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ING to pay record $619 million fine over Cuba

WASHINGTON (MarketWatch) -- Dutch bank ING on Tuesday agreed to pay a record $619 million fine for allegedly routing more than $1.6 billion of illicit transactions to Cuba, Iran and other countries through the United States.

ING's (ING) (INGA) wholesale banking division in the island of Curacao, at the instruction of senior bank officials, began omitting references to Cuba in payment messages sent to the U.S., in order to prevent U.S. financial firms from identifying prohibited transactions, the Treasury Department said Tuesday. ING units in France, Belgium and the Netherlands also removed and omitted such information, the agency said.

In addition, ING's senior management in France authorized providing fraudulent endorsement stamps for use by Cuban institutions in processing travelers checks.

Payments made on behalf of U.S.-sanctioned Cuban clients were routed through other corporate clients, and an ING Romanian branch omitted details from a letter of credit involving a U.S. financial institution to finance the export of U.S.-origin goods to Iran.

ING said it's also entered into a deferred prosecution agreement with the Justice Department, the U.S. Attorney's Office for the District of Columbia and the District Attorney of the County of New York.

ING took a provision in the first quarter to cover the fine. Half the fine will go to New York County and the rest will go to federal authorities.

The U.S. government restricts certain countries, including Iran, Sudan, Cuba and Burma, as well as certain individuals and entities, from accessing the U.S. banking system.