant improvements to compliance at a significant financial cost (tripling its compliance budget). Societe Generale compares, points out that parties that voluntarily denounce violations of U.S. sanctions and collaborate with OFAC have a realistic expectation of securing a reasonable mitigation credit. In a statement, the bank said the fine was fully covered by the provision for disputes reserved in Societe Generale`s accounts and that the transaction would not have any additional impact on the 2018 result. The announcements by OFAC and SDNY regarding the transaction communications reflect a disagreement within the U.S. government as to whether Societe Generale has made its obvious violations public in time.

OFAC concluded that the Bank submitted a voluntary self-declaration of sanctions violations against Cuba, Sudan and Iran. Such disclosures reduce by 50% the maximum legal penalty for a monstrous offence. As part of a settlement agreement with U.S. authorities, SocGen will pay $717 million to the U.S. Department of Justice, $325 million to the NY Department of Financial Services, $163 million to the Manhattan District Attorney`s Office, $81 million to the U.S. Federal Reserve and $54 million to the U.S. Department of Foreign Assets Control (OFAC) of the U.S. Department of Finance. Societe Generale`s comparison shows that the enforcement of U.S.

sanctions is lively and good, despite enforcement measures below the average year until today.